Introducing The HYBRID PAM. Game Changing Technology to Empower Both Money Managers AND Investors!
PAM technology for Money Managers has been sorely lacking innovation for way too long making it RIPE for disruption and new innovation to move in. Mt.Cook offers a revolutionary breakthrough for money managers with our HYBRID PAM technology! Built to spec with loads of customization, this new software provides everything a money manager (and their investors) could ever want.
What is Hybrid PAM Technology?
Exclusive to our ECN platform, our Hybrid PAM is a special “game changing” trade distribution software designed with both money managers and investors in mind, empowering both parties with many safety tools, and valuable features to make life easier.
The software allows money managers to easily place trades on their client’s accounts. It combines many of the flexibility features found in trade copier software, but with the “block execution” and zero latency of a PAM, preserving the integrity of the trader’s “fill” and thus providing the best of both worlds between a trade copier and traditional PAM software.
What Makes it So Special?
The software provides 2 extremely valuable functions. First - it makes life incredibly easy for Money Managers. Second - it provides investors with flexibility, customization, and risk protection (safety tools, and thus peace of mind).
All administrative duties, setup, and fee collection / payment to the money manager (and any IBs) is handled on auto-pilot. Investors retain a high degree of control over their investment with their money manager and can customize and protect their investment as much, or as little, as they like.
How is This Different From Traditional PAM Software?
There are almost too many benefits to list, but here are the top 6 reasons why our Hybrid PAM is in a league of it’s own when it comes to fund management between money managers and their investors.
TRADE ALLOCATION NOTE:
While all investor accounts remain independent from one another, the sum of all client orders goes through to the market as one single block order, thus all investors receive the same fill and there is no competition or disruption with the integrity of the order being filled. No slippage. No latency. One block order! Worthy of nothing – Investor allocations can be allocated down to 0.001 lots (a fraction of micro lot).
Web-Based Control GUI - Makes it Easy for Managers and Investors.
Managers can quickly see the status of their investors, including their balances, currency, risk multipliers, and fees being charged.
Visit our money manager page to learn about our quick approval process for talented money managers, and also about the importance of your broker as a partner in your trading business.
Hybrid PAM Questions?
We got you covered!
1) I'm a bit confused, is this a trade copier or a PAM?
This is a “hybrid” of both. It offers only the best features of both. It has the functionality of a trade copier (i.e. multi-currency, risk multipliers, stop loss protection etc…), yet maintains the best features of a PAM and much more, such as block execution, so there is no “copying” of trades, and thus no latency, slippage, or variable fills between clients. Every client gets filled the same as all orders go to market in one block order. Thus, a client with 1M, will receive the same fill as a client with 1k. The software handles all tracking, management, collection, and payment of fees as well.
You can think of this as a highly upgraded PAM software for money managers, but with all the functionality and utility of a trade copier.
2) What type of fees can I charge to my clients as a Money Manager?
The software has the ability to charge any of the following fees …
- Performance fees
- Management fees
- Subscription fees
- Transactional fees
- Spread fees
The industry standard for managed accounts is usually a performance fee, and sometimes a management fee or a markup as well if your strategy has a lot of credibility and history.
Any fees can be customized at the client level on a client-by-client basis. For example if you wish to charge different fees to different sizes of investment, or different duration of investment, this is all easily automated.
These fees can be profit-shared with any IBs or sales force of yours as well.
3) What base currencies can my clients invest in?
Currently investors can hold their investment in the following currencies…
Soon CAD, NZD, HKD, and SGD should be available in early 2022. Until then investors must hold their investment in one of the currencies above.
4) Do I have a Metatrader account in a Hybrid PAM?
- Money Managers – YES.
- Investors – NO.
The money manager trades a live MT4 account. Investors in the Hybrid PAM have “ECN Accounts”. These are direct interbank accounts which are sync’d in directly with our ECN. Only the master account (the Money Manager’s account) has, and trades an MT4 account in the Hybrid PAM structure. Therefor your Money Manager funds his MT4 account and places trades on it. Investors then receive the exact same trade allocations and settlements to their ECN accounts that their Manager places in their MT4 trading account.
So in summary…
- Money Manager: Trades directly on an MT4 Account (trading terminal).
- Investors: Receive the same trades on an ECN Account (accessed via web/client portal).
5) Does this software really track each investor's high water mark?
Yes, the software very accurately tracks each investor’s high water mark. It will calculate and deduct fees at month end according to this and the rates specified, and automatically deposit them in to the Money Manager’s merchant account – just like clockwork. If a client is below the high water mark, then there will be no performance fees charged until they are once again above this level.
6) Do I as a Money Manager have to fund a master account?
