In today’s competitive financial market, brokers continually seek ways to enhance their service offerings and attract a broader client base. One solution gaining popularity is providing Multi-Account Manager (MAM) accounts.
Offering MAM accounts to your traders is an effective way to acquire and retain more clients for your brokerage. These clients tend to be higher net-worth individuals, meaning higher FTDs, trading volume, and brokerage commissions.
Offering MAM accounts can have multiple benefits for your operations, including:
a. Professional Account Management: MAM accounts grant traders access to professional account management services. Experienced traders can manage multiple client accounts simultaneously, leveraging their expertise to make well-informed trading decisions. This benefit is particularly attractive for traders who need more time, knowledge, or confidence to trade themselves actively.
b. Diversification and Risk Management: MAM accounts enable traders to diversify their investments across different strategies, markets, and asset classes. By allocating funds to multiple accounts, traders can spread risk and reduce exposure to any trade or market event. Diversification is a vital risk management tool that enhances traders’ portfolios’ stability and potential profitability.
c. Accessibility and Flexibility: MAM accounts offer traders accessibility and flexibility in their investment journey. With the MAM solution from PLUGIT, for example, Traders can choose from various allocation methods, allowing them to customize their investment approach according to their risk tolerance and goals. MAM accounts also provide real-time transparency, enabling traders to monitor their accounts’ performance, track trades, and withdraw funds at their convenience.
d. Efficiency and Scalability: With MAM accounts, traders can enjoy managing multiple accounts from a single platform. The MAM infrastructure allows for streamlined trade execution and automatic allocation of trades across different client accounts. This efficiency enables traders to handle larger volumes of capital, attract more investors, and increase their earning potential.
Offering MAM accounts to your clients comes with some impressive income benefits as well, such as:
a. Increased Trading Volume: By offering MAM accounts, brokers can attract a broader range of traders, including high-net-worth individuals and institutional clients. These clients typically have larger account sizes, which can lead to increased trading volumes. As a result, brokers stand to earn higher commissions and transaction fees as trading activity escalates.
b. Enhanced Account Management: MAM modules typically offer comprehensive tools and functionalities for efficiently managing multiple client accounts. They allow brokers to execute trades simultaneously across multiple accounts, allocate trades based on various parameters, and monitor performance in real-time. These features enable brokers to effectively handle a more extensive client base and streamline their account management processes.
c. Performance-Based Fees: Brokers can incorporate performance-based fee structures into their MAM account offerings. By aligning the account manager’s success with clients’ profitability, brokers can earn additional fees based on the trading performance of the MAM accounts. This process incentivizes account managers to generate positive results, as their success directly impacts trader and broker earnings.
d. Attracting New Clients: Offering MAM accounts gives brokers a unique selling point and a competitive advantage in the market. The availability of professional account management services appeals to traders seeking expert guidance and the potential for consistent returns. By expanding their service offerings to include MAM accounts, brokers can attract new clients who may have hesitated to trade independently, expanding their client base and revenue streams.
e. Client Retention and Loyalty: MAM accounts contribute to client retention by fostering trust and confidence. Traders benefit from the transparency and performance tracking features MAM accounts offer, which enhances their overall trading experience. Satisfied clients are more likely to remain loyal and continue trading with you, ensuring a stable revenue stream over the long term.
The MAM module from PLUGIT combines a user-friendly and highly customizable interface with cutting-edge features:
Full Integration with MT4 and MT5 Platforms:
By fully integrating with popular trading platforms like MetaTrader 4 (MT4) and MetaTrader 5 (MT5), the PLUGIT MAM module allows brokers to incorporate MAM functionality into their existing trading infrastructure seamlessly. This integration ensures compatibility and familiarity for brokers and clients, making adopting and utilizing the MAM module easier without requiring significant changes or additional platforms.
Eight Distinct MAM Allocation Models:
The availability of eight distinct MAM allocation models within the PLUGIT MAM module allows brokers to meet various client requirements. Each allocation model may have risk and profit distribution parameters, allowing brokers to cater to different investment strategies and risk profiles. This level of customization helps attract a broader client base and increases the likelihood of satisfying a wide range of investor preferences.
Automatic/Manual Deduction of Performance Fees:
The PLUGIT MAM module enables automatic or manual deduction of performance fees from investor accounts. This feature streamlines the fee calculation and collection process, reducing administrative burdens for brokers. By automatically deducting performance fees, brokers can ensure a seamless and transparent fee structure, which benefits both the broker and the investor. It aligns the interests of the account manager with the client’s profitability, potentially incentivizing the account manager to achieve positive results and generate higher profits.
Automatic Position Closure:
The ability to automatically close or partially close money manager positions when an investor closes a position or performs a withdrawal is a valuable risk management feature offered by the PLUGIT MAM module. This functionality ensures that investor actions are reflected in the positions managed by the money manager, maintaining appropriate risk exposure and synchronization between the investor and MAM accounts. This automation helps minimize discrepancies and potential losses, contributing to a more efficient and reliable trading process.
Connection to Multiple Servers from One Portal:
The capability to connect to multiple servers from a single portal is a significant advantage provided by the PLUGIT MAM module. This feature allows brokers to manage multiple trading servers and access data from different sources through a centralized platform. It simplifies managing and monitoring various client accounts, providing brokers with a comprehensive view of their operations. This centralized approach enhances efficiency, saves time, and enables brokers to handle larger client volumes effectively.
The PLUGIT MAM solution is an effective method to offer MAM accounts to your traders. We’ve gone to great lengths to combine powerful features with functionality and ease of use, so why not contact us today for a no-obligation demo and see what PLUGIT can do for your business?