Also known as: Fund Manager, Strategy Provider, Asset Manager, Portfolio Manager
A Money Manager is an experienced trader or firm authorized to trade on behalf of clients through MAM, PAMM, or a discretionary mandate. They make every trading decision for the pooled or allocated capital and are paid through management fees and performance fees rather than by taking custody of the money.
The defining feature is delegated authority with limited access. Clients grant the manager the right to trade their capital, but the manager typically holds trade-only permissions — they cannot deposit to or withdraw from client accounts. Depending on the jurisdiction, acting as a money manager requires a license such as a portfolio-management or asset-management authorization from the relevant regulator.
Compensation usually stacks two layers: a management fee charged on assets under management (for example 1–2% per year) and a performance fee on new profit above a high-water mark (commonly 20–30%). A manager running $2,000,000 at a 2% management fee and 20% performance fee who returns 15% in a year would earn roughly $40,000 in management fees plus about $60,000 in performance fees, before any IB fee split.
Money managers are the human engine behind most PAMM and MAM offerings, and their verified results are what turn a marketing story into deposits.
A money manager connects to a broker's MAM or PAMM technology, which links their master decisions to client sub-accounts or a pooled account. Clients sign a limited power of attorney or management agreement that grants trade-only authority and sets the fee schedule.
When the manager trades, the platform allocates positions to each client by the chosen method and tracks profit, drawdown, and the high-water mark per client. At the end of each fee period the system computes management and performance fees automatically and debits them, so the IB and manager receive their agreed splits without manual accounting.
Regulated setups keep custody with the broker or a segregated arrangement, which is why a properly authorized manager cannot abscond with client capital even though they control the trading.
The manager secures any required license (e.g. asset/portfolio management) for the jurisdictions where clients will be marketed.
The manager is set up on the broker's multi-account manager or PAMM platform with a defined allocation method and fee schedule.
Clients grant trade-only authority via a management agreement or limited power of attorney; custody stays with the broker.
The manager places orders that the platform allocates to each client account and tracks against a per-client high-water mark.
Management and performance fees are computed automatically; the IB receives its agreed share alongside broker rebates.
Why it matters for partnership: IBs and affiliates routinely form joint ventures with Money Managers: the IB brings deposits and clients, the manager runs the trading, and both share broker rebates plus a slice of the performance fee — a structure that scales far faster than rebates alone.
An IB with a network of high-net-worth clients but no trading edge partners with a CySEC-licensed money manager on an FXTM-style MAM setup. The IB introduces $5,000,000 in deposits. Over a year the manager returns 12%, charging a 20% performance fee (~$120,000); under a 50/50 split the IB earns ~$60,000 in performance-fee share on top of standard volume rebates.
| Attribute | Money Manager | Copy-trade Signal Provider |
|---|---|---|
| Authority | Formal mandate / power of attorney | Followers opt in per account |
| Licensing | Often required (asset management) | Usually lighter/none |
| Fees | Management + performance fee | Mostly performance/subscription |
| Fund handling | Trade-only over client accounts | Trade-only over followers |
Confirm the Money Manager holds the license the target market requires before you promote them, and get the fee-sharing split in a signed written agreement.
Marketing an unregistered money manager to clients in a regulated jurisdiction can expose the IB to fines or license loss, not just the manager.
In regulated MAM/PAMM setups the manager has trade-only access and cannot process withdrawals. Custody stays with the broker, so they can trade the account but not remove the money.
Often yes. Many jurisdictions require an asset- or portfolio-management authorization to trade client money for a fee. Requirements vary by country, so verify before marketing.
Typically a management fee on assets under management plus a performance fee on new profit above a high-water mark. Some also earn a share of broker rebates through IB arrangements.
A PAMM manager is a money manager operating specifically through a pooled PAMM structure. Money manager is the broader role; PAMM and MAM are two technologies they use.
Only with the appropriate license and infrastructure. Many IBs instead partner with a licensed manager and stay on the marketing side to avoid regulatory exposure.
No. Past performance does not indicate future results, and trading involves risk of loss. Present track records as historical evidence, never as a guarantee.
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