Forex brokers offer the opportunity to invest in PAMM-accounts.
Each provides a PAMM system with individual characteristics: with graphical statistics or without it, with a wide variety of filters or with a minimum amount of data. Account statistics can be tracked through a variety of third-party services.
How to choose a profitable PAMM-account? This is a very important issue for every investor. Below are the main criteria.
1. Reliability of the broker
- Forex Trend
- Let's bringresults
1. Reliability of the broker
Authoritative ratings of PAMM-sites and accounts distinguish the trio of leaders: Alpari, Forex Trend and InstaForex. Each of them offers unique services.
Provides maximum visibility of statistical data and the possibility of daily withdrawals.
Offers not only wide access to news, information and analytical materials, but also the trading platform MetaTrader, as well as a demo account forex.
Allows you to invest in PAMM-indexes( several PAMM-accounts, combined into one), constitute a predefined investment portfolio. Forex Trend also offers a unique PAMM 2.0 service( accounts on which the managing trader shares risks with the investor).
2. The amount of money invested in the PAMM
The more money was invested, the better for you. This means that people believe in the trader's system and its professionalism. This parameter is usually called the capital of investors, it is available in statistics. But this is by no means the main criterion helping to choose a PAMM-account for investment.
3. Maximum Drawdown
It indicates a possible risk of losing the investor's money. Often this parameter is key in the question of how to invest correctly in the PAMM-account. The less drawdown, the more reliable and profitable PAMM-account, the rating of such is much higher than the rest.
4. Profitability of
This is a measure of profitability. High profitability is often associated with greater risk or a drawdown. It is important to find a balance between these two parameters. Before you select a PAMM-account and invest, you should analyze the profitability within one, three and six months, as well as the whole period of existence. Do not forget that the profitability, as a rule, is indicated without taking into account the commission of the trader, which can reach 60%.Consider net profitability.
5. Age of the PAMM-account
Reliable statistics can be provided only due to long-term work history. You will find many accounts with excellent results for a short time, but they may not last afloat and half a year. Choose only those traders who trade on the basis of investment capital for at least 180 days.
6. Conditions for closing the PAMM-account
Pay attention to the details. How can you withdraw money? Are there any penalties for early withdrawal? On Forex Trend accounts, the minimum period is a week, and the managers set high fines for early withdrawal. Investments in the Alpari PAMM-accounts can be closed at any time without any penalties.
Some PAMM-brokers offer an alternative instrument, trading in currency pairs. The rating of brokers of binary options of Russia we recently published on the pages of basetop.ru.
The ideal parameters for choosing a profitable PAMM-account are:
- , the capital of investors is not less than 100,000 US dollars;
- maximum drawdown is less than 30%;
- profitability is more than 10% per month;
- accounts age from 180 days.