The Hybrid PAM structure requires a live master account, which is intended to be traded by the Money Manager. This can be funded by the Money Manager (always recommended) or by one of their clients. There is no minimum value that the master account must be funded with.
We always recommend that money managers fund and trade the master account whenever possible (even if it is only a small amount), simply as investors appreciate it when their Money Managers have “skin in the game”.
7) Can I block my clients from having risk controls and stop loss protection?
Yes, we can override this function. However, it is recommended to keep it enabled so investors have more control (and thus responsibility) over their investment. You can see your client’s settings and advise them if you see someone setting risk to high, or an equity stop loss to tight etc…
8) Can I setup a myfxbook or fxblue link for my account?
- Money Managers – YES.
- Investors – NO.
Myfxbook only works with MT4 (and a few other platforms) but not with our ECN platform.
However, we always suggest that each Money Manager setup a myfxbook account for their Master MT4 Account, and share this with their investors. This helps provide a good and familiar “visual reference” with rich statistics on the performance of the account.
ECN accounts have great reporting, and show live trades and floating equity in real time, and will always match the master account perfectly (in terms of equity matching equity), and thus the myfxbook of the master account will visually reflect the same equity performance as investors receive in their accounts.
9) Can I unsubscribe from a Money Manager at any time?
Yes. You do not require our, or your manager’s approval to unsubscribe. This is done by the click of a button in your online ECN account. However, we always recommend letting your Money Manager know as a courtesy if you are wishing to unsubscribe from his managed account.
Note that if you unsubscribe from a Hybrid PAM subscription while your Signal Provider has trades open in the market, your account will automatically close the open trades, and you will realize the profit or loss of the open trades to your account instantly.
Example: If your Signal Provider has a GBPUSD trade open that is currently in $150 profit on your account, if you Unsubscribe from the service, the GBPUSD trade will close, and the floating profit of $150 will be applied/booked to your account and reflect in your Net Equity. This process would be the same if the value was negative as well. You cannot disconnect from a PAM
service and maintain any existing open positions. They will all be closed automatically upon Unsubscribing.
10) Can investors manually trade on their accounts when in a Hybrid PAM?
No. While an investor account is connected to Money Manager’s Master MT4 account in the Hybrid PAM software, they cannot intervene with the Manager’s trades or manually place new trades.
The tools at the investor’s disposal allow them to simply; opt in or out of the service, scale their risk up or down, and protect their downside risk with a firm equity stop loss.
If investors wish to speculate on their own and trade on their own, they must open and fund an additional and separate self-directed trading account. Please contact our accounts team at [email protected] to request this if you wish to open a self-directed trading account.
11) Can I increase my risk multiplier higher than 2x risk?
Yes. However if investors wish to do this, please contact us at [email protected] to set this for you. As a safety protection mechanism we limit this to a maximum of 2x risk for clients to set. We can override this however and set it up to a maximum of 4x for investors upon request.
* Please be safe when requesting to set this to a high value and ensure you understand the risks involved in doing so, as well as any changes in margin requirements. When in doubt, contact your Money Manager or our accounts team for best practices and/or advice.
12) Who can apply to become a money manager at Mt.Cook?
Generally speaking – traders who hold some kind of financial license to be managing funds, or who have ample experience in trading on their own, and are looking to start to trade for clients (emerging managers).
13) How do I apply to run my Money Management business here?
First, you must open an account (the “Get Started” button above in the top right). Second, our partnership team will speak with you about your project and you will sign a Money Manager Agreement with Mt.Cook. Third – we build your digital LPOA(s) if required, and your landing page for your clients, and then you are ready to start. The entire process takes approx 24 hours after you have been approved by our friendly compliance team.
14) Can you introduce investors to my trading strategy?
This is not something that we normally engage in, however on certain occasions we may able to make introductions to funding sources and capital partners who are looking for investment with talented traders. This however should not be your primary reason for opening a PAM business here.
You can always start with your own self-directed trading account, and convert it in to a Hybrid PAM whenever you have interested investors wishing to participate.
15) Which PAM Software is best? The ECN Hybrid PAM or the DMA Standard MT4 PAM?
This really comes down to personal choice and what your primary requirements are. For most managers, the ECN Hybrid PAM is the obvious choice as it solves so many problems that most of the older Metatrader PAM softwares are faced with. If you require assistance in deciding between the two, please contact us for further assistance.
Ready to get started?
Contact us and provide us with some information about your project (the more details the better). One of our partners will be in touch and help you to launch your program.
Lets get your project off the ground!
Contact us today for a free consultation on your Money Manager project. We will guide you through on the best course of action to get up and running quickly and effectively.