Hi there, a friend wants me to trade his account, simply doing the trades I do. I know about the risks of getting trouble in our friendship etc. so let's leave that out. Now I don't want to charge him any fees or whatever, it's just a friendly service because we know each other for years and he doesn't have the time to trade himself but he did in the past so he knows about the risks and stuff. 1. Of course I thought about ways of doing this. I could send him the orders I do and he could place them in his platform. 2. Or he tells me his account user/pw and signs a POA we write down just for the case... and I login in both accounts and do the trades there 3. Or since we're already at Oanda, use FX-Manager! Then I'd have to place those trades only once. That would be nice and easy. But when I want to use FX-Manager what about regulations and stuff? We're located in germany, Oanda in the US. I'm not really a money-manager then because I do it for free right? Therefore not much regulations/rules/things you have to consider? Maybe someone can help me out on this one. Will I have to tell any regulation or whatever about this? Will Oanda do? I really want to do this the easiest way, without doing a lot of paper-stuff and thinking about regulations. What do you think? Thank you, Daniel
If you have to trade with Oanda then I would use FX Manager, it saves having two platforms (and two different browers) to trade and will work out individual trade size and p/l for each account. Giving Oanda credit where it's due their FX Manager front end works quite well. Just remember to read the manual, there are a couple of quirky things like reproportioning. Regulation I wouldn't worry about, who is going to tell any regulatory authority about your private arrangement with your friend? Oanda don't care and have no obligation to inform anyone about who trades who's account as long as your friend signs the required POA: https://fx1.oanda.com/ma/relationship.shtml "OANDA does not promote or screen any Investment Managers who use FXManager. Clients are encouraged to do their own due diligence and to ensure that the terms of the agreement with their Investment Manager are clearly stated and agreed upon. OANDA makes no representation as to the qualifications, experience or regulatory authorization of Investment Manager or lack thereof, and will not control Investment Manager's actions."
hmm well at least they want to know some stuff. It especially made me curious that they asked for what "regulatory body enforces law in your country"...here are their questions: Experience with OANDA's FXManager: 1. Have you tried FXManager for FXGame with multiple clients? If yes, please provide your FXGame account number. 2. Are you completely comfortable using all of the features offered by this software? Experience as a Money Manager: 1. Do you hold any professional designations, certifications, or qualifications? 2. Do you currently hold membership in any professional organisations? 3. What regulatory body enforces laws relating to trading FX and Futures in your jurisdiction? 4. Are you registered with your local regulator? 5. Please describe any other qualifications you possess as a Money Manager. Background: 1. Have you, or any organisation over which you exercised control or served as a director or officer: (a) ever been convicted of an offense involving fraud, dishonesty, or breach of trust? (b) ever been charged with an offense involving investments or an investment-related business? Business History: 1. Have you, or any organisation over which you exercised control: (a) ever declared bankruptcy or been forced into creditor arrangements? (b) ever been subject to any local or foreign regulatory action? 2. Have you ever been prohibited from taking part in the management of a company or business? Expected activity: 1. How many clients do you expect to manage? 2. How much capital do you think you will attract? 3. How much volume will your trading style generate?
I know, I went through it all last year. It's no problem telling them what they need to know, I told them the regulatory authority in UK is the FSA and that I'm exempt from registration. They didn't ask why or to prove it because basically they don't really care. Register for an FX Manager game account for a few days, actually that's a good idea anyway just to get familiar with it. When they ask about qualifications just say you've traded other people's money before. The rest just wing it All they're trying to do is show they're responsible and aren't just taking any old Joe in off the street so when the manager loses all his clients money they can say they did their part. In practice they really don't care.