if you trade other accounts, what's your commission?

F

flyingdutch

I've had request from other people to manage their accounts. Now, apart from the technical and legal issues, if you accept a mission like that, how do you commission yourself? I fixed amount daily, weekly, monthly, regardless of results? 0 in case of loss, a percentage in case of gain? Other plans. I'ld like to know from people who manage multiple customer accounts.

Thanks

TFD
 
Quote from flyingdutch:

I've had request from other people to manage their accounts. Now, apart from the technical and legal issues, if you accept a mission like that, how do you commission yourself? I fixed amount daily, weekly, monthly, regardless of results? 0 in case of loss, a percentage in case of gain? Other plans. I'ld like to know from people who manage multiple customer accounts.

Thanks

TFD
More...

Excluding the legal issues... 20% + 2% of principal.

riskarb
 
what do you mean? 20% + 2% on principal. ? Could you please explain a little bit more in detail ? 20% on the profits? on what time basis? What in case of losses? 2% on principal? That's the "entry fee" when you accept the account?

Or to be even more specific, how about an example?

Somone steps in with 100k. For the next 4 months your results are:

-5
+10
-3
+8

What would your commision look like?

Thanks

TFD
 
The 2% is what they are paying you for the privledge , honor ,and opportunity , of letting you gamble with thier money.

Now, if you are really really good, that's probably a bargain. The 20% is on the profits you will surely make , and is there to keep you honest, so you don't just shove the money into t-bonds and go lay on a beach in Tahiti.
 
Quote from flyingdutch:

what do you mean? 20% + 2% on principal. ? Could you please explain a little bit more in detail ? 20% on the profits? on what time basis? What in case of losses? 2% on principal? That's the "entry fee" when you accept the account?

Or to be even more specific, how about an example?

Somone steps in with 100k. For the next 4 months your results are:

-5
+10
-3
+8

What would your commision look like?

Thanks

TFD
More...



Right, 20%(net of commish) above high water, 2% of principal paid for the year, front-loaded. After payment of the $2k load, around $1500 would be due. The high water mark would begin at $100k, although the account would be funded with $98,000 after the fee.

I am not in he habit of underwriting accounts, so I do not participate in any losses. Mgmt. fees are due the fist week after the end of quarter.


riskarb
 
You must log in or register to reply here.
Back
Top