The Best way to invest a million dollars in 2023? (Part 2)

PAMM accounts

A good choice for passive investing is to register a PAMM account on a brokerage platform. It is a format of trading account where the trader's personal funds and shares of private investors are placed. The trader manages the account, entering into transactions of purchase and sale of foreign currencies, stock indices, cryptocurrencies, and other assets. The resulting profits, minus the trader's commission, are distributed among the investors. All statistics of PAMM accounts are available on the broker's website - you can see the amount of profit for different periods, the percentage of profitable and loss-making transactions, the volume of transactions, the duration of the account from the date of registration, and other data to consciously choose the manager.

To reduce the risk investors distribute the deposit between different managers. In this case, the deposit drawdown at one trader will not lead to significant losses of capital.

• Pros of investing in PAMM accounts - the possibility to receive profit in a passive mode, high profitability, and fast return on investment.
• Cons - there is a risk of a drawdown of the deposit. Also, one must learn how to choose the proper managers, monitor trading results, track the efficiency of funds management, etc.

Copy trading

Several international brokerage platforms offer their clients to receive income without active participation in trading currencies or other financial market assets. This is achieved by connecting to the copy trading service. To do this, you need to register a personal account on the broker's website, open an account and deposit a certain amount of money into it. Then you can choose a trader with positive trading results and connect to his account. The system begins to automatically copy his transactions in your account, fixing a profit minus the commission of the trader. Different managers' commission ranges from 25 to 50%.

All statistics of traders are published in a special section, you can choose the manager under your financial expectations and readiness for risk. If necessary, you can change the trader or distribute the deposit among several performers, to reduce the probable risk of drawdown on the account.

• Pros of investment in social trading - high profitability of investments and receiving income in a passive mode.
• Cons - there is a risk of losing part of the deposit.

Investing in Mutual Funds

A good option for investors with no knowledge or experience in stock market operations. You can buy a share in a mutual fund, an organization that pools funds from depositors and acquires various assets. These may be precious metals, real estate, securities, shares in real businesses, foreign currency, etc. The funds of the participants are managed by a management company. After summing up the results of the year, the profit received is distributed among the participants depending on the number of redeemed units. You can choose an investment fund to suit your needs and buy a share from employees of the management company or with the help of a broker on the stock exchange. Managers periodically buy back shares from shareholders at nominal value. You can also sell your unit to another participant if necessary.

• The pros of investing in mutual funds is that your capital is managed by experienced managers who know the ins and outs of stock and financial markets. The profitability of such investments can reach 25% per annum, but the effectiveness of managers can vary from period to period.

• Cons - poor management lowers the price of units and investors lose some funds. Also, some managers charge high commissions plus fees for buying and selling shares in the mutual fund. As a result, most of the profits are spent on commissions and fees.

Also, if you want to use all available trading tools to increase your capital as soon as possible - follow this link below, or contact us via live chat. Our experts will help you to choose the best strategy for success.