FAQ


  • MANAGED FOREX FAQ
  • ABOUT FOREX
  • GENERAL QUESTIONS
What is the minimum investment required by Paladin?
Because Paladin FX uses institutional trade teams, the current minimum investment is $100,000.00 USD
 
Will anyone else have access to my funds?
No, the funds in your forex trading managed account are in your name at the Liquidity Provider, Boston Prime, and funds held at Top-tier International Banks. You are the owner of this account and the only one who can make deposits to or withdrawals from this account. Through a Limited Power of Attorney (“LPOA”), you are ONLY giving Paladin the power to trade your account through using its proven trade teams, and also authorizing the deduction of the agreed performance and management fees as stated.
 
How long will it take for my account to start trading after it is funded?
As a general rule, Paladin tries to get your account trading within 3 business days of account funding. One your application is complete, accepted, and the account funded, we will do our best to get it trading as soon as possible for you!
 
Can I manage (open and close) my own trades in the Managed Account?
No. This would defeat the purpose of using our strategies and trade teams that we have spent time investigating for you. All accounts are traded by the trade teams at all times, however you can revoke your LPOA at any time if you wish and immediately start trading your own account. You have complete control over your funds at the Liquidity Provider.
 
I have never used a Managed Account before - what is it and what are the benefits for me?
It is a well-known fact that over 95% of Self-traders lose money on their accounts, especially in the first few years. This is due to forex investors not having the time, experience or desire to trade in the forex market themselves, especially since following the market movement 24 hours a day 5.5 days per week is a very essential part of the trading. On the other side of the coin, Forex Trading has created great returns for those that are skilled enough to know how to “play the game.” Paladin Trade Teams were created specifically for investors with risk capital who want to participate in this incredible market but choose not to trade on their own. 

In a managed account you own the currencies that make up your portfolio. Unlike mutual funds or hedge funds, which commingle your funds with other investors, a managed account is in your name and all or part of your funds can be redeemed within 48 to 72 hours providing you extreme liquidity in your account. 

Paladin helps traders open up their accounts at our approved Liquidity Provider, which they then fund by wire transfer or other approved method. No one can touch the money in this account but the investor. The trader cannot even deposit or withdraw funds from the investor\'s account without the proper authorization to do so, and the investor retains full access and control over the account at all times. Having a managed account with an LPOA only allows