PAMM Platforms Functionality Realized On the Side of the Brokerage Firms

If you are engaged in trading in the financial market, you have a number of opportunities to raise funds and increase the client base. There are a number of services that will help you to find investors in your trading and interested potential customers. Today, we will analyze one of these services, namely the PAMM account.

The percentage allocation management module is a certain mechanism behind which the trader’s trading account operates for obtaining additional funds in trust management based on the percentage distribution of income. PAMM account allows the trader to accumulate more funds in the management, which makes it possible to open additional transactions, enter new markets and increase profitability in monetary terms. The investor, in turn, receives a passive income without taking part in trading.

PAMM module allows you to attract additional funds to the trader’s management, based on the results of his activity. So, the investor will be able to assess the trading of the manager, review the statistical indicators and make a decision about investing. Thus, the trader can get additional capital in his trade and save money on it.
For example, as a trader, I have a capital of $10,000 and I am limited to this amount for trading in the forex market. However, if I have a stable monthly return, I can increase the trading capital as a means of attracting investments to my account. So, the investor gets full information about my trading and decides to invest in the account. After that, my capital under management increases from $ 10,000 to $20,000 (if the amount of the investment was also $10,000). I can make additional transactions with a larger sum of capital, and the income can be divided from 30 to 70 with the investor. Also, the trader’s interest, as a rule, is a certain percentage of the investment net profit.

Understanding the theory, most traders abandon further study of the PAMM services. Only a few of them know its structure, the work logic, as well as the internal functionality that is hidden behind the outer cover. That’s why, I’ll tell you today about the internal functionality of the pamm platform, of which very few people know.

First of all, I want to tell you that the functional pamm depends on the open type of the account. Thus, if a trader’s PAMM account is opened, one option is available, and if the investor’s PAMM account is opened, the second one will be available.

PAMM trader functionality
This type of account is suitable for the traders who want to increase their capital under management. And it is completely logical to assume that the functional of this PAMM structure will include the entire necessary list of tools. It is possible to include in this list:

  1. Ability to monitor the trading account. This function allows you to analyze your trading indicators and evaluate them against other managers;
  2. Tracking the customer base. If the trader will be able to conduct an analysis of the growth of customers and the type based on them, he will be able to adjust his work more precisely to the needs of the client (investor);
  3. Forecasting the expected income after the distribution of profits. The trader should know to what income in absolute figures he should be guided. To do this, you need to determine all the investment capital and profitability for it, because some customers can connect earlier, and some later.

The feature of the PAMM platform for traders is hidden precisely in this functionality.

PAMM function of the investor

In turn, the second structure of the PAMM service, has a slightly different functionality. Yes, some functions are the same, and some are radically different. Agree that the investor should not monitor the change in the number of other investors and their amounts. Also, one should not track the payment of all the investors’ rewards to the trader. Therefore, the functional of the investor is more specific:

  1. Monitoring of the result of investments. The investor also needs to know what is the situation on his trading account and how profitable is investing in this PAMM module.
  2. Analysis of all available services in the brokerage company structure. The investor should have the full opportunity to conduct an analysis of all traders or managers. This functionality is aimed at enabling the investor to connect to another account, if it is not satisfied with the result of the work of this trader. In turn, the trader gets motivation in the form that you need to manage your account more competently and efficiently.
  3. Forecasting net profit based on the payment to the trader for management. The investor should understand how much of the net profit will be at his disposal after all management payments. This functionality is aimed at ensuring that the investor can more accurately expect return on investment.

I want to note that despite the fact that the PAMM service has a simple work logic and is useful to both the broker and the professional trader, very few people realize it. The thing is that most brokerage companies are simply not interested in the profitability of their customers and want to make money from their losses. But the PAMM does not aim at this, because if a professional trader increases his funds in the market, the investor’s funds will grow proportionally. And if the broker does not display the transaction data on the market, it will be difficult for him to cover such a volume. Therefore, to avoid uncertain situations, the broker does not start the system data.

The PAMM allows the trader to increase his capital under the management and he must turn his attention to the broker in which the PAMM is implemented. Today, it is possible to realize such an opportunity quite simply. There are many companies that specialize in products for brokers. Therefore, if someone wants to build a profitable brokerage business, and to increase the client base in the existing one, one should think about the introduction of such a product.


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