FX Managed A/C - Contract

Hi,

Can somebody pls. advise on the type of conditions that i can stipulate in a ‘Power of Attorney’ (POA) contract in order to protect my funds & ensure returns in a FX Managed A/C ?:confused:

For example :

  1. Protection of funds, ‘trader’ is not willing to give any protection but mentions which which broker he uses, therefore can I enforce a condition to guarantee my funds
  2. Type of broker used i.e ‘trader’ discloses which broker he uses, change of broker without my consent - BREACH ?!
  3. Login permission to view results ‘first hand’, no login provided or login changed w/o permission - BREACH ?!
  4. Commission/Fees, no results, no fees but still get charged - BREACH ?!
  5. Does the ‘Trader’ have to be registered with an ‘external body’ to trade funds, i.e the event of BREACH of CONTRACT, who do i take action against ?
  6. Power to withdraw funds with or without notice, if so, how much notice & any ‘exit’ fees ?!
  7. Negative results in a trading month, is the loss incurred borne by me or the ‘trader’ ?!

Any other suggestions are most welcome. :slight_smile:

DC

You should open your account with the broker. The broker will have a POA form you can use. Then you will have access to the account and its results. If you are not satisifed you can rescind your POA immediately.

As for a guarantee…if that’s what you are looking for or the broker has offered…run the other way. There are no guarantees in anything.

David

Thanks for the advice.

I should deal direct with the broker & nominate the TRADER ?
If that case, stipulating the clauses which i’ve mentioned is meaningless or should i still include them ?

Dhimit :o

If you want to stipulate clauses…I suggest you get a lawyer involved…the broker will not likely be responsible for enforcing individual clauses…All you can reasonably do with a broker is name and rescind a POA to trade your account…

I doesn’t sound like this is the investment route for you…I suggest you learn to trade with a mini account or find a larger company that specializes in the type of investments you want…

David

Power of Attourney to protect funds?

Sorry but if you are investing and trying to protect funds then that sounds like you are not willing to take a risk and risk is what investing is all about. No broker will gaurentee a profit that would be sucide. The purpose of POA is for a child to protect an elderly parent that is not capable to take care of themselfs. They will make sure some fast talker will not come along and that everything they have. One rule of thought if you don’t understand what you are investing in then stay out. And don’t ever give up POA unless you talk to a lawyer. You just might find yourself in some institution wearing a straight jacket in a rubber room.

That’s a bit over the top. The POA’s that brokers set up for managed accounts are strictly for the purposes of executing transactions in the account(s) specified. They are very limited.

Thanks Folks,

I’ve read frightening stories of FX scams !!
Though, I have been told by FX expert:

<< DON’T LET ANYONE MANAGE YOUR MONEY UNLESS THEY’RE REGISTERED WITH CFTC (Commodity Futures Trading Commission Home Page) AS A CTA (COMMODITY TRADING ADVISOR) OR WITH FINANCIAL REGULATORY AUTHORITY IN THEIR PLACE OF BUSINESS. DON’T SET YOURSELF UP TO BE A VICTIM. >>

DC

I know MY version of POA was over the top. But when you are giving up your rights on anything then you have to go over the top.