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managed forex account

Frequently Asked Questions

In summary, how does your program work?
You will open a Forex trading account in your name. Your account is then traded by our trader via a limited power of attorney and at the end of the month we receive 30% of the profit if and only if we do better than a 3% monthly return. We only make money if you make money. In keeping with our company philosophy of full disclosure - please note - that we may make money on the bid/ask spread. This is normal and customary for most managed forex accounts.

Where can I open my trading account ?
We trade with several Forex Brokers some in the USA and one in London. Please contact us for proper forms.

What kind of statements will I receive?
Clients will be able to login to their accounts via the Internet and immediately see the trading activity and account balance. In addition, you may choose to receive monthly statements via the postal mail.

Can I lose all my money ?
No, there is a 25% stop loss, therefore should your account ever reach a 25% loss all trading would stop and you would be notified immediately. Please note that forex is a risky endeavor and refer to our disclaimer below.

What return should I expect ?
We make no claims for future performance. However, based on a three year track record we’ve achieved an above average, consistent rate of return. To receive more detailed information including our traders results (in full detail) join our mailing list. (Subscription form at the bottom of each page)

Can you show us actual trading records ?
This is not a problem. However you will need to setup an unfunded account with one of our brokers. Once your account has been setup, on request we will then forward you live trading results from the last quarter. Please contact us for more details.

What kind of leverage options can my account use?
Typically we use a 1 to 3 leverage. In other words, our traders typically will not risk more than 1 to 3% of your account per trade. Please note by using leverage that the risk of loss is increased.

Also take note that we are not able to adjust leverage on individual accounts due to the PAM (Percentage Allocation Management) system that we use to manage individual accounts.

What are the fees ?
The Forex Managed Account performance fee is 30% of the profit as is calculated monthly if and only if the account achieves 3% or better return. As is normal and customary for managed account we may receive money from the bid/ask spread.

Are any countries excluded from signing up ?
U.S. governmental restrictions prohibit us from opening accounts with residents of Afghanistan, Belarus, Burma (Myanmar), Cote d’Ivoire (Ivory Coast), Cuba, Democratic Republic of Congo, Former Liberian Regime of Charles Taylor, Iran, Iraq, Libya, Nigeria, North Korea, Sudan, Syria, Unita (Angola), Western Balkans, and Zimbabwe. Please contact us as current regulations are always changing.

Can I trade my account at the same time ?
No. If you would like to trade yourself then please use another account.

How much do I need to get started ?
For a managed forex account the minimum is $15,000 US. Please contact us for other arrangements if you are short of the required starting capital.

Can I withdraw money from my account ?
Its your money and yes you are able to withdraw it anytime you want. However, we ask that you limit your withdrawals to the end of the month. Also you are strongly encouraged to give our trader six months so that you can see your principal accrue.

Is this an offshore investment?
Depending upon where you are located this maybe an offshore investment for you. We have clearing firms both in the USA and in London.

What is your traders name and place of residence?
Confidential. We can give you general whereabouts of our trading groups - if you contact us personally.

No. of Years experience trading currencies ?
All of our traders have over 10 years experience.

What currency pairs are traded?
Typically the Majors.

What is the dollar amount of funds currently under management?
Again confidential.

What is the average holding period of a position?
This depends upon the account as with the platinum we average about a day whereas the gold we average about 2/3 days.

What is the risk management and money management strategy used? How do you control risk on each open position?
Normally stopping points are used to protect accounts.

What is the maximum peak to valley draw down of the fund?
This depends on the fund but typically not more than 15%.

What is the leverage and margin used in trading?
This may vary but typically we never use more than 5% to 10% of the account when trading.

What are some advantages to forex?

  • Profits are possible regardless of the direction of the US dollar versus other currencies.
  • Risk Management.
  • Trades only occur with the most liquid currencies in the spot market.
  • High degree of liquidity.
  • Excellent risk-to-reward ratio.
  • Portfolio diversification that cannot be achieved with stocks, bonds, mutual funds, or ADR’s.

Updated March 19, 2008

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More information: The proof is in the results : Forex Results