MT4/MT5 PAMM

PAMM benefits for brokers

Often brokers choose the PAMM solutions to cover the following requests:

• Attract new categories of clients by extending trading offers with money management services;
• Increase trading volumes by implementing the shared funds run by the best traders;
• Showcase best-performing clients via interactive charts and graphs on the website.

For investors

With the PAMM solution, traders enjoy new trading experiences, including the following features: 

• Join the trading strategy of profitable money managers;
• Choose the most suitable money manager and make informed investment decisions via the advanced ratings and statistics module;
• Maximize earnings with automating reinvestment;
• Withdraw funds at any time without additional risks to other stakeholders.

For money managers

• Manage funds of multiple investors via a single shared account;
• Ensure transparency of profit sharing with automatic distribution of profits among investors;
• Receive additional income with 5 different fees: performance, management, entry, and deposit/withdrawal fees. 

Book a consultation to learn how it works.

Profit distribution

At each Rollover, trade results are allocated between investors and their money managers based on their respective shares in the PAMM account. The distribution amount is determined by calculating the current profit of the money manager’s trading account in MetaTrader.

Commissions

Brokers may let money managers set, configure and receive commissions on:

• Early investor deposits and withdrawals;
• Portfolio management;
• Performance.

Reporting

Within the PAMM system, users may access their trade history on the web portals. Additionally, investors, admins, and money managers can request investment reports for specific periods. These reports can be conveniently delivered via email regularly, providing users comprehensive insights into their investment activities within the PAMM system.

PAMM has a built-in Ratings Module to provide investors with data about trading performance of money managers. With this tool, brokers may effortlessly create custom widgets based on trading information of specified accounts or groups.

Generated widgets can be integrated into the brokers’ website, attracting visitors’ attention with interactive charts and graphs.

Stop-Loss levels

The Stop Loss function may be applied to the acceptable investor loss generated by the money manager. The investment will be closed once the level is reached,, and the remaining funds will be returned to the client’s trading account.

Automatic investor requests confirmation

If an investor requests the funds’ withdrawal, PAMM will notify the money manager about the planned operation. After the specified period of time, e.g., 30 minutes, PAMM automatically confirms such requests. Thus money managers may assess their trading strategy and modify open positions if necessary.

Partial trade close on withdrawal

When requested withdrawal may cause the PAMM account to go into a margin call or a stop-out state, PAMM may automatically close opened positions proportionally to the withdrawable share. Thus other investors’ funds are protected by decreased overall exposure of the whole PAMM account.

Notifications

PAMM allows configuring auto email notifications on certain PAMM events to investors, money managers, and administrators.

Brokeree’s PAMM solution simultaneously operates across several MetaTrader 4 and 5 servers, enabling traders from different servers to invest in each other’s accounts. 

This way, the system unites all traders into one pull and establishes a new environment to interchange.

EXAMPLE:

A money manager based on a MetaTrader 4 account may attract investors from MT5 and other MT4 servers and vice versa.

Automatic rollover

The rollover process synchronizes data between the PAMM system and the MetaTrader platform. Rollovers are performed in regular intervals based on a predetermined timer or can be initiated manually by the administrator or money manager.

Hedge funds choose the PAMM solution to start their companies without massive investments into the technological infrastructure.

• Automate investor registration via a web portal;
• Automate profit sharing proportional to invested amounts;

Book a consultation 

MT4 PAMM

MetaTrader 4 is most commonly associated with forex trading; it can be used to trade various markets, including forex, indices, cryptocurrencies, and commodities, via CFDs. Read more about solutions for MetaTrader 4.

MT5 PAMM

MetaTrader 5 is the latest generation of MetaTrader platforms. Key features of MT5 include web trading, algorithmic trading, mobile trading, and professional technical analysis. Read more about solutions for MetaTrader 5.

Onboarding includes the installation of the solution in the broker’s demo environment and a series of presentations to go over the features of the solution to achieve the required brokers’ setup.

A customer success team, tech support team, and BDM work closely with a broker upon their requests to ensure smooth and efficient operations.

Besides support services, Brokeree Solutions provides clients with consultations and maintenance packages.

Some popular investment systems like MAM or Social Trading are based on the technology of signal sharing and operate by copying trades from one account into another. In contrast, a PAMM solution does not copy any trades, and all trading operations are performed on the shared PAMM account run by a money manager. The solution allocates profits between investors only after a trade closes on a PAMM account.

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Brokeree Solutions’ PAMM is an investment system that allows traders to follow the strategies of more experienced traders – money managers, by joining the shared accounts. A trader chooses money managers to follow based on their trading results and invests funds into their accounts. MT4/MT5 PAMM solution calculates investors’ profits based on the percentage of invested funds and automatically allocates it, allowing traders to withdraw funds anytime.

Both PAMM and MAM solutions allow traders to follow the strategies of other, more experienced peers – money managers. But while MAM copies trade from one main account to other accounts, PAMM allocates profits from a money manager’s account based on the percentage of the invested funds. Read more about the differences between popular investment systems in Brokeree’s article “PAMM vs. MAM vs. Social Trading. What should a broker go for?” published on FinanceFeeds.

Yes, Brokeree PAMM automates investor registrations and the distribution of trading results. However, the solution needs a trading platform for liquidity management, order execution, and charting. Hence, to launch a hedge fund, a company may start with the acquisition of a MetaTrader 5 license. This license provides the technological foundation for the business, including the calculation of key indicators for hedge funds, including NAV (Net Asset Value), AUM (Assets Under Management), and fund performance.