Forex brokers offer the opportunity to invest in PAMM accounts.
Each provides a PAMM system with individual characteristics: with or without graphical statistics, with a wide variety of filters or with minimal data. Account statistics can be tracked through many third-party services.
How to choose a profitable PAMM account? This is a very important question for every investor. Below are the main criteria.
1. The reliability of the broker
Authoritative PAMM-sites ratings and accounts are distinguished by a trio of leaders: Alpari, Forex Trend and InstaForex. Each of them offers unique services.
Alpari
Provides maximum visibility of statistics and the possibility of daily withdrawals.
InstaForex
It offers not only wide access to news, information and analytical materials, but also the MetaTrader trading platform, as well as a Forex demo account.
Forex Trend
Allows you to invest in PAMM-indices (several PAMM-accounts combined into one), makes up a predefined investment portfolio. Forex Trend also offers a unique PAMM 2.0 service (accounts where the managing trader shares the risks with the investor).
2. The amount of money invested in PAMM
The more money has been invested, the better for you. This means that people believe in the trader's system and professionalism. This parameter is usually called the capital of investors; it is available in statistics. But this is by no means the main criterion for choosing a PAMM account for investment.
3. Maximum drawdown
It indicates the possible risk of losing the investor's money. Often this parameter is key in the question of whether how to invest correctly in PAMM accounts... The smaller the drawdown, the more reliable and profitable the PAMM account, the rating of this is much higher than the others.
4. Profitability
This is an indicator of profitability. High profitability is often correlated with high risk or drawdown. It is important to find a balance between these two parameters. Before choosing a PAMM account and investing, you must analyze the profitability for one, three and six months, as well as the entire period of existence. Do not forget that the profitability, as a rule, is indicated without taking into account the trader's commission, which can reach 60%. Consider net profitability.
5. Age of the PAMM account
Reliable statistics can only be provided through a long-term work history. You will find many accounts with great results in a short amount of time, but they may not last afloat for half a year. Choose only those traders who have been trading with investment capital for at least 180 days.
6. Conditions for closing a 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 managers set high penalties for early withdrawal. Investing in Alpari PAMM accounts can be closed at any time without any penalties.
Some PAMM brokers offer an alternative instrument, currency pair trading. Rating of binary options brokers Russia we have recently published on the pages of itop.techinfus.com/en/.
Let's sum up
The ideal parameters for choosing a profitable PAMM account are:
- investors' capital is not less than USD 100,000;
- maximum drawdown is less than 30%;
- profitability over 10% per month;
- account age from 180 days.