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Question: Can I call or visit you in Houston?
Answer: Yes. All my information is on the contact page.
- Question: Can I meet or talk to the traders?
Answer: Yes, if there is a question I cannot answer, the traders will talk with you on a three way call after you are a client. You must be funded before I will do the three way call with you and them. You will not get their direct numbers.
- Question: I think I can trade; can I be one of the traders that you promote?
Answer: Email me your trade reports. You can cross off the account number if you like. I DO NOT want to see a fancy website, trade description, back test, or a demo account. Do not call me until you have faxed or emailed me the reports.
- Question: Do you recommend diversifying with all of the listed traders?
Answer: That depends on your investment goals. Call me for a free personalized consultation.
- Question: I like what I see on the live reports but should I also pay attention to the back test results?
Answer: Yes and No. It's never good to project the back test results into the future. It is good to use them as a guide line for profit potential and possible draw downs. I always pay more attention to and analyze the live trade reports more than the back test.
- Question: Can I fund with a 401k or IRA?
Answer: Yes but you must go through a trust company. You must print out the application, complete it and give it to the Trust company. You may also give a copy to the broker but that is not necessary because the trust company will give it to them. Make sure the trust company you choose will work with the broker. Email Best FX before proceeding.
- Question: What is an alternative investment?
Answer: An alternative investment is an investment other than conventional investments such as stocks, bonds, mutual funds and exchange-traded funds (ETFs). A managed forex account is one type of alternative investment. Many alternative investments including managed futures and managed forex accounts offer the use of a high degree of leverage, which can produce either significant gains or losses.
- Question: How do I open an account?
Answer: Contact me.
- Question: Do I have to open my own brokerage account in order to participate in a managed account program?
Answer: Yes, you have to open a Forex trading account with the broker used by the managed account program.
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Question: These results sound "too good to be true". How can it be proven that the system really works?
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Answer: We can't really answer that question directly since we are not the traders of these managed accounts. However by investing our own funds with a managed account for a period of time we are able to gain an understanding of the trading strategies and the risk management used. We believe that the managed accounts that passed our test will stand a much better chance of surviving for the long term than the vast majority of managed accounts offered on the internet.
- Question: I don't know anything about forex. Can I still benefit from a managed forex account?
Answer: It is not necessary to be a forex trader yourself to intelligently invest in a managed account. We encourage you to more fully educate yourself about forex, and we offer here on our site numerous educational articles and links to other sites. Remember there is a significant risk of loss in forex trading.
- Question: Can I choose my own broker and ask the fund manager to use it for managing my account?
Answer: No. Your account must be opened at the same brokerage as all others under management in that program. The head trader for the program has access to software (PAMM; Percent Allocation Management Module) that allows trading of these accounts as a group -- but they must all be at the same brokerage for the trade manager to use this. Contact me for more detail.
- Question: If I already have an existing self-trade account at the managed account's broker, can it be used in the managed program?
Answer: You can only use your existing account if it is with the broker used by the managed program AND you have converted it to a managed account. If you do this, that account can no longer be self-traded by you. If you wish to have both a self-trade account and a managed account, you must open a second account at the broker. In most cases this is quite easy, and consists of resubmitting the signature pages of your original account application, a signed Power of Attorney for the managed program, and a note to the broker asking them to open a second account. You can even ask them to transfer funds from your existing account, to get the new managed account funded.
- Question: My Investment Advisor recommends diversifying my assets. Do managed forex accounts have a place in a traditional portfolio?
Answer: Yes, allocating a percentage of your total assets to an alternative investment, uncorrelated to the stock & bond markets such as managed forex accounts, has historically shown an ability to provide a portfolio with better balance, reduced risk, and improved overall performance.
- Question: What is a Commodity Trading Advisor?
Answer: A Commodity Trading Advisor (CTA) is an individual or a firm, registered with the Commodity Futures Trading Commission(CFTC), that receives compensation for giving people advice on options, futures and the actual trading of managed futures accounts. Registrations for CTA’s are done through the National Futures Association, a self-regulated organization responsible for reviewing and accepting registrations. Please note that at this time forex traders are not required to be registered as CTA’s to manage clients' accounts.
- Question: Will I be able to access my account?
Answer: Yes, you will be provided with read only access to your account either through an online report viewer or the trading platform. You can view the account, including balance and activities, but you will not be able to place any trades.
- Question: Does the trader have access to my money and why do I need to sign a Limited Power of Attorney (POA)?
