MAC & MAM FAQ

Get some answers regarding our management MAC & MAM accounts by browsing through these frequently asked questions.


FAQ

1. MAC/MAM Service Description

The MAM (Multi Account Manager) account type provides traders with an opportunity to invest their funds by letting experienced traders do the actual trading for them. All trading activities are concentrated on a single money manager’s account wherein the funds of all investors are consolidated. Investors, without performing any trading operation, may earn profit by simply entrusting the whole trading process to their chosen fund manager. As for the manager, he/she receives an agreed upon amount which serves as commission from investors for managing their funds.

money manager creates a MAM account. During the process, the money manager drafts an offer which contains special terms: the Profit Fee and the Volume Fee ; both of which will be charged as commission for his/her fund management services. From a roster called "List of Managers", investors are given the chance to gauge the performance of each of the active money managers. This way, investors will be able to choose the money manager that they believe is capable of providing their investment needs and preferences. The money manager trades his/her own capital, in addition to his/her investors’ funds. The profits and losses gained during trading are automatically distributed between the fund manager and his/her investors, in proportion to their respective deposited amounts.

To illustrate briefly, the performance of MAM system is as follows. For example, there is a MAMM_01 and three investors' accounts – MAMI_01_01, MAMI_01_02, MAMI_01_03 with deposits of $10,000, $20,000, and $30,000 respectively. In this case MAMM_01 would have total deposit of 60K. For example, manager gets $6000 profit as a result of trading. Profit compensation procedure will be activated (remuneration procedure is activated automatically within around 15 minutes) after positions will be closed on manager's account and following profit shares will be transferred to the investors’ accounts:

MAMI_01_01 - $1000.00;MAMI_01_02 - $2000.00;MAMI_01_03 - $3000.00;

New balance amounts will be equal to:

MAMI_01_01 - $11000.00;MAMI_01_02 - $22000.00;MAMI_01_03 - $33000.00;

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MAMM_01 - $66000;

As mentioned above, in the MAM system all the deposits are combined under one manager's account, i.e. sum of the investors’ deposits is equal to the deposit on manager’s account.

The МАС (Multi Account Copier) account type is an account that allows investors to earn profit by mirroring the actual orders placed in the accounts of experienced traders. The money manager gets commission for transmitting trading signals to his/her subscribers.

MAC-Manager (hereinafter MACM) opens and closes orders on his account and this actions are being copied (as trading signal) to all subscribed MAC-Investor accounts (hereinafter MACI), according to their deposit proportions. For example, there is a MACM_01 with a deposit of $10,000 and three investor’s accounts – MACI_01_01, MACI_01_02, MACI_01_03 with deposits of $10,000, $20,000, and $30,000 respectively. On a base configuration, the system will work as follows:

MACM_01 open buy eurusd 1 lot at 1.4485;

The MAC system will automatically open the following trades on the Investor-accounts:

MACI_01_01 open buy eurusd 1 lot at 1.4487;MACI_01_02 open buy eurusd 2 lot at 1.4484;MACI_01_03 open buy eurusd 3 lot at 1.4488;

Explanation on the entering price difference provided in "Order fulfillment principle on MACI account" section below.

2. Types of accounts

There are two different types of accounts: the Manager Account (M.MAMM and M.MACM) and the Investor Account (M.МАMI and M.MACI). Moreover, in addition to manager accounts, an M.Control account is also created. Note that the accounts’ functionality is based on M.Pro guidelines.

M.MAM-Manager (M.MAMM) – This account has trading capabilities. It is designed to allow one money manager to manage all gathered investors’ funds from different M.MAMI accounts at once, using a single M.MAMM account.

How to become a manager?

In order to become a manager, it is necessary to open the «Manager accounts» section in the «Trader's Room» and click on «Open MAM-Manager account» account. The registration form contains several specific fields which are not on the usual account registration form.«Manager type» - Real only. MAMM account type is intended for managing connected investors' account with real funds, thus it's not possible to set Demo type.«Minimal investor's deposit» - deposit that is required for connection, amount is shown in base currency used on MAC-Manager. The value can range from 0 (in this case, there are no restrictions) to infinity. It is recommended to set this parameter so that the size of the Invest-accounts is at least half the size of the MAC-Manager.Information about «Profit Fee» and «Volume Fee» could be found in «Manager’s parameters» section below.Careful attention should be paid when filling out these fields, as after connecting the first subscriber it will be impossible to change them (except «Minimal investor deposit»). After successful registration and funding of the accounts, if the account type is MAC-Manager Real, it will be activated and ready for use. The manager can begin trading. The account will be displayed in the List of Managers and subscribers will be able to choose it as a signal provider for their Investor-accounts.M.MAC-Manager (M.MACM) – This account also has trading capabilities. It is designed to have M.MACI accounts connect to this type of account. Placed orders which were executed on M.MACM accounts will be mirrored in M.MACI accounts, according to certain rules.

