TenorisFx is more than just a broker to trade CFDs on forex or any other asset, our mission is to be an investment platform where professional traders and investors can meet and complement each other, for this reason at TenorisFx we offer 3 types of investment accounts designed for those who do not want to operate actively but do want to generate income and multiply their capital through investments.
Throughout this article you will learn about the 3 types of investor accounts that exist and the differences that exist between them, at the end you will have a clear idea of which type of account best suits your profile as an investor.
Social trading
The social trading account allows you to replicate the operations of a trader on our leaderboard, and at the same time gives you full control over the open operations, being able to close, modify or even add more positions to your account without any type of limitation. It is the fastest way to start investing and the one that gives you the most control over your account, ideal for experienced traders.
Within the social trading accounts you can configure the multiplier ratio parameter, by default this will be at 1, which means that the size of your position will always be equal in proportion to the size of the operation in the master account, if you raise the multiplier to a value of 2 means that your trades will be 2x the position size of the master account. Keep in mind that the size of your position will always be calculated based on the relationship between the capital of the master account and the equity of your account as an investor multiplied by the ratio you choose, here is an example:
- Master Account Equity = $10,000
- Your Investor Account Equity = $1,000
1 open lot on the master account equals 0.1 lots on your investor account. To this you must multiply the multiplier ratio that you choose, continuing with the same example of the same equity in these accounts, it would be as follows:
- Multiplier ratio x1: 0,1 x 1 = 0.1 lots in the investment account for every 1 lot in the master account.
- Multiplier ratio x2: 0,1 x 2 = 0.2 lots in the investment account for every 1 lot in the master account.
- Multiplier ratio x3: 0,1 x 3 = 0.3 lots in the investment account for every 1 lot in the master account.
In the social trading accounts you can also choose in which direction to replicate the operation of the master account that you want to copy, you can decide to copy a strategy in reverse, in this sense when the master account there will be a purchase operation, in your investor account it will be will open a short trade for the same asset and with the same position size but in the opposite direction.
MAM/Investor
MAM accounts are a little more conservative than social trading accounts. To begin with, you need to have completed the documentation required by the company or trader, which in this case will be the master account to which your investor account will be associated, if you have already closed the agreements and sent the necessary documentation to the company/trader in charge of managing the MAM
MAM accounts are a little more conservative than social trading, in these accounts the multiplier ratio will be defined from the beginning of the signing of contracts with the company/trader in charge of managing the MAM and it cannot be modified later, nor can you replicate vice versa the operations of the master account.
In this type of account you will only have access as an investor to be able to see in real time the operations that are executed and the status of your account (balance, equity, margin, etc.) but you will not be able to close, modify or add more positions.
MAM accounts are adapted to those profiles that have knowledge in managing investment platforms such as MT5 but who wish to transfer total control of the operation to a company/trader in charge of managing the MAM without running the risk of modifying, closing or add more positions to some operation by mistake.
PAM/Investor
PAM accounts are quite similar to MAM accounts with the difference that PAM accounts are more like a mutual fund, in the sense that you will not have a trading account associated with a master account. You will be able to see at all times the general status of the fund (PAM Account) and know its returns, statistics and operations of the fund as a whole and not only of your account.
This type of account is designed for those who have little or no knowledge about how to track a trading account on platforms such as MT5, or for those who do have knowledge but simply do not want to follow the status of their account in real time, but invest your money in a mutual fund.
How to create an investment account?
Social trading / MAM investor
The procedure to open an investor account is extremely simple, the first thing you have to do is access your client area (If you have not yet registered you can do so through this link), then you must access the PAMM section of your dashboard.
1.- Go to the tab Dashboard in the investment platform web
2.- Click Open invest Account
3.- Choose the Account type
4.- Choose Currency
5.- Accept terms and conditions
6.- Press Open account
7.- You are all set
How to start following a trader (Social trading)
- Go to leaderboard — place where we gathered all best traders together.
- Use filters if needed to sort out accounts by several parameters.
- Choose the Master in the Leaderboard.
- Click Invest button from leaderboard screen or from statistics page.
- Accept terms and conditions.
- Press Subscribe to a master account.