Questions to Ask to a Forex Account Manager

I haven't learned enough to be confident trading by myself, so I decided to use a managed account service. These are the questions that I have been collecting to ask to every manager that find interesting. I hope they will be useful to someone else and maybe you can help me to complement the list as you have much more knowledge about this bussiness than me.

1. What is the minimum amount of investment?
2. What is the minimum time of contract?
3. What is the average historical EFECTIVE(after fees) return?
4. What are the fees that you charge? performance and management fees
5. Which broker do you use?
6. What is the average duration of your trades? or asked diferently, what is your prefered timeframe?
7. What currency pairs do you usually trade?
8. Does the managed account works under a limited power of attorney contract?
9. Can I monitor the performance of the account in any time?
10. How much risk (in percent of the total account) do you take per trade?
11. How long have you been providing the managed account service?
12. How often can I make withdraws and new investments?
13. Do I have access to the total history of trades?
14. What contingency plans do you have in place for unexpected events as power outages and internet connection fails?
15. What is the maximum drawdown that any of your clients account have experienced?

My english is not perfect yet, feel free to correct any mistake that I may have made. please suggest additional questions if you think that I missed something.

Thanks you dear C26000 for your inputs.

Although I do not use a managed account, there are definitely some important questions which I can ask to a new broker indeed..

1. What is the minimum amount of investment? It depends on the manager. Usually 5k to 10k
2. What is the minimum time of contract? No minimum time, although you usually don't want to close them too quickly since trading systems have ups and downs.
3. What is the average historical EFECTIVE(after fees) return? It depends on manager. Most managers lose money.
4. What are the fees that you charge? performance and management fees Usually 25% plus for the high water mark
5. Which broker do you use? It depends on the manager.
6. What is the average duration of your trades? or asked diferently, what is your prefered timeframe?
7. What currency pairs do you usually trade?
8. Does the managed account works under a limited power of attorney contract? Yes usually.
9. Can I monitor the performance of the account in any time?
10. How much risk (in percent of the total account) do you take per trade?
11. How long have you been providing the managed account service?
12. How often can I make withdraws and new investments?
13. Do I have access to the total history of trades?
14. What contingency plans do you have in place for unexpected events as power outages and internet connection fails?
15. What is the maximum drawdown that any of your clients account have experienced?

My english is not perfect yet, feel free to correct any mistake that I may have made. please suggest a





I wanted to tell you about a solid managed forex account to you that fits our needs as an investor. Here are the results.

Up 18.33% in 2008
2007 made 80.52%
With max open drawdown of 16.66%
Minimum is 10k.
Fee is 25%

Hey is ranked one of the top 10 currency traders by Barclays. So this is no mom and pop shop.

Please let me know if you would like more information.

It is very important to ask the money manager for his/her track record, with statements from real account, NOT DEMO!!!!