How to become a manager?

In order to become a manager, it is necessary to open the «Manager accounts» section in the «Trader's Room» and click on «Open MAC-Manager account» account. Fields in the form are the same except of «Manager type» type:«Manager type» - Real or Demo. This means that the account type «M.MAC-Manager» can be both a Real or a Demo account. However, even if the Demo type is selected, the manager must take the management of this account seriously. The account will be displayed in the list of managers and investors with real funds will be able to connect. Selecting the Demo type will require to specify an initial deposit. Later, the deposit can be adjusted by setting its desired value under the «Account details» section.M.MAM-Investor (M.MAMI) – This account is intended to connect to an M.MAMM account. Investors can connect to one money manager at a time. Moreover, investors may only perform manual trading operations before he/she is connected to a money manager. Once connection to a manager had been established, all active orders (including pending orders) will be automatically closed. While connected to an M.MAMM account, manual trading is disabled. If there are open positions on the MAM-Manager account (the one you are connected to) then financial result (floating) is shown it the trading terminal as an open position with a symbol MAM_PL This non-trading symbol in MAM system is used to show the Investor the equity state on his account.

How to become an investor?

In order to become an investor and connect to the lead trader, it is necessary to:1. Open and fund an M.MAMI type account;2. Link this account to the MAMM, namely to the account of a lead trader from List of Managers (or straight by number of account if you know it).To open an M.MAM-Investor type account, it is necessary to open the "Investor accounts" section in the "Trader's Room" and click on "Open MAM-Investor account". The registration form is the same as usual account registration form, as well as methods of deposit are.M.MAC-Investor (M.MACI) – This account is intended to connect to an M.MACM account. Investors can connect to one money manager at a time. Furthermore, investors may only perform trading operations before he/she is connected to a money manager. Once connection to a manager had been established, all active orders (including pending orders) will be automatically closed. While connected to an M.MACM account, manual trading is disabled.

How to become an investor?

In order to become an investor and start receiving signals of the selected lead trader, it is necessary to:1. Open and fund an M.MAC-Investor type account.2. Link this account to the MACM/MACM-Demo, namely to the account of a lead trader from List of Managers (or straight by number of account if you know it);To open an M.MAC-Investor type account, it is necessary to open the "Investor accounts" section in the "Trader's Room" and click on "Open MAC-Investor account". The registration form is the same as usual account registration form, as well as methods of deposit are.There are several extra options for this type of account, more information could be found in «MACI account additional settings».M.Control – This account is intended for monitoring all the commission which had been charged to investors. M.Control is automatically created in addition to a new M.MAM-Manager/M.MAC-Manager account. In case of creating several M.MAM-Manager/M.MAC-Manager accounts, you may opt to just use your original M.Control account or you may also open additional ones.

3. Opening an account

It is not required to fill in additional forms/documents. Please note that all investment accounts’ functionality is based on M.Pro guidelines. For MTrading, only M.MAC accounts are available (currency: EUR and USD). For MTrading, both M.MAM and M.MAC accounts are available (currency: USD).

You may open a MACM-Demo, but you will only be allowed to open two accounts—taking into consideration the general limit of a maximum of 10 accounts in the Trader's Room. You may only open a new real account if the previous one is already activated. Activation process is similar to the terms of M.Pro. The quantity of account for managers and investors are limited to ten accounts or less.

4. Activation, connection, and disconnection of investor's account

Connection to a money manager is possible in case of the following:

  • Investor's account is fulfilling the parameters set by the manager such as the minimum deposit requirement.
  • Account is funded with the required amount. (To activate M.MACM and M.MACI accounts – 10 USD; for M.MAMI – 10 USD).
  • Manager had closed all orders (including pending orders) for at least 15 minutes.

Disconnection from a money manager is possible only if:

-Manager had closed all orders (including pending orders) for at least 15 minutes.

There are 3 possible states of connection: "No connection", "Pending", and "Connected". After processing a request for connection, status will be changed to "Pending", and after successful connection—to "Connected". After processing a request for disconnection, status will be also changed to "Pending", and after successful disconnection—to "No connection".

