Real profitability of PAMM account

Trading on the stock exchange is quite difficult; it can take more than one year to study and practice, only after that you will be able to earn a stable income.

But even after you become a professional trader, no one promises you an easy life; working under constant pressure requires great mental effort.

It is for this reason that many investors prefer investing in PAMM accounts instead of independent trading.

What is the real profitability of investment accounts, how much net profit does the investor receive?

As an analysis of several companies - PAMM brokers , not so little.

In the rating of managers there are record holders with more than 1000% earnings in relation to the initial deposit. However, it should be noted that this is profit for the month, and month to month does not vary.

Therefore, if we consider the average annual returns of PAMM, we get a completely different picture.

There are quite a few people who have earned 1000% per annum; mostly there are traders with a result of 60-150 percent.

But this is also impressive, because we are talking about hard currencies. How much will the investor actually receive from the profit amount?  

It all depends on the individual conditions that the account manager puts forward.

Most work 50/50, that is, 50% for the investor, 50% for the manager. Under such conditions, it is possible to get 30-75% per annum; everything will depend on a well-chosen manager. And this is if you don’t get involved with particularly risky traders who can make up to 1000% in a month, although they might as well lose your deposit.

Most managers differentiate their approach to investors depending on the amount of investment - the more you deposit into your PAMM account, the lower the percentage of the manager’s remuneration. This option allows you to get up to 80% of the total profit.

The best approach is the competent distribution of funds between 10 managers; the investment portfolio should consist of both highly profitable accounts and those that have shown not high but stable results for a long time.

This approach will allow you to insure yourself against risks and reach a normal level of profitability of 100% per annum.