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Comparisons

Copy Trading vs MAM

Copy trading is client-initiated: a follower chooses a strategy, sets an allocation and can stop at any time, with no management mandate. MAM operates under a mandate — a manager trades on behalf of investors and allocates across their accounts. Copy trading suits retail clients; MAM suits professional managers with an investor base.

5 min read · Updated

These two products look similar on a feature list and are quite different in what they imply — commercially, operationally and in terms of the relationship between the client and the person trading.

DimensionCopy tradingMAM
Who initiatesThe clientThe manager, under mandate
Who controls allocationThe clientThe manager, within the mandate
Can the client stop instantlyYesSubject to the mandate
Typical audienceRetailProfessional managers and their investors
Typical account sizeSmallerLarger
Fee modelOften broker-side or strategy feeManagement and performance fees
Relationship impliedNone — client chooses to followA management relationship

The distinction that matters most

Copy trading involves no management mandate. The client chooses to follow a strategy and can stop whenever they like. MAM involves a manager acting on behalf of investors, which is a different relationship — and in many jurisdictions a relationship that carries regulatory implications for the manager.

Which should you launch first?

If your client base is retail, copy trading. It is easier for clients to understand, requires no manager onboarding, and works as a retention tool for clients who have stopped trading manually.

If you are courting professional managers with existing investor books, MAM — or PAMM — is what they will ask for, and not having it is what will stop them moving to you.

Many brokerages end up with both, serving different segments.

See both on sample data

The demo includes copy trading and MAM views side by side.

FAQ

Questions on this topic

Yes, and many do — they serve different client segments. Copy trading is retail-facing; MAM serves professional managers and their investors.

Still have a question? See the full FAQ or ask us directly.

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