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Who here manages other people's money?

  • #21
  • Sep 3, 2007 6:38am Sep 3, 2007 6:38am
Quoting JFX81
A few quick questions for those who do...

1. What broker are you using
2. Are you doing a LAMM or PAMM
3. Have you taken your series 3
4. Are you also an IB for a broker with the potential to get a rebate from the spread on other accounts
5. Do you have a website (if so, what is it)

1. FXCM (haven't had any trading problems with them at all)
2. I give my clients 2% per month or 27% per year regardless of what I make.
3. No.
4. No.
5. No, word of mouth only.
  • #22
  • Sep 3, 2007 6:56am Sep 3, 2007 6:56am
I am currently managing other peoples money but only started doing this properly (e.g. outside immediate family) about six weeks ago.

I have an agreement with my clients whereby I cover ALL LOSES 100% until the account is in the black. Which essentially means that the person trading with me has no risk whatsoever to their initial investment.

My percentage of profit is structured to rise as the account grows but it starts at 20% and will never exceed 50%. I think this is fair enough when the client has absolutely no risk.

I don't have any exams or licence to do this. I do it because I like to help people out and find I trade other peoples money far better than I trade my own.

So far I have been trading small size only as I had no substantial track record to show when I started. My worst performing account has risen from just £150 (which incidentally was offered to my client for free when he opened an account) to £2,200 in the six weeks I have been doing this.
  • #23
  • Sep 3, 2007 9:08am Sep 3, 2007 9:08am
anyone has any statements which they can show as track record ?

thanks.
  • #24
  • Sep 3, 2007 12:07pm Sep 3, 2007 12:07pm
Are you saying you offer a 2% per month risk free investment?
Quoting Norman1
1. FXCM (haven't had any trading problems with them at all)
2. I give my clients 2% per month or 27% per year regardless of what I make.
3. No.
4. No.
5. No, word of mouth only.
  • #25
  • Sep 3, 2007 12:08pm Sep 3, 2007 12:08pm
Hi,
I meant safe in my posts in the sense that i cannot withdraw ur funds thru some means and run away...u can also view each and every transaction that i make using ur funds...and since the funds are pooled together, i can leverage them very well which is very useful...

i do hve a website and also have an account statement on the website but i cannot post the address cos it may be considering as against the rulkes...those who r interested to know can always PM me.

Thanks.
  • #26
  • Sep 3, 2007 12:55pm Sep 3, 2007 12:55pm
Quoting thinker
anyone has any statements which they can show as track record ?

thanks.
It is probably best to PM individual traders about this. I don't imagine many people want to wade through multiple image screenshots and I think the website rules prohibit posting links to business websites as it is construed as advertising.

Personally, I will send anyone screenshots of all trades taken in the six week period (with corresponding balance next to them) if they send me a PM with their email address.
  • #27
  • Sep 3, 2007 1:51pm Sep 3, 2007 1:51pm
Quoting the_wizard
I have an agreement with my clients whereby I cover ALL LOSES 100% until the account is in the black. Which essentially means that the person trading with me has no risk whatsoever to their initial investment.
This is maybe the craziest thing I have ever heard. Although that is certainly doable up to a certain point. If someone came to you with $100,000 I think you would have more trouble offering such a thing.

Black swans can come by ANYONE.
  • #28
  • Sep 3, 2007 1:53pm Sep 3, 2007 1:53pm
Quoting PrivateFX
2. I have a specific % risk per trade I use. Strict money and risk management
Not sure what you mean. I was asking if you are using a LAMM or PAMM system to control the trades on various accounts.
  • #29
  • Sep 3, 2007 2:07pm Sep 3, 2007 2:07pm
Quoting JFX81
This is maybe the craziest thing I have ever heard. Although that is certainly doable up to a certain point. If someone came to you with $100,000 I think you would have more trouble offering such a thing.

Black swans can come by ANYONE.
LOL you are right - it would be insane to do this above a certain level.

I am still new and at that stage where I am making money and people are starting to take notice and want in on it. I tried for a friend and I realised that over a certain period of time, his account (traded by me) consistently outperformed my own.

As a result, I started trading for other people and taking a percentage of the profit. Please bear in mind that I offer this risk free for very low accounts E.g. £1,000 or below - I would not do this above this level.

  • #30
  • Sep 3, 2007 2:08pm Sep 3, 2007 2:08pm
I posted about this awhile back but didnt get an answer lol.

Anyway, from reading this thread, it seems all you have to do for FX is get a signed power of attorney from your clients and that makes you good with the law?

Or are there more requirements to make everything legit?

Im talking about US law, obviously.
  • #31
  • Sep 3, 2007 6:16pm Sep 3, 2007 6:16pm
Quoting JFX81
Not sure what you mean. I was asking if you are using a LAMM or PAMM system to control the trades on various accounts.
PAMM so that everything is equally proportional

  • #32
  • Sep 3, 2007 6:21pm Sep 3, 2007 6:21pm
Quoting nhallmark
I posted about this awhile back but didnt get an answer lol.

