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A Forex managed fund is a pool of investments that are managed/traded by experienced traders who have documented statistics of their trading funds’ returns. Here we are referring to Foreign Exchange or Currency trading.

Money is pooled together with other investors under a single account where the fund manager buys and sells currency pairs on behalf of the investors to hopefully generate a positive return.

The individual investors remain in control of any deposits or withdrawals they make into the fund whilst the fund manager handles all day-to-day trading and trade management.

Managed Forex Funds in Australia require an Australian Financial Services License (AFSL) to operate. This is a requirement from the Australian Securities and Investment Commission (ASIC). They oversee all financial institutions in Australia.

ACY Securities currently works with many Forex-managed funds both locally and internationally.

What types of fees does a managed fund charge?

1. Management Fee – this is often a monthly fee and remains consistent. It is calculated as a percentage of an individual investor’s total investment amount. This can fluctuate depending on the funds’ performance. For example, a managed fund may charge a 2% management fee. Every month, each individual investor will be charged 2% of their account balance.
2. Performance Fee – A monthly fee charged as a percentage of profits earned for each individual investor. This percentage is often reflective of the skill of the fund manager and can vary between managed funds. Usually seen anywhere between 12 – 30% of profits earned and charged monthly.

Also, there are your standard brokerage costs involved which are in line with the broker used by the managed fund. These trading costs are reflected within your account as each trade is transacted.

How do people get access to a forex-managed fund?

Research.

There are many ways people can access a forex-managed fund. This would vary according to each global region. Investors can get access to managed funds internationally by liaising with the relevant managed fund and opening a trading account with their selected broker.

ACY Securities conduct relevant due diligence on partnered fund managers to ensure managed funds are operating within their relevant compliance guidelines.

How can a trader start their own forex-managed fund?

This is a lot more difficult for individual traders and again varies significantly according to region.

In Australia, the trader would be required to acquire a valid Australian Financial Services License (AFSL).

How does a forex-managed fund work in terms of allocating trades to client accounts?

This depends largely upon the fund manager. Generally, a fund manager allocates trades on their master account (MAM account), which is then allocated to each client account.

• Lot Allocation (trade size)
• Percentage Allocation (of trade, account, or profit size)

ACY Securities supports fund managers across all allocation methods.

What is the most common trading platform used by forex fund managers?

The most widely used platforms for FX fund managers are MetaTrader 4 and Metatrader 5.

More specifically, they tend to use Meta FX Multi Account Manager (MAM). ACY provides both MT4 and MT5 trading platforms plus Meta FX for traders and fund managers.

This means you can get on with the business of analyzing the global markets and all the administration, payments, and platform support are taken care of.

Do all Forex brokers offer a forex-managed fund service?

Managed Forex Funds are not offered by a broker but by individuals and/or companies who will trade through that broker. Forex Brokers may or may not allow fund managers to trade on their platforms.

It is always best to check which Forex broker a fund manager uses, especially the brokerage fees. ACY Securities has always welcomed reputable fund managers (globally) to utilize their services in offering clients a low-cost trade environment with outstanding execution speeds.

What types of services does ACY provide a forex-managed fund?

ACY provides Fund Managers with access to MT4/MT5 & MetaFX platforms across one of the largest product offerings.

• Forex
• Indices
• Precious Metals
• Commodities
• Shares
• ETFs
• Cryptocurrencies

ACY also offers Fund Managers their own dedicated Institutional Business Manager, Real-Time reporting, and the social trading platform, Finlogix, for charting and financial widgets.

These features extend as a bespoke solution for Fund Managers.

How can a new fund establish a proven track record to give confidence to would-be investors?

Managed funds should publish their performances on their website and on websites that allow the full trading history to be accurately shown.

However, ACY offers all fund managers and traders to participate in the Trading Cup.

The Trading Cup is a one-year trading contest that allows individual traders or fund managers to showcase their trading performance to the world.

On top of the incredible prizes, you have the opportunity through your skill to get on the top 10 leaderboard, which is an incredible display of talent to potentially attract new traders to your fund.

Click here to find out more about the prizes and opportunities.

How can ACY Partners help you?

At ACY Partners, we can help you establish your Forex managed fund, so you can concentrate on trading and we handle the backend requirements.

No matter if you are based in South Africa, Vietnam, Australia, Malaysia, Indonesia, London, Germany, France, or Thailand, our team can help set up your managed fund service.

