Forex fund managers uk

Starting a Forex Fund.

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Starting a Forex Fund.

Market conditions have never been better for setting up a forex fund. The number of forex funds and corresponding investors has grown as a result of expanding customer markets.

Therefore, traders interested in starting a forex fund (or managing customer accounts) should.

familiarize themselves with the legal landscape as they consider earning a living in this.

profitable retail industry. An experienced and disciplined forex fund manager can earn a.

substantial income. Most forex funds to which we provide services are small. We often.

encounter people who have been trading accounts for others "under the table" and now want to formalize their arrangements.

One key advantage to starting a forex fund is that the fund manager can legally accept.

compensation for his or her trading and advisory services. In many cases, the fund manager can legally advertise their services as well. This compensation can provide an excellent supplement to an existing income or it may allow trader to work as a paid forex adviser on a full-time basis. In our experience, many forex new fund managers also keep their "day jobs" for a while until they are certain this is the business they want to be in. Market conditions have never been better for setting up a forex fund. Whether you want to set up a fund or just invest in one, it is a good idea to understand the basics.

Is Running a Fund Profitable?

Forex fund managers typically demand management fees of % to 2% of assets under management (AUM) as well as performance fees of 20% of net gains a ear. This income can be substantial. If you had a mere $2 million AUM and a 1% management ee and a 20% erformance fee, you would have management fee income of $140,000 ($2 illion x 1%) and (assuming fund performance of 30%) performance fee income f $120,000 ($2 million AUM x 30% performance = $600,000 x 20%). If you had $5 million nder management, you would have combined fee income of $350,000. If you had $1 billion UM, you would have $60 million in combined fees (assuming fund performance of 20%).

Funds are not for the thin skinned; there are many real risks. In this era f global mood swings, all bets are off. Money invested in a forex fund must truly be discretionary. A fund is only as good as its advisers, so the human risk is significant. Greed and ego often trump integrity and ethics.

In 2008, there is also a noticeable trend toward increased review of funds by nvestors and counterparties (e. g., prime brokers, fund administrators, and auditors). Fiduciaries have a duty to perform due diligence to ensure that a fund's investment decisions are sound and compatible with their client's risk profiles. Prospects may submit a due diligence checklist to management, requesting extensive information covering every major aspect of the fund's organization, operation and management. Prospects may seek meetings with the officers of the.

fund and other persons significantly involved in the fund's business.

How does a forex fund work?

A forex fund requires infrastructure in the form of corporate entities. In the United Sates, we use a limited partnership as the fund and use an S corporation (or LLC) as the general partner (and forex adviser to) of the limited partnership. When set up outside the United States, both the forex fund and its advisor are set up as corporations in a low or zero tax country or other jurisdiction.

A CTA (commodity trading adviser) manages individual accounts, while a CPO (commodity pool operator) manages a fund (also called a "pool"). In our experience, many people lose interest in a managed account business when they experience the administrative hassles of managing separate accounts. However, some choose to be both.

Advertising and Attracting Investors.

Unless listed on a recognized securities exchange, a forex fund cannot advertise to solicit new investors in the fund. A forex trader managing accounts, however, can advertise his or her managed account services. A few countries have rules similar to those of the United States in this regard. Prospective investors in the fund like to see that you have invested your own capital in the fund. It is also a good idea to show prospects that you take fees subject to a hurdle rate, which means that you earn fees only when trading profits exceed a minimum percentage.

An investor in a forex fund should be sophisticated enough to understand the risks associated.

with forex trading. Many investors would be interested in forex funds if they had the.

opportunity. Because advertising of the fund and any other non-personal communications are.

prohibited, and the media has touted the risks over the benefits, investors must be sought in more direct and creative ways. A trader may find that in addition to family and close friends, many colleagues and casual acquaintances may be potential investors. If you are interested in getting investors for your fund, your selling efforts must be personally directed toward investors who are known to you. Advertising and any other non-personal communications are prohibited. For the forex trader who wants to trade for his family and friends, this is obviously no problem at all. Since the forex fund is an ideal vehicle to pool the resources of a small group of investors, forex funds can be especially appealing.

How do I set up a forex fund?

In 2008, forex traders remain positioned to launch a forex fund quickly without much red tape. In short, starting a forex fund means hiring a legal adviser with the proper expertise to prepare the required documents and provide you with tax and regulatory advice. You will have to work closely with your lawyer to prepare the private placement memorandum (PPM), fund's limited partnership agreement, and subscription agreement. A forex fund can be developed and launched within 2 weeks (on an expedited basis) but the normal development time is about 4 weeks. Offshore funds, while they can be incorporated quickly, take a little longer to establish due to the time required to open a bank and brokerage account for the fund.

