There are many ways to make money in Forex, from using affiliate programs to classic trading.
Passive methods attract the most attention, where the main factor is the amount of start-up capital. Many users are willing to trust the professionals and not make their own predictions.
What is LAMM investing? Surely you have heard about PAMM investing, but this is a different type of trading.
If to explain in a simple way, this method involves copying the transactions of an experienced trader. The differences between PAMM and LAMM accounts are obvious , as are the main advantages.
When investing in a PAMM account, you have to transfer money under the control of the trader. LAMM investing does not require this, as your money will be automatically sent to copied transactions.
It is much safer to invest in LAMM, since a trader cannot withdraw money and submit false reports (although protection brokers from this type of fraud have long been thought out for quality brokers).
Ease of use of LAMM accounts lies in the competent management of transactions for any deposit. After opening your account, you put a certain amount on it and choose a trader whose transactions are copied.
The system automatically makes bets, taking into account the amount of funds, and also provides for other subtleties in order to get the maximum benefit with minimal risks.
The main disadvantage of such trading lies in the difficult determination of suitable amounts for opening a transaction. Ideally, it is necessary to deposit the same amount on the account as that of the manager, and the balance of an experienced trader can reach several thousand dollars.
Newbies do not have such amounts, and those who have knowledge in the field of Forex and a lot of money, carry out transactions on their own.
It is for this reason that not many brokers offer LAMM investment. However, there are such companies and if you decide to use this method, go to the following services:
The service was developed by a popular broker Forex4you, an additional profile is not required for use. The system is well thought out, subscribers and leaders can register.
Subscribers copy trades of experienced traders, and leaders receive additional profits for open trading:
Statistics are kept for each leader, so you can easily select the best trader to copy his deals.
It is convenient that the minimum deposit is indicated here, that is, the developers have provided for the main minus of LAMM accounts and set limits to easily optimize the rates with less capital.
Additional service of the broker Roboforex, also offering investments in copying transactions. In the previous service, a commission from a broker is paid to traders, here subscribers give a percentage of profit from transactions completed as a plus.
Choosing the right trader is also not difficult, as statistics are kept:
When choosing a suitable trader for copying, make sure that it works for more than 250 days and throughout the time, he had good profitability. In the "Funds" column, the trader's balance is displayed, this allows you to decide in advance on the deposit, which also optimizes copied transactions.
Copying trades on Forex helps newbies to get around a lot of barriers and failures, but you don’t need to think that you’ll make money for sure and don’t go into negative.
The fact is that experienced traders spend a lot of deals and win somewhere, lose somewhere, and you will copy their deals only for a short period of time. Who knows, maybe this period will prove to be unsuccessful for the trader himself, and, accordingly, for you.
You will also be interested in:
- How dangerous is PAMM investment?
- How to start investing without risks?
- Investing in PAMM accounts