Sincere System Group EN

Forex passive income

Many opportunities to earn income are offered by the international Forex exchange.  One of them is passive investing. There are several ways to get passive income on the Forex exchange: auto trading by copying trades of professional traders, trust management and investing in PAMM, LAMM and RAMM accounts.

Forex auto trading
 This is an investment through transaction copying services, the program of which must be installed on a computer or other device used for work. The broker will offer the investor signal providers - these are traders who have gained a reputation as the best in Forex trading, who are ready to provide their orders to other bidders. The investor selects a trader and completely duplicates his trades in his trading terminal.
 The main advantage of automatic trading is the adoption of the experience of professionals. The investor will have access to all data on the orders of signal providers, so he can see the strategy and reaction of the trader to changes in the situation on the exchange.
 To reduce the risk of losing money, you need to copy several orders at the same time from different providers.

Investments in PAMM accounts
 A PAMM account is a combination of managing trader and investor accounts. The investment mechanism looks like this:
  •  the investor chooses the right trader;
  •  notes any amount of money that the trader will use in the order to conduct transactions;
  •  money from the investor's account will be withdrawn automatically.
 The investor should not worry about the competence of the managing trader, as the broker chooses the best professional based on the statistics of successful transactions. In addition, the trader uses his own money in trading, which indicates his interest in success.
 The disadvantage of PAMM-accounts is the inability of the investor to influence the course of trading on the Forex exchange.

Investing in a PAMM Portfolio
 This is an investment in several accounts of managing traders, which allows you to diversify the risks of losing deposits. Even if one trade turns out to be a loser, the rest of the traders' orders can win, allowing the investor to always remain in the black.  However, a PAMM portfolio requires a larger deposit, which is not available to all bidders on the exchange.

Features of LAMM accounts
 Technically, LAMM accounts do not differ from PAMM, but the difference is in the amount of money invested for the transaction.  That is, the investor and the managing trader must make an equal contribution, risking equally in case of loss. When investing on a PAMM account, it is possible to operate with any amount without restrictions.

Features of RAMM Accounts
 RAMM accounts act like regular PAMM accounts, however, investors can choose different investment options. This may be a drawdown of the indicators of the managing trader, in the event of which the money is automatically withdrawn from his order.
Trust management
 The investor uses the services of a trader, transferring his deposit to his disposal on the terms specified in the contract. It can be a private trader or an employee of a brokerage company. Technically, the interaction between the two parties goes like this:
  •  the investor transfers his deposit to the trader's account, which was specified in the agreement;
  •  the trader uses this money in Forex trading;
  •  if he wins, he transfers the funds to the investor's account, keeping a percentage of the successful transaction or a previously agreed fixed amount.
 The risks of fiduciary management are minimal if the investor signs a detailed agreement with a professional trader who will not have the opportunity to appropriate the money from the investment.