12 February 2020 | 11:22
To PAMM or not to PAMM
A brief look at PAMM and its benefits: To PAMM or not to PAMM – that is the question.
A PAMM solution is not something revolutionary or new on the market, we all know that. But why is it that some brokers still don’t offer it? Have they tried it before and it failed? Did they have a bad experience in the past where the tech wasn’t up to scratch? Is it the cost? Whatever the reasons, we’re here to take a look at the benefits of offering your traders a PAMM solution, and we’ll let you decide if it’s something you can do without when moving into the next decade.
Why does your brokerage need a PAMM?
Funnily enough, this was one of the most frequently asked questions our sales executives got in 2019! Most brokers know what PAMM is, but in terms of value, they are on the fence when deciding to add it. Let’s break down the reasons why you need a PAMM for your brokerage to thrive:
Your competitor has one
Sad but true, but in order to get ahead – firstly, you need to be able to compete. Most reputable brokerages offer a PAMM solution. What you need to do is compare a few different solutions, test some in other brokerages, and then make the decision to implement one. When clients are searching for a broker, the process is similar. They compare what each broker has, tests them, and then they go for the best option. If you don’t have a PAMM, there’s an ‘X’ on a checklist somewhere next to your name – and just like that, you’re out of the running.
You’ll gain more clients
When you think about adding a PAMM solution to your offering, the first thing you think about is the cost. In our experience, the brokers who get ahead don’t look at the cost first, they look at the overall gains. Adding a PAMM solution will attract money managers to your FX business. Fact. If you know how to woo them, they’ll bring their clients to you. If you know how to treat them (and by that, we mean in terms of their remuneration), they’ll trade with you a long time and godwilling will have excellent stats, and before you know it, you’re the broker who everyone is talking about - with the money manager who is making great returns for everyone. Adding a PAMM will also be great for your existing clients – those who have failed, who haven’t traded in a while, or those who you’ve exhausted every sales tactic with, and are in need of something new to be excited about. Coming back to being the ‘X’ on the list – it’s no longer there, you’ll be competing with the big boys – and the traders who were looking for a broker with PAMM? They’re yours now.
You’ll look more reputable
When you look at your competition and you see how they’re offering everything under the sun, what do you think? They must have a big budget. They must have a big investor. They must make a lot of money to be able to offer all of that. How can I begin to compete on my budget….? Close? We’ll let you into a secret of what traders see. Lots of different products and Forex solutions on offer? This broker is stable. PAMM, webinars, or education? This broker wants me to succeed. Awards? This broker has a great reputation. Infact, the more you offer, the more reputable you look from a traders’ point of view. We’re not saying go out and get anything and everything solution wise that’s on offer– but we provide services for over 100 brokers, and we know what works. Build your offering step by step, or if you’re already quite established, simply add something new. A PAMM solution really speaks to clients in terms of your need for them to succeed – and a PAMM add-on will not only build your reputation, but will build your business.
You’ll make more money
Money managers bring clients. Money managers attract new traders. Existing clients who have failed to do well at trading now have another way to trade. Clients who aren’t active now have a reason to be called again. Basic math: Clients=money. With a PAMM solution that’s marketed correctly you’re able to get more FTDs, drive up sales in your retention department, and increase your businesses profits exponentially.
How does FX Back Office’s PAMM work?
Creating a PAMM solution takes time, expertise in the field, and LOT of money and effort to develop. Our PAMM solution has been tested and improved upon time and time again, and used by our clients for over 5 years. We have produced some of the best forex software solutions on the market, and our PAMM isn’t any different in terms of adhering to those high standards. Your traders will see a PAMM menu in the Client Area. They will be able to see all the different PAMM Managers they can connect to. Information will be displayed for every PAMM Manager, such as where the PAMM Manager is from, how long they’ve been trading, their current trades, how much they are trading and most importantly, their performance stats. After your clients have done their research, it’s as simple as clicking on the PAMM Manager and transferring the amount they want to invest. That amount is automatically added to the PAMM account.
For money managers it’s just as simple. They create their PAMM strategy using a form in their Client Area. They briefly add the name of the PAMM, a short description, the commission they want and so on and so forth, and you approve it on the back end. Once approved, this PAMM gets added to the list of PAMMs your traders can choose from automatically, unless its set to private. Before you go live with PAMM, our team will explain everything you need to know about it, and you’ll receive one of our fancy manuals to go through at your leisure. It goes without saying that our PAMM can be customized based on your needs too.
How do you add our PAMM to your brokerage?
If you’re already using our Forex CRM, implementing our PAMM solution will take a few days at the most. If you have your own CRM or use another provider and want an outsourced, fully functional and highly automated PAMM solution at a very affordable price, get in touch!