Why not jump on a call with our team today so we can get clear on your goals and expectations, and see if we can help you.

A white label broker is an ideal solution for a business that is looking at getting into the global markets through CFDs, by setting up their own Forex brokerage but does not have the infrastructure, capital requirements, contacts, or time to do this on their own.

For those looking to establish their brand as a Forex broker, a white label solution allows you to take advantage of an established broker and leverage their turnkey solutions.

This white label agreement between you and the white label broker, allows you to market and brand your company, using the infrastructure and established relationships that they have built over time.

Benefits of becoming a Forex White Label

1. You keep the relationship with your clients

One of the main benefits of moving to the next level of becoming a Forex white label broker is that you keep control over your clients.

From your existing lists to the marketing funnels you are running, those clients are yours.

At ACY Securities, we would facilitate the trades, the risks, and the software solutions, your clientele remains your intellectual property.

Your clients won’t know their trades are being executed through ACY. All the front-facing information they see will show your logo and your brand.

2. Your costs to get set up will be drastically lower

Establishing your brokerage is extremely capital-intensive. However, choosing to partner with a Forex white label broker like ACY Partners can significantly lower your costs to get established.

3. Leverage the liquidity relationships already established

Also, to get the best rates, you would need to have established relationships with at least one Prime Broker. Not only does this take time, but you need to have a client base who are trading solid volume to get the best rates.

By working with a Forex white label broker, you can leverage their Prime Broker relationships, and the volume they are already putting through on a daily, weekly, and monthly basis.

What are the main trading platforms used for a Forex white label broker?

When it comes to a Forex white label broker, the most common platform would be MetaTrader 5.

While there are other proprietary platforms available for high net worth traders, these are typically reserved for relationships through Prime Brokers.

Another big benefit of aligning with the right white label solution is access to MetaTrader 4. If you were to go directly to MetaQuotes now, you would not be able to secure an MT4 license.

MetaQuotes are pushing hard for their MT5 trading platform, but statistics would show that MT4 is still the most dominant choice among retail traders.

What other solutions should I look for with a Forex white label broker?

• Customer Relationship Management (CRM) software
• Risk Management Strategies
• Admin Portal
• Client Portal

Relationships with payment providers

Another critical element that is often overlooked is the relationship your white label broker has with payment providers.

If we are looking at the Australian market, and you were to come on board as a Corporate Authorised Representative (CAR) using our white label solutions, you would have full access to our payment gateways. These relationships are now becoming increasingly difficult to obtain.

PayPal for example is unlikely to allow new Forex brokers, as would the likes of ZotaPay. Every payment gateway is firming up its compliance and so leveraging existing relationships from ACY would allow you to get established faster.

Hopefully, that helps you get clear on what is a Forex white label broker and the key elements provided to you.

How can ACY Partners help you?

At ACY Partners, we can help you establish your Forex white label brokerage and move to the next level in building your empire and brand.

No matter if you are based in South Africa, Vietnam, Australia, Malaysia, Indonesia, London, Germany, France, or Thailand, our team can help set up your Forex brokerage.

We want to make sure we can help you meet your goals.

Why not jump on a call with our team today so we can get clear on what will work for you and see how we can help you?

Do you need a MAM account broker for your managed forex account? If so, then this blog post is for you. The two main types of accounts for managed forex traders are the MAM account and a PAMM account.

This post will help make sense of all the information by discussing MAM accounts, PAMM Accounts, forex trading platforms, and the benefits of each. These decisions are important because this is your business and livelihood.

What is a MAM account broker?

A mam account broker is a licensed entity that allows fund managers, who trade on behalf of other clients, to conveniently have all their accounts managed from one master account.

This multi-account management setup allows the professional trader to execute his manual or automated trading strategies to all his client accounts with ease.

As a MAM account broker, ACY has set up many managed accounts, handling all the legal documents, onboarding, allocation methods, and treasury operations at the end of each month.

As a money manager, this allows you to focus on your strategies, the trade conditions on any day and execute your strategies with peace of mind.

What are the benefits of a MAM account?

• Transparency in terms of portfolio holdings for your clients
• Taking care of all the on-boarding of clients
• The team to scale up the business with you
• Flexibility to change models and allocation methods
• Compliance issues taking care of according to the correct regulations of your jurisdiction
• Choice of risk management models to use for your clients
• Range of deposit and withdrawal methods

Why it is critical to find the best MAM account, broker

If you are starting out with your forex fund manager business, then you need to be sure your broker can scale with you.

