Advantages of RAMM-accounts over other ways of investing

Published: 30 November 2021 Updated: September 13, 2022

Earnings on the currency market are not solely confined to trading. It is also possible to profit from price movements by investing, which opens up opportunities for those who do not see themselves as traders and prefer passive income. There are different types of investments available today, each with its own specifics.

Types of investments

The most common types of investing are copying trades, trust management, PAMM accounts and RAMM accounts. They differ from each other, but they also have something in common. So, with any method of investing:

  • You can invest a minimum amount.
  • There are no restrictions on the choice of signal provider or manager.
  • There is an opportunity to diversify risks.
  • You can predict the potential income.

Creating a RAMM account and its settings

Now we will look at one of the ways to invest, namely RAMM accounts. And we will consider them on the example of a broker AMarkets (go online), which offers investors the service of such accounts. To open a RAMM account with this broker, you need to go to your personal cabinet, and from there go to the section "RAMM copi-trading". Here you can fund your account and then select a suitable strategy under "Go to RAMM".

For the convenience of investors Forex broker provided "Rating", where you can explore all available strategies and evaluate them according to important criteria. After that in the "Invest" section the investor has to configure the investment parameters. An important indicator is the function "Multiplier", which represents the coefficient of copying trades. The size of copied trades also depends on the investor's deposit size. For example, if the size of the investor's account is half the size of the managing trader's account, then transactions will automatically be copied with a volume that is half the size of the managing trader's account.

The "Goal" section serves to specify the percentage of expected profit. The investor can specify any target, and upon its achievement the copying of orders from the account of the managing trader will stop. In order to set limits on losses there is a section "Protection". It plays the role of Stop Loss in case of investing. It should be emphasized that copying of transactions on the RAMM-account continues even when the investor's terminal is turned off.

What is important when choosing a RAMM account?

In order to make the process of selecting a RAMM account easier for investors, AMarkets broker provides a detailed overview of each account. What you should pay attention to when choosing:

  • Account profitability. High yields indicate high profits, but also indicate high risks.
  • Account age. This indicator allows us to judge how reliable the strategy is. A large age and the absence of drawdowns speak in favor of the strategy.
  • Number of investors and size of investment. A large number of investors indicate that they trust the strategy, that is, it is safe.
  • Percentage of the manager's remuneration. This indicator should be taken into account, so as not to experience the disappointment of having to sacrifice most of the income from the strategy in order to pay the interest.

Examples of accounts

To understand how the selection of a RAMM account works, let's look at the following example. In the list of RAMM-accounts broker AMarkets choose the strategy "Clip" and highlight the points on which you should pay attention. Open the "Tools" tab. There are 8 instruments, and an amount of $100 is available for investment. The number of investors is large - 99, so we can conclude that the account is highly reliable.

The average return on the account is 15%, that is, for 15 months the return was 750%. There are no deep and long drawdowns on the chart, which also speaks in favor of the strategy. As for the remuneration, it is quite acceptable - 30%. If the average return on investment is $50, the manager will have to give $15. As you can see, analyzing the account is simple and does not require much time. But this is an important point, on which the potential profit from investment depends. Spend just an hour to be sure of your choice.

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