Anyway, from reading this thread, it seems all you have to do for FX is get a signed power of attorney from your clients and that makes you good with the law?

Or are there more requirements to make everything legit?

Im talking about US law, obviously.
I have attached a pdf file regarding this from the CFTC. Just simply scroll down to where it says "Managing Retail Forex Accounts" to read more about it.
Attached File(s)
File Type: pdf forex_advretailcustomers2007.pdf   64 KB | 876 downloads
  • #33
  • Sep 3, 2007 6:47pm Sep 3, 2007 6:47pm
I am a money manager for my forex firm. We use two brokers: MIG Investments and Gain Capital.

MIG uses the MT4 platform which gives you the ability to place trades using either lot allocation or % allocation and you can switch back and forth. This is especially useful if you are managing accounts for individuals who desire a higher level of return/risk per trade mixed with accounts who have more risk aversion. Unfortunately they only offer 200:1 for accounts up to $25,000 but the upside is that you can offer your clients 100:1 max for clients with up to $1million. If you use their percentage allocation and you have smaller clients (like $2000 - $5000) along with larger clients (>$100,000), then the smaller clients may not get allocated any portion of the trades since the smallest lot trade size is 0.1 lots (This is if you are scalping the market with smaller lot sizes).

The benefit of Gain is that they use true percentage allocation (meaning that the smaller clients will get their actual percentage and not be excluded if their share of the trade falls below 0.1 lots). We use GAIN for our IRA clients.

My firm gets an LPOA from the broker signed by the client along with a CTA agreement between the client and my firm.

I am not registered with the NFA but I am prepared to take the series 3 exam when it becomes a requirement to manage spot forex accounts.

Also, we don't charge commissions nor are we compensated by MIG nor GAIN through the pip spread/IB rebates at all.
  • #34
  • Sep 3, 2007 7:44pm Sep 3, 2007 7:44pm
Quoting Norman1
1. FXCM (haven't had any trading problems with them at all)
2. I give my clients 2% per month or 27% per year regardless of what I make.
3. No.
4. No.
5. No, word of mouth only.

I plan to do the same as Norman. Guarantee 2%/mo for 2 years regardless what I make. I think is very doable in forex as well as futures. By next year I should be doing it so I would post my track record.
  • #35
  • Sep 3, 2007 9:09pm Sep 3, 2007 9:09pm
Quoting Busterd
I am a money manager for my forex firm. We use two brokers: MIG Investments and Gain Capital.

My firm gets an LPOA from the broker signed by the client along with a CTA agreement between the client and my firm.

I am not registered with the NFA but I am prepared to take the series 3 exam when it becomes a requirement to manage spot forex accounts.
I am not sure I see why you would have a CTA agreement if you are not a CTA or have taken the series 3. Or is it rather that someone else in your firm is a registered CTA?
  • #36
  • Sep 3, 2007 9:14pm Sep 3, 2007 9:14pm
Quoting rck66
I plan to do the same as Norman. Guarantee 2%/mo for 2 years regardless what I make. I think is very doable in forex as well as futures.
You really think so? Let's see what that looks like with $100,000 USD.

Month
1: $102,000
2: $104,040
3: $106,120
4
5
6: $112,616
7
8
9
10
11
12: $126,824
24: $160,843

You see my point?
  • #37
  • Sep 3, 2007 9:26pm Sep 3, 2007 9:26pm
Quoting peterM
Are you saying you offer a 2% per month risk free investment?
I return 2% per month even if I have a negative month....I still wouldn't call it risk free though...
  • #38
  • Sep 3, 2007 9:30pm Sep 3, 2007 9:30pm
Quoting JFX81
You really think so? Let's see what that looks like with $100,000 USD.

Month
1: $102,000
2: $104,040
3: $106,120
4
5
6: $112,616
7
8
9
10
11
12: $126,824
24: $160,843

You see my point?
JFX, I don't work it like this in your example....I pay the 2% monthly via an account transfer...It is not capitalised, so on a $100,000 account clients receive $2,000 every month paid in to their account...My 27% per annum is for clients who want it capitalised, but that is locked in for at least a year...
  • #39
  • Sep 3, 2007 9:34pm Sep 3, 2007 9:34pm
My firm uses a CTA agreement which includes all the standard disclosure statements associated with trading forex in order to be compliant with the NFA when the time comes that regulation requires us to be so. We decided to use it from the beginning when we began trading for clients rather than have all our clients sign the disclosure documents later.
  • #40
  • Sep 3, 2007 9:35pm Sep 3, 2007 9:35pm
Quoting Norman1
JFX, I don't work it like this in your example....I pay the 2% monthly via an account transfer...It is not capitalised, so on a $100,000 account clients receive $2,000 every month paid in to their account...My 27% per annum is for clients who want it capitalised, but that is locked in for at least a year...
Correct me if I am wrong, but that would make it $2k x 24month = $48k guaranteed?
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