Difference between PAMM and MAM Managed Accounts?
As we know, there has been an increasing trend towards private investors managing their own investments. Participation by retail investors in the FX market is now thought to be over 20%, and growing every year. If anyone want to create his own brands in the Forex industry, White Label program will suit best to him. Forex white label program provide higher success rate to broker at low cost & low risk management. In Forex Business, you can invest in any number of managers, any amount to maximize the your profit. Forex Trading Offers manager solution to brokers with MAM & PAMM accounts.
MAM forex fund and PAMM accounts allow fund managers to manage multiple accounts from a single account without having to create an investment fund.
What is a PAMM account?
PAMM stands for Percentage Allocation Management Module. It is a software application used by foreign exchange brokers. It allows their clients to attach money to a particular trader for managing one or more accounts appointed on the basis of a limited power of attorney. It enables the trader to control the unlimited quantity of managed accounts simultaneously on one trading platform. The PAMM balance represents the total amount of all clients’ deposits. To ensure the security of investor’s funds, client deposits remain in their own trading accounts and the manager does not have access to their client’s accounts and therefore cannot make any withdrawals.
What is MAM?
MAM stands for Multi Account Manager; it is a software solution which allows you to control numerous account at the same time. Mt4 forex mam account are designed for account managers and allow them to raise the level of complexity by allowing them to assign a greater leverage to specific sub accounts. These accounts are suitable for investors with a high-risk tolerance and a high level of market understanding. The distribution of the profit and loss is done at the end of the trading period as agreed by the account manager. This feature allows managers, e.g. experienced Forex Traders, trade on behalf their clients on multiple accounts.
MAM offers unique features
- It connects various accounts for easy management.
- The position is opened immediately on all accounts connected to the MultiTerminal soon the request is sent to an open a position.
- The volume of positions for each account is automatically calculated based on the given rules.
- The Trader can see detailed statistics.
- The trader has full control over trading transactions on every account connected to the MultiTerminal.
- Easily manage client reports.
- Monthly/quarterly reporting.
- Monitor commissions and performance in real time.
- All unique order types accepted: Trailing Stop, Close by and Close all.
- Intuitive, easy to use web-based interface.
Choosing a Good Broker is Necessary or Not?
The complete success of your business as a private label is on the shoulder of the quality and reliability of the mt4 mam broker that you choose. It is important that the white label organization you choose is a strong foundation. The foundation will be weak unless the brokerage firm you decide to use is weak. The favorable answers to this question are essential for your company’s future.
Safety of Funds
Working with a good broker is important. He will ensure that the client funds are safe. It is a misconception that bigger the firm, the safer the money. Often, large Forex firm’s big brokers brainwash the minds of the investors. Therefore, it is necessary to do your homework on the broker you are planning to partner up with. Always enter into a white label agreement with a firm that goes the extra mile to protect the money of their clients. Choose the one that implements additional layers of security for the sake of its customers.
Quality of Execution
The quality of execution is highly important when running a trading business. If clients do not get quick fills on the buy/sell orders they place, it will be difficult for the existing customers to convince for staying and for the new clients to do any business with you whatsoever. Because for the clients the actual broker will not matter, and it will in return spoil your company’s name. Nevertheless, they will still judge you for poor execution that they had experienced. And the mistakes done by your bad brokers will ruin the reputation of your company.
An inflexible broker with excellent execution and a huge level of account safety doesn’t make a good partner. It means firm treats you like just a number and does not fulfil your specific needs associated with your particular business model. In such case, you should go to someone else you fulfil all your specific need. If the brokerage firm is not flexible, it is going to make your life a living hell. It is important to discuss your specific plans with the brokers you’re considering before you are signing a contract with one of that firm. Make sure that they fully understand and will work with you, so that you can put those plans into action quickly and effectively. Moreover, make sure that you work with a brokerage firm that offers account safety, good execution quality, and plenty of flexibility.
Note: Make sure that you work with a brokerage firm that offers account safety, good execution quality, and plenty of flexibility. You owe it to your customers and the success of your organization.
Requirements: MAM / PAMM Managers require that they should have at least three clients with total equity of USD 10,000 or equivalent. All investor accounts must complete a Power of Attorney/Manager Agreement. Financial services license or legal opinion in the operating jurisdiction.