B2Broker’s Investment Platform is an automated investment service that can help brokerages increase their earnings. The platform allows businesses to launch an investment product in just a week to attract new clients, increase the lifetime of traders and boost their profits.
B2Broker is an aggregator and provider of turnkey, cloud, and liquidity solutions for the foreign exchange (FX) and crypto industry. Amongst its range of services is the company’s Investment Platform, an automated investment service for all asset classes including cryptocurrencies which allows clients to launch investment products and create crypto portfolios in a matter of days.
Reasons for Launching Investment Products
There are several reasons for launching investment products in your company.
Firstly, they allow you to maximise your profit and achieve the most out of your marketing spend. Investment products give you opportunity to convert leads to clients who might otherwise never start trading, and increase the lifecycle of traders who lose money on markets.
Attract New Types of Clients
Investment products also allow you to attract new types of clients. In order to make money on the financial markets, you need a combination of three components; desire for trading, time and money. Most of people possess only two of these traits. However, if you offer them investments as alternative to trading accounts you will convert to clients those who believe that it is possible to earn profits on the financial markets and have the money, but not enough time for personal trading.
If you fail to offer investment products as part of your company’s product portfolio, a proportion of your visitors who are often high-level managers and business professionals, are unlikely to register on your website and end up leaving because they have no time for individual trading. Investment products allow you to convert a bigger share of visitors on your website into leads and clients.
Increase Lifetime Values of Traders
Investment products also help increase the lifetime values of your traders. Traders continue trading as they believe they can earn money on the financial markets. However, in the event they lose part or all of their funds after several deposits fail to make a profit, disappointment can soon set in.
Offering investment products enable you to offer opportunities including investments in investment funds (PAMM accounts) and subscribing to trading signals from professionals (social trading) that could both incentive them and work in their favour.
Attract Professional Money Managers
Attracting professional money managers is another reason to consider offering investment products. Offering a handy, feature-rich platform for money management can help you attract and win over serious money managers from other brokerages. Often these are Introducing Brokers (IBs) who will bring along their pool of clients with them.
What You Get From B2Broker
Web Interfaces For Clients
B2Broker’s fully functional cabinet for investors and money managers works in any web browser allowing investors to find a money manager, open an investment account, make a deposit and subscribe to a master account. Similarly, traders can open a master account, collect trading history for their accounts, attract investors via leaderboard and manage their accounts.
Product Page Templates For Brokerage Websites
B2Broker has specially developed product page templates for PAMM accounts and social trading making it easy for your webmaster to launch them quickly. No longer will you need to spend time sourcing a copywriter or searching for inspiration – B2Broker does the job for you.
Admin Panel and Manager’s App
B2Broker has created an admin panel for your company’s platform administrator and manager’s applications for other brokerage staff. The panel enables you to see all your accounts and manage them, with various rights options available as with MT4/5 manager.
To start selling to investors, you need to do more than simply release a new investment platform. You also need to offer statistics via leaderboard.
B2Broker has created an application which can help you upload history from MT4/5 statements into its database. In this way, between 8 and 10 accounts can be created in one day which is sufficient for attracting investors.
Scripts for Sales Team
Investment products are very different from basic trading accounts. For this reason, B2Broker has prepared scripts and instructions for your sales and marketing teams, helping your staff to understand how everything works as well as how, and to whom, they should make a sale.
Account Types For Different Types of Clients
B2Broker’s investment platform offers 3 account types; PAMM, МАМ and Social Trading.
PAMM (Investment Fund)
PAMM is a model where all investment accounts are combined into one big trading account and is a platform for running investment funds by individuals or institutions. A money manager trades on one big account and all investors receive profits and losses in proportion to the size of their accounts. PAMM accounts are ideal for HFT traders, investment funds and professional traders.
The easiest metaphor for a PAMM account is an investment fund and is the most popular account type for money management. The platform collects all trading statistics which are available on the leaderboard. Clients simply need to access the platform, choose a money manager and invest in that account. While investors are not actually able to trade on their investment accounts, they can monitor their performance in real-time.
Social trading works whereby good traders open master accounts, deposit into them with their own funds and then trade in the same way as if it were a simple trading account. Trading history from that account is collected into a database and available for other people to view on the leaderboard.
To get started with social trading, investors or amateur traders need to open investment accounts and subscribe them to master accounts. Once subscribed, users start receiving signals for opening or closing positions which are executed automatically. In the event an investor doesn’t like his position, he is able to partially or fully close it.
Social trading is suitable for investors who are looking to create a source of passive income and earn on financial markets. It is an ideal instrument for those who want to maintain full control over their accounts and be able to see which positions are opened or closed at any time.
Social trading is also ideal for amateur traders who end up losing money when they trade by themselves but want to learn how to make profits by following successful traders and copying their signals.
