What should I choose: investing in a PAMM account or subscribing to signals?
Not everyone enjoys the work of a trader, nor does everyone have the specific skills required for stock trading.
But everyone wants to earn big and fast, preferably without much effort or time spent on training.
PAMM offers such opportunities, allowing you to invest in other people's stock trading and receive a reward for your investment.
It's worth noting that the possibilities for such investments are expanding significantly every year, with more and more options becoming available.
Currently, investors can invest not only in trust management but also use the following options:
A PAMM account is available through many brokers and is one of the easiest ways to earn money by investing.
MetaTrader 4 signals – the user downloads the MetaTrader 4 trading platform from their preferred broker and installs it on a computer or other device.
They then fund their account and select their preferred signal provider for opening trades in the "Signals" tab:
There are also dedicated platforms designed for copying signals, but they are less common, so we'll discuss them in other articles.
As a result, a future investor faces a difficult choice: PAMM or signals in a trading terminal?
To make the right choice, you need to compare both options.
• Investment complexity – it can be said that receiving signals at first glance may seem a little more difficult. And to be more precise, you will need to do an order of magnitude more than when investing in PAMMs.
Among other things, you will need to download the trader's terminal, install it, register on MQL5, and also choose from whom to receive signals.
That is, you will have to spend an hour more time, not so much if you are going to invest a large amount.
• Choice – there is a huge number of signal providers in MetaTrader, as for PAMM accounts, everything is not so clear-cut here. Only large brokerage companies , although not all of them have investment accounts.
If we evaluate the convenience of choice, then here too I liked MetaTrader more, it immediately indicates the maximum loss allowed by the trader and you do not need to click on the account itself, as in the PAMM rating.
• Risk management is perhaps the most important issue, when investing in PAMM accounts, it is almost impossible to limit the amount of loss, after which the money will be withdrawn from the investment account.
And even if possible, this figure is rarely below 50%, meaning in the worst case scenario, you'll lose at least half your funds.
At the same time, MetaTrader offers a choice: you can simply copy the signal provider's stops or set your own:
You also need to set a host of other parameters, such as the trade volume based on your deposit size, the maximum loss, and the maximum spread .
Furthermore, the withdrawal speed is crucial. While you can simply cancel your subscription with signals and your funds are always available for withdrawal, with PAMM accounts you'll have to wait for one or more accounts.
Ultimately, it's easier to invest in PAMM accounts, while subscribing to signals in a trading terminal is safer and more convenient. Therefore, it's better to spend an extra hour or two, but be confident in the safety of your funds.
