Investors may find the answers to their questions in this frequently asked questions section.
Yes, you can. However, it is important that you take necessary precautions before choosing a Money Manager for your account. You should bear in mind:
• Research information on Money Managers on the internet, visit Forex forums;
• Ensure that you fully understand your chosen Money Manager's commission and/or fee structure;
• Check whether your Money Manager is regulated and authorised to carry out managed account services. Who is the regulator? (Keep in mind that some Money Managers may not be required to be regulated, depending on their jurisdiction);
• Seek references from other investors if possible.
Alpari (US) offers execution-only services. We do not guarantee, provide support or recommend any service providers or brokers.
No, your Money Manager will not be given the right to withdraw your funds. You'll give a Limited Power of Attorney (LPOA) form to your Money Manager to enable them to trade on your account, not to withdraw any funds. At your discretion, however, you may send a withdrawal form to your Money Manager and they can submit it to Alpari (US) on your behalf. Once processed, the withdrawn funds will be sent to your bank account (in accordance with the information you provide on the withdrawal form).
The Money Managers who are registered with Alpari (US) are provided with a set of documents which they will send to you. Once you have carefully reviewed the content, you can complete, sign and submit the documents to partnerships@alpari-us.com for processing. Upon receipt of the documents, Alpari (US) will verify the information and make the relevant amendments to your account in accordance with the terms agreed in the documents. We will then notify you and your Money Manager by email confirming that your account has been "linked" to the Money Manager.
If a client chooses to be managed, he/she will be required to submit a signed copy of the Money Manager LPOA (Limited Power of Attorney). Once this document is received, an email will be sent to the manager with the client's trading credentials and subsequently another email will be sent to the client with investor credentials (in read-only format). Please note: It is not up to the clients discretion to provide the Money Manager with his login details. Upon processing the Money Manager client request, Alpari (US) will send trading credentials to the Manager.
Typically, managed accounts are operated solely by the Money Manager, although you will have access to your trading account. We'll provide you with an investor password which will give you read-only access to your account.
Should you wish to maintain a managed account while also having the opportunity to apply your trading strategies yourself, you should request an additional trading account from Alpari (US). Just complete the Additional Account Request Form
You can log in to your account with an investor password which gives you read-only rights. You'll be able to see all open and closed trades, profits and losses, active orders, etc. Please note that you will not be able to amend anything.
Alpari (US) does not have such restrictions. You can withdraw the funds from your account at any time. Accounts with zero balances will not be closed, so you can top-up your account once you have decided to come back to trading.
At the end of the first month or quarter (depending on your Money Manager) and once there is trading activity in your account, Alpari (US) will deduct a performance fee off the profits from your account according to the terms agreed between you and your Money Manager.
The performance fee is a percentage of the net profits per month from the "watermark" of previous highs. If there are no profits in a month, there will be no performance fee. The high equity point established after performance fees are calculated creates the "watermark" which must be exceeded before any future profits may again be calculated.
Example: You start with $20,000 in an account with a performance fee of 30% and during the month a profit of USD6,000 is accumulated. The performance fee would be 30% of USD6,000, which is USD1800, so your net profit would be USD4,200, and your account would now have a "watermark" new balance of USD24,200. If in the next month there was a loss of USD2,000, we would not deduct a performance fee, as there is no profit, and your new balance would be USD22,200. Your "watermark" is still USD24,200. If there was USD4,000 in gross profit in the third month, then the performance fee would be calculated on only USD2,000 because the first USD2,000 in profit only makes good the previous loss. In this case the performance fee would be 30% of USD2,000, or USD600, and your net profit for that month would be USD3,400, and your new account balance would be the new "watermark" of USD27,600.
You'll find the performance fee information as well as the relevant charges applied to your account on the Commission Disclosure Form.
It depends on your Money Manager and different Money Managers charge different fees.
Yes, you can revoke your Limited Power of Attorney (LPOA) at any time.
If you wish to revoke the LPOA (remove any "link" the Money Manager has with your account) – please notify Alpari (US) of your intentions at your earliest convenience by calling us on +1 646 825 5760 or emailing us at partnerships@alpari-us.com. Once we have received your notification we will send you a form that needs to be completed and returned to us.
My Alpari