Trust management online


Trust management online

Investing your savings is very important, because leaving the money in the bank will only give you a small annual return. Even the best savings account cannot give more than a 10% annual return, which is about what you can get from a typical hedge fund, mutual fund and other conventional forms of investment.

However, you don’t have to be bound by traditional forms of investment, nor do you have to stick to stocks and bonds like most people do. The Forex market is an enormous market with the potential for great returns, and it’s accessible to anyone. Today, even the biggest investment firms will have a department that focuses on the Forex market because even they recognize how profitable it can be.

Just like stocks and bonds, though, it requires expertise in order to make a profit, and this expertise comes from years of practice. Most people don’t have the time to learn everything about the Forex market, and it indeed quite complex to master. Instead, why not invest your capital and let an expert do the rest? This is where online trust management comes in, and it can be in the form of a PAMM account.

Why invest in a PAMM account?

A PAMM account is just like putting your money in an investment firm, except it’s online, but it has the same purpose – to grow your investment. The advantages of a PAMM account are many, but the most important ones are:

  • lower fees – PAMM accounts will have fees as low as 5% or 10%
  • smaller investment allowed – you can deposit as much money into a PAMM account as you’re willing, but the minimum can be as low as $100
  • higher potential returns – the beauty of the Forex market is that it can bring higher returns than other markets, which means you get to make more profits

How do you find the best PAMM account?

Identifying the right PAMM account starts with identifying the right broker. Since it is the broker that facilitates a PAMM account, you will need to find the best broker so that you can be assured your investment is in safe hands. You can look here for the top PAMM forex brokers list. We have reviewed all these brokers personally to ensure they have integrity and offer the best services.

Once you have identified the broker, the rest is just like picking out an investment firm, except that it’s all online. You will need to choose from the various PAMM accounts offered by the broker. The first thing is obviously to look at the profitability of the PAMM account, and go for the one with the best returns. When doing so, there are several things you might want to consider:

  1. How long the account has been active – if the PAMM account has only been active for a few months, it may just be beginner’s luck. The best PAMM accounts are those that have survived the test of time and weathered economic storms
  2. The risk profile – does the account manager take huge risks or plays safe. Risky trading is, well, risky, even though it may have higher returns. It will depend on how and why you’re investing your capital
  3. Fees charged by the account manager – with PAMM accounts, the account manager gets to set their own fee structure, and you should make sure you’re okay with the terms

With these guidelines, you now have an idea of what to look for in a PAMM account, so go ahead and check out if any of them look attractive to you.

By Martin Moni

Ferl is a former Financial Analyst at BNP Paribas and a well-seasoned globe trotter. Besides trading online he enjoys traveling more than anything.