There are two ways to trade foreign currencies and they have different tax rates. “Foreign currency contracts" are taxed by Internal Revenue Code Section 988. Currency futures, otherwise known as “regulated futures contracts” are taxed under Section 1256. Forward contracts and over-the-counter options in other traded currencies for which there.

is also trading in regulated futures qualify as "Section 1256 contracts." Gains from futures.

trading are taxed at a blended rate of 60% long-term gains and 40% short-term gains (regardless of how long a position is held). This 60/40 split gives futures traders an advantage over forex traders. While the long-term rate is capped at 15%, the short-term (or “ordinary”) rate can go as high as 35%. The maximum blended 60/40 rate is 23%.

Forex gains are taxed at the short-term (“ordinary”) rates. Forex traders do not necessarily have to live with the higher "ordinary income" tax rates as they can “elect out” of ordinary income tax rates. Traders who do this will have their currency positions treated as Section 1256 contracts, and their gains will be taxed at the blended 60/40 rate. In addition, the fund will most likely qualify as a "trader in commodities" so that investors are able to deduct the fund's expenses.

Forex funds are private and are not required to report returns, unlike mutual funds that are publicly traded and post their net asset values daily. In the United States, private (hedge) funds are unregistered securities offered as a private placement under the Securities Act of 1933. Also, in the United States, a forex fund is a Regulation D (Rule 506) offering in that it is an unregistered security offered as a private placement. Regulation D provides a safe harbor that exempts the private offering from compliance with the registration and prospectus delivery requirements of U. S. securities laws. However, Regulation D does not exempt an offering from compliance with the anti-fraud provisions of the law. You must supply all investors in your fund with offering documents (also called "disclosure documents") disclosing comprehensive information about the fund.

The Commodity Exchange Act (CEA) gives the Commodity Futures Trading Commission (CFTC) limited anti-fraud and anti-manipulation jurisdiction over off-exchange (also called over-the-counter or OTC) foreign currency futures and options transactions. "Forex transactions" are leveraged off-exchange foreign currency transactions where one party is a customer. The term does not include transactions that result in actual delivery within two days or that create an enforceable obligation to deliver between parties who are capable of making and taking delivery for business purposes.

Must I register with the CFTC?

If you plan to trade currency futures contracts, currency futures options, or forward contracts, your fund must be approved by the CFTC. In addition, you must register with the National Futures Association (NFA) and become a CPO. The CEA defines a commodity pool as an "investment trust, syndicate or similar form of enterprise operated for the purpose of trading commodity interests."

A person who operates a commodity pool must register as a CPO unless an exemption applies. If you operate a pool that limits its trading solely to forex and only trades with authorized counterparties, it is not required to register as a CPO, but may do so voluntarily.

Forex managed account managers are generally not required to register with the CFTC or.

become Members of NFA. Understand that any NFA Member forex dealer that services your.

customer accounts, or you introduce accounts to, is subject to NFA enforcement action for your conduct should your conduct violate NFA requirements. Violations can mean disciplinary action against your dealer even if it acts diligently and has no knowledge of your conduct. As a result, there is a trend among forex dealers to require NFA registration of forex traders managing customer accounts (including a fund). NFA compliance rules address the general issues of following just and equitable principles of trade and avoiding fraudulent behaviors.

If your forex fund trades in commodity futures or interests, it is also a commodity pool and you are a CPO. Any person who is involved with the commodity pool must register as an associate of the CPO. A registered CPO is required to provide a detailed disclosure statement (the prospectus) to prospective participants in the pool. Your Disclosure Document must also be filed with the NFA at least 21 days prior to the delivery of the documents to a prospective participant and updated often. There are exemptions from the CPO registration requirements.

Investment Adviser Registration.

If you plan to execute more than an occasional equity trade in your forex fund, you might also have to register as an investment adviser. If you manage less than $30 million, you are not eligible to register with the SEC (unless you are based outside the United States or you are based in Wyoming) but are subject to applicable state law. Each state has its own registration requirements.

Investors in your fund must receive all material information about the offering and the offering documents should be provided to all investors. Any investor who is not an accredited investor must have sufficient knowledge and experience in financial and business matters to be able to evaluate the merits and risks of your hedge fund. Since the PPM usually is the starting point for those conducting due diligence, it remains a crucial document.

