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OPENNING AN ACCOUNT

Q. How do I open an account with Radiant Capital Advisors?
A. It’s easy to open an account with Radiant Capital Advisors…Click Here

Q.  Do I have to open my own brokerage account in order to participate in a managed account program?
A.Yes, you have to open a Forex trading account with the broker used by the managed account program.  We only feature programs that use highly reputable, NFA registered brokers who offer excellent customer service. You open the account in your name.

Q. Can I choose my own broker and ask the fund manager to use it for managing my accounts?
A. 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 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.

Q. If I already have an existing self-trade account at the managed account's broker, can it be used in the managed program?
A. 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.

Q. What is an "LPOA" and why do I have to sign this document?
A. LPOA stands for "Limited Power of Attorney."  After you set up your personal account with our broker and your account is funded the "LPOA" allows Radiant Capital Advisors to link your account to our Managed Account and trade your funds for you. If you do not sign the "LPOA", Radiant Capital Advisors cannot execute trades on your behalf.

Q. Is the Power of Attorney permanent?
A. No. You can revoke the Limited Power of Attorney on your managed Forex account at any time.

Q.  What is a PAMM and how does it work?
A.  As a client of Radiant Capital Advisors your account will be placed in the designated third-party brokers proprietary PAMM (Percent Asset Management Module). The PAMM account allows the trading of multiple accounts as if they were one. This gives the account manager the ability to diversify across many different markets and strategies without being limited to the capital in any one individual account. The PAMM keeps each client's account records individually as opposed to representing the capital as a pool. The gains and losses are distributed on a percentage basis related to their capital contribution. Each client receives the same percentage rate of return regardless of size of account. The PAMM account rolls over each market day at 5:00PM EST, distributing gains and losses on a percentage basis to all clients in the PAMM. Any deposits or withdrawals from accounts are made at rollover time each day.

Q. Can I open my account as an IRA, and transfer funds from existing IRA into it?
A. Yes! The process simply requires having an IRA trustee set up the account at the brokerage for you. The one we recommend is Millennium Trust, who has an established relationship with the brokers used by these programs. You would contact Millennium first, tell them which account program in which you wish to participate, and they will guide you through the process. There will be a small management fee that you will pay to them for acting as a trustee for your IRA. All the standard rules for an IRA will apply to your account, including those permitting transfer of funds from another existing IRA into this one!

Q. How many managers trade the fund?
A. Typically there are 2 or more traders and/or developers in each team.

Q. Are accounts in a pool or segregated?
A. Accounts are held in the name of the account holder.  We use technology to view a master balance of the accounts which allocate the profit and loss proportionately to each client on a prorate basis.

Q. If I don't have the minimum to open an account, can I group my funds together with someone else in order to “qualify”?
A. Most brokers will allow you to open a joint account with someone else, but please be aware that you will both have legal ownership of the account, and must usually both sign any documents related to the account, including Power of Attorney authorizations and withdrawals. Think carefully before you decide to enter into a joint account with someone else.

Q. Does a managed account ever close to new investors? What if I am in the process of opening my account when that happens?
A. 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. To make sure, however, you should always fund your account as soon as possible. Many brokers will allow you to submit funds at the same time as your application, to speed up the process.

DEPOSITING & WITHDRAWING                                   TOP

Q. Who do I deposit my money with?
A. YOU open your own account with OUR broker which gives you complete control over your own funds. You can deposit or withdraw any amount at anytime day or night. It's your money so YOU not RCA has control over it. When you open an account with our broker they will link your account to our Managed Forex currency trading account so you can have the benefits of our systems and have complete access to your money at the same time. This is a very unique approach but one that has proven to be greatly desired by investors throughout the FOREX market.

Q. How do I fund my brokerage account?
A. 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.

Q: How do I withdraw funds from my account?
A. 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. Usually this involves submitting a form that you sign requesting the withdrawal, which also specifies the means by which you wish to receive the money, such as by bank wire or check. See the broker's web site for details. This form should be sent directly to your broker.

