Forex MAM Software (Multi-account Manager) is a boon for brokers looking for offering managed fund services popularly known as MAM Account Service.
Its also called Forex MAMM Software which is an abbreviation of Multi-account Management Module.
In the past 2 decades, the online forex trading market has grown by leaps and bounds. It has reached all over the world and traders not only from developed countries but third world countries are participating by actively trading.
When a market has such a large customer base, it cannot fulfill the requirement of different segments of customers with plain vanilla offerings. You need to constantly seek feedback and innovate the offering and solutions that fit into the requirements of the community.
This is the case with the forex trading market. It has different classes of traders; beginner traders, pro traders, learners, traders cum trainers or educators, influencers, marketers, algo traders, and whatnot.
Every single class of forex trader has different requirements.
Some want a fast trading platform, some want excellent charting software, some need specific indicators with specific settings, some want to trade into currency pairs only while some want energy, indices, bullion, crypto too.
They may have different requirements but at the core, everyone has just one goal; to make money from the forex market.
What’s the need for Forex MAM Software?
Different traders may use different tactics but as the statistics suggest a large number of forex traders lose money trading forex, especially the intraday traders who trade on high leverage.
In fact, less than 5% of forex traders actually make any money by trading into forex.
While this disparity frustrates many loss-making traders, some really understand that there are ways to make money from the forex market. It’s just that they are not good at it but someone else is.
This gives the rise to the demand for Managed Fund Services and thus the need of Forex MAM Software.
What is FOREX MAM Software?
Forex MAM Software works as a bridge between one trading account to many other trading accounts usually within a forex broker platform. While it allows one Master Account to place trades to other trading accounts (investor account) connected with it by merely placing trade in a self-trading account while individual traders can still control and manage such trades.
Sounds complicated? Let’s understand in detail.
How does Forex MAM Software Work?
Although we may just share how a forex MAM Software works but let us explain the entire process from the beginning. So as a forex broker you get to know every aspect of offering a MAM Trading Account to your clients.
- A Forex Broker buys the MAM Software from a developer company or forex brokerage solution provider.
- A separate MAM Account is introduced with terms and conditions.
- Clients Subscribe to the MAM Account service and select the Master Account that they want to connect with.
- Master Account gets access to the connected investors’ account.
- Whenever Master Trader opens a trade, it gets placed in all connected traders’ accounts simultaneously.
- When an open trade is closed by the master trader, a trigger is sent to close the trade to a connected trader’s account. If the same trade is open in their account, it gets closed.
- Unlike PAMM Account, allocated fund stays in traders’ account only and doesn’t move to the master account or a common fund pool.
- MAM Account traders have significant control over the trades. They may put their own conditions based on equity, balance, margin, etc. For example, a Master Trader may trade in large quantities but an investor trader may decide to open just 1 micro lot. MAM Software gives this flexibility.
- MAM Software allows investor traders to modify or even close a trade.
- MAM Software allows traders to choose to take only those trades which are placed by the master traders in their choice of asset class. For example, an investor trader chose to get only forex trades and want to skip trades done by master traders in energy, bullion, etc. MAM Software allows it.
- Unlike PAMM where a client’s funds are blocked for a predefined duration, a client subscribing to MAM can unsubscribe to this managed fund service anytime.
- Clients or investors who have subscribed to the MAM Account service need to pay a management fee and/or incentive on any profits generated. These charges are automatically deducted either at the time of subscription or after a defined duration.
Forex MAM Software Benefits for Forex Brokers
Forex Brokers get to offer value-added managed fund service to its retail clients who want to benefit from a master trader’s profitable trading skills.
Forex Brokers earn additional revenue from just the increased volume.
They get to retain loss-making clients who would otherwise stop trading after a couple of losing streaks.
Additional revenue by way of management fees and other charges.
How a Forex Broker can get MAM Software?
There are 2 ways a Forex Broker can get the Forex MAM Software;
1. Developing own proprietary Forex MAM Software
a. In-house development
In case a forex broker has an in-house software development team, they can get the Forex MAM developed by them. There will be salary and infrastructure costs along with the time that it will take.
You may need to subscribe or buy APIs for it depending on the trading platform that you are using. For example, to develop an MT4 MAM Software your need MT4 Server API. Similarly, to develop an MT5 MAM Software your need MT5 Server API.
b. Outsourcing to a development company
There are software development companies that specialize in forex software and tools development. You may outsource your proprietary MAM Software development work to them.
2. Forex MAM White Label Solution
There are numerous forex software development companies and brokerage solution providers that have already developed Forex MAMM Software for some of the popular trading platforms like MetaTrader 4 and 5.
If you are using MT4 White Label or MT5 White Label solution for your brokerage, you may want to get Forex MAMM White Label Solution from them which comes at a fractional cost of new development.
Another benefit of Forex MAM White Label Solution is that they are being used by other brokers as well. This helps these companies to improve existing functions and features and new features as per request. You get the benefit of being in the ecosystem.
Forex MAMM White Label Solutions are quickly set up and you are good to start offering MAM Accounts to your clients within a couple of days of subscription.
With Forex MAM White Label Solution you as Forex Broker can focus on your core brokerage business rather than wasting time in planning, monitoring, and testing the development work.
MAMM Software Cost for Forex Brokers
A custom proprietary Forex MAM Software developed in-house or by a software development company can both cost USD 20000 or more and 3-4 weeks’ time.
Forex MAMM White Label Solutions from a forex brokerage solution provider costs as low as USD 500 in set-up fee and USD 1000 in monthly charges.
When one looks at the huge price difference between a proprietary MAM Software and Forex MAMM White Label Solution, it makes perfect sense to go with the second option.
Forex MAMM White Label Solutions come at a fractional cost and save a lot of time.
CONCLUSION
There is no doubt that managed fund services like MAM Accounts are a great value-added service for forex brokers to their clients.
Forex MAMM software not only helps brokers in customer retention but attracts new traders due to positive word of mouth from profit-making clients.
An additional source of revenue due to increased trading activities, volumes, management fees, and other charges.
If you are a small & mid-size forex brokerage business and looking to add MAMM Accounts in your offering, going with Forex MAM White Label Solutions makes the best sense as it comes at a very cost and saves a lot of time that you would otherwise waste in development. Everything that you do in business comes with an inherent risk of failing.
Forex MAMM White Label Solutions lets you test your plan at a very low cost. Wonderful, if it works but won’t kill your business even if it fails.
As a standard practice, always connect with 4-5 different vendors, ask for their MAM Software features and functionality, get the price quotes and negotiate with the ones you like.
Wish you grand success!