Fees & Forms

[Nightdesk]

I am currently trading accounts for several people etc. I am exempt from registration as a CTA for I have fewer than 15 people etc. I trade for them at cost and participate in the profits. I'm having a hard time collecting my incentive fees. Are there standard forms that I can have the customer sign, give to the FCM and get paid from them?

Any help is appreciated.
Nightdesk

 

[progers82]

i would check on two things
1)make sure these accounts are friends and that you didn't solicit the accounts
2)make sure you are even allowed to charge an incentive fee being that you are not a cta registered with the nfa and cftc.

id be careful.

 

[Aaron]

I'd suggest talking to your FCM. Ask them what they need to have on file to pay client funds to you. Here's a standard fee payment authorization that may be sufficient:

The undersigned client(s) (“Client”) hereby authorizes the FCM named above to deduct from Client’s commodity trading account with the FCM and remit directly to Schindler Trading within five business days following the FCM’s receipt of Schindler Trading’s bill, such management fees and/or incentive fees as shall become due and owing to Schindler Trading under the terms and conditions of the Management Agreement between Schindler Trading and the Client.

Client acknowledges Client’s ongoing responsibility to review regularly all Client account records and statements from the FCM and from Schindler Trading since such records will be conclusive and binding on Client unless a prompt written and/or verbal objection from Client is received by the FCM or Schindler Trading, as the case may be.

This should be signed by the client and sent to the FCM.