How to Choose an Investment Platform?

Investment Platform

Any investment platform is, in essence, an online service for buying, selling, and storing assets. These activities are available via specialized Internet platforms (Direct-to-Customer, D2C) or by agreement with a financial expert to whom you will entrust trading under your name.

Lately, investment platforms are becoming more and more popular thanks to a wide range of available trading instruments that varies depending on the provider of services. Almost all of them allow managing assets in various financial markets simultaneously; also, almost all services give access to different types of trading accounts gathered on one trading platform for your convenience. 24 hours-a-day access to your trading account lets you track the results of your investments with ease by virtually several mouse clicks.

Copy Trading

Copy Trading is a widespread type of investment based on copying trades of prominent traders to your account(s). This activity has two people interacting directly — the trader and the investor. The former acts as the locomotive of the duet: they register a trading account and start their work; their results are registered in a special rating. Using this data, any investor can assess the efficacy of the trader’s work as well as the subscription conditions for their signals, and then decide whether they want to copy the trades of this or another trader.

Copy Trading has the following characteristic features:

  •  Trades are opened on the account that belongs to the investor, not by transferring money to the trader. This is an advantage for investors because they can control their finance while using various bonus trading programmes, promo actions, and other perks (such as Cashback).
  •  A convenient, transparent, and clear interaction scheme for copying trades and paying for services, both for investors and traders.
  •  A wide range of settings for subscriptions.
  •  The investor can denounce their subscription at any moment without any financial sanctions or refunds.

One popular platform for Copy Trading is CopyFX. This trade copying service opens new horizons before experienced traders, so that they can increase their income by attracting subscribers. Flexible time settings and conditions of subscription allow choosing optimal cooperation options for all platform users.

PAMM investments

Apart from giving access to the currency market, many Forex brokers offer PAMM investments in stocks to their clients. This system bounds the trading account of an investor to the account of an experienced trader. As a result, the investor entrusts their money to the trader. This scheme lets the trader work on their account while all trades are automatically copied to bound accounts.

The trader charges a fee for their management, hence, they need to work as efficiently as possible. Moreover, they cannot withdraw their own money from the account until it is closed — only the profit made while trading is withdrawable. This scheme was designed by brokers to protect investors from impulsive or imprudent actions of traders because such actions compromise their money first hand.

The key peculiarity of PAMM accounts is the opportunity to gather the assets of all interested investors in the hands of an experienced trader, while the conditions of spreading the profit between PAMM participants are known in advance.

Summary

Stocks trading platforms are convenient and modern instruments for making profit without having to trade yourself in financial markets. They let you make money on the experience of real experts who use their knowledge efficiently in practice. But first, you will need to study the conditions of various platforms and characteristics of traders for them to live up to your expectations and money.

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