Investors receive a special e-mail message every time connection status is changed. Managers also receive special e-mail messages due to certain connectivity issues (all orders, including pending orders, should be closed for at least 15 minutes in order to let investors perform connection). This means the money manager is always aware of any expressed interest to his services.

It is possible to connect an M.MACI account in EUR to an M.MACM account in USD, and vice versa.

If an M.MACI account is connected to a MACM-Demo account, the money manager will gain real and full commission.

In case you are already connected to a fund manager or signals provider, an additional connection is prohibited. As for M.MAC managers, the limit of 50 investors/subscribers cannot be exceeded.

In MAM system there is a special type of transaction on manager's account, InvestManager - this transaction is meant for adjustments of manager's balance and investor's balance. When manager closes all positions such operation equalizes manager's balance and connected investor's balance. Amount of InvestManager is positive if investor subscribes to manager or negative if investor unsubscribes or withdraws all or any part of his balance. As well InvestManager value can be negative when there is an equalization of manager's balance and investor's because the investor can pay Volume fee and/or Profit Fee.

5. Depositing to an account

You may not deposit directly to an M.MAMM account. The only way to replenish balance is to connect your M.MAMI account. Other money operations are also forbidden. Moreover, you may not deposit directly to an M.Control account as well. However, withdrawal requests could be processed.Depositing to M.MACM, M.MACI, and M.MAMI accounts is available at any given moment. However, funds will be displayed on M.MAMM's balance (to which M.MAMI is connected to) only after all existing orders, including pending orders, had been closed.

6. Functionality of accounts

You may trade on your M.MACI or M.MAMI account before there is an active connection to a manager. The only options left after already successfully establishing a connection to a money manager, is "Close Order". After disconnection, all trades will be closed automatically.When an M.MAMI account owner is connected to a manager, he/she will be able to see all opened orders, trading history, and commission charges on the MetaTrader terminal.

7. Funds withdrawal

For M.MAM: Withdrawal will be processed according to the usual conditions, with one exception—there must be no opened orders and active pending orders on investor's account.For M.MAC: Withdrawal will be processed according to the usual conditions, with one exception—investor account disconnects from the manager account (status "Pending"). All active trades will be closed, and all pending orders will be deleted.For M.Control: Withdrawal will be processed according to the usual conditions. Additionally, it will be possible to internally transfer funds to/from another account opened in the same Trader's Room.

8. Closing an account

M.MAMМ, M.MACМ, M.MAMI, and M.MACI accounts may be closed if there are no active connections, and if balance is already equal to 0.

9. Order fulfillment principle on MACI account

Please take into consideration that there might be delays in execution of orders on MACI accounts, since every time a trade is opened on a MACM account, all mirrored orders will be placed in accordance to a fulfillment queue. There might be a chance of such hold up, because if there are a lot of orders coming into the server and the live queue is already quite long, order fulfillment time may be increased significantly. Consequently, the execution price on MACI may appreciably differ compared to the MACM order entry point. Orders are processed as far as it is possible, in full accordance to MT4 procedures. If the server is discharged, orders mirroring speed will be at its best. In the upshot, investors could both profit and lose from such difference, and it is not possible to predict this in advance.

10. MACI account additional settings

Whenever investors connect to a signal provider, additional parameters could be defined. These features allow investors to keep risks under control. Refer to the following descriptions provided below:

“Min Volume” - The minimum trading volume of your M.MACI account. By default, this value is the minimum allowed by the trading server (0.01 lot)."Max Volume" - The maximum amount of a transaction allowed on your M.MACI account. By default, this value is equal to the maximum amount permitted on the trading server (50 lots)."Risk Factor" - This is the multiplier which corrects the amount of lots being opened on the investors’ account.

To illustrate functionality of this multiplier let's consider an example where all deposits are accounts of $10,000, but:

MACI_01_01 Risk Factor = 1.0;MACI_01_02 Risk Factor = 0.5;MACI_01_03 Risk Factor = 2.0;

MACM opens the deal:MACM_01 open buy eurusd 1 lot at 1.4485;

Following this signal, MAC-Invest accounts open:MACI_01_01 open buy eurusd 1.0 lot at 1.4485;MACI_01_02 open buy eurusd 0.5 lot at 1.4485;MACI_01_03 open buy eurusd 2.0 lot at 1.4485;

As can be seen from the example, the order volume of the MACI_01_02 account is only half that of the standard configuration, and on MACI_01_03 it is 2 times greater. In the first case, in proportion to deposits, the estimated volume of 1 lot multiplied by Risk Factor = 0.5 (volume cut in half), and in the second case the estimated amount of 1 lot has been multiplied by Risk Factor = 2 (volume doubled).

