How to choose a PAMM account for investing. Rating of PAMM accounts from the best brokers
The use of PAMM accounts is a stable trend of the financial market, which allows you to earn money on various trading platforms, including Forex. To minimize investment risks, we recommend a comprehensive approach to the choice of instruments, assessing not only profitability, but also other important criteria, and giving preference to proven intermediaries, having studied the rating of PAMM accounts from the best brokers.
How to choose a PAMM account for investing
The basis for choosing any investment instrument is characterized by the principle of reasonableness and key criteria for selecting such services. Since PAMM account services are provided by brokers, first of all it is necessary to focus on the reliability of the intermediary. The latter must have a license and obey the policy of the financial regulator of his country. Dealing centers of dubious origin, even if they offer a yield of several thousand percent per annum, it is advisable to ignore. Now about the key criteria. Before choosing a PAMM account, it is important to evaluate the following criteria:
- How long the PAMM account has been functioning. According to professionals, the longer, the more reliable. A good income received in a short period of time cannot be considered as a determining factor. Perhaps the trader was lucky enough to successfully close two or three trades, and in the future everything will go the other way around. A long period of operation, on the contrary, indicates professionalism and caution, even if the percentage of income looks less attractive.
- What the balance curve looks like. The saying “if you drive more quietly, you will go further” will be appropriate here. Curves with significant (up to 25 percent or more) fluctuations should be alarming. Periodic drawdowns of 5 percent or less can be attributed to the norm. Ideally, it is better to bet on stability, that is, when the balance curve is a graph smoothly changing upward. It is also important to pay attention to such indicators as the amount of funds in the account and the balance. These are not equivalent concepts. The first one means the current amount on the account, the second one shows the amount of the initial deposit in combination with the result both positive and negative.
- Profitability of the account. The declared profit may differ from the real one, so this criterion is especially relevant. At the same time, low profitability should not confuse. It is better if it is 10% weekly, but without significant drawdowns, than, for example, 40 and after that a deep decline to 70%.
- What conditions the broker offers. They are usually installed by traders-managers themselves in order to increase work efficiency and cut off unnecessary ballast. The standard conditions are the following:
- minimum investment amount;
- minimum investment period;
- the amount of the manager’s remuneration;
- the amount of remuneration of the agent (the person attracting new investors).
In order to increase profits when investing in PAMM accounts and reduce risks, it is recommended to simultaneously use the functionality of several accounts from different brokers, each of which will apply its own strategy, diversifying the funds of the investment portfolio in this segment. For example: half of the capital can be entrusted to a manager who adheres to a classical strategy, another 20-30% of the funds to a trader who prefers a moderate strategy, and the remainder can be entrusted to a broker whose trader uses an aggressive approach in his work.
Rating of the best brokers
After analyzing the data of analytical services and investor reviews, we have compiled a rating of PAMM account brokers. Whose representatives enjoy the special trust of experts and capital holders.
An offshore broker showing smooth but dynamic growth and high profitability with moderate risks. The PAMM accounts offered by Alpari can be used as part of an investment portfolio.
A British broker specializing in trading currencies, stocks, futures, energy and precious metals, offering a choice of several types of PAMM accounts.
A bright representative of the rating, many investors mark it among the best PAMM accounts. This international company also holds leading positions in independent broker ratings. The PAMM account service was launched relatively recently, so when choosing a manager, it is necessary to carefully study the performance indicators of each of them.
The rapidly developing and gaining popularity offshore broker, which has been operating since 2007, offers a high-level service and strong PAMM account managers, of which the broker has several. An investor can choose one or entrust funds to different traders.
A reliable and convenient broker with PAMM accounts, attracting a variety of strategies. Here you can find both long-term managers who bring a stable income, and younger, but quite reliable traders. Most of them are supporters of classic and moderate trading strategies.
Institutional forex broker was originally created in 2003 by a group of traders as an educational center. Over time, the company included brokerage services in the range of its instruments, and later a management service. Registered offshore.
7. Vantage FX
Forex broker, which occupies a stable position in the TOP PAMM accounts. It has been operating since 2009, provides an opportunity to trade currency, metals, raw materials and other assets. It includes a group of companies from 4 countries: England, the Cayman Islands, Australia and Vanuatu, therefore it is regulated in various jurisdictions.
8. Dukascopy Bank SA
A Swiss bank, also known as a forex broker, providing online trading services in the Forex and binary options markets. The threshold for accessing the trust management service of this broker is much higher, and investors get the opportunity to invest only at the invitation of the manager.
9. FIBO Group
Founded in 1998, an international financial holding company registered offshore. The holding includes a group of companies providing Internet trading services in financial markets, including trust management services. Specializes in trading currency pairs, indices, stocks, precious metals, cryptocurrency.
10. FP Markets
The final rating of PAMM account brokers is an Australian company headquartered in Sydney. It has been operating since 2005 and provides an opportunity for traders from all over the world to trade financial instruments. Has access to the Forex market.
Investments and exchange trading are among the types of activities associated with increased risks. And here it is important to take into account that legally the PAMM-type investment system is not clearly regulated by regulators. And in order to minimize the risks of working with fraudulent companies, it is important for the capital holder to choose trusted brokers.
The above rating of PAMM account brokers is an up-to-date list of companies taken from open sources that provide favorable conditions for investment. However, you should not rely on the rating alone. Before choosing a PAMM account of a broker, it is necessary to study the work of the trader managing it and get acquainted with real customer reviews.
Published: 11 October, 2021