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 a minimal amount of data. Account statistics can be tracked through many 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. Broker Reliability
The authoritative ratings of PAMM sites and accounts highlight the three leaders: Alpari, Forex Trend and InstaForex. Each of them offers unique services.
Alpari
Provides maximum visibility of statistics and the ability to withdraw money daily.
InstaForex
It offers not only wide access to news, information and analytical materials, but also the MetaTrader trading platform, as well as the Forex demo account.
Forex trend
Allows you to invest in PAMM-indices (several PAMM-accounts combined into one), is a predefined investment portfolio. Forex Trend also offers a unique PAMM 2.0 service (accounts in which the managing trader shares risks with the investor).
2. Amount of money invested in PAMM
The more money invested, the better for you. This means that people believe in the trader's system and his professionalism. This parameter is usually called investor capital; it is available in statistics. But this is by no means the main criterion that helps to choose a PAMM account for investment.
3. Maximum drawdown
It indicates a possible risk of investor money loss. Often this parameter is the key to the question of how to invest in PAMM accounts. The smaller the drawdown, the more reliable and profitable a PAMM account, the rating of which is much higher than the rest.
4. Profitability
This is a measure of profitability. High profitability is often associated with high risk or drawdown. It is important to find a balance between these two parameters. Before choosing a PAMM account and investing, you should analyze the profitability for one, three and six months, as well as the entire period of existence. Do not forget that profitability is usually indicated without taking into account the commission of the trader, which can reach 60%. Consider the net profit margin.
5. Age of the PAMM account
Reliable statistics can only be provided through a long work history. You will find many accounts with excellent results in a short period of time, but they may not last afloat for six months. Choose only those traders who trade on the basis of investment capital for at least 180 days.
6. PAMM Account Closing Conditions
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 fines for early withdrawals. Investments in Alpari PAMM accounts can be closed at any time without any penalties.
Some PAMM brokers offer an alternative tool, currency pair trading. The rating of binary options brokers in Russia we recently published on the pages of basetop.ru.
To summarize
Ideal options for choosing a profitable PAMM account are:
- investor capital of at least 100,000 US dollars;
- maximum drawdown less than 30%;
- profitability of more than 10% per month;
- account age from 180 days.
