Online Forex Investment? Here’s how to play it!
Online Forex Investment – Have you ever gotten an offer to make forex investments online? This offer will usually be given with the lure of considerable profits. Before you do these activities, you should read this article first to find out the ins and outs of online forex investment.
Before discussing further, first you have to do is differentiate between Forex Trading and Forex Investment.
- Forex trading: In this activity, you must carry out activities that are active in fundamental or technical activities, transactions and active activities. Here you will become a forex trader. To do activities as a trader, of course, you need skills and skills that must be mastered.
- Forex investment: While on forex investment, you only need to make capital deposits in the asset manager that you have set, then you just have to wait for the profit. So here you will only be a passive performer in the world of forex trading.
PROFIT ON FOREX INVESTMENT
When offered a forex investment, often you will be offered a large amount of profit that is quite tempting. The advantage is also not infrequently in the form of fix profits which are given per month. All you have to do when you get an offer like that, must be careful. Profit generated from the activities of the forex world is volatile. So that if there is an investment offering with a fixed profit, it is the opposite of the situation in forex trading. Usually, forex investment offers that lead to fix profits may end up with losses.
For the ideal scheme, the forex investment or foreign exchange is the sharing of the results of the profit generated. You can get the percentage per share of forex trading profits that are carried out by the asset manager, in accordance with the contract that you have agreed to. So you can know that the amount of profit that you will get depends on the ability or skill of the asset manager of your choice.
IS IT SAFE TO DO FOREX INVESTMENT?
Then is investing in forex considered safe enough? In this section, you must be able to distinguish between money games and forex investments. Because not a few money games that use member get member schemes cheat you under the guise of forex investment. In practice, the profit you actually earn is not from forex activity, but from the other members’ money rotation (ponzi scheme).
Here are the characteristics of money games that use the Ponzi scheme:
- The system will use the member get member scheme, the profit commission will be large enough. So that the acquisition of profits is obtained from other members who are deposited rather than from investment returns.
- Offering fix profits, with the amount of profit offered between 30 to 100% per month.
- Giving unreasonable promises with other benefits.
While investing in the world of forex trading also remains at risk. However, this risk can be reduced and also regulated using money management and also the skills of traders who are experts in their fields. So this is also a factor that can be your consideration for choosing which aseet manager you will invest.
HOW TO CHOOSE FOREX INVESTMENT TO STAY SAFE?
When you will choose an asset manager, you need to pay attention to the following things so that the profit generated is as expected:
- Pay attention to the history or trading history
When you will choose, make sure that you have access to the portfolio or trading history of the asset manager. The form of trading history or portfolio can be in the form of PAMM history, investor password, and others. Whereas if the asset manager only gives trading statements or trading history in print, you should reconsider the asset manager, because it could be an edit or the result of photoshop.
- Trading Statement Given from a Real Account
Furthermore, you also have to make sure that the asset manager you will choose can give you a trading statement from a real account. Usually a real account will have more pressure than a demo account. So that the ability or skill of the trader in the demo account may not be practicable on a real account. Asset managers who have high flying hours on real accounts can of course provide more value later.
- Pay attention to the experience
When you find out the trading history of the asset manager, make sure that the asset manager has had trading for a long time. Whereas if the trading history is only weeks or months old, it cannot guarantee the capability and consistency of the asset manager.
- Learn the Asset Manager Facts and Data
When you will choose an asset manager, make sure you also learn facts and data from the ability or asset manager skills, make this a matter of consideration.Don’t look at marketing or promotion. Because some promotional sentences can usually hypnotize without revealing the facts going forward.
HOW TO DO FOREX ONLINE INVESTMENT
Now, to invest in forex trading, you can choose a variety of ways and rely on technological sophistication. You no longer need to do the manual method to provide capital to the asset manager, you can use several services and facilities such as:
- Using PAMM Account
PAAM stands for Percentage Allocation Management Module . This is a facility where traders or asset managers can receive and also process clients’ investment money very easily. All processes in the PAMM account will be carried out automatically by the broker who provides facilities. So that asset managers just focus on trading. For investors, this account will also provide the same convenience. Investors can freely choose the asset manager who has registered in the PAMM account. Every asset manager must have their own trading history that you can analyze. Usually if the better the PAMM trader is, the higher the PAMM service rating will be.
As for the investor funds, the asset manager will not directly hold it, but will be held by the broker first. Asset managers will never take the funds you invest, they will only trade with these funds.
- Copy Trader or Forex Trade and the like
In this service, the principle is the same as a PAMM account. It’s just that the profit sharing is not using profit sharing, but using a commission system. Every asset manager who conducts a transaction, then you will be charged with a specified commission fee. The amount of the commission is not the same, it depends on the policy of the asset manager as the service provider.
- Using Conventional Ways
Next is using conventional methods. In this way, you will be able to immediately establish a relationship with the asset manager and give your investment money directly. Profit sharing will be determined by agreement, as well as if there is a loss. If you want to choose this method, make sure that you really know how the asset manager’s performance is. It would be better if you are authorized to withdraw so that funds are safer.
That’s the discussion about online forex investment. Hopefully this article is useful and can add to your insight about online forex investment.