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

Discussion in 'Trading' started by flyingdutch, Apr 6, 2004.

  1. 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
     
  2. Excluding the legal issues... 20% + 2% of principal.

    riskarb
     
  3. 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
     
  4. nkhoi

    nkhoi Moderator

    I was charged $50 per side, so it was $100 r/t
     
  5. 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.
     


  6. 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