The complexity of classic types of trading in Forex often deters beginners. Investment services aim to make the entrance to the game easier. UpTrader offers brokers to integrate a new online investing platform which is able to attract clients of all levels.
Copy trading and trust management services attract much more clients than classic trading tools. Besides, in recent years, copy trading got ahead of other investment services in their popularity. It is much easier and safer for newcomers in Forex to mirror all the deals of professionals rather than independently analyze the market, because in this case, one would learn from their own mistakes at the expense of capital. More experienced traders also often prefer copy trading platforms in order to become providers of signals and strategies thereby profiting from commissions of their subscribers.
Due to a wide range of opportunities of such platforms for investors of all levels and the motivation system for professional traders, brokers are able to significantly increase trading volumes and their client base. Such services become their way into the mass audience. However, Forex business faces a difficult choice: which of the investment tools will not only attract but retain clients for long?
To answer this question, let’s review the main investment services that are in high demand by traders and investors.
PAMM: at height of popularity in 2008–2014
PAMM (Percent Allocation Management Module) has been widely used by brokers for over 10 years. PAMM-investors, connected to a particular offer, allocate their capital in one account which is managed by a trusted trader (account manager). This manager can trade with his investors’ funds at will. Profits and losses sharing goes in proportion to the size of investments of each participant.
PAMM-users are not able to affect the course of the trader directly. Even if one chooses PAMM-account with a steady growth of profits nobody guarantees any insurance against a partial loss of the deposit. If an investor sees that something goes wrong he can not recall his funds until the trading period set by the offer ends. Managing traders often set substantive fines for early withdrawals of funds.
Experience has shown that PAMM is quite a risky scheme for investors because they lose control over their funds. A manager can fail, and even if an investor notices it at an early stage, he’ll never be able to affect the result and withdraw funds in time. Many newcomers thereby face irreversibility and opacity of managers’ actions. As a result, they stop working with the broker and quit trading for good.
Social trading services
LAMM and MAM — popular plugins for MT4
Social or copy trading challenges trust management systems. Two of the popular types of copying deals are LAMM (Lot allocation management module) and MAM (Multi-Account Manager), where a trader is not a manager of investors’ funds, but just opens his trading activity for automatic copying. An important difference from PAMM-accounts is that connection to the service doesn’t require to transact funds to someone else’s account. Funds are placed on their own trading account, so an investor is able to control risks. Moreover, in contrast to the PAMM system, an investor can stop copying deals at any moment with no fees or fines.
However, both systems have some crucial deficiencies. An investor has to constantly be engaged in manual control of his account balance. The services don’t allow setting stop-losses and take-profits. That means one should always be online in order to quit the strategy in time, otherwise, the deposit can be lost. Subsequently, it is much harder to stimulate such clients to open deposits again.
Moreover, a MAM investor directly takes part in trading. A trader’s deals are duplicated to an investor’s account, but he can close them or increase the volume of investments to the profitable deal.
Thus, an investor becomes a co-author of a trading strategy learning from traders and sharing the risks. The system didn’t reach popularity as the investing process through MAM is far not passive. In fact, a majority of clients seeking to invest don’t want to spend much time on trading. They are ready to entrust their funds to a professional, pay commissions and receive profits.
RАММ 2.0 — UpTrader’s choice
Recently an IT-company named RAMM.TECH launched the second version of a trading platform for copying deals — RAMM (Risk Allocation Management Model). In contrast to the above-mentioned systems, it has a range of advantages for brokers and their clients.
First of all, RAMM is not a plugin for MT4 or MT5, but a separate autonomous trading platform. It is compatible with any brokerage regardless of a trading platform it uses or whether it actually has any. One can connect it to any liquidity provider used by a broker. Advanced API allows to easily integrate it to brokers, and the system doesn’t overload a company’s server.
Investors appreciate easiness of investment and absence of any need to go deep into trading. They also like the service for a high level of security of funds and risk management. Security is provided due to the fact that investors’ funds stay on their accounts. Risk management is possible because of settings enabling users to limit their losses and lock in profits as well as build a comfortable trading volume. One can connect to a limitless number of strategies from one RAMM account and will see all the statistics in one place. A client can leave the strategy at any moment with a single click. High precision of copying deals and stable work of the platform are also distinctive features of RAMM.
Having large experience with many other investment services UpTrader set its sights on RAMM due to the easy integration process and a range of significant advantages for investors and traders.
Recently UpTrader has integrated the service to the company Grand Capital, which had been offering LAMM to its clients for a long time. According to initial conclusions, clients that have registered on RAMM are 4 times more likely to make deposits than with the service’s predecessor. In the company, this success is explained by a higher quality of the platform, its usability, and the earning power.
Another advantage of RAMM is the fact that a company doesn’t need any resources for integration, as well as technical maintenance. The fee for using White Label RAMM is a small contribution which depends on the number of clients.
Contact the UpTrader team to receive details on SaaS RAMM integration and maintenance:
UpTrader also offers:
White Label MT4, MT5
Integration of payment systems