There are a few options you have when it comes to investing in forex without trading including PAMM accounts/copy trading, purchasing forex robots aka EAs, and joining signal providers.
Wow, so I’m gonna make money out of forex without lifting a finger, awesome.
Well, it’s not that easy!
You’ll probably lose your money if you go down this path without learning to detect the legit ones from scams, and oh you won’t believe how many of them are scams or at least not profitable.
So now you ask me, how I’m gonna spot the valuable options, I don’t know much about Forex industry and investing in Forex.
Well, you’re in a good place because I’m going to show you what options you have and how you can analyze and assess them to find a profitable path to invest in forex without trading.
Ok without further ado, let’s become familiar with the options and see how we can find the best picks in each of them.
1- Find Profitable PAMM Managers to Invest in
If you’ve been searching for investing in forex without trading, it’s a high chance that you’ve come across copy trading. In copy trading, as the name suggests, you copy the trades of other people who claim to be professional traders.
Some forex brokers offer copy trading. Basically, you go to their websites and look for the copy trading section. There are some traders listed there along with their performance.
The problem is when you use a copy trading service; you need to know some basics such as how to use a trading platform to place the trades you copy or how to manage your risk. Of course, some brokers automate the process to some extent but not all of them do that and you still need to handle some tasks.
So what if you just want to invest in forex without interacting with trading whatsoever. In other words, you just invest in traders or systems that know how to trade profitably and then share profits.
PAMM (Percentage Allocation Management Module) account is the same as copy trading but you don’t need to do anything except registering under a PAMM manager. In other words, you just pick a PAMM account/manager and they do the rest. If the manager is profitable, you receive your profit every month.
Note that all this process is handled by your broker so basically you’re dealing with your broker, not a person. The person who is the manager of your money now and trades on behalf of you only withdraws his/her cut from an accrued profit.
Well, how can we figure out which PAMM managers are really profitable and which ones are scams? Of course, some might not be scams but they think their system is profitable while they’re unprofitable.
Anyway, we can’t invest in any PAMM managers we see in brokers’ lists, we need a strategy.
A rookie approach that many investors use is to look at the highest gains and invest in them. Obviously, it’s not the best way to pick profitable accounts otherwise everyone is printing money by just investing in a bunch of them. So why isn’t the highest gain a good metric and what other factors should we consider to find a profitable account?
Since forex brokers with PAMM account Services provide some kinds of statistical service, you can look into the stats and see if a system or manager has the potential of profitability. By digging into some metrics, you can also figure out whether a manager is legit or they hide something from you.
I’ve written a comprehensive article where you can find what those metrics are and how you can analyze them. There are also some profitable PAMM accounts and managers listed there so you can invest in them if you want. You can find the article here.
2- Invest in Forex Robots (EA)
The next option for investing in forex without trading is using a forex robot aka expert advisor (EA).
The problem here is finding a profitable EA is even harder than or at least as arduous as finding profitable PAMM accounts. There are lots of scams trying to lure you by showing you unreal statements. Some of them are really convincing and if you don’t look into their results meticulously, you won’t find their disadvantages.
So how can you find profitable EAs and are there any profitable EAs at all?
First of all, you should know that even profitable EAs are not printing machines. It means you can’t expect them to make constant profits forever.
Some of them need a tweak in their codes after some time and some might only need a few changes in their settings, that’s why EAs with unlimited support from their developers are normally more reliable.
Besides that, some EAs might work better in some situations of the market and start bleeding in other conditions so you should always take profit periodically, for example every month.
Now the question here is how you can detect if an EA is profitable?
Fortunately, there are several third-party websites that provide analytical services. Basically, an EA developer or seller can connect their trading platform to those websites and the websites track their results.
You can find out a lot about those results. For instance, you can see whether the results are related to a demo or real account, and lots of statistical data that you can look into and analyze.
Of course, in order to analyze such data, you need to know about them to some extent. Don’t worry, you won’t have any problem as long as you’re on this website because I’ve written another thorough article where I explain all those metrics. You can also find the profitable EAs that I’ve found along with the reviews for every one of them. You can find the article here.
3- Invest in Forex Signals
If you think finding a profitable PAMM account or EA is a difficult task to pull off, you should search for a profitable signal provider.
Although forex signals can be a way to invest in forex without trading, finding a signal provider that sends you profitable signals constantly is almost impossible. They are all over when you look at the Forex industry. Even a 15-year tiktoker tries to sell signals.
Although there are many signal providers like the ticktoker are just a bunch of kids who try to find some quick bucks, there are some more sophisticated providers that have more facilities. They have well-designed websites and automatic signal services that even place positions for you. You don’t even need to open/close the positions manually.
Of course, this sophistication is only for scamming you easier and in reality, there is no tangible difference between the tiktoker and these companies in terms of the quality of signals.
Given all that, investing in forex signal providers is even riskier than the previous options however you can find a handful of them if you search a bit deeper.
The most important factor here is that they have real results on the third-party websites that we talked about earlier. That’s important because first they have the confidence to show their performance and secondly, we have some data to analyze.
If they provide results from their backtesting or demo accounts or an unknown site, not the unbiased third-party sites, we consider that as a red flag. If you see such results, you should avoid those signal providers because it’s very likely that they scam you.
But if you find a provider with results from a real account on a third-party website, that can be a good sign. Now you can read the article mentioned in the previous section, this one, to analyze the result and see if it’s worth investing in.
I’ve searched for signal providers a few times but I couldn’t find many that meet the standard that I expect from a profitable system.
The only signal provider that I found is related to an EA from a provider called NCM signal. Their signals are the most reliable ones that I’ve found so far. They have real results on a third-party website so you can see how well their performance has been.
I’ve written a review about them that you can find from here.
When you want to invest in forex without trading, you should know that although you are not going to trade and don’t have to have trading skills you need to acquire investing knowledge so that you can have a successful and profitable investment.
It’s worth noting that even if you learn how to find profitable investment opportunities you should always follow risk management. It means you shouldn’t put all your eggs in one basket. You should invest in different sectors and even spread your capital between several options in one sector.
For example, invest in 2 EAs, 3 PAMM accounts, and 2 signal providers. That way if one or some of them go in the red, the profitable ones can level your portfolio and improve your results in total.
All in all, make sure to learn how to find profitable forex investments as mentioned in this article and then distribute your investment among them so that you can increase your chance and decrease risks.