Please note that trades are opened according to deposit proportions of manager and investor accounts.

Eventually, investors may change their status of connection to the manager, as well as additional parameters: Min Volume, Max Volume, and Risk Factor.

In order to change connection parameters, click on the "Connection" option in the "Account Options" menu. New parameters will only affect all new opened positions, and will not affect orders that were opened before the change.

11. There are two additional options for changing the connection status:

Activate – In this status, MACI is subscribed to MACM, and is receiving all his trading signals. Deactivate – In this status, MACI remains subscribed to MACM, but does not receive manager’s trading signals.

12. Manager’s parameters

Investors pay commission to managers they are subscribed to. The money manager sets commission parameters (as well as minimum required deposit on investor's account). Once these parameters are set, the manager cannot change them. In order to provide trading signals with other parameters, the manager should open a new account.

There are two types of commission:

Volume Fee – This is the compensation of the money manager that is counted depending on the amount of trade. This commission is paid for regardless of the result of the trade. The procedure of calculation and transfer to manager’s control account is started automatically right after position is closed both on MAM and MAC account types. Commission is calculated as follows: For example, Volume Fee is set to 0.05%, and 0.1 lot of GBPUSD is traded. Standard amount of contract is 100,000 currency units. For a mini lot size, commission would be 10,000 GBP/100*0.05= 5 GBP

In MAC system this value can range from 0 to 0.1%, in MAM system - from 0 to 0.001%

Profit Fee – This is considered as the main compensation of the managers. It defines the amount of commission that managers get from earned profit. The MAM system procedure of fee calculation and transfer to control account is automatically made, with the condition that the managers do not have open positions or pending orders. The MAC system procedure of fee calculation and transfer to control account must be activated by the managers by pressing the "Calculate Profit" button. Commission is calculated as follows:

For example, Profit Fee is set to 30%, and manager made a successful trade with a gain of 1,000 USD. In this case, profit earned will be divided among investor and manager accordingly—investor gets 700 USD, and manager gets 300 USD.

This value in both systems can range from 0 to 100%.

Important: When calculating manager’s Profit Fee "High Water Mark" principle is used. This means that if the manager loses money over a period of time, he/she must get the fund above the high water mark before receiving a performance bonus. For example, say after reaching its peak, a fund loses 10,000 USD in year one, and then makes 50,000 USD in year two. The manager, therefore, not only reached the high water mark, but exceeded it by 40,000 (50,000 – 10,000). This is the amount (40,000) on which the manager gets paid the Profit Fee.

13. How managers account is seen in the rating

When opening an account, managers define whether or not he/she wants his/her account to be shown on the List of Managers, which is visible to potential investors.

In order to make managers account visible on the rating list, one should navigate to the "Managers Account" tab in the Trader's Room, then click on the "Account Options", and choose the "Manager's Parameters" option. After clicking "Display account in the rating of managers", account will become visible on the roster.

Investors can still subscribe to managers account which are not visible on the rating list if investors know the manager’s account number. In the "Account Options" menu, investors should click on the “Subscribe” link, and manually fill in the manager’s account number.

14. Managers rating, signal provider, and manager result indicators

The managers rating list presents several indicators showing their trading results, allowing investors to choose the most suitable manager or signal provider for him/her. Investors can choose money managers from any country, but still from the same operational company; MTrading investors to MTrading managers, and MTrading investors to MTrading managers.

The manager’s account gets to the rating list after the manager closes his/her first trading order. Rating data is updated once a day.

Rating presents following indicators:

“Experience Days” – the days passed since first trading operation on account

“Total Trades” – the number of trades on the account (only closed trades are counted)

“Profit %” – the value of account net profit in percentage from initial deposit

“Maximum Drawdown” – the gap between maximum and minimum value of account balance that shows how much investor could lose

“Subscribers” – the number of investor accounts that are connected to manager accounts

“Balance” – the value of account balance at the moment of the latest rating update

“Equity Capital” – The sum of the net worth of funds on the manager accounts considering open positions, and net worth of funds on its investor accounts considering open positions as well. For MAM, it is only the sum of funds on investor accounts. For a MACM-Demo account, this parameter is equal to zero.