These days work at the international currency market Forex is available practically to anyone, even without deep knowledge of finance or high starting capital.
This is mainly favoured by two factors: this trading ground is the largest around the globe by daily money turnover and, as a consequence, the most dynamical one. And the last factor “gives rise to” innovative technologies, which increases comfort, reliability, and safety of trade together with increase of gained profit.
“New” Forex – Earn Without Trade
But there is more about development of trading instruments at Forex market. You can also earn money even without direct trade – by means of joint investment with experienced traders. Those, who have experience and professional skills of stable work, thus bringing you passive income from every successful deal.
There exist several variants of cooperation between a trader and an investor: from a popular model of PAMM accounts and collective management by many brokers, to opportunities of joint management over one’s finances by a trader and an investor, as, for example, in a project “Master-Invest” of one of leaders of the industry – TeleTrade company.
In this reference convenient also seem to be traders’ exchanges – Internet-grounds, where investors can choose a suitable trader by numerous criteria (from period of work at the market and size of profitability - to applied trading strategies) and earn by means of his trade. In their turn by providing open access to their trading history traders can attract additional means and therefore increase the volume of gained profit.
The “Market Leader” has tried to study current offers and answer a simple question: what is the best and most convenient place for an investor to find a trader (and, on the contrary, for a trader to find an investor) to cooperate with at Forex market?
Traders Exchanges: Who Offers Best Terms?
In order to hold an objective and full-scale analysis of current offers on cooperation between traders and investors at Forex market one should pay attention to several key parameters. This has been told about by the Head of Canadian corporation EUTA Capital Evgeny Olkhovski in his interview to the “Market Leader”. Particularly about:
– size of traders’ database (number of traders, offered for cooperation);
– ease for users (search against a database, choice of traders, technical part of investment);
– full and objective information about traders;
– specific features (partnership, mechanism of cooperation, options, etc.);
– legal regulation of relationships between traders and investors (offers, contracts, cooperation agreements, etc.).
“At the same time,” explains the specialist, “these parameters are common for all variants of investment at Forex market. They have been applied by experts of EUTA company and Masterforex-V Academy in assessment of traders, who are rapidly gaining popularity at the market, as well as own innovative approaches to defining objectively best offers from the point of view of active market participants – investors and traders.”
Speaking about possible means of investment at Forex, the following variants can be defined:
1. Investment in a group. The means are invested in several traders at the same time, thus forming an investment portfolio. Consequently, trading results of several traders make up total profitability of an investor. The main advantage of this scheme is compensation for a possible drawdown of one trader owing to stability of the team in general, as well as low entry threshold – from 100 to 300 US dollars.
2. Individual cooperation. An investor works with one trader. The most popular scheme of cooperation in this mechanism is investment in PAMM accounts. PAMM account is an account with invested means of several investors managed by one trader. The benefit of this type of investment is the fact that PAMM accounts provide open access to fullest statistics of a trader’s work. Consequently, an investor chooses the account he likes, and if the trader holds successful trade, he gets profit; if the manager sustains a loss, the investor loses his means. To compare: investing in a group of traders (composition of investment portfolio) compensate for loss of one trader by profits made by others. Not always, but in most cases. Another drawback of such mechanism of investment is the fact that it might be difficult to get in touch with the manager when choosing a PAMM account, for many accounts are impersonal.
3. Joint management over a trading account.
According to Evgeny Olkhovski, many Forex brokers, as well as traders exchanges offer standard variants of investment without giving any reliability guarantees to investors. The project “Traders Exchange” has an absolutely different approach. Despite the fact that this Internet-ground was started at the end of last year, owing to its effectiveness, reliability, and high comfort it has already won trust of tens of thousands traders and investors from around the globe.
Benefits of “Traders Exchange”
Here investors can cooperate directly with traders, excluding any type of mediation, characteristic of the abovementioned variants of investment. At the same time, results of experts’ assessment of this resource have shown that activity of “Traders Exchange” corresponds to the highest standards by the parameters mentioned earlier.
Unfortunately, the same cannot be said about similar projects, some of which do not provide any adequate information at all (for example, “Announcement Exchange” enumerates some unclear investment projects, but does not explain their main point; moreover, it does not inform about terms of participation in them). Nonsense!
