Everyone knows that money has to make money, but not everyone knows what to do for this. Therefore, the vast majority of people keep their free money in banks in deposit accounts. The financial viability of such deposits is questionable, since the interest that the bank pays for the use of clients' money often does not even cover the inflation rate.
But on the other hand, it's calmer: I put the money in the bank and you can forget about it for the term of the deposit. For those people who want to get the most out of their capital, there are more risky, but also more profitable ways of investing.
One of them is trading in exchange instruments, which requires certain skills, knowledge and training. Anyone who wishes to personally manage their capital will have to find out what options, futures, currency pairs, stocks, stock indices are, a thousand more details and, most importantly, understand how it all works.
At the same time, you need to know the statistics, and it says - nine out of ten such novice traders make erroneous transactions and lose their money.
But it is not at all necessary to dispose of your capital yourself. For example, the international foreign exchange market Forex makes it possible to trade using trust. This is an excellent option both for those who want money to work without their direct participation, and for those who are going to personally gradually delve into all the intricacies of such trading.
So, what is trust management in Forex. It has two options: direct relationship between the manager and the investor, as well as the possibility of such cooperation under the control of a third party - a broker.
Both options have their pros and cons, but their essence remains the same - the investor transfers his funds to people who, in his opinion, will cope with the task of increasing capital better than he himself.
From this, only one conclusion follows - before transferring money to management, you need to know well the manager to whom they are transferred. This should be a person with a transparent trading history. In short, he must prove the success of his work.
Actually, the whole risk begins with the choice of a specialist who will make transactions, and here one cannot be limited to one source. This is very similar to the work of a spy who, by comparing data from several sources, adds up the whole picture. You just need to use all possible available ways to obtain information about a trader's work. Only then can a decision on trust capital management be made.
As stated above, in Forex this can be done in two ways. The first is direct trust management. In this case, the owner of the account is the owner of the money, and the managing trader can only perform trading operations that the investor can monitor at any time.
Another technology of trust management in the Forex market is PAMM accounts in brokerage companies, where you can open your own investment account, which will also be managed by a trader chosen by the investor.
The difference between the two options lies in the technical details: the nuances of contracts, the settlement system, and so on.
The main thing that a person who entrusts their money for Forex trading should be puzzled with comes down to three fundamental points. The first is the percentage of the profit that the investor pays to the broker, it can be 50 to 50, but simple arithmetic suggests that the higher the invoice amount, the easier it is to agree with the manager to reduce the share of income.
The second fundamental point is the percentage of the deposit that the investor is willing to lose. It is important to determine this in the contract so as not to lose all the money in full. In this case, the manager must undertake to return all funds lost above the agreed percentage at his own expense.
This is an important component of the reputation of a serious trader, so all worsening options should not be considered seriously.
The third important point is that the legislation of the Russian Federation does not regulate the issues of trust management in Forex. Therefore, everyone should know - if it suddenly pulls to the bottom, then the rescue boat will not come and you will have to row to the shore on your own.
