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Managed Forex Accounts

Unsuccessful at managing and or don't have time to manage your own investment trading account? Let a full-time professional money manager do it for you.

What Is A Managed Investment Account?

A managed investment account is managed by a professional money manager, compared to mutual funds which are professionally managed for many mutual fund account holders. Managed investment accounts are personalized investment portfolios tailored to the exact needs of you, the individual account holder.

We believe that the best investor is an informed one. So below is a large compiled list of questions submitted to us. Please take the time to read through this, as we are sure many of your queries may be addressed here.

If you still have a question that you can’t find being answered below, please do not hesitate to contact us at any time.

About Managed Accounts

Q. What is the minimum investment

The minimum investment is $5,000.00 USD for each system.

Q. Does anyone else have access to my funds?

No, the funds in your forex trading managed account are in your name at the broker. You are the proprietor of this account and the only one who can make deposits to or withdrawals from this account. The only power you grant to the trade manager for the managed program is the power to trade your account through a Limited Power of Attorney, which also authorizes the deduction of the agreed performance fee/profit share ("incentive fee") stated on the Power of Attorney.

Q. Once my new account is funded, how long before it will start being traded?

This varies but usually it will only take days before you see the first trades being placed. As soon as your account is funded, the trade manager sees that it is ready for inclusion in the next new cycle of trades - you don't need to do anything.

Q. Can I open or close trades in the account that is being managed for me?

No - It can only be traded by the trade manager. You can revoke the Power of Attorney at any time.

Q. How do you make money?

We make our money from the performance or "incentive" fee, as it is often called.

Q. What is a managed forex account, what are the benefits they provide, and how is a typical managed account traded?

Self-trading currencies are at best a very difficult proposition. Many forex investors do not have the time, experience or desire to trade in the forex market themselves. Being able to follow the market movement 24 hours a day is a very essential part of the trading. Managed Accounts are created for investors with risk capital who do not necessarily want to trade on their own.

In a managed account you own the currencies that make up your portfolio. Unlike mutual funds or hedge funds, which commingle your funds with other investors, a managed account is in your name and all or part of your funds can be redeemed within one day.

How it works, is the investor opens up an account at a reputable brokerage firm, the investor then funds his account. No one can touch the money in this account but the investor. The trader cannot even deposit or withdraw funds from the investor's account without the proper authorization to do so, and the investor retains full access and control over the account at all times. A managed account allows an investor to have their funds traded professionally by an experienced trader or automated system via a limited power of attorney agreement (LPOA).

A managed forex account enables the trader to trade an investor's account on their behalf without having to transfer the funds into his account. It is the ideal way to have your money traded for maximum safety and control. You can check the balance of your account at anytime, see the daily trade activity, or withdraw or deposit funds when you please. You can also revoke your LPOA at anytime if you are not happy with how the trader is managing your funds.

The trader managing the account trades all investor's accounts as one large master account using PAMM or LAMM, or MAM software, which is offered by most leading brokers. The PAMM (Percent Allocation Management Module) distributes gains, losses and fees on an equal percentage basis. In this way all accounts regardless of size obtain the same percentage returns.

The LAMM (Lot Allocation Management Module) allows the trader to allocate different trade lots to each investor's account. This grants the trader the flexibility to use different leverages for different types of investors. The MAM (Multi-Account Manager) is a combination of the features found in a PAMM and LAMM, and offers more flexibility to the trader managing investor accounts.

Investors are typically granted live read only access to their managed account either through an online report viewer or the trading platform. They can then view their account, including balance and activities, however they will not be able to place their own trades on the account, unless they revoke their LPOA, which enables the trader the ability to trade on their behalf.

Q: How many trades are there on average per month?

Around 50-100 trades per month.

Q. What do you mean when you say an incentive fee on returns received of "New High Water Mark" profits?

A High Water Mark, is a common approach to the calculation of incentive fees. It means that incentive fees are paid only on NET new rises in asset value. If a temporary decline occurs, it must be recouped before new incentive fees are paid. This ensures that investment managers receive a performance fee only when the account value exceeds its previous high.

Managed Account Example

You start with $50,000 in an account with a performance fee of 35%, and during the month there is $5,000 gross profit. The performance fee deducted would be 35% of £5,000, which is $1,750, so your net profit would be $3,250 and your account would now have a “watermark” new balance of $53,250.

If in the next month there was a loss of $1000, there would be no performance fee deducted, since there is no profit, and your new balance would be $52,250.

Your “watermark” is still $53,250. So there will be no performance fee deductions until you get past your current “watermark”.

Q: If I am connected to the master account can’t my money be stolen?

No as it is electronically connected by the broker. This means that every time a trade is taken you get a duplicated order electronically into your account. The trading agent cannot steal your money, as it is firewalled by the brokerage house to prevent this from ever happening.

Also, because of very strict money laundering laws if you opened the account in your name, then the money has to go back into an account with your name on it. So it physically cannot be sent to anyone else's account anyway.

Q: How do I stop my account from being traded?

Simply call or email the broker and ask them to revoke your LPOA. As soon as they have done this then you will be disconnected from the master account. You of course can withdraw your funds at any time from your account in part or in full, as you have total control over this.

Q: The compounded results (cmp) seem too good to be true?

The account balance is compounding daily. This means that every trade that wins the following trade is placed with an increased equity balance and thus the compounding effect creates a very rapid growth. Once again all the results are confirmed by a third party auditor before they are published and are 100% accurate.

Q: How safe is the broker?

Our main brokerage is called InovaTrade. They are part of a huge network of companies all owned by Asia Pacific Banking Group. They are regulated by Panamanian Stock Exchange Commission. SEC registration no:1538902.

All investors will be able to take advantage of their unprecedented compensation scheme currently set at 70% of your total funds and shortly to rise to 100%. InovaTrade

Coming soon - We also have an FSA regulated brokerage called One Financial Markets, part of the One Financial Group based in London and authorised and regulated by the Financial Services Authority. FSA reference number: 466201

One Financial Markets is the trading name of CB Financial Services LTD a registered company registered in England under company number 6050593

As a retail client all funds will remain segregated from all company funds for maximum protection and are covered by the FSA compensation scheme.

For more information go to: One Financial Markets

Q: What kind of money management is in place?

The managed accounts have extremely strict risk parameters in place as they only ever risk a very small percentage of your account balance per trade. Normally it’s in the region of 1-2% in most cases. The managed accounts are monitored continuously to make sure they are not going outside of these pre-set strategic risk protection parameters.

The draw down is cut down to a minimum, however you must understand that these trading programs are geared for a high return each month, and to target 10-15% per month does involve risk. If you cannot accept this or don’t understand it then you should not be investing in this kind of alternative investment.

Q: What currency is the account traded in?

All the managed accounts are traded in USD. You can either instruct your bank to do the exchange from your own country’s currency into USD or leave it to the broker to do when they receive your funds at their end.

Q: Are the performance results audited?

The results audited by a third party. Each month our results are confirmed by a third party auditor before they are published.

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