How to launch a hedge fund on MetaTrader 5 in 2022
A short guide to get you up to speed
Launching a hedge fund is a convoluted process involving different tasks. For example, dealing with legislative issues, designing a business model, and attracting managers and investors. When starting a hedge fund, brokers must ensure the technical side of the venture is reliable, stable, and does not require too much attention to service it. Using the MetaTrader 5 cluster infrastructure may be a convenient way to cope with such a situation.
MetaTrader is one of the most spread trading platforms. Some brokers who plan to start their hedge fund already use this software or are at least familiar with it. Additionally, the platform’s popularity ensures the availability of additional services like the ability to integrate CRM systems, technical consultations, third-party investment systems and plugins, etc.
Finally, creating a unique technical infrastructure for hedge funds is several times more expensive than the usage of turnkey technology. Hence MetaTrader not only provides brokers with functionality that covers almost every technical need but also saves some brokers’ resources.
How can a MetaTrader help brokers create a hedge fund?
To use gateways, connect to the liquidity provider, execute orders and perform charting, brokers should consider acquiring an MT5 Hedge Funds license. Besides all the benefits of MetaTrader 5, they will be able to set up all fund-related processes on the same trading platform. All vital performance indicators are calculated automatically and available as charts for investors.
Whenever a client registers and deposits funds, brokers may allocate the investment between several money managers to diversify portfolio management. Whenever it’s time to submit fund reports to a local regulating authority, a broker can download them directly from the trading platform without needing third-party solutions. The MT5 Hedge Fund license will be an excellent choice if a company decides to establish a fund.
Being the technological foundation for the business, the license includes the calculation of such key indicators for hedge funds, such as:
– Net Asset Value or NAV;
– Assets Under Management or AUM;
– Fund performance.
Among additional software that may help brokers finetune their trading process on the new hedge fund is the PAMM solution.
The PAMM solution is a platform that allows brokers to launch trading via shared funds across their servers. That means traders from all servers may join the united investors’ pool, where they may act as money managers to share their trading strategies or leverage other investors’ strategies. Specifically for launching the hedge fund, PAMM may help automate investor registration and distribute trading results.
Especially convenient for brokers is that PAMM provides individual portals for all categories of users, including investors, money managers, and administrators. Hence, all users have the opportunity to focus on achieving their own goals, with PAMM investors monitoring and managing their investments, money managers concentrating on the trading process, and administrators conveniently running operational processes.
Therefore, combining both the MetaTrader license and PAMM solution gives brokers a powerful technical backend and attractive components that allow them to start their business smoothly, create a business offer, and configure infrastructure, including CRM systems and lead first clients.
Brokeree Solutions is a leading technology company specializing in turnkey solutions development, trading platform servicing, and consultation for retail brokers running MetaTrader 4 and 5. The company’s portfolio provides clients with flagship investment systems like Social Trading and PAMM.