One of the critical considerations is the liquidity the broker provides from tier-one LPs and Prime of Prime liquidity providers.

There is no doubt your fund will be growing and we have seen many grow extremely fast, bringing on large accounts and scaling up their positions sizes accordingly.

Therefore, you need the confidence that your MAM account broker can offer the liquidity you need as you scale.

Further to this, you need a wide suite of financial instruments, depending on what markets your strategies will be trading.

At ACY Partners, our liquidity comes from 16 top liquidity banks and for those trading martingale style strategies, lot sizes start from 0.01 of a lot. Micro account trading is popular for this method of trading. Even though there are risks involved, an account manager can better manage the risk of losing money using micros.

Your Choice of MAM PAMM accounts

There are two types of mam account brokers, the MAM and a PAMM.

MAM stands for Multi-Account Manager and PAMM stands for Percent Allocation Management Module, for the percent allocation method.

Both allow you to set up your Master account and allocate trades to your sub-accounts no matter what account types your clients have.

At ACY, your clients can choose from accounts from 0.0 pips for those looking for ECN forex brokers, or fixed spreads for their online trading.

You also have the choice between MT4 MT5 trading accounts and setting up investor accounts is simple.

How can ACY Partners help you?

At ACY Partners, one of our core offerings is the setting up of MAM accounts for new and experienced fund managers.

Our seamless setup allows you to focus on the business of trading and acquiring clients, while our back-end solutions allow for easy onboarding and client deposits.

Over the years, we have helped countless traders look after their managed forex accounts, with complete reporting and analysis via our client portal.

We take care of the important details, so you can get on with your fund. We can even work with you on a demo account.

If you are looking to set up a new MAM and PAMM account or would like to know how we can help you, then let’s open the conversation and find out more about your business and goals.

When it comes to managing multiple MT4 MT5 trading accounts efficiently, choosing the right allocation method is crucial. Whether you’re a fund manager, an account manager, or a forex trader, using a Multi Account Manager (MAM) or PAMM system allows you to execute trades across multiple sub-accounts from a single master account.

At ACY Securities, we offer fund managers and professional traders access to the MetaFX Multi Account Manager from KeySoft Group, designed to simplify trade execution and fund management. With this powerful MAM system, you can efficiently allocate funds to sub-accounts using various lot allocation and percentage allocation methods.

In this blog, we’ll explore the top 8 MAM allocation methods, helping you understand how different models work, from equal allocation to proportional allocation and percent allocation. Whether you’re looking for a method that suits high-volume lot-based trading or a strategy that aligns with investor contributions, we’ve got you covered.

Let’s dive into the best MAM and PAMM allocation methods that brokers, traders, and investors can use to optimise their trading accounts.

Different allocation methods to trade MAM PAMM accounts

The different allocation methods allow the fund manager or trader to allocate trades to individual sub accounts either via lots, percentages or proportional allocation to suit their trading strategy or structure.

1. Lot allocation Formula

The lot allocation method is used to divide the volume of the master trade to the sub-accounts according to the lot parameter of the sub-accounts. This method allows trading with variable lot sizes on the master account.

The allocation to the subaccounts will be proportional to the set lot sizes provided for each of them. Note, when using lot allocation, at least one of the active subaccounts needs to have a balance greater than zero.

2. Percentage allocation for Forex trading

The percentage allocation method is used to divide the volume of the master trade to the sub-accounts to the set percentage parameter of the sub-accounts.

Hence, the volume will be allocated to the subaccounts by the predetermined percentage nominated by the fund manager. You can view the difference between MAM PAMM accounts here.

Note: When using the Percent Allocation the sum of the percentage parameter must add up to 100%.

3. Proportional by Balance Allocation

The proportional by balance allocation allocated the master trade proportionally according to the balances of the subaccounts. This method does not require additional settings to be changed and allocates the master trades automatically.

4. Equity Percent Allocation Formula is Calculated Automatially

The equity percent allocation is used when the user requires allocation to sub-accounts on a percentage basis for each individual sub-MAM.

This allocation method allows it to define the risk for each individual sub-MAM. For example, if the risk percentage of the sub-account is placed at x%, then only x% of the sub-account equity would be traded at any given time.