Or, as in case with VIAC.RU, administrators inform that “at the moment VIAC.RU cannot guarantee reliability of provided information”. So why to create such project at all, if such things let happen? One of the first things you should take care of is what traders you offer to investors. For, it stands to reason that any cheat, knowing that his is not checked, can start his activity…
What is more, unlike most, at first sight, progressive traders exchanges in the global network (for example, BIRZHATRADE.RU), the regarded project offers the largest traders database with unique calculation of their potential profitability. For this purpose you can set value not only by desired profit, but also by preferred trading tactics, trader’s experience, size of manager’s reward, and find a trader by the name or ID.
For example, you want to find out how much you can get from 100 invested dollars. If you do not care what town the trader is from, but you want his profitability to amount to 40-80 percent and use a balanced trading strategy with reward from 40 to 50 percent. You would also want the age of your manager to vary between 28 and 35 years, and his work experience – between 12 and 24 months. By setting corresponding parameters, you get immediate results with one movement of a cursor, for example, TOP-10:
However, it stands to reason that the calculator of potential profitability at “Traders Exchange” website shows all possible results, but not top ten, as some other resources without a calculator or another searching mechanism do. In other words, they take these best ones “out of thin air”, without any reasoning why they are the best.
In our case this process is absolutely clear, and investors can see not only technical trading parameters of managers’ work, but also their personal files. In other words, every trader in the database acts under his name, outlines his life history, and describes his approach to trade. The system records his trading results since the moment of joining the project and keeps statistics of his account. This looks the following way:
Consequently, an investor choosing a trader with help of a handy searching instrument invests money not in a group or an account filled by it, but chooses a concrete partner for investment, with whom he can discuss all details and requirements to cooperation face-to-face. In fact, this is a form of direct dialogue of trader and investor on a single platform.
Unlike its analogues, the largest database of traders in Russia and CIS “Traders Exchange” shows rapid growth: since the moment it was launched the number of traders is constantly rising, and the history of management over accounts allows defining how successful trade of every participant is. By the way, in Yandex search engine “Traders Exchange” has been on top for a long time, which also proves its popularity among the target audience.
“Clarity of the project and wide choice of traders will allow any investor to find a partner ‘for himself’ and keep fixed contact with him during the whole period of cooperation,” adds Evgeny Olkhovski, “there are no analogues of such approach at Forex – only several projects-imitators (and in some cases – direct plagiary), which offer the choice of several tens of traders and outline their life history and approach to trade, but, as a rule, none of them can offer such number of participants and technical integration as “Traders Exchange”.”
Joint Investment: Specifics.
And at the end I would like to give more details about the third variant of investment at Forex – joint management over a trading account. These days the most optimal opportunities for working in such a way are offered by a partner of “Traders Exchange” TeleTrade company in the framework of “Master-Invest” project.
“Its distinctive feature,” says Evgeny Olkhovski, “is the fact that an investor does not render his means to undistributed management of a trader, but connects his trading account to the trader’s account (called Master), and thus all his transaction are copied into the investor’s account proportionally to the number of means on the account. At the same time, deals can be copied automatically or manually; investor has a right to ban any transaction. This gives him flexibility in management over his assets.”
The rating of traders in the project is made differently. Successful traders – Masters, who have proved their stability and profitability during a considerable period of time, are invited by TeleTrade to join the project. After joining trading statistics of a Master becomes open to the public. No direct communication is held between an investor and a Master, as connection to the account, copying of transactions, and calculation of reward from successful trade happen automatically.
TeleTrade positions “Master-Invest” as a flexible investment project, which maintains high control over account. What is more, strict selection of traders-Masters allows counting on high quality of investment. The project can also be interesting to investors, who plan to effect trade on their own within time – by studying deals of Masters they can raise their professional level and proceed to trading with maximal efficiency.
“Consequently, from all considered variants of investment at Forex the most large-scale, technically smooth, and transparent one from the point of view of relationships between traders and investors is the project ‘Traders Exchange’ – the largest traders database in Russia, including the biggest number of forms, and where investors can contact directly with traders,” concluded Evgeny Olkhovski.
°Some praise themselves, but others get praise. (Saying)
