Managed Accounts are often misunderstood by traditional investors. As veterans in in the managed FX industry, we have created this list of common questions and answers over the years to shed plenty of light on the subject. If you have a particular question that is not found below, Please feel free to contact us via email, live chat or phone and we'll add the question to this ever-growing list (click on each link to see the complete answer to the question).
- What is a Managed Account? (Definition) - A "managed account" is an investment account traded or managed by a portfolio manager under a fee-based arrangement (usually a fixed annualized percentage of the assets…
- What's the Size of the Industry? - The size of the managed account industry is estimated to exceed 4 trillion USD by the year 2015. That is one big market! Research shows that…
- Is my Money Safe? - Safety of funds is a top priority for managed account investors. Bankruptcies of large US-investment firms like REFCO (2005) and MF Global (2011) have…
- How Risky is a Managed Account? - In a managed account, risk is is more important than Return. No, this is not some masochistic investment idea. It is true. A complete understanding of…
- How Much Money can I make? - Questions regarding returns or performance are probably the most common in the investment industry. Unfortunately…
- What are Some Benefits of Managed Accounts? - Managed accounts, especially the ones that trade currencies, provide investors with many advantages. Here are some…
- Managed Account vs Mutual Fund – Which is Better? - In the battle of mutual funds versus hedge funds, who has the upper hand? Let's compare them…One large difference…
- Managed Account vs Hedge Fund – Which is Better? - Some hedge funds employ similar methodologies to managed accounts. For example, if a hedge fund specializes in trading forex…
- Which is Better, Managed FX or Managed Futures? - Managed futures refers to the trading of futures contracts under a managed account structure. A futures contract is a form of "derivative"…
- What are the Cost/Fees? - Managed fees consist of the following two components. 1. Performance or Incentive Fee – This is the most common cost associated with a…
- Are you a CTA (Commodities Trading Advisor)? - 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…
- What is the Minimum Investment? - Managed account minimums vary from firm to firm and also depend on the particular asset class the program specializes in. When dealing with separately managed…
- Do I have to pay Taxes on Profits and What do you Report? - Managed Accounts that invest in Forex offer various tax advantages, depending on the investor's country of citizenship. For example, in the United States…
- Is a Managed Account Legal? - The laws that apply to managed accounts, especially the ones under the forex umbrella, have been in a constant state of flux during the last decade. Nevertheless…
- What is a Limited Power of Attorney (LPOA)? - Managed Accounts cannot exist without a Limited Power of Attorney. Also known as an LPOA, this legal document authorizes a trader or money manager to legally…
- What's a Managed Account Platform and Which One do You use? - A platform is nothing more than a trading software that works with specific technology that allows a money manager to trade a…
- Can I place my Own Trades in a Managed Account? - When investors open a Managed Account, they give a Portfolio Manager complete authority to trade or make buying and selling decisions in the account on…
- What is a MAM / PAMM? - In order to run a managed account model outside of a mutual or hedge fund structure, special technology is required to allow the portfolio manager to trade all accounts ("sub-accounts")…
- What is a Money Manager? - In the managed account industry, a "money manager" is a professional who specializes in the management of client funds by means of trading…
- Can the Money Manager Run Away with My Money? - As long as investors set up their managed account taking certain precautionary measures, it is impossible for a manager to run away with their funds. The key is for…
- How do I Open an Account? - Most traditional investors don't know how to open a managed account. It's really quite easy. Opening one requires the completion of brokerage…
- Can you Manage my Account at any Broker? - To participate in a managed account, an investor has to have an account with the specific broker where the accounts are…
- Does a Managed Account ever Close to New Investors? - Yes; a managed account program can sometimes close to new investors. There are various reasons this may happen, but when it does…
- How do I Fund my Account? - Funding a managed account is a straightforward process. Even though most brokerage firms have their own funding requirements and procedures, the way to fund…
- How long after I Open an Account do I have to Wait to see Positive Results? - Many investors who open managed accounts think that positive results should immediately follow. This ultra-short term…
- Is there a Penalty for Early Withdrawals or a Lockup Period? - Some investment companies charge penalties (normally a fixed percentage based on assets) if clients withdraw their funds before…
- What do I do if I want my Account to Stop Trading? - If a client wants to stop his managed account from trading for any reason, all he has to do is revoke the Limited Power of…
- Are Profits Reinvested? - Reinvesting of profits is essential for an investment to compound. If a client does not withdraw gains from his account, the gains are…
- Can I Speak to the Money Manager? - The money manager is the professional in charge of making the trading decisions in a managed portfolio. The manager has the biggest responsibility of…
- Who do I Contact if I Need Support with My Managed Account? - Support is provided by the managed account department. Customers who have questions about their…
- What is the Best Managed Account Program in the FX Industry? - The search for the "best" managed accounts becomes a lifelong process for many investors. The problem is that…
- I am Invested in other Portfolios, but How does a Forex Portfolio look like? - A managed account portfolio for a traditional investor might look like a combination of stocks and bonds of companies from a particular sector or…
- How can I run a Managed Account Business (Managed IB)? - Running a managed account business by referring investors to a money manager can be a lucrative endeavor for…
- How do I get a job in this industry? - We receive multiple inquiries every day from traders interested in a managed account career. The allure of a job as a…
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