Risks of PAMM accounts.

The topic of PAMM investing has recently been gaining quite a lot of popularity, the reason for this phenomenon primarily lies in the amount of earnings.

Usually, the first positions in the rating of investment accounts are the leaders who gave their investors up to 100 percent profit in just one month.

Yes, the size is impressive, but how risky are such investments?

Will the investor have time to return his own funds? • Luck - the trading statistics of most managers are quite unstable; one month can bring 300% profit, and the next half empty the deposit.

To better guarantee the result, it is advisable to choose managers who conduct measured trading and show average but stable profits without drawdowns over a long period of time.

Otherwise, you can make money quickly or lose your money just as quickly.

•    Forex risk The currency market is known not only for its large profits but also for the frequent bankruptcies of traders—that's the nature of trading. And no manager can guarantee you won't lose your deposit.

The only way to have any protection is to choose a manager who uses the minimum leverage, but such traders earn much less than the leaders.

•    Non-trading risks - Broker bankruptcy. It also happens when a company simply refuses to pay its obligations. The incidence of such cases has decreased significantly recently, but the risk remains.

 To reduce it, try to avoid investing in companies that deal exclusively with investments and do not provide dealing services.

In order to reduce the above-mentioned risks, you should work only with trusted brokers and do not invest in one manager, create PAMM portfolios, thereby conducting diversification your investments.