What are Forex Managed Accounts?
Customer accounts whose management is conducted by a third party are called managed accounts. This can apply to different markets. There are e.g. forex and CFD managed accounts or both in one account. Companies that offer managed accounts often require management fees and performance fee of up to 50% of the profit
A managed account at Metalgo Global Invest has the following characteristics:
- The investor has his/her own account with the broker or invests in our funds. Only our customer him/herself can determine transfers from an individual account and only to his/her own bank account.
- The trader receives a LPOA: Limited Power of Attorney that allows the trader to trade! In this power of attorney, the broker receives payment instructions that allow the broker to pay the agreed upon performance fee to the trader.
Performance fee is calculated by the high water mark principle for our forex managed accounts. Example: deposit of €10,000. You assume that it will receive a profit of 10% in the first month, meaning a profit of €1,000. The performance fee is 20% and the customer receives €800 in this case. If a loss of 3% is experienced in the following month, we will take no profit performance fee. First when there is a profit of more than 3% in the next month, e.g. with 10% you assume a profit of 7% and 20% will be taken from this. After Ab depositing €50,000, the profit performance fee comes to 15% and is thus under the regular fee amounts on the market.