How to use your PAMM solution? Key use cases

Author: Han Ong

PAMM is a versatile product ideal for retail brokers and hedge fund managers. Today, we’d like to highlight its key use cases to inspire you to try PAMM or view it from a new perspective.

What is PAMM software?

PAMM stands for Percentage Allocation Management Module. TFB's PAMM product enables experienced traders (Money Managers) to trade using investors' funds for a commission. It helps brokers attract and retain clients by offering niche services and expanding their opportunities.

PAMM for newbie traders

First and foremost, PAMM is ideal for inexperienced traders. It's designed for those with minimal trading experience, providing a perfect starting point. These clients (Investors) are often hesitant about trading, so partnering with Money Managers (MMs) offers an ideal entry point into investing.

Investors simply choose their preferred MM and allocate funds. The MM handles all the trading, while Investors can monitor performance and switch MMs if desired.

PAMM for traders who need diversification

Experienced traders also benefit from PAMM. Offloading part of their portfolio management to a Money Manager diversifies their strategy and reduces overall risks.

Additionally, if their circumstances change and they become too busy to trade daily, PAMM allows them to stay active in the market without direct involvement.

PAMM for Experienced Money Managers

Finally, PAMM is perfect for professional traders with extensive expertise who want to monetise their skills. Investors provide MMs with funds to trade on their behalf in exchange for a portion of the profits. This allows MMs to earn a living from trading while gaining more experience. It's a true win-win situation!

What’s changed in TFB PAMM recently?

Over the past year, the PAMM team at TFB has worked hard to enhance and perfect the solution's performance. We've also updated the interface to ensure a seamless experience for all clients.

We're excited about the bigger changes in progress, so stay tuned! Meanwhile, here are the smaller tweaks and improvements we released last month:

• Renamed some terms and action points to align them with MetaTrader, making the management process more straightforward.
• Credit was added to all calculations in all parameters (allocation, minimal investments, withdrawal, investment loss, maximum loss, maximum profit).
• Optimised server performance to reduce overloads.
• Added option to activate and deactivate administrators to help brokers manage their employees’ access to PAMM.

All commissions at TFB PAMM

The way brokers profit with TFB PAMM is through commissions. Several options are available to TFB clients:

• The performance fee is a commission charged from the Investor’s account for received profit. This commission is also known as Profit sharing.
• The management fee is charged each time the Investor transfers funds to the Money Manager.
• An annual management fee is charged for managing Investors' funds as a monthly subscription.
• Fees per lot or per deal are charged a fixed amount on all executed orders for a traded lot or deal.
• Personal investment fees can be custom-added to particular Investors. This is a great tool for brokers who are providing bespoke services. If this fee is not activated, the standard fees apply.

If you want to learn more about PAMM solutions or try the demo version, please email us at sales@t4b.com.