Answer: No, the trader does not have access to your money and cannot transfer, deposit, or withdraw your funds except for the fees specified on the POA and Management Agreement. Your account is set up directly with the brokerage that clears all transactions and handles all transfers, deposits, and withdrawals. It is necessary for you to sign a Limited Power of Attorney (POA) to authorize the brokerage to allow the trader to direct the trading of your account.
- Question: Does Best FX Investors invest their own funds into the managed forex accounts offered?
Answer: Yes, the principal of Best FX Investors invest with personal accounts with all recommended programs.
- Question: Does a managed account ever close to new investors? What if I am in the process of opening my account when that happens?
Answer: Yes, sometimes a managed program reaches a limit and must close to new investors. Usually, if you have already submitted your Account Application to the broker, your account will still be permitted to join the managed program. Many brokers will allow you to submit funds at the same time as your application, to speed up the process.
- Question: What is the minimum I can invest using managed forex accounts?
Answer: The minimum at this time is $25,000 to $50,000 depending on the program.
- Question: What kind of volatility do managed forex accounts exhibit?
Answer: In general, accounts with higher returns will also have higher volatility and draw downs. What is considered higher returns with traditional investments is normal with a good forex trader. Past maximum draw downs are no guarantee of future draw downs.
- Question: Can I withdraw my money and close my account any time I want?
Answer: Yes. This typically takes one to three days.
- Question: How do I fund my brokerage account?
Answer: Most brokers accept funding by bank wire or personal check, cashier's check, or bank draft, but not by credit card. See the broker's web page for details.
- Question: Do I need to keep my money in the managed account for a certain period of time to avoid penalties like mutual funds?
Answer: No, there are no penalties for withdrawing from the managed account program at any time you choose.
- Question: If I do not withdraw profits, do they reinvest -- i.e. compound -- automatically?
Answer: Yes, eventually profits left in your account will be considered an addition to principal, and will be factored into trade size calculations for future trades. How long it takes before they are included varies according to when new clients are added to the master account. It could take up to a week before your profits were fully reinvested.
- Question: Once my new account is funded, how long before it will start being traded by the fund manager, when will I start seeing trades being placed?
Answer: As soon as your account is funded, the trade manager for the managed account sees that it is ready for inclusion in the next new cycle of trades -- you need do nothing, the trade manager is automatically alerted by the broker. Typically trading will start within 48 hours from when the broker receives the wire.
- Question: How do I verify the status of my account?
Answer: When your managed Forex trading account is opened at the broker, you are issued a Username and Password which enables you to view and monitor the status of your account 24 hours a day. Through this Login, you can view a complete history of all closed trades as well as the status of any open trades.
- Question: If I have a question about trades in my account, who do I contact?
Answer: The broker is the main contact for all questions about your account. Because we refer a lot of clients, there are particular people in the brokerage who are most familiar with the managed program in which you are participating. In the Instructions for filling our Account Application, we give you the direct contact information for these people. You will not have direct contact with the trader. Sometimes the broker will refer questions about the trader or trading style back to us to answer if we can, because we are familiar with the trader's background. With a managed account you let the trader do the trading and periodically evaluate the results, however frequently you wish. We post daily and monthly results here which you can also check.
- Question: Can I stop my account from being traded at any time I choose?
Answer: Yes. To stop trading, you submit a revocation of the LPOA which originally authorized the trade manager for the managed program to place trades in your account. You submit this to the broker using the link found on the broker's web site. Their web sites are open 24 hours a day. To withdraw funds, you simply execute a withdrawal just as you would normally from any other brokerage account, according to the procedures the broker uses.
- Question: Do I have to pay taxes on profits made in a managed Forex account?
Answer: You are responsible for paying all taxes on your income, according to the laws of your country.
- Question: What are the benefits of portfolio diversification, such as by opening a managed Forex account in addition to my other investments?
Answer: Here are some reasons to diversify. 1) Investment advisors have always advocated diversification. 2) Most investor portfolios are heavily concentrated in the stock market and or bond market. 3) Most of the 8,000 mutual funds are highly correlated to each other and the market. 4) Protecting yourself from the risks associated with investment concentration is important to your financial well being. 5) Forex is not correlated to the stock market, so it provides true diversification to lower your overall investment portfolio risk. 6) Forex offers trading opportunities regardless of market direction, unlike some other markets (no “Bear” Market). There are trading Opportunities in rising and falling markets
- Question: What if I have more questions?
Answer: Please call or email the office today.
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