Rus Articles Journal

Investment into PAMM - accounts is how safe?

Two - three years ago all Internet Forex - trading in various dealing centers was filled with advertizing. The people went on Forex crowds and the same crowds ran back as to trade in the foreign exchange market it turned out not so simply as it was promised in advertizing. Many just lost money and forever forgot about Forex as about the next illusive type of earnings.

And here in the market Forex gradually succeeds independent trade investment into professional dealers. Now it is not necessary most to stay all day in front of the monitor waiting for good time for the conclusion of the transaction. It is necessary just to invest the money in PAMM - accounts, and in them successful traders with a long-term experience will trade.

Process of investment is even simpler, than registration of a deposit contribution, - it is necessary to be registered and transfer only money to the account of the company in the way, convenient for you. Even it is not necessary to provide any documents that is at first sight very convenient for rich people, everything is confidential. But also nobody will issue any documents on your contribution, and it is not so reliable. But not it is the main lack of PAMM - investments.

So, it would be desirable to share with readers a critical view of PAMM - investment in general. What it seems to me suspicious in this scheme of investment of means?

The first and most important - closeness of information on the current transactions on some platforms. That is you as the investor of time do not see at present result on the current transaction, perhaps, it already is in plus, and it is possible, and in deep minus. Result you will see a post factum, and in it the biggest problem because after closing of the transaction the dealing center can draw any figure is covered. Let`s sort on an example for bigger clearness.

For example, the managing director opens the transaction, but you do not see what he does, - buys dollars or euro. After a while the dollar falls, and euro grows. The managing director closes the transaction, and you see profit on the account. Means, he bought euro. And whether really he bought euro? We do not know what currency was secured by the managing director at the time of opening of the transaction.

This circumstance very much on a hand to some dealing centers as on false accounts it is possible to draw any income, enticing equal profitability of investors, and then once to show a huge loss and to close PAMM - the account, having taken away at the same time all money just to itself in a pocket.

The second, not less important argument - the principle of work of the dealing centers in which there are PAMM - systems. Probably, for anybody any more not a secret that the dealing centers earn not from the commissions from transactions, and from losses of money as a result of trade of the clients.

These institutions are similar to a casino, that is money is only within an institution, and the prize of the client is a loss for a casino or the dealing center. And investment in itself with a stable conclusion of percent contradicts the principles of work of these institutions.

It turns out that this profit will be directly paid from a pocket of owners of dealings. How it is possible to earn profit if to give more, than give you? I think, the answer is obvious here. For attraction of millions from clients it is necessary to entice these clients something, and just similar systems with the stable income (3-10% a month) perfectly approach for this purpose.

Suspicions concerning several merged PAMM - accounts were already repeatedly discussed at specialized forums and skilled professional traders in the financial markets just laugh at PAMM - the investors investing money in managing directors of dealings.

In conclusion I want to tell that similar systems will have an identical outcome, as at any financial pyramids. When the cumulative sum reaches peak, and inflow of the capital will end, the account “will just merge“, and investors will lose all money.

But you remember, it concerns only the closed systems in which it is not visible to full information on transactions from the moment of their opening. If full information on transactions is visible to investors, then the risk of loss of money is much lower as in this case you will be able to control each step of the operating trader on the account.

I wish not to be fallen into clutches swindlers. Understand, nobody will steadily give 5% a month to you. Once everything will end. Here, as they say, who managed to jump out, that also remained with money.