The more, the merrier! All commissions that you can configure with TFB PAMM

Author: Baiana Kashaeva

Commissions are the heart and soul of brokers’ business. They must be profitable for the broker, easy to configure and track, make sense to the traders, and be transparent. All of that you can find in TFB PAMM — the money management system by Tools for Brokers.

There are 4 types of commissions with TFB PAMM solution: Performance fee, Management fee, Annual management fee, and Per Lot/Per Deal fee. Additionally, we have a Personal Investment commission for custom fees.

Performance fee

This commission is calculated as a percentage of Investor’s profit. We charge a fee only from the income that occurred after Investor was assigned to the Money Manager (MM).

An important factor of the Performance fee calculation is that we consider both open and closed deals. If the open deals are positive for the Investor, we do not take a commission for them as they still might close negative. If the open deal is negative, we deduct it from the profits and take a smaller percentage. We believe that it is the most fair way to calculate the commission.

Management fee

Management fee is a one-off commission that is charged when the Investor adds funds to the Money Manager. If the Investor withdraws money and then puts it back into the MMs account, the fee will be charged again.

Annual management fee

This fee is calculated as annual but is charged in equal monthly installments. The principal in the calculation is Investor’s balance on the moment when it is attached to the MM. If the Investor was attached to MM in the middle of the month, then the commission for this month is calculated only for the days after the Investor's association with MM.

Per Lot / Per Deal fee

This is the only TFB PAMM commission charged in the absolute number and not in the percentage. We charge a fixed number per each traded lot or deal. If we charge Per Lot, then we take the volume, not the lot's price.

Personal investment fee

In addition to the four main commissions that we just talked about, we have an option to configure personal commissions for individual investors. That helps add an extra level of customization, make sure each Investor receives personal and fair treatment. If the Personal investment fee is not set up, then the Money Manager's default fees are applied.

Each fee serves a different purpose and helps brokers run a profitable business with a personal touch. What do you think about the commissions? Would you like to test the product? Please email us at sales@t4b.com, and we will be happy to help you with evaluation and answer any of your questions.