A Percent Allocation Money Management system or a ‘PAMM’ as it’s more commonly known, is software that allows clients to invest their capital in a specific money manager through a brokerage company.
Forex brokers can offer PAMM to clients who are not confident at trading but have the funds, are confident at trading but don’t have the time, or to clients with bad trading psychology. PAMM managers allow clients to potentially profit with no effort needed on their end. The client simply invests in a PAMM account, and lets the PAMM manager do the trading for them. On-boarding a PAMM system is one of the best ways to attract clients to your brokerage
Let’s take a look at how FX BACK OFFICE’s PAMM solution works
HOW WILL FX BACK OFFICE’S PAMM BE SHOWN TO MY CLIENTS?
When your clients open their Client Area they will see a PAMM Menu. Under the PAMM Accounts tab, Each PAMM Manager is displayed in a list which shows an overview of their statistics. Your clients will be able to click on a specific PAMM manager to see a more detailed outline of their strategy, their fees and minimum deposit, their current open trades and the length of time they’ve been trading, the amount of money they are trading (broken down into the money they are managing/money they have invested themselves), how many people are connected to the PAMM account in question, and the Manager’s performance statistics.
Risk assessment criteria is also available for your clients including information on the percentage of trades where the PAMM Manager was profitable, the percentage of trades with S/L, the average profitable trade, and the expected pay-out amongst other important info. Your clients can go through the list of PAMM Managers one by one to see which manager and strategy is suitable for them before investing.
Once they’ve made the decision to go ahead, they simply click on their PAMM Manager of choice, and transfer the amount they want to invest. This amount will automatically be added to the PAMM Managers investment pool.
WHAT WILL MY PAMM MANAGERS SEE?
Money Managers can create their PAMM account by using a form in their Client Area located in the PAMM Menu. They will need to briefly describe their strategy, set their commission, choose their currency, leverage, and minimum deposit and withdrawal amounts, and decide on a PAMM nickname.
Once they’ve submitted this information you’ll be able to see their application and approve it on the back end. Once it’s been approved, this PAMM account will automatically get added to the list of PAMMs your traders can choose from.
PAMM Managers can decide whether to set the PAMM to private (in case they want to trade for a small group of people specifically), or to make the account available for everyone. Your employees will have full control over which PAMM accounts get added to the list of available Managers to invest in, ensuring that no strategy goes unchecked or is available for clients without approval.
HOW DO I IMPLEMENT PAMM?
If you decide to add PAMM to your brokerage and currently use the FX Back Office CRM, integration is simple and you can be live within days. We will ask you a few questions regarding the set-up required for your brand, and then implement PAMM for you. Our team will explain everything you need to know about PAMM before you go live, and provide your employees with back-end training. Our PAMM can be customized upon request.