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About managed accountsQ. What is the minimum investmentThe minimum investment is $10,000.00 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. 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. (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?We only use brokerages that are non-dealing desk ECN brokerages with tight inter-bank floating spreads. One is UK based and is FSA regulated and the other is owned by the Asian Pacific Banking group. All funds are segregated and held at Tier 1 banks such as HSBC London & Sun Trust Bank USA. We will direct you to the most appropriate brokerage upon application. 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. About Forex tradingQ. What is Foreign Exchange?The Foreign Exchange market, also referred to as the "Forex" or "FX" market, is the largest financial market in the world, with a daily average turnover of approximately US$1.5 trillion. Foreign Exchange is the simultaneous buying of one currency and selling of another. The world's currencies are on a floating exchange rate and are always traded in pairs, for example Euro/Dollar or Dollar/Yen. Q. Where is the central location of the Forex Market?Forex Trading is not centralized on an exchange, as with the stock and futures markets. The Forex market is considered an Over the Counter (OTC) or 'Interbank' market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network. Q. Who are the participants in the Forex Market?The Forex market is called an 'Interbank' market due to the fact that historically it has been dominated by banks, including central banks, commercial banks, and investment banks. However, the percentage of other market participants is rapidly growing, and now includes large multinational corporations, global money managers, registered dealers, international money brokers, futures and options traders, and private speculators. Q. When is the Forex market open for trading?A true 24-hour market, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, then London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day ornight. Q. What are the most commonly traded currencies in the Forex markets?The most often traded or 'liquid' currencies are those of countries with stable governments, respected central banks, and low inflation. Today, over 85% of all daily transactions involve trading of the major currencies, which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and the Australian Dollar Q. What is "Forex" and why is this an ideal asset class for diversification?Our belief with the Forex market is that money is never really made nor lost, but only changes wallets. Diversifying heavily into one major asset class such as Forex, is in our view, one of the few markets that will work with this type of diversification strategy. Strategy diversification is important from one trader to another to take advantage of this concept. However, currency markets are unique in that they are the only asset class that has never experienced an across-the-board bear market, or even a boom or bust like real-estate markets. In our collective opinion, it is as close to “crash-proof” investing as one can come. This makes currencies an excellent asset class for a diversification. When one trader is down, another is up. Experienced traders can always find a profitable trend to ride somewhere in the foreign exchange markets, as long as they completely understand the key factors that move world currencies. Q. What are alternative investments, and why would I add these to my portfolio?Characteristically speaking, an alternative investment is an investment category comprised of non-traditional investments (stocks and bonds). Alternative Investments can include futures & options (derivatives), currencies, real estate, private purchase programs, as well as hedge fund investments and private equity investments - many using sophisticated, diversified strategies, and usually are considered riskier than traditional investments. We believe when properly structured, these investments can be extremely attractive even though they are still considered high risk. General questionsQ. What is available to satisfy my due diligence before I invest in one of your featured investments?Due diligence is a critical factor in your decision making process and this is why there is a totally transparent business model of which the major points to remember are as follows:
You will quickly be able to see for yourself the performance of the managed account within a few months of joining and therefore make a decision on whether you want to continue, add more funds or withdraw your funds altogether. But you have the control over this. Please also read the more info page of the website. Q. Surely to generate above average returns, there is risk involved. Is this correct?Yes there is risk involved! Because the featured investments are alternative investments focused in the Foreign Exchange market. We believe the key to a successful investment is exposure to enough risk to generate a decent return, but not so much as to give rise to sleepless nights. Q. I don't know much about trading or alternative investments, can I still benefit from one of the investments?Yes! There is no need to be a professional trader to successfully and safely invest in a managed account. This alone is one of the biggest advantages to a managed account. It allows the modern investor the ability to have their account traded by a professional (who trades for a living). Q. Is www.forexmanaged.co.uk UK based?No we are not, we have a .co.uk URL because this was the only one available at the time for the name forex managed. Q. Have any of the directors or traders or their company been disqualified, disbarred from professional organizations or regulatory authorities in any way?No Q. What is the tax situation?Ultimately, you are responsible for your own tax. We do not get involved, but as a general rule whatever you bring back into your country of origin is of course taxable. If your trading account is set-up through an IBC then the tax will depend on the country your IBC is set up in. Q. Can the $10k min be spread across 2-3 different managed account services?No - it’s 10k USD per managed account program. Q. When is the Performance Fee deducted?At the end of each month. Q. How is the Performance Fee deducted?This is what the LPOA is for. You are signing the limited power of attorney, which allows the broker to take commission of 35% out of your account of any new profits made each month. So the broker has the right to take this amount out of your account but only this amount. He has no right to take any other money out of your account whatsoever. Q. What is the maximum drawdown that you have experienced?Please see our performance figures on the site for each system and you will see the losing drawdown months clearly marked in red. Q. How quickly can we disconnect our account from the master account?Simply call or email the broker and revoke the LPOA, trading will stop once you have notified them and they have disconnected you from the master (MAM) account. If there are open positions then trading will stop once flat. Q. Who is the third party auditor?It is a certified accountancy firm called Clifton D. Bodiford. The brokerages will have their own third party auditing company. You will be able to find this information on their website depending on what broker you sign up with. |


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. 





