16 May PAMM service implementation for your brokerage business
The trading activity is a very important issue for the brokerage business at the first stage of company’s development. After all, the more activity of the traders on the broker’s accounts, the more the latter will be able to receive commissions. That is why, most brokers offer analytical products and give various kinds of trading recommendations. However, this is an incorrect way of business development. The broker should be the intermediary between the trader and the market and charge only commissions. To achieve this, there must be a product that will allow the broker not to interfere in the trading process and at the same time, transactions can be made continuously. Today, this functionality is fully implemented using the PAMM module.
Percentage allocation management module service is an innovative software solution for the brokerage business, which consists in providing the possibility of implementing a passive product for active trading. PAMM service allows a broker to provide an opportunity to the traders who have positive results of work in the market to find an additional capital. In turn, this service allows those customers who came to the market to receive passive income, to find an optimal manager for their trading account. As you can see, the broker in this case is a classical intermediary, which provides technical opportunities for the clients. In turn, we are ready to help your business to implement this product.
Moreover, we also provide a software solution in the form of an MAM service, which, like the PAMM, allows you to combine the investor and the manager. The key difference is that the investor does not allocate capital to the manager’s account, and the trader himself manages only his capital. In fact, it is a kind of copier that allows the trader to trade on his account and deliver transactions to the investors in proportion to the capital.
For this, we have implemented in our PAMM service, a simple and understandable logical sequence for both traders and investors. If we consider each of them, we get two types of software architecture.
If you look at the scheme of this principle, you can see that the client has the opportunity to immediately create an account for the purpose of further investment or to convert the current trading account of MT4. This will give an opportunity to test the service for everyone and to diversify the trading process. After registration as an investor, the client enters the portal, through which he can track the results of his investments in the context of trading operations and the general yield curve.
The logic of this system is that the client can initially trade on a simple account, and then translate it under the PAMM to attract additional capital. Most brokers do not implement this function and you must initially open an account under the PAMM. With our software solution, your customers get a number of advantages and opportunities. Here, when registering the account as a manager’s PAMM, the client enters the portal, through which he has the opportunity to conduct a comprehensive monitoring of not only his operations, but also the results in the context of investors and what percentage of payments he can receive. A special plugin that connects the trader’s PAMM and database is an excellent tool for quick measuring the number of investors connected to the trader.
Implementation of the PAMM service allows the broker to concentrate on promoting the passive source of profitability. If the trading operations, on the most profitable PAMMs, will be overlapped in the market, this will reduce possible risks, but will set the task of attracting additional capital to increase the commission (we will discuss this below). Choosing this approach of providing trading conditions for the trader will allocate the company from the crowd of ordinary “kitchens”. Professional exchange speculators are always ready to move to more favorable conditions and they need the opportunity to manage their client base, which they can attract to your company, too. Not without a reason, PAMM services are the central products in most brokers.
Initially, the PAMM module was created in order to provide additional opportunities for the client. But the system primarily helps the broker directly in solving some problems:
- PAMM service allows you to increase the trading activity of the customers. The broker is primarily interested in having his clients trade often and much, because this means earnings for the brokerage company. The more activity – the greater the profit. The foreign exchange market allows to speculatively make deals within a day and at the same time, to earn an excellent percentage of profitability. The broker should not be interested in the client who lost money. If most of your traders connect to the PAMM service, this will prolong their trading activity and your commissions. If there is a positive trading result, the clients will be able to increase the capital, which will also proportionally increase your capital.
- It is a source of additional customers without direct sales? PAMM service is able to work on the partner program system. The managers themselves regret raising the capital and increasing the number of investors. Therefore, the principle of word-of-mouth radio was not canceled. The trader himself will post information about his PAMM account on external sources, and you will thus increase the client base.
- It reduces the brokerage risks. If you have brokerage risks for trading operations, then you can influence them directly through the trading PAMM dll account without interference in all accounts. To do this, you need to combine this service with other software products of your dealing center.
- It reduces the responsibility for the threshold result. As we wrote at the very beginning of the analysis of our software solution for PAMM service implementation, a number of brokers give ready recommendations to their customers. However, this option is accompanied by a number of nuances, one of which increases the responsibility of the broker. In the ideal structure of the brokerage business, the company acts solely as an intermediary. You also need to strive to repeat this work model, and our PAMM service allows you to achieve it.
As you can see, there are more than enough advantages and possibilities for implementing this product in your brokerage business. If you want to build a company with a long-term functioning, the best opportunity will be to launch a PAMM platform as a central product in your company.