Managed Accounts

I have an acquaintance that I was describing the FOREX market to and how I trade in FOREX. Well, this acquaintance has money he wants to invest in something, either stocks, bonds, money market, or something. But he would like to invest a portion of his money into something with a little higher risk/reward to possibly give him a quicker significant return on his investment?

Anyway, since I described FOREX to him, he has checked into it, however, he does not want to personally go to all the effort to learn it and trade it himself. He has since approached me and indicated that he would like to invest a portion of his money in a Forex account and he asked me if I would be interested in managing and trading the account for him.

So a couple of questions for you guys.

1. Can someone direct me or point me in the right direction as to where I
can find some kind of contract or legal agreement for us to sign that will
protect me legally and financially?

2. He doesn't want to start out with a really large investment, but he
wants to be a reasonable size to start with. So, I'm thinking, to give him
the kind of return he has indicated he would like and let the account build
itself up, that I recommend that he invest in a minimum $2,500.00 mini
account. What do you guys think??

3. I would appreciate any other helpful advise anyone can give to help me
out?

Thanks

I am not a lawyer or anything so any info i state i do not want to b held accountbale for. but i believe that u would have to register your entity as a managed accounts to trade on behalf of somebody, or if u want u could jus write a personal contract between the 2 of u stating the terms of the contract and what u and ur friend agreed upon.

Previous thread on this here with some info.

MGforex has a good managed account. They post their performance

http://www.mgforex.com/eng/fund-mana...ce.pdf?agrd=on

your broker has a POA they will have you and the person you are trading for both sign it saying you understand the risks!

thats all I know

tell him to send you a third party POWER OF ATTONEY FORM from his brokers if you will be trading on his platform ,but if he is giving you raw cash to invest then you have to draft out an agreement binding both of you on how you want to share the profit and the risk.

Legally speaking, there needs to be an agreement between yourself and the trader.

In most cases, a POA (Power of Attorney) or LPOA (Limited Power of Attorney) would protect the investor as well as the trader.

You may still have issues, as a trader, collecting compensation for your trading efforts. A performance fee is normal in most cases (more than 25% of profits is a bit high and this number should be contingent upon a high water mark).

Assuming you have a good relationship with the investor, you may need to simply invoice the client for compensation, which is legal assuming a POA is in place.

One you accumulate more investors and would like to manage more than one individual's funds, it will make sense to open a PAMM account where you can manage multiple accounts through one platform. With a PAMM account, your fees (mark up, performance fee, management fee) are all taken out automatically and put into your own control account for your withdrawal. There is no client invoicing involved.

Best of luck!

I think you will have to get license to manage third party funds and to trade on forex and also register your firm/company. But please confirm this since I am no expert.