A close look at FXPRIMUS new PAMM account for skilled FX traders
Powered by SoftFX, FXPRIMUS goes the portfolio management route with its new PAMM account. We take a look at the ethos and functionality of the new addition to the firm’s product range
Retail FX brokerage FXPRIMUS has announced the launch of the new PAMM (Percentage Allocation Management Module) service, offered through its affiliated entity Primus Markets INTL LTD.
This new service facilitates the relationship between Skilled Traders (Masters) & Enthusiastic Investors (Followers) and represents FXPRIMUS’ foray into providing solutions to portfolio managers and professional traders.
According to FXPRIMUS, the introduction of a PAMM solution follows FXPRIMUS’ strategy whereby the company places greater emphasis on the provision of the highest quality technology services and products to its clients.
The FXPRIMUS PAMM Service provides the opportunity for Masters to showcase their performance to the tens of thousands of FXPRIMUS customers that are in need of investment services.
In a conversation this morning with senior executives at FXPRIMUS this morning with regard to the system itself, FinanceFeeds took a close look at the new platform, which is powered by SoftFX, a company that has been established for five years and produces PAMM technology along with liquidity aggregtion software that maintains liquidity network connectivity and manages execution for brokers, as well as depth of market indication tools and the TickTrader platform.
The company’s PAMM solution is aimed at professional portfolio managers and enables copying trades from Master account to one or more Slave accounts and automates profit and loss distribution.
The ability to offer a PAMM account is a very significant trading volume generator for retail brokerages, their respective liquidity providers and prime brokerages, as well as for portfolio managers who trade such accounts, therefore generating commission revenue for the trades conducted via the Slave accounts of the portfolio manager’s customers.
The original concept of a PAMM system was invented in October 2008 by Dmitry Orlov during his tenure at Alpari, the concept having since then become widely recognized as a vital tool for brokers in which to encourage professional traders to bring on board their own client bases, MetaQuotes having been among the first platform providers to take on board Mr. Orlov’s invention and provide it to a mainstream audience, subsequently followed by specialist firms such as SoftFX.
Mr. Orlov spoke to FinanceFeeds on the considerable difference between portfolio management systems in FX compared to automated trading by following trade leaders on social networks by stating “Since the portfolio managers are also investors and put their own funds at stake, the risk of coming across a reckless PAMM-account manager is minimal.”
In terms of FXPRIMUS addition of a PAMM service to its product range, FinanceFeeds spoke this morning to Laoura Salveta, Head of Marketing at FXPRIMUS to gain further perspective.
How important is PAMM for Skilled Trades who act as Masters?
This service offers our Skilled Traders a tailor-made solution for authorised trading on behalf of clients, therefore facilitating single terminal multiple account management.
Skilled Traders benefit from an enhanced combination of performance fees, commissions, rebates and/ or management fees, total control over the allotment of trades, with a high degree of flexibility and the ability to allocate funds by percentage of equity.
Additionally, there is no limit to the amount of clients which can be allocated to their PAMM and traders have the ability to monitor their unlimited commissions on a daily basis as well as have the compatibility to use EAs.
What is the value added service of a dedicated PAMM, rather than an off-the-shelf MAM?
Due to an overwhelming amount of requests for an innovative investing tool, FXPRIMUS listened to partners and clients and now offers the PAMM service to facilitate the relationship between Skilled Traders (Masters) and our eager investors (Followers).
An important part of our PAMM service is the benefit to our IBs in which unlike other off-the-shelf MAM platforms, FXPRIMUS IBs are rewarded for the volumes traded of their clients who are under a PAMM account, in addition to their standard rebate received.
In addition to this, IBs can choose to inform their clients about specific PAMM Masters based on their performance record, along with the commissions they offer.
What audience and markets are we targeting and who will be attracted to the service?
We are targeting all of our Partners and Traders globally, because we believe that this not only benefits Skilled Traders who can act as PAMM Masters and can enhance their earning potential, but it also benefits novice traders, who can invest with profitable traders and can take a share of their success. All deals taken by PAMM managers are monitored and controlled by FXPRIMUS, thus ensuring transparency and record keeping of all trades along with best execution.
What PAMM will mean in terms of increasing revenue for FXPRIMUS, from trading volumes and multi-accounts?
The PAMM Service opens a new avenue for FXPRIMUS to gain market share in the competitive landscape of the FX industry. Few brokers are offering the service and matching this offering with our safe trading environment, it has huge potential for our business.
Head of Dealing at FXPRIMUS Ioannis Gerousis today stated “FXPRIMUS PAMM is the new interactive investment product, offered through our affiliated entity Primus Markets INTL LTD, allowing investors to interact and benefit from Masters’ strategies. Masters can offer their trading strategy to thousands of clients and will be rewarded once they follow the trades of the Masters. As an investor, there is a choice between numerous skilled Masters whose strategies can be followed with full transparency.”
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