What Does a Managed Account Cost ?
FxManagedAccounts.com follows the standard High Water Mark fee structure based on account equity.
What’s a High Water Mark? You Ask?
—- As an example let’s say you open a 100k account on January 1st. Your account balance and equity are both 100k. Then at the end of the first month we have grown your account by 6% or 6,000.00 dollars.
—-If the account manager charged a high performance fee of let’s say 50% to keep the math simple, then 3000.00 of that 6,000.00 would be deducted from the account at the brokerage and paid to the Account Manager.Quite simply you would split the profits with your manager.
—-It is at this time that the High Water Mark is established. At the end of the month after all fees have been paid your account equity is 103k. From then on we only get paid for profits beyond 103k. If the account holder wants to withdraw his 3k profit as well then the HWM would be 100k again. The bottom line is that at the end of the month after all withdrawals the HWM is set.
—-If at the end of February the account balance is 102K with a 1k loss for the month.:-( The account manager gets nothing. Even if during that month the equity got down to 95k and the manager worked hard to get it back up to 102k he get’s nothing.
—-If at the end of March the account has made 6k and is up from 102k to 108k. The Account Manager only get’s half of the profit above the high water mark of 103k or half of 5k not half of 6k.
—-Essentially this keeps unworthy account managers from getting paid fees for making the same money over and over again while your account equity goes up and down like a yo-yo and actual equity grows very little.
With the High Water Mark system the Account Manager has to perform and make you money every month to get paid!
Fees are usually deducted from client accounts within five business days of the month immediately following, via the broker.
Because FxManagedAccounts.com is broker-neutral, and clients themselves choose their own broker, performance may be affected by spread differentials, broker fees, execution rates and broker technology issues (if any).Now that you understand how it works, What do we charge?
It depends on the size account you have.
We have 3 performance fee levels.
Those with 100k or greater balance. 35% of profit above water mark.
Those with 25k-100k balance 40% of profit above water mark.
Those with less than 25k balance 45% of profit above water mark.
High Risk Warning: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to open or trade in the foreign exchange market you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Past performance is not necessarily indicative of future performance. FxManagedAccounts.com does not guarantee results and assumes no liability for client losses. Performance may be affected by unforeseen factors, such as spread differentials, broker fees , execution rates, technology failure and times of high volatility.
Client Funds: FxManagedAccounts.com Never, Ever handles client funds. Clients are free to choose whichever MT4 broker they like, based on their own research. FxManagedAccounts.com assumes absolutely no liability for loss of funds due to broker misconduct.