MAM can work in a similar way, with trades from a master account allocated across linked client accounts. The distinction is that MAM operates under an account management arrangement. The manager’s trading authority and the client’s ability to adjust or stop trading depend on the service’s permissions and terms.
Allocated trade sizes, available margin, execution prices and trading costs can differ between accounts. Joining at different times can also mean clients participate in different sets of trades, even under the same manager.
Insufficient free margin can prevent an account from opening its allocated position. Confirm how the MAM setup handles rejected orders and allocation limits, particularly when linked accounts have different balances or existing positions.
This depends on the permissions and terms of the arrangement. Confirm what is allowed before linking the account. Manual trades can affect available margin and overall exposure, so their impact on managed trading needs to be understood.
Do not assume that disconnecting closes existing trades. Check the exit procedure, including how open positions will be handled, who will manage them and when the account stops receiving new allocations.
No. MAM manager makes trading decisions for participating accounts under the relevant authorisation. Being an IB does not automatically give someone permission to manage client trading.
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