Estimated reading time: 6 minutes
Committing your money to some self-proclaimed asset management firm could be the best decision you ever made — at least when banking on their alleged monthly returns.
But please, just keep in mind that a lucrative decision where large sums of money are involved can quickly turn into a nightmare. This is because you are relying on a Forex account manager who hunts your money instead of multiplying it.
This takes us to the main subject of this review — Golden Ratio Asset Management or GRAM in short.
While Golden Ratio Asset Management might not necessarily be a scam, the truth of the matter is that Forex trading comes with risks which usually means that someone can lose money.
See, there is no solid proof that Golden Ratio Asset Management will give you attractive returns on a consistent basis.
If you check out their myfxbook results here (Myfxbook.com/members/chrisGRAM), you will see that their equity started on a good note by rising steadily. Then it reached a plateau stage, dropped and climbed a little bit before beginning its journey to a steady decline.
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Note: If your language is not English, you should use the language dropdown menu at the top right hand side of their page to select your language.
What does this tell you?
It tells you that even if a legitimate Forex account manager is involved in the picture, their sheer incompetence can still wipe out your account dry.
Golden Ratio Asset Management promises a monthly return on investment of between 20-35%.
That is to say that you should expect a monthly profit of 1K on a test-level account and 10K on a high level account (according to their estimates).
But you see, in the world of trading Forex, there is nothing like guaranteed high return on investments. Anyone who quotes anything beyond the 5% monthly return on invest is 99% likely to be a fraud. The other 1% of the time, this person is merely being an over-enthusiastic moron.
As a matter of fact, you should just kiss your money goodbye if your intention is to invest on Golden Ratio Asset Management with the idea that you will make a ROI of 35% on a good month. You will most likely be disappointed, and here’s why.
You’ve seen that their profit curve on myfxbook is not really promising.
Nevertheless, the company still insists that they’ve got the best trade analysts and professionals who analyze the markets 24/7 to find nothing but winning signals.
And by the way, Golden Ratio Asset Management doesn’t provide PAMM accounts only. They also run a signal service where clients who prefer to trade on their own can receive signals which can then be copied to their accounts.
Apparently, investors who use Golden Ratio Asset Management services are supposed to be treated to a wide array of benefits, not limited to hands-free managed accounts, risk and financial objective analysis, financial analysis training, risk-management training, trading psychology training, free trading signals and access to social trading group.
That is a buffet of advantages that everyone believes will be of great help to investors using this company’s services.
You still have to realize that these advantages mean nothing in the real sense. If you choose a managed Forex account, you should be less concerned with other things because everything is done for you by the asset managers.
On the other hand, if you choose to subscribe to their trade signal service, your job is to receive alerts and implement them. You ought to be less concerned with other things — that is, if you don’t want to learn how to trade yourself.
It’s good that this asset manager did the ”homework” for us and is now presenting us with nothing but ”top-notch Forex brokers” who are committed to ensuring that you succeed in your trading endeavors.
The bad thing is that Golden Ratio Asset Management is not allowing us to use our own brokers. So if you don’t like any of the 3 recommended brokers due to the bad experience that you underwent through their hands or some nasty things you read about them, there is no other way to go round it.
Some asset managers do allow investors to choose their preferred brokers. However, this comes with a hefty price tag since these asset managers often ask for an unreasonable amount of money as upfront investments.
Notice that no matter how you do business with Golden Ratio Asset Management, they will still benefit from your money even if they don’t have direct access to it.
But how is this possible? You ask.
Well, by recommending these brokers, Golden Ratio Asset Management is acting like an IB of those brokers. This means that they always get a cut of the revenue generated from spreads and commission.
Take note that this money is paid to Golden Ratio Asset Management asset managers whether or not they make a profit.
This could result in a scenario where these asset managers will trade a lot to make more money. After all, the more trades they place, the more money they make in form of commission.
Therefore, it’s very important that we should seek clarifications from Golden Ratio Asset Management in matters pertaining to the volume of trades they’ll be making on a monthly basis.
That’s what they claim. However, we were expecting them to mention something to do with ”high water mark”.
What’s high water mark? It means that if your FX account declines in value, the asset manager won’t charge any profits on your account until all initial losses have been recouped.
Otherwise, if this kind of arrangement is not there, guess what? Your account will gradually deteriorate due to the fees that are levied on every profit made by this asset manager. At the end of the day, your account value will drop to zero since we are not operating with a high water mark.
If you’re investing, say $200 into a Expert Advisor, you should never get concerned with where your money is going.
However, if you’re investing your lifetime savings in Forex and trusting that an asset manager won’t make some grave mistake ( to the point of setting you back an entire lifetime savings), you should ensure that you have details of the company, the people behind it and the banking institution where your money will be going to.
In this case, Golden Ratio Asset Management doesn’t say who owns the company. There is little depth of information concerning this company.
We only know that they are operating business out of Cyprus. That’s all we know.
That’s like investing with a ghost asset manager. They are very keen to give as little information as possible about them. Take this as a red flag.
Even ponzi schemes named after the infamous Charles Ponzi work like this.
And you cannot be so sure whether Golden Ratio Asset Management is a ponzi scheme or not.
Equally, we can’t be so sure if this is a trusted asset manager or not.
But we can rely on facts presented on that website. To this end, we are giving you sound advice by asking you to opt for our recommended trading products instead. You’ll be better off.
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