How much is wage of account managers? | Forex Factory

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How much is wage of account managers?

  • #1
  • First Post: Sep 20, 2009 5:25am Sep 20, 2009 5:25am
Hello

I wanted to let an account manager to trade on my behalf, but he wants 45% of the profit but all possible losses are mine. Is this fair? how much is usual wage of account managers? does it change with icreasing of accopunt balance?

Thanks
  • #2
  • Sep 20, 2009 7:50am Sep 20, 2009 7:50am
He's robbing you. Don't give him anymore than 25% of the profits. Or 2% management fee per year (collected monthly) plus 20% of the profits.
  • #3
  • Sep 20, 2009 8:46am Sep 20, 2009 8:46am
Quoting TestATrader
Hello

I wanted to let an account manager to trade on my behalf, but he wants 45% of the profit but all possible losses are mine. Is this fair? how much is usual wage of account managers? does it change with icreasing of accopunt balance?

Thanks

Doesn't it depend on how much he is making you, and for what risk?

Would you rather pay 15% of a 50% return, or would you rather pay 45% of a 100% return, assuming the risks are comparable.

Most managers will tier commission based on account size, ie the larger the account the smaller the commission percentage, negotiate.

Losses are all yours, unfortunately you assume the risk, no manager will share those with you
  • #4
  • Sep 20, 2009 9:11am Sep 20, 2009 9:11am
Standard these days is 2 and 20. 2% account total fee, 20% of returns.
  • #5
  • Sep 20, 2009 9:18am Sep 20, 2009 9:18am
Quoting TestATrader
Hello

I wanted to let an account manager to trade on my behalf, but he wants 45% of the profit but all possible losses are mine. Is this fair? how much is usual wage of account managers? does it change with icreasing of accopunt balance?

Thanks
20-30% is alot more typical, even 35%, some will even add a 2% annual maintenance fee. 45% is awfully high. Before you do anything see if you can talk with 5-10 satisfied and current customers. The more you talk to the better.

Regarding the losses, those are yours.
  • #6
  • Sep 20, 2009 9:38am Sep 20, 2009 9:38am
u are lucky he is charging 45% i take 50% on profits...trading is no KIDS play...and if u have trade for your self you must have noticed what it takes to trade.
  • #7
  • Sep 20, 2009 12:10pm Sep 20, 2009 12:10pm
Problem is high dollar clients are going to want stable slow returns rather than highly volatile returns. Most large fund managers don't aim for massive returns, they aim for steady gains. Ie: Sharpe ratio. This attracts more money into the fund.

Instead of having only $1m AUM w/ 50% fees and 200% growth, you could have $1b AUM with 15% fees and 20% growth.
  • #8
  • Sep 20, 2009 12:25pm Sep 20, 2009 12:25pm
Quoting TestATrader
Hello

I wanted to let an account manager to trade on my behalf, but he wants 45% of the profit but all possible losses are mine. Is this fair? how much is usual wage of account managers? does it change with icreasing of accopunt balance?

Thanks
It depends on the manager.

Ask around about Keith Brown (aka Edgetrader).

He took quite a bit more than 45%.
  • #9
  • Sep 20, 2009 12:40pm Sep 20, 2009 12:40pm
Quoting Rabid
Problem is high dollar clients are going to want stable slow returns rather than highly volatile returns. Most large fund managers don't aim for massive returns, they aim for steady gains. Ie: Sharpe ratio. This attracts more money into the fund.

Instead of having only $1m AUM w/ 50% fees and 200% growth, you could have $1b AUM with 15% fees and 20% growth.

It's a case of what's achievable, the larger the fund the harder it becomes, and returns reduce. It's a totally different ball game with a billion dollars.

The OP still hasn't said what kind of returns the manager is producing, and with what risk, until then I don't think anyone can say whether 45% is fair or not.
  • #10
  • Sep 20, 2009 1:54pm Sep 20, 2009 1:54pm
Quoting pipmutt
It's a case of what's achievable, the larger the fund the harder it becomes, and returns reduce. It's a totally different ball game with a billion dollars.
Nod. That is a very fair point. It's definitely a lot harder to get into a billion dollar position, liquidity becomes a major concern.

Still, I think if you were aiming for crazy returns and accepting crazy volatility you'd end up with a lot of freaked-out investors. A 10% weekly draw-down would panic some people.

Quoting pipmutt;
The OP still hasn't said what kind of returns the manager is producing, and with what risk, until then I don't think anyone can say whether 45% is fair or not.
Nod. True enough. And fair is a relative term. What you and I might be willing to pay would be different than what others might be willing to pay. At the end the day it depends on whether he feels it's justified. If not, then don't invest with that entity.

On the other end of things, I think you have to charge what the competition charges to stay competitive.
  • #11
  • Sep 20, 2009 2:14pm Sep 20, 2009 2:14pm
Quoting Rabid
Still, I think if you were aiming for crazy returns and accepting crazy volatility you'd end up with a lot of freaked-out investors.
lol, been there, half of them wanting higher returns with higher risk and the other half wanting steady growth with little risk, you can't win! I went for the second and dumped the rest!

I agree about staying competitive, only thing is potential investors (especially the inexperienced ones) don't understand what they're comparing, they just look at price first.

The other side of this coin is what makes a good client, I think clients need to be quizzed by the manager just as much as the manager is by the clients, maybe commissions should be set on an 'aggravation' scale
  • #12
  • Last Post: Sep 24, 2009 8:29am Sep 24, 2009 8:29am
Quoting billbss
It depends on the manager.
Ask around about Keith Brown (aka Edgetrader).
He took quite a bit more than 45%.
.....
Keith Brown....
Keith Brown....
Keith Brown....
ah, Keith Brown.....
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