Everyone knows that huge amounts of money turn around in Forex – more than $ 3 trillion a day is bought and sold in this huge market. Moreover, most operations take place without the physical transfer of funds “from hand to hand”. It is clear that it is better to earn money where there are a lot of them. The conclusion is simple – both trading and investing in Forex can be very profitable. That’s exactly what we need. Consider how you can invest in a currency exchange.
Types of investments in Forex
1. Invest in your training and become a currency trader.
This method can hardly be called passive income-trading action. It is indeed highly profitable with the right approach and level of training. In fact, most of those who have heard about the Forex market and the possibility of earning money from currency fluctuations first try themselves as a trader. Later, after receiving certain results on trading, the trader often thinks about ways to increase profits: investments, automatic trading, etc.
2. PAMM Account Service
PAMM accounts are a full-fledged passive income. All an investor has to do is choose a reliable broker and most importantly traders who trade profitably.
The essence of PAMM investing is that a trader opens an account, deposits his money to it (minimum – $ 300 for Alpari) and trades on them. If the trade is profitable, investors are connected to his PAMM account, who deposit their funds. The trader uses only his own funds in trading, trading on investors money is carried out automatically with the necessary parameters – lot size, etc.
The profit from trading is distributed between the trader and investors, while the broker receives its share of the spread and sometimes a commission from transactions.
The advantage of PAMM investing is the complete exclusion of non-trading risks – the trader can not somehow steal money for example. The risk of losing money is possible only if the deposit is lost by a trader who is not interested since he is trading on his own funds and also will not make a profit if there is a drain. However the investor can set limits in order to insure the deposit against a complete loss. For example, stop trading after receiving a loss of 20 or 30%. Everything is set in the settings of your personal account.
By the way, to get into the rating of PAMM managers, you need to have a deposit of $ 3000 or more. It is clear that the trader will be most interested in the profitability of his trade.
As you can see, investing in PAMM is very profitable. By correctly distributing their funds between several accounts the investor significantly reduces their risks.
3. Copy service signals ForexCopy
ForexCopy is a service for copying trading signals from the accounts of trading traders to the accounts of other traders or investors. A simple and intuitive interface, complete trading statistics and many other useful features – all these are the advantages of the ForexCopy service.
You can evaluate the quality of the service by opening a free demo account. The difference between a real account and a demo account is that the demo signals arrive an hour later. Therefore, when testing the service, choose traders with long-term, positional trading.
4. Share4you Automated Trading Service
Share4you – is a bit similar to otherl. The difference is that in Share4you there is a bias towards full automation of trading. The trader-investor sees the maximum statistics for the selected strategy (not for the trader) and can use one or more strategies at the same time.
The investor’s task is to analyze the selected strategy (s) in detail according to a variety of parameters. After that, you can connect it (them) to your account for similar trading.
RISKS OF INVESTING IN FOREX
For an investor, the risk of losing money always comes first. It is very easy to lose money on Forex. Everything happens virtually, the market often shows strong movements that disrupt traders. The inexperience of the trader, his excessive aggressiveness is also worth considering.
That is why it is important for an investor to:
1. understand how everything works.
2. to assess the risks.
3. evaluate the trader (stability, aggressiveness, profitability).
The higher the stability, the lower the profitability of trading. Therefore, it makes sense to invest in several places at once and not just in 1-2 traders.
Is it possible to get a stable profit in passive mode on the Forex market? Yes, of course. Every day there are new investors whose money works in PAMM, traded through ForexCopy or Forex4you. To become an experienced investor who very rarely loses money you need to use the above services correctly, start with small investments, expand your psychological comfort zone as well as do an analysis of future investments