Note: This allocation method requires the user to predetermine the percentage of the CFD Trading sub-account equity which will be traded at any given time.

When using the equity percent allocation, the volume of the master trade is changed to reflect the sum of volumes of the sub-trades. The volume on the initial trade request would be different from the open trade to reflect the sum of volumes of the sub-MAMs.

5. Allocation by Equal Risk

Allocation by Equal Risk allows investors to mitigate the issues with margin control on the subaccounts.

This method allows the user to set minimum margin percentage levels for each of the sub-accounts. If the minimal margin percentage limit is reached, there will be no allocation to those sub-accounts.

6. Lot Multiplier Allocation

The lot multiplier allocation copies trade from the master account to the sub-account when trading the forex market and global markets.

There are several modes with the lot multiplier allocation and this can be selected for each individual sub-account separately. These modes allow different kinds of calculations of the sub-trade volumes.

1. Multiplier Mode
   In the multiplier mode, the lot parameter of the sub-account is used as a multiplier factor for the master trade. The volume of the master trade remains unchanged.
   
2. Fixed Mode
   The fixed mode is selected for the sub-account when the volume of the sub-trade will be defined by the Lot parameter of the sub-account regardless of the lot size of the master trade.
   
3. Risk Mode
   If the risk mode is selected for the sub-account then the volume of the sub-trade will be calculated as a proportion of the sub account’s equity to the master account equity.
   
4. Equity Mode
   If the equity mode is selected for the sub-account then the volume of the sub-trade will be calculated as a percentage of the sub account’s equity.

7. Percentage Allocation by Profit and Loss (P/L)

The allocation by percentage allocation by P/L is used when the user requires allocation to the sub accounts on a percentage basis.

This method is more precise in general, as the allocation is made without opening trades on the sub accounts.

Instead, when the master trade is closed, the allocation to the sub accounts is made as a deposit/withdrawal transaction.

8. Proportional Allocation by Profit and Loss (P/L)

The proportional allocation by P/L is used when the user requires allocating to sub accounts proportionally to the sub accounts balances.

Like the percentage allocation by profit and loss, this method is more precise in general, as the allocation is made without opening trades on the sub accounts.

When the master trade is closed, the allocation to the sub accounts is made as a deposit/withdrawal transaction.

Summing up the top 8 MAM account allocation methods

Hopefully, this blog post gives you, the money manager, a solid overview of the top 8 management modules you have available in your manager’s account.

Getting your head around managed Forex accounts is simple when you have all the information. To discuss the full suite of trading tools, trading accounts and platforms available, don’t hesitate to reach out to one of our ACY Partners team members.

We can run through the full list of trading instruments available to you, our sophisticated trading solutions, onboarding options and more.

How can ACY Partners help you?

At ACY Partners, we can help you establish your MAM manager account and run through the different allocation methods.

Why not jump on a call with our team today so we can get clear on your goals and expectations and see if we can help you?

White Label Forex Programs allow you to set up your own FX and CFD brokerage by adopting a “white label” solution from an existing broker.

When shopping around for a good White label solution, the key elements to look out for include ease of set-up, level of technology offered, depth of product range, pricing competitiveness, overall earning capacity, marketing support offered by the broker, and the level of back-office support.

As a White Label solutions provider, ACY Partners provides you with leading technology, full backend support, top liquidity pricing, and a product range that covers more than 60 FX currency pairs, commodities, indices, and precious metals.

ACY Partners does not get involved in direct communication with your customers, which means partners retain complete control over their customers – from opening an account to following up and provision of customer service.

Our dedicated Institutional Account Managers provide personalized one-on-one service throughout the implementation process to ensure that all set-ups meet your requirements, everything is good to go and you can start growing your business from day 1.

Once the White Label agreement is in place, ACY Partners also provides the business operation support you may need, including sales and marketing support, product training, and trading education.

How can ACY Partners help you?

When it comes to forging successful commercial/business partnerships, finding the right partner is absolutely crucial.

ACY Securities has a strong track record in helping businesses realize long-term growth and success because not only do we place a high value on strategic alliances, but we also have the global reach, brand reputation, technology, bespoke solutions, and support infrastructure to make it happen.

If you’re looking to establish a White Label-based business in the FX & CFD online trading space, reach out to ACY Partners at [email protected] to start a conversation and discover what’s possible with ACY behind your step of the way.