What is PAMM, and why your brokerage needs it
Author: Baiana Kashaeva
Brokers have access to many tools and solutions that help their businesses thrive and keep their clients happy. Today, we will talk about one of those tools – PAMM.
What is PAMM?
PAMM, or Percentage Allocation Management Module, is an assisted trading solution where Investors entrust the trading process to an experienced Money Manager (MM). MMs have a level of expertise proven by their successful training record that Investors can view before committing their funds.
Money Managers trade their own funds along with those of Investors in return for a small percentage of the gains. Investors are then allocated the remaining profit (and loss) distributed among them based on the percentage they’ve each invested in the pool of funds.
How does PAMM benefit brokers?
PAMM solutions help brokers diversify their risks by attracting new groups of traders.
Money Managers use PAMM to make more profits by doing what they’re already doing. Investors that do not feel confident enough to trade on their own get to participate in the market with fewer risks. For brokers, this means that they can increase their volumes and improve the company’s overall performance.
PAMM can be used to secure existing traders too. If your traders want to diversify their trading strategies, they can use PAMM and stay with your brokerage instead of venturing elsewhere.
What makes TFB PAMM unique?
While PAMM is an excellent concept, not all PAMM solutions are created equal.
At TFB, we focus on making our PAMM as transparent and efficient as possible. It means that if your brokerage is regulated and has to provide regular reporting, you will have no issues extracting data from the system.
- Data visibility settings allow brokers to customise every Investor and Money Manager account’s parameters to create a perfect experience for every client.
- Investors are able to see how much profit every MM generates for them.
- Multiple MMs can be linked to a single Investor to allow them to diversify risks and maximise profits.
- A request page helps brokers manage all incoming client requests via a single admin portal and save time on day-to-day management.
Moreover, TFB PAMM includes:
- Personalised commission for Investors.
- A reporting system for internal use and to stay compliant with regulatory requirements.
- An option for Money Managers to trade their own funds along with those of Investors.
Would you like to try TFB PAMM and achieve a volume distribution accuracy of up to 0.00000001 lots? Email us at email@example.com to request a trial or a demo today.
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