What is PAMM and Why Do IBs Offer It? 7 Quick Answers

The PAMM (Percent Allocation Management Module) service is a Money Management tool.

Offering PAMM allows a brokerage to cater for various Market segments including:

Novice Traders known as PAMM Followers, who can invest with profitable traders and take a share of their Master’s success, giving them the flexibility of selecting a Skilled Trader that meets their specific performance criteria and Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term style.

Skilled traders who can act as PAMM Masters and enhance their earning potential, giving them the opportunity to trade as they usually would and profit from their followers investments.

IBs can promote specific PAMM Masters to their clients based on performance

And best of all...

Partners and Introducer Brokers who are looking for an additional income source, giving them the chance to not only profit from the usual rebates that they would get from their broker, but also the commission they get from promoting a Master of their choice.

What Differentiates PAMM?

PAMM is unlike other over-the-counter MAMM platforms which are readily available. PAMM system is transparent and public as opposed to MAMM systems. Money managers who are using PAMM systems can have their results publicly available, thus giving them the opportunity to attract more funds

Introducing brokers can choose to promote specific PAMM Masters to their clients based on their performance record and the commission they are offering, allowing the Introducer Broker to earn from the standard rebate structure, as well as an additional rebate form the Masters offer.

Offering this service to Introducer Brokers and Portfolio Managers is extremely beneficial as it offers seven key advantages.

let's go more in detail into each of them:

Tailor-made solution for authorised trading on behalf of your clients

Facilitating single terminal, multiple account management, PAMM mans that no matter how many clients are under management, the system always sets-up trades in the account accordingly and as this is automated, it is easy to use.

Fee structure

An enhanced combination of performance fees, commissions, rebates and/or management fees. The manager can set up any type of reward system they feel is rewarding for both themselves and their clients.

Total control

Total control over the allotment of trades, with a high degree of flexibility which can be tailor-made for clients of any size, depending on their risk profile.

Smart allocation

The ability to allocate funds by percentage of equity. In this way, no clients will ever be left out because their account is considered to be too small.

Masters opportunities

No limit to the amount of clients that can be allocated to a Masters PAMM, so no need to miss out on promoting the Master offering the best commission.

Monitoring abilities

The ability to monitor the traders unlimited commissions on a daily basis through accurate reporting tools. This helps money managers stay motivated while continuing to make profitable deals.

EA compatible

Having compatibility to use EAs which gives money managers more tools to help diversify their portfolio of trading strategies.

Everyone has something to learn - make sure your traders have the resources they need.

Bottom Line

Traders look for companies that cater for their specific needs and it is therefore important that Introducing Brokers choose a company that can provide the services they need to convert their clients and keep them engaged, despite the level or experience, account size or the amount of time they are able to commit. PAMM accounts provide all users with a beneficial solution to accommodate all of these needs.

FXPRIMUS caters for all levels of traders from all backgrounds with multilingual support. The company also strongly believes in the importance of resources and education. Furthermore, FXPrimus promotes sustainable trading and provides traders with everything they need to achieve their journey to success. The company exclusively pays-out PAMM rebates daily.

As our Head of Investment Research, Marshall Gittler, says, "Everyone has something to learn - make sure your traders have the resources they need."

The article is written Chantelle Lea, Marketing Marketing Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Read this Term Coordinator at FXPRIMUS.