Accredited Investors . Regulation D limits the number of non-accredited investors to 35.

Generally, accredited investors includes persons whose net worth (or joint net worth with that.

person's spouse) exceeds $1,000,000, or whose income was in excess of $200,000 in each of the two preceding years (or, together with that person's spouse, in excess of $300,000 in each of the two preceding years) and who reasonably expect to reach the same level of income in the current year. There are numerous other categories of accredited investors.

Performance-based compensation for fund advisers are paid as an allocation of profits, typically 20%, associated with the growth of the fund. There are state regulations regarding performance based fees and these regulations vary considerably. In some instances, the compensation agreement specifies that funds be only paid when the profits of the fund exceed a hurdle rate.

Within 15 days of the first sale of your offering, an SEC Form D Notice of Sale must.

be filed with the SEC. Your fund must also comply with state blue-sky laws. In most states,

Form U-2 must be filed.

Forex funds are about making money and running a forex fund is a great way to do.

so. The desire to pool assets in a way that is proper, both from a business and a legal standpoint, has led many forex traders to start their own forex funds. For a successful forex trader, a forexfund is an efficient, legal, and professional way to trade your own money along with the moneyof those who want to benefit from your expertise. No longer just for the elite, forex funds willcontinue to grow in varying financial conditions because of their complete market freedom. The private investment fund industry has years of success ahead of it. Talented forex traders will find profitable outlets for their skills, regardless of government regulation. Forex funds are about making money and running a forex fund is a great way to do so.

Ms. Terhune has nearly twenty years of solid experience working closely with people and.

businesses as an international tax and investment law (private investment fund) attorney. Her.

prior professional experience includes working as a tax law expert with two of the largest.

accounting firms in the world and with the United States Tax Court. She has an advanced law.

degree in taxation from The New York University School of Law (Legum Magister 1991) and a.

law degree from George Mason University (Juris Doctor 1989). She has served as an Associate.

Lecturer in taxation and business at George Mason University in Virginia and at Catholic.

University in Washington, DC. Her prior military service includes serving as Judge Advocate.

Managed Forex Accounts.

The intricate, complex ways of the financial markets often confuse the beginning traders. The two types of analysis, the different kinds of data and their contradicting signals, the vast choice of brokers, various trading styles, the many voices that shout buy and sell all the time are very intimidating to those who do not possess the free time necessary to study this field and for staying up to date with the data releases, news, and analysis offered by the myriad media channels. Traditional forex trading is high risk and can be difficult, especially for beginners. Casualty rates tend to be high, since success demands specialized knowledge, experience, and emotional control. It is easy to become impatient, look for shortcuts, and then allow your emotions to take over, a recipe for failure.

At the same time, many are intrigued by the tales of the spectacular success in currency markets achieved by some astute traders who have made the necessary investments and reaped the benefits. In response to the complex issues related to traditional trading, the brokerage industry has developed a number of reasonable alternatives over the years that permit you to delegate trading control to another party. In the caser of “mirror” or “social” trading, you may pick an expert or anyone else in the broker’s network and then emulate his trading decisions. In order to use these options, you may still be confronted with the need for experience and emotional obstacles, and for these reasons alone, you may find the managed forex account an exceptionally alluring offer.

A managed forex account allows a professional manager (or someone who claims to be so) to trade your funds on your behalf for a salary or a fixed share of the profits. You may select a specialized firm for this purpose or a broker that offers a sophisticated software feature that permits your account balance to be traded by an expert. The latter service does provide an extra level of risk protection. You must always be careful in selecting a money manager that you can trust and that has earned a good reputation in the industry. While most money managers are legitimate, there have been several notable scams in the past (a few are discussed below). In many other cases, an enterprising person will setup a firm advertising his services to clients and will trade their funds on an independent basis . This second type of manager and the dangers created by associating with him is the subject of this article.

Advantages with managed accounts.

There are a number of advantages that a managed account offers to the trader. Experience, which can only be gained through long-term involvement in the markets, is the only asset that can reduce or even negate the large risks associated with currency trading. Since a beginner lacks such a background by definition, cooperating with a money manager may seem to be a good choice. Emotional difficulties involved in trading cannot be tolerated by everyone, because each person has a different character profile and some are more prone to emotional extremes than others. Working with a money manager can also help you overcome this problem. Lack of sufficient time is another issue that discourages beginning traders from seriously committing to currency trading. A full-time account manager who can devote all his energies to trading for his clients is another positive aspect of this approach. Finally, many online traders, who act as fund managers, provide their past records to provide guidance on potential future returns. This knowledge may also help the beginner in choosing the best offer for himself.