This trading system is also suited to professionals who like to trade with their own money on a small account, and are looking to boost their earnings by selling their signals.
Social trading is the best way for amateurs and beginners to learn how to trade based on the experience of professional traders and who want to control every position opened on their account.
This product is suitable for professional money managers who want to activate and deactivate particular investment accounts from time to time to skip new trades. MAM is a copier based solution; investors accounts are not combined into one big trading account, rather, they maintain their individual accounts. Investors are not able to trade on investment accounts as they are in read-only mode.
MAM accounts are ideal for professional money managers who already have a pool of investors. It is also the perfect solution for investment funds and proprietary trading companies where two or more traders are looking to manage one investment pool. These can then be managed by different automated or manual strategies.
MAM is therefore ideal for professional money managers who want flexibility in trading on clients’ accounts. It is also the most popular account type in countries with strict regulation.
Tailor-Made Solutions For Your Company
Almost all functions and features can be turned-on or off and customized on the settings page. These include colour schemes for web interfaces, account types available, rights for creation of master accounts, investment accounts and for making deposits/withdrawals in web-ui, maximum and minimum values for manager’s fees, risk limits, MT groups for default opening of accounts, and more.
JSON REST API For Integration Into Your Website or Client Area
B2Broker’s Investment platform has built-in JSON REST API that provides access to a database with statistics and all platform functions for integration of investment products into your web-site and client area. It is currently possible to use B2Broker’s standard web-interfaces and iFrame although this will expand over time.
Automated Fee Payments
Users can leave the routine work to algorithms so that fees are paid automatically. There are three types of fees available on the platform; Success fee (Performance fee) – % from profit; Trade fee – $/lot; Management fee – % from equity (or balance). Periods and levels can be set for all fees.
Automated Subscriptions And Unsubscriptions of Accounts
Your clients will be able to create accounts by themselves, go to leaderboard, find a money manager and connect to them. When they want to transfer their money to another account, they can unsubscribe and withdraw all their funds with just one click. All you need to do is the marketing and selling of investment products to professional traders.
Risk Management Tools For Your Clients
Maximum Drawdown for Investment Account
Clients are able to set a risk limit on their investment account. Once this is reached, all positions will be closed and the account will be unsubscribed from a money manager.
This is a great tool for situations when an investor does not have the opportunity to monitor an account in real-time. The risk limit for the investment account is calculated from the high water mark of the balance.
Daily Risk Limit for Money Managers
B2Broker has created a daily risk limit for money managers as it is essential that they do not to lose too much in one wrong position or on a bad day.
Ideally, daily risk limits for money managers should be less than 5%. This will allow traders to survive even during several bad days in a row. Risk limit helps traders maintain financial and mental stability.
Daily risk limit works whereby the broker sets a daily risk limit on the trader’s account by a percentage (%) of the equity from the equity at the beginning of the trading day (00:00 server time). In the event the trader starts losing money and reaches the daily risk limit, all opened positions will be closed by market orders and the account will be turned into read-only mode until the end of that trading day.
All your clients can activate their own risk manager on their trading accounts which is a great advantage for a broker – and all without any additional costs.
Advantages of Architecture
All calculations are made in a stand-alone platform which can be installed on a separate MT4/5 server via manager’s API and works without plugins. This means there will be no any additional load from running the investment platform on your MetaTrader server and thus no negative impact on the speed of transactions.
In addition, there will be no conflicts between the investment platform and all other plugins on your MetaTrader server, eliminating any worry surrounding the stability of your IT infrastructure.
White Label Solutions
B2Broker’s Investment Platform also supports White Labels. If you have clients that are using white label based on your MT server, you can create a white label of the Investment Platform for them in your admin panel with a separate web-ui and give them the manager’s application with access only to their accounts.
White Label architecture is the same as for WLs in MetaTrader server. Each white label will have access only to their accounts from the manager’s applications. Leaderboards will also be separated so there will be no crossover between accounts.
The logic of back-office infrastructure is same as for the MetaTrader server; there is only one admin panel, but several managers accounts for each white label.
More About B2Broker
B2Broker specialises in the sphere of B2B services and products, servicing a broad spectrum of clients including individual investors, large licensed brokers, banks, hedge funds and professional managers.
B2Broker has quickly emerged as one of the leading service providers for companies who want to successfully launch a brokerage or trading business. The company also recently created a cryptocurrency aggregator; B2BX becoming the first company in the world to launch cryptocurrency solutions. This has since developed into a fully-fledged crypto-exchange for institutional clients, a marketplace for accredited and regulated brokerage companies and financial institutes, allowing them to trade in cryptocurrencies.
Since 2014, B2Broker has helped to kick start from the ground up, more than 70 hi-tech broker companies in Hong Kong, Malaysia, Czech Republic, Russia, Ukraine, India, Australia and Cyprus.