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Frequently Asked Questions |
Frequently Asked Questions regarding forex managed accounts, EES, FXCM, and forex business.
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What is the relationship between EES and FXCM?
Does EES trade my funds directly?Why 35% performance fee?
Can you guarantee results?
What makes you better than other forex managed accounts / forex programs?
Can you lose more money than you deposit, using leverage?
Where are you trading from?
What is your internet connection, what if it goes down?
Why do you promote other managed programs that are not directly traded by you?
What is the relationship between EES and FXCM?
FXCM is like a bank, multi-billion dollar financial institution operating in 20 countries with over 200,000 clients. They are a brokerage house, who clears trades themselves, and has a huge backoffice support staff, legal protection (compliance department), etc. FXCM does not offer managed forex accounts.
EES is a boutique brokerage, who is the manager of a FXCM forex account. EES is an Introducing Broker of FXCM, which means EES is between the client and FXCM. While all accounts are with FXCM, EES is the direct contact for the accounts, the account manager, but FXCM provides the backoffice tools, legal and compliance issues, and other business related functions.
Does EES trade my funds directly?
No. EES is an electronic trading house, who is an Introducing Broker to the forex broker and forex manager. This means you open an account with one of our premier brokers, and your funds are traded by an Elite fund manager. Our managers are under contract with Elite but your funds are not traded directly by EES, although we organize all aspects of the program for you. It is our job to find the best brokers, and the best managers. Funds are not held with EES, nor are funds traded by EES. It is our experience that this relationship works better for all involved.
35% may seem high, but consider 2 things. First, we do not charge any fees associated with the account. Other managers may charge a round turn $10 or $20 per lot, and a management fee of 1% or 2%, regardless of their performance. On top of that they charge a performance fee which may be 10% to 20%. However, we ONLY charge a profit based performance fee of 35%, so if we do not make money, we do not get paid. We feel this is a fair arrangement.
Secondly, consider that if we have a decent return, the 35% is transparent to clients. If you get a 5% return, after our fees, it's still a decent return. And based on the fact we have no other income stream from accounts, if we work hard we deserve to be compensated.
NO ! Guaranteeing results is illegal, unless you are a bank. We can however guarantee a maximum loss on any account, using stop losses. For example, if you do not want to lose more than 25%, when your account reaches close to - 25%, the account will be put on hold and not traded, and you will be contacted.
Any company offering a guaranteed result should be scrutinized, heavily.
Can you lose more money than you deposit, using leverage?
NO ! Regardless of the amount of leverage used, even if it is 100:1 - you can never, ever lose more money than you put in. It is not like equity / stock trading where there may be a margin call requiring you to deposit more funds. This cannot happen in forex market, because if your positions are in that great of a loss, the system will automatically close them and realize the loss. The platforms could not take the risk of allowing your account to be negative.
What makes you better than other forex managed accounts / forex programs?
- We offer a complete service to clients.
- We trade 24/7 - we do not leave orders in the system and go to sleep
- We start out with 'negative margin' (or less than your account value) and BUILD into a margin position when there is a profit, comparing with others who start out with 2:1 or 5:1 leverage (see article risks of forex trading)
We are trading from a customed designed facility built for the purpose of managing forex accounts. This is beyond an office - it is a living space where a trader can watch positions for days at a time without hassling with usual daily problems. Our idea is to lock ourselves in while trading. See more details here.
What is your internet connection, what if it goes down?
We use 2 DSL accounts which have 5Mbps download speed (each). Each is on a separate network (internet network). As a backup we have a dial-up connection and have the ability to get a satellite, but in reality, if our provider goes down it is most likely a problem with the internet itself, and not our ISP. We can always place trades using the telephone. If the telephone is down, probably the forex market is down (trading has been halted). Anyway there are always stop loss orders in the system in the event of a catastrophe.
Why do you promote other managed programs that are not directly traded by you?
We offer a choice. Due to the requests of clients and partners, our programs may not be suitable for you, so we offer others who may be. Also it is our policy not to compete, but partner, with our 'competition', as this business is unique (gives you flexibility to do this. If our competition is making money it will be only better for us)
Finally, it is impossible for 1 person to manage a forex account. Traders usually trade with teams anyway, because everyone needs rest, time to eat, etc. How we structure our managed programs is simply for the needs of the client.
