How to choose a PAMM account and manager

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

This option is typically used by former traders who understand that Forex is not a scam; it's just that earning money on the currency exchange requires a wealth of knowledge and practical experience.

But the question of how to choose a PAMM account often 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 a few things to pay attention to first. Surprisingly, it's not the profitability of the transactions, but the stability of the manager's work.

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

I would like to point out that you can only lose your money on Forex if you are a beginner trader. Professionals working on the foreign exchange market almost never lose their deposits, but there are some account drawdowns, but they are usually offset by profitable trades.

To make a choice, you should analyze the rating of PAMM managers based on several parameters.

Choosing the most reliable PAMM account.

1. Account equity is a very important aspect, as it allows you to determine how much trust other investors place in the manager. It's recommended not to invest in PAMM accounts with a deposit of less than $50,000.

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

2. Experience – before depositing money, first find out how long the person has been working in Forex. You can do this by requesting a trading history for the past year.

You can also search for the manager's name using internet search engines; usually, each professional trader has quite a few reviews.

3. Profitability – when choosing a manager, you should pay more attention not to the amount of profit, but to the period over 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 year.

Let me reiterate: stability is the most important criterion in this matter, so don't chase high indicators; instead, focus on analyzing the entire period of the PAMM account's existence.

You should not choose accounts with large drawdowns in their history

4. Trading strategy - very often, traders pay attention only to the size of their profit and their account's ranking, without considering the strategy they use to trade.

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

5. Additional insurance – don't trust all your money to one manager; divide it into at least two parts. It's also advisable for these traders to work for different brokerage companies; this will give you insurance just in case.

6. Company or third-party trader - I trust third-party traders more than broker employees, since in the latter case, the dealing center is interested in rigging statistics, and the manager ratings can be falsified by the company itself.

7. The manager's other accounts – it's a good idea to check how many deposits the manager has lost on other PAMM accounts. It's advisable to avoid dealing with traders who have a history of losing accounts.

Choosing a profitable PAMM account, or more precisely, an account manager, is quite simple; you just need to consider all the recommendations above. Good luck.