Is Forex Day Trading a Managed Account CTA?

The answer is "NO." The reality is that our money managers DO NOT want to be registered as CTA's. The following will explain why…

CTA stands for Commodity Trading Advisor, a designation bestowed by the NFA (National Futures Association). The NFA requires that any US resident wishing to manage money in forex or futures on behalf of US investors must register with the NFA as a CTA.

First of all, we do not accept US-based customers at this time. Second of all, registering as an NFA-member CTA would require us to work with US-based brokerage firms that are also NFA members (as stated by US law), making us subject to US laws as well. These laws have been enacted  by the US government in a draconian fashion on the Forex market over the 10 years. In our view, they make the trading of forex in the United States disadvantageous, without really protecting customer funds (read our blog post, "Are MF Global Forex Accounts Safe?" for more information).

Consequently, we do not want our managed forex products to have anything to do with the CTA designation.

Instead, we stick to brokerage firms that provide much higher safety of funds and account protection, even if it means foregoing US-based investors due to US laws in the process.