Inherent dangers in these advantages.

All of the above sound simple and appealing, but there are many inherent dangers that are disguised in that simple appeal.

By allowing the manager to trade on his or her behalf, the trader does indeed benefit from the accumulated experience of that person. But by doing so, he or she also loses the opportunity of learning in the markets by practice and study. In essence tying his fortune to that of the manager and thus depriving himself of the independence of mind and the analytical mentality that is a lifelong necessity for a trading career.

By handing over the emotional responsibilities associated with trading to the manager, the account owner condemns himself to perpetual slavery to the will and skill of the manager. Since he is unable to withstand the emotional pressures associated with trading, he can never evaluate the market independently and can never possess the necessary confidence to trust his own judgment. Ultimately, the manager will gain complete confidence over his trading decisions with unpredictable and potentially dangerous results.

Finally, while the past records of money managers can be a useful guide on their skills and prowess, it can also be misleading. First of all, in many cases it is not possible to evaluate these records due to the lack of sufficient background information. It is also true that the black box of performance data is insufficient for successfully evaluating the trading style and method of the manager in question. Finally, past performance is not a guide to future results: A past record of positive returns does not guarantee a similar performance in the future.

Our recommendation on managed accounts.

In general, remaining in control of your account and trading to gain experience, by risking small amounts and using very low leverage is usually a better idea than handing over the control of your account to a stranger. It is difficult to predict how reliable a person is on the basis of the brief communication preceding the opening of an account or the signing of a contract. One will often need years of experience in order to feel safe about the character of such a partner, but in today’s dangerous environment, it is always possible that an unexpected misfortune that will erase his savings in a short time will remove the necessity altogether.

We do not claim that all managers are fraudsters, of course, but it is imperative that you perform the necessary background check. Ask for the required licenses and certifications before deciding on whom you will entrust with the management of your wealth. In order to clarify the dangers involved, we will list a few of the scams and thefts perpetrated by self-professed managers in the past few years.

Managers and Scams.

We believe that the discussion above already makes it possible to visualize the great “profit” potential of the scammer who acts in the cloak of a money manager. The nature of the relationship between the manager and his client ensures that a degree of blind trust must be maintained between the two parties, since it is not possible to check the actions of the manager constantly. Furthermore, by definition the manager needs a degree of independence about the way he uses the funds at his disposal, in order to be able to make profits and to manage the risk of the account successfully. In a healthy relationship, none of those would be considered an excessive requirement, however, when the manager’s main aim is mismanagement and misappropriations, the principles of the relationship become dangerous and harmful for the client. Visit our agencies to contact article to report any scams or fraudulent behavior by account managers.

Richard Matthews JR.

This gentleman founded the White Pines Trust Corporation in San Diego, California in July 2000. Talkative and persuasive, Mr. Matthews was an able marketer in spite of his lack of understanding in the currency trading business. Through various schemes, promises and profit pledges, he was able to pool more than $30 million of client deposits into his pockets, which he then used to acquire a 12-acre island off the coast of Belize.

During the most active period of the White Pines Trust Corporation and its associated Pinnacle Capital Fund, Mr. Matthews claimed an eight-year cumulative return of 591%, while guaranteeing that 75% of customer deposits are protected from loss each month by the use of various complicated, but false, methods, as eventually confessed by Mr. Matthews himself. Eventually, when he was deprived of his island and other luxurious possessions in order to repay his defrauded customers some $14.8 million, much of which was of course unrecoverable, having been spent or squandered during the heyday of his once great career.

Russell Cline.

As proof that a successful life in forex fraud doesn’t require any stellar diploma from a university or years of proven experience, Russell Cline began his meteoric career as a house painter in Baker City, Oregon. Through a dashing, confident attitude to life in general and the audacity provided by his utter lack of knowledge or understanding of the forex market, he was able to lie persuasively by offering his clients risk-free managed accounts facilitated by his sophisticated trading techniques. After netting around $27 million from 600 clients between 1998 and 2002, Mr. Cline declared that he had lost 97% of the funds, blaming his failure on faulty but honest trading errors. He requested additional funds to continue his rising career as a forex fund manager. To cut a long story short, it was eventually discovered that he had spent all the client funds on private jets, real estate, boats, luxury cars and pornography. He was sentenced to 8 years and 1 month in prison and was ordered to pay $14.9 million in restitution to clients.

Joel N. Ward.

