I'm thinking about opening a managed forex account, and I'm requesting proof of past performance. They want to know the type of proof I want. What should I tell them? Is it even possible to have managed accounts audited because they are held by the investors instead of the program? What type of proof should I request?
If somebody is intent on defrauding another party, then most ''proof'' can be easily falsified, including ''audited statements'' and tax returns. That's why big funds of hedge funds have a ''due diligence'' dept that specializes in this function. Aren't you the guy who was excited a couple of months back about some hedge fund you found on the internet which was some bs ponzi scheme? Sounds like you found another one. LOL!
If they are a real fund (as opposed to CTA/managed accounts) they will have an administrator (Citco, Fortis etc). Speak with them.
A ponzi scheme would be sort of hindered from taking my money given their limited power of attorney at FXCM, don't you think?
Corso482, Do the following: Pick 1 good and 1 bad month from their published track record and ask for broker statements for these two months. You should be able to reconcile the two and you will get a feel for how trade. All the best.