Q. Why do some accounts have a minimum deposit higher than others, and yet the net profit history is lower than the others?
A. A lower net profit history usually comes in association with a lower history of draw down, or lower risk of loss. The reason one might choose such an account is motivated as much or more by lowering risk, as by making profits. But because of the lower profit objectives, the account provider makes less money from their profit share -- and they have a certain minimum they wish to make, which they aim to achieve by requiring a higher minimum account size. It is not uncommon to see minimums of $100k, all the way up to $1 million -- so what we are able to present to investors here is an exceptional set of opportunities.

Q. Do I need to keep my money in the managed account for a certain period of time to avoid penalties like mutual funds?
A. No, there are no penalties for withdrawing from the managed account program at any time you choose. (Exceptions may apply to certain programs.)  We recommend withdrawals within the first 5 days of the next month.

Q: Does the trader for my managed account have access to my funds?
A. No, the funds in your Forex trading managed account are in your name at the broker. You are the proprietor of this account and the only one who can make deposits to or withdrawals from this account. The only power you grant to the trade manager for the managed program is the power to trade your account through a Limited Power of Attorney, which also authorizes deduction of the agreed performance fee/profit share ("incentive fee") stated on the Power of Attorney.

Q:  If I do not withdraw profits, do they reinvest  --  i.e. compound – automatically?
A. 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 the period used for assessing profit share deductions and the trade strategies used in the managed program.

TRADING IN YOUR ACCOUNT                                   TOP

Q. 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?
A.This varies according to the trade strategies used by the program in which your account is participating. Sometimes it will only take days before you see the first trades being placed, and sometimes more than a month. 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.

Q. How do I verify the status of my account?
A. 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.

Q. If I have a question about trades in my account, who do I contact?
A. 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 monthly results here which you can also check.

Q. Can I open or close trades in the account that is being managed for me?
A. No. A managed account can only be traded by the trade manager you authorize with a Power of Attorney. You can revoke the Power of Attorney to regain the ability to place trades in the account yourself, and then it will no longer be a managed account.

Q. Can I stop my account from being traded at any time I choose?
A. 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. This form should be submitted to your 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.

Q. Will my account have exactly the same results as you post on your web site?
A. Individual results may vary. Because some managed account programs have a large number of accounts participating in them, the fills obtained on a particular trade may sometimes differ a little from one account to another. It all depends upon how the software the trader uses is set up by the broker, how fast the market is moving when trades are made, the size and number of the accounts, and other factors. Do be aware that the first month you join a program; your results will not be the same, since your account did not fully participate in trading for the whole month. With some programs, it may take up to several months for your account to be fully integrated in all the trades the program is taking. We strongly encourage an evaluation period of at least 3 months to gauge the performance in your account.

Q. How is profit share / performance fee calculated?  What if there is a loss?
A. At the end of the first month after your account begins trading, if there is a profit, the broker will deduct the performance fee/profit share, technically called the "incentive fee”, which has been authorized on the Power of Attorney you sign when opening your account. Each month they will do the same. The incentive fee is a percentage of the net profits per month from the "watermark" of previous highs. If there are no profits in a given month, there are no incentive fees. The high equity point established after incentive fees are calculated creates the "watermark" which must be surpassed before any future profits may again be calculated. Example: you start with $10,000 in an account with an incentive fee of 40%, and during the month there is $4000 in gross profit. The incentive fee deducted would be 40% of $4000, which is $1600, so your net profit would be $2400, and your account would now have a "watermark" new balance of $12,400. If in the next month there was a loss of $1000, there would be no incentive fee deducted, since there is no profit, and your new balance would be $11,400. Your "watermark" is still $12,400. In the third month, if there was $3000 in gross profit, then the incentive fee would be calculated on only $2000 of that, since the first $1000 in profit gets your account back up to its "watermark" of $12,400. So the incentive fee would be 40% of $2000, or $800, and your net profit for that month would be $2200 (which is $1000 + $1200), and your new account balance would be the new "watermark" of $13,600 (which is $11,400 + $1000 + $1200).

Q. When is the monthly profit share / performance fee deducted from my account?
A. The monthly profit share, or incentive fee, is usually deducted by the broker on or near the first of each calendar month. Only the broker can say exactly what date they use, however, though generally you can expect it will be about the same time every month.

