How to choose a PAMM account and manager

The Internet is one of the most profitable ways to invest your own money, and one of the opportunities to earn money is investing in PAMM accounts.

Typically, this option is resorted to by former traders who understand that Forex is not a scam, it’s just that in order to make money on the currency exchange, a lot of knowledge and practical experience is required.

But often the question of how to choose a PAMM account arises for the average person who simply wants to profitably invest their money in stock trading.

You can make the right choice if you know some points that you should pay attention to first of all; surprisingly, this is not the profitability of transactions at all, but the stability of the manager’s work.

As well as several other aspects, which we will discuss in more detail in this article.

I would like to note that you can only lose your money on Forex if you are a novice trader; professionals working in the foreign exchange market almost never lose their deposit, but there are some account drawdowns, but they are usually compensated by profitable transactions.

To make your choice, you should analyze the rating of PAMM managers according to several parameters.

We choose the most reliable PAMM account.

1. Account funds are one of the rather important aspects, this way you can find out how much other investors trust this manager. It is advisable not to invest in PAMM accounts with a deposit of less than $50,000.

Also check the history, how long has this balance been maintained, and whether money was deposited a couple of days ago simply to attract investments.

2. Work experience - before depositing money, first find out how long this person has been working in Forex, you can do this by requesting the transaction history for the last year.

You can also look up the name of the manager using Internet search engines; usually, each of the professional traders has quite a lot of reviews.

3. Profitability - when choosing a manager, you should pay more attention not to the amount of profit, but to the period for which it was received.

For example, it is better to choose a PAMM account with an average monthly profitability of 30% and 300% per year than 700% for the last month and 100% per annum.

I repeat once again - stability in this matter is the most important selection criterion, so do not chase high indicators, pay more attention to the analysis of the entire period of the PAMM account’s existence.

You should not choose accounts with a history of large drawdowns.

4. Trading strategy - very often traders pay attention only to the size of the profit and the place of the account in the ranking and do not think about what strategy the trader is trading on.

At the same time, excessively risky strategies such as martingale or pipsing in most cases lead to the loss of the deposit .

5. Additional insurance - do not trust all your money to one manager, divide it into at least two parts, in addition, it is advisable that these traders work in different brokerage companies, this will give you the opportunity to have insurance just in case.

6. Company or third-party trader - I trust third-party traders more than the broker’s employees, because in the latter case the dealing center is interested in falsifying statistics and the rating of managers can be falsified by the company itself.

7. Other accounts of the manager - it would not be superfluous to check how many deposits the manager has drained on other PAMM accounts. It is advisable not to contact traders who have a history of merged accounts.

Choosing a profitable PAMM account, or rather a manager for this account, is not difficult; you just need to take into account all the recommendations given above. Good luck.