How to invest in Forex: experts shared their opinion

The international currency market offers traders many opportunities for earning money, and investing is one of them. You can invest in PAMM/LAMM accounts, in other traders or use copy trading services. These methods have their advantages and disadvantages. TU experts looked at them in detail to understand how to invest in Forex, to ultimately receive a stable income.

What is Forex investing?

There are multiple motives behind individuals’ choice to invest in the Forex market. One prominent factor is the significantly amplified potential for profit compared to conventional investment avenues like purchasing real estate or placing funds in a bank deposit.

Anyone who decides to make money on Forex is deciding either to trade on his own, or place funds under management. When people are trading on their own, everything is simple. They are just trying to predict the quotes’ future rates. And when they trust someone else, then they have become passive investors.

People who are not interested in the trading process, or who simply cannot succeed in trading for themselves, or who want to receive additional passive income without understanding of the mechanics of self-trading become passive investors. 

How to start investing in Forex

Regardless of your reason to become an investor, to start investing in Forex, you need to follow these steps:

1. Study all investment options available in the market — PAMM accounts, trust management, and auto trading. But first of all, learn about the differences between them.

2. Check the list on the TU website that contains the top most reliable Forex brokers that offer the most profitable investment programs.

3. Select a broker whose programs and conditions are suitable for you.

4. Open an account with the official site of the broker you choose (preferably through the site, so that later you get more income).

5. Deposit into the account and transfer your funds to the selected investment program or selected portfolio on the broker’s website.

Trust Management as an Investing Option

Investing in trust management is a good way to get passive income on Forex. This investment option is a classic but it includes copying transactions and PAMM accounts.

Investing in trust management is a direct contribution to the trading of another player in the market. An investor transfers part of their deposit to the specified account, and the trader uses these funds in trading. If the bid wins, the trader transfers the winning amount to the investor, less their pre-agreed upon commission.

Forex investing risks

Forex investing would not be so popular if the risks were not controlled. The risks in the foreign exchange market are no higher than with any other investment option. Sometimes they are even lower. There are two main Forex investing risks:

• Investors can lose their investment if the PAMM manager or trader they trust to manage their funds turns out to be a scammer. This is easily prevented by working only with trusted licensed brokers.

• Investors can lose funds because the manager of the PAMM account, signal provider, or trader to whom they entrusted the management of their funds made an error in the market forecasts. This happens to all traders because it is impossible to win all the time. However, to reduce this risk, you can diversify your investing portfolio between several PAMM accounts or signal providers.

Summary

Forex investing is a great opportunity to earn money without trading. There are three ways of investing: copying trades of successful traders, PAMM accounts and trust management. On the Traders Union website you can find more information about these opportunities. Moreover, TU experts published a list of top Forex managed accounts to make your choosing easier.