Q. I see a commission taken out on every trade – what is that?
A. Some brokers are able to offer the managed account traders the benefit of a smaller fixed spread for trades they make. To do this they must charge a small commission. It is the "price" of having a low fixed spread. In most cases this is more than offset by the additional profits that derive from the lower bid-ask spread. This is especially likely during times of greater market volatility, when most brokers widen their spreads making trades much more costly to open and close. We strive to feature managed programs that use brokers with the lowest spreads possible, and prefer those who can offer fixed spreads for these reasons.

Q. Do I have to pay taxes on profits made in a managed Forex account?
A. You are responsible for paying all taxes on your income, according to the laws of your country. Profit made in your managed Forex account is income in every classification of which we are aware, upon which taxes would be due.

MANAGED ACCOUNTS                                   TOP

Q. Do the owners or employees of this web site manage these accounts?
A. Yes and no, we have both in house traders and we have searched the financial world to find the best managed fund traders, who offer managed accounts at the best brokers, which offer you the best returns. You open your account yourself at the brokerage used for the account program. Your account is then managed by the trader, completely independently of us. Our role is to find the best opportunities for you, gather all the information you need to evaluate them and open your own account. You never send us any money, and we play no part in its management.

Q. How is it possible to have such consistently high net profits?
A. Different programs employ different strategies for maintaining consistency of results, but here are the two common methods used. First, by placing trades with smaller trade sizes, smaller risk, and smaller profit objective, a system must execute a larger number of trades to achieve its objective. Deviations in individual trade results thus have a smaller impact on overall month's end performance, unlike what would happen in the extreme case of a placing just one trade per month to try to make profit targets. A second way of achieving consistency is to utilize multiple strategies simultaneously, each suited to differing market conditions, each using just a small portion of the overall account. This way the likelihood that any single market condition can severely impact performance is minimized. Remember too that Forex can be a much more straightforward market in which to trade, not subject to many of the difficulties that characterize trading in a stock market. By comparison, we believe it is easier to develop consistent trading strategies in it.

Clients should carefully consider the risks associated with leveraged products such as managed forex before making an investment decision. Past performance is not necessarily indicative of future results.

Q. What recourse do I have if something goes wrong?
A. All the brokers used by managed fund providers we list are regulated brokers. If something goes wrong you should first contact the broker and seek to work things out. We have specific contact people at each broker to whom to direct you, provided in the Instructions document for opening an account, who have promised us to be responsive to your concerns. Beyond that, you have recourse with their regulating agencies, which are quite powerful. In the U.S., brokers are registered with and regulated by the National Futures Association (NFA) and the Commodity Futures Trading Commission. The NFA is a regulatory agency in the U.S. with whom you may file complaints and which can take disciplinary legal action. These agencies have strict requirements for operation and management of funds to which all brokers must comply, that are put in place to protect you, the client.

Q. How often do you introduce new managed account programs on this web site?
A. We are always looking for excellent managed Forex accounts to introduce to you. However they are quite difficult to find. Sometimes we must act as liaison to get them set up with the best broker, such that you receive the best combination of profit share and minimum size to open. When we discover them, and verify them, and the account program is setup, we post them. It could be a year before we post a new one, or there could be a new one we post next week. We strongly encourage you to diversify your Forex investments between at least 2 different account programs. As we bring new ones to feature, they will offer you new opportunities to diversify.

Q. What are the benefits of portfolio diversification, such as by opening a managed Forex account in addition to my other investments?
A. Here are some reasons we believe one should diversify.:

Q. Why do I sometimes see a Charge or a Payment of "Interest" on my account?
A. At 5:00 PM New York time, traders with open positions have their positions automatically rolled over to the next settlement date. If the trader executed transactions during the previous 24-hours but has no open positions at 5:00 PM New York time, there will be no rollover of positions and therefore no interest earned or paid. A rollover of positions will result in funds being added to or subtracted from the trader's account depending on whether they are buying or selling the U.S. dollar. The amount changes day to day for each currency pair depending on interest rates, day of the week, and market conditions. As rollover rates may differ from FCM to FCM, please contact your broker for their specific rollover schedule and rates.