FXOpen, the first ever MT4 broker to introduce ECN trading, has just introduced PAMM accounts which allow Money Managers to manage multiple accounts via one centralized interface. Looks like FXOpen invests a lot of money and effort in MT4 coding in order to keep up with the Forex technology innovation pace.
The only MT4 broker so far to have introduced PAMM accounts is Alpari which works very closely with Metaquotes (the company behind Metatrader). FXOpen is a forex broker that probably made the most development on the Metatrader platform besides Metaquotes itself.
PAMM accounts are probably one of the most important features a Forex broker should offer to its clients. It allows a much more centralized, fast and accurate money management for the CTAs (Money Managers, etc) thus benefiting the retail clients themselves. Having a money manager that manually trades each and every account, like it is done now with most brokers, is naturally ineffective and sometimes even harmful. With a more automatic method this should eliminate any human error and allow the money manager to focus on what they should know how to do best – make investment decisions.
Reading from FXOpens Press Release:
“PAMM stands for Percentage Allocation Management Module. It is a technical solution, that provides the ability to create an unlimited number of Investors’ accounts under one “master” account (or Manager account). The funds from all Investors on the master account are traded as one unit, which gives more room for money management and better position management options. The trading on a PAMM-account can only be performed by the Account Manager (a professional trader), who will usually do so for a fee (fixed or commission).
The PAMM-service keeps each Investor’s account records individually and the gains and losses are automatically distributed by the Company (FXOpen) between the Manager and the Investors on a percentage basis so that each party receives its percentage rate of return.
With an FXOpen PAMM account, the account manager can organise all of his clients together in one MT4 terminal.
The PAMM backend via the My FXOpen back-end allows the manager to set up offers for his clients with the rate of management fee, Performance fee, minimum investment amount, minimum balance, early withdrawal penalty etc..
Do you want to invest in a money manager, but need a little peace of mind? FXOpen’s PAMM system gives the account manager ability to trade your account, but not to make withdrawals from it. Only the owner of the account may withdraw the money.
For the Account Manager, FXOpen’s PAMM also provides security. All settlement operations (fees, profit/loss distribution) are carried out automatically by FXOpen so you can concentrate on what really matters. Trading for your clients!
If you would like more information about FXOpen’s new PAMM-Standard or PAMM-ECN system, please visit http://forum.fxopen.com/forumdisplay.php?f=126 and feel free to ask questions and discuss PAMM in this thread.