Earning money without your own capital

People usually start thinking about investing when they have some spare cash, but not everyone realizes that you can earn money without having your own.

The key is to use the right approach, and you can easily earn a substantial profit.

This involves borrowed funds—that is, investing a loan in financial market assets. For some reason, using borrowed funds can be intimidating for a beginning investor, but any bank is a perfect example of this type of business.

How do banks make money?

They attract clients' funds and then lend them out at more favorable interest rates; the difference that arises between interest rates is precisely the profit.

So why not use this principle in practice?

• We find a bank that will provide us with a consumer loan in foreign currency, since we will also be investing in a freely convertible currency, preferably the US dollar.

The interest rate currently ranges from 10 to 15 percent per annum.

• Loan amount - you should start with amounts no more than $1,000, then you can increase the amount.

• Investment object - the best option at the moment is investing in the stock and foreign exchange markets, but just do not try to trade on your own with borrowed money.

Without experience, you will quickly lose your deposit; it is better to entrust this matter to professional traders.

Another option is PAMM Accounts from Alpari https://alpari.forex/ru/invest/

There are several advantages here - you work with the world's largest broker, there is an opportunity to choose from a large number of managers.

• Insurance - in order not to lose funds, you will have to divide the available capital between 10 managers. In this case, even if one or more managers incur losses, the profit on the remaining PAMM accounts will cover the losses.

• Profit - on average, at the moment, you can receive from 50 to 100 percent per annum in hard currency using this scheme. Depending on how well the manager was chosen.

Then there is simple arithmetic - you took out a loan of $ 10,000, invested in PAMM accounts with an average profitability of 65%.

As a result, over the year you received 50% net profit, or $ 5,000 in our case, and this is if you do not reinvest the profit.

As you can see, the scheme is quite simple, and the amount of earnings is limited only by your credit limit, so why shouldn't you earn money too if most banks make money on this?