How to leverage your Forex account for PAMM - Benzinga

Investing in PAMM accounts is offered today by many brokers. And although this type of investment is characterized by increased risk, the profit can be several times higher than that received by the bank’s depositor. But in order not to lose money, you need to choose the right brokerage company and manager.
What it is
In simple terms, investments in PAMMs are one of the options for trust management. The service is notable for the fact that depositors can directly transfer money to traders. The specialist makes transactions and makes a profit divided between him and the investors in proportion to the funds deposited. The manager leaves the percentage for himself, which is specified in advance in the contract. The specialist's commission is from 10 to 50% of the profit.
Technically, the PAMM account is designed to simplify transferring funds from the investor to the manager as much as possible. The trader deposits his own money into the account. For investors, he indicates the size of the minimum contribution. Investors can rest assured that the manager cannot withdraw their money. He can only make deals.
4 main stages
In the work of PAMMs, the following main stages can be distinguished:
opening procedure;
creation of an offer;
replenishment of suitable accounts by investors;
income generation.
Withdrawal of profit is carried out to bank cards, accounts, e-wallets.
Opening a PAMM account
PAMM investing begins with a trader choosing the right broker. He registers with the company, opens an account. Then he deposits an amount called the manager's capital.
Investors can be sure that the manager, making transactions, risks this money on an equal basis with investors’ capital and acts with caution.
Create an offer
The manager creates an offer after opening an account and replenishing it with personal funds.
In the declaration, he indicates the minimum investment amount and the period during which the depositors will not be able to withdraw the invested money. He also publishes information about the remuneration that the manager will receive if a profit is fixed at the end of the period.
Investing funds
Investors can observe the manager's work, from time to time monitoring his account or making a selection from the rating compiled by the broker. Then the investor will determine which trader he wants to transfer money to.
Earning income
The manager trades, profit and loss are distributed among all participants. If profit appears, it can be withdrawn.
Simple rules: how to choose a stable PAMM account for investing
There are many traders in the ratings of brokers ready to accept money for management, and there are even more best PAMM accounts. For this reason, it is difficult for investors to make a choice. To make your investments profitable, you should pay attention to the following rules.
No need to chase excess profits
Some managers show fantastic profits on their accounts, but after a while, they quickly run off. This is because they do not have a trading plan. Or they risk all the funds on the account by entering a trade with a large lot.
In order not to transfer money to such a trader, you need to study the result of trading over a long period. If during the year he makes a profit, trades stably, you can invest in PAMM.
Such an account’s profitability indicators may be much lower than that of the first trader, but the risk of losing funds is much lower.
Funds for investment should be divided among several companies
If a large amount is allocated for investment, you need to divide it among several brokers.
Even if one company goes bankrupt, the money will remain in others. It is best to choose 4-6 organizations to minimize the risk of loss.
Place your bets on experienced traders
Novice traders often show excellent results but then quickly lose. It is better to immediately weed out newcomers, indicating the account’s age from a year or more. This will reduce the likelihood of losing funds.
When studying the rating of the best PAMM accounts, you need to pay attention to the charts. If no sharp dips indicate that there was a drawdown, you can invest in PAMM with TU. Managers who trade consistently can be considered professionals.

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Let's block ads! (Why?)

https://www.benzinga.com/news/21/04/20659742/how-to-leverage-your-forex-account-for-pamm

2021-04-16 13:28:31Z
CBMiWGh0dHBzOi8vd3d3LmJlbnppbmdhLmNvbS9uZXdzLzIxLzA0LzIwNjU5NzQyL2hvdy10by1sZXZlcmFnZS15b3VyLWZvcmV4LWFjY291bnQtZm9yLXBhbW3SAQA

Bagikan Berita Ini