We have discussed the interesting career of Joel N. Ward in the section on Forex HYIP, but to prove how worthless the words and the assumed character of these fraudsters can be, we will just repeat here that this convicted fraudster would sometimes appear on the most reputable financial news channels and newspapers to discuss the ethics of retail forex brokerage and how irrational the expectations of trades were.

Conclusion.

Ultimately, you're free to do whatever you want with your own money. You are free to turn each penny into thousands of dollars, but you are also free to turn your millions or thousands into pennies or nothing, if that is your desire. Our hope is to remind you here that the promises, pledges, and claims of account managers are of little value unless they are corroborated by information from independent sources, such as regulatory bodies and government authorities. But even in those cases where the reliability and honesty of the manager is not in doubt, it may still be a better idea to trade your funds yourself, so as to exercise maximum control over your future and the safety of your assets. But whatever you do, never act on the basis of extravagant promises made by someone recommended to you by friends or relatives. Be diligent and responsible about whom you entrust your assets to. Isn't the necessity of that due diligence obvious?

Visit our forex broker review page to read extensive analysis on the best, honest and fraud free forex brokers available to trade currencies with.

Important news about profit!

Do you need guidance on how money works instead of you? Ask for callback!

One of our most important activities is to find such traders who can earn stable profits for investors in the long-run following the expected parameters. These parameters (drawdown, lot amount, profit) are set up in a way that when the commission fee is deducted from the client account, the annual profit shall be higher than the capital protection. The accredited forex managed accounts can then be copied onto each individual account enabling such profits that our tested managed accounts perform.

ET Consultants has been founded to guide the participants of the forex market with its services. The correct usage of data and information helps to find the best alternative amongst the many. Results of market research may help to reveal hidden trends, but the appropriate partner can also make work easier and more efficient. We beleive that if the one finds an ideal partner, method or information that can be beneficial for everyone.

 Easy Neu Alpha Partners SA Switzerland (ARIF LICENCE CH)

Target gross monthly yield: 7.5% Capital protection: 70% Minimun deposit: 100.000$ Performance fee: 40%

Trading on the accounts of clients of ET Consultants using leverage ten times higher than the above published account from our asset managers using the same trading strategy. Return and risk profile should change in accordance!

Easy Neu Alpha Partners SA is the combination of two highly experienced financial market experts with over 65 years of experience in high end financial market firms and hedge funds. We use a combination of trading styles which are complimentary to each other in the terms of performance whilst diverse enough in their nature to accommodate all market conditions. We use both systematic and economic driven models with a mix of discretionary to provide as diverse a portfolio structure as possible to withstand all market conditions.

Taylor Made Account Management.

We offer taylor-made account management for those who invest above 1.000.000 $. It includes that the investment accounts are managed uniquely – separately from the centrally managed account - which differ in risk taking and profit.

Minimum capital: 1.000.000 $ 24/7 customer service Safe account management, online live account tracking in MT4 Trading reports Daily contact Unique risk and profit levels Unique strategy according to clients’ needs Unique performance fee High water mark calculation method.

Forex Fund Manager UK.

Drashta Capital specialises in managed forex trading, seeking the best managed forex accounts and professional money managers globally to offer our investors a portfolio of their top performing forex trading strategies. Through our regulated structure, we are able to offer investors in the UK access to these strategies, professionally managed on your trading account. Having top performing trading strategies at your fingertips gives you a unique edge. The combination of these strategies within a dynamic portfolio puts you in an incredible position of power, providing security and peace of mind along with consistent returns through diversification.

Our investment methodology starts from sourcing the investment strategies. Through our extensive network we have access to over 10,000 professional traders and automated trading strategies, out of which we identify the best forex trading strategies based on our proprietary ranking system. After thorough due diligence and tracking is completed, we monitor the performance in real time to acquire a deep understanding of the strategy’s edge and risk management approach.

This systematic approach provides us with strong building blocks from which we construct our multi-manager forex portfolios. As a result of the diverse range of investment approaches our managers use to generate returns, the synergy of non-correlated trading strategies produces more consistent performance than any single strategy. The final product is a versatile and robust investment solution that can generate returns through a range of market cycles and conditions.

Risk management is at the core of our operations, enforced with a layer of risk control in addition to the existing systems in place for each strategy. By limiting the downside, we are able to focus on building on the foundation to deliver long-term outperformance, allowing investors to select a level of risk appropriate for their own investment objectives.

Our managed forex accounts are available to wholesale and professional investors, with d etailed performance information available upon request.

Please register your interest below to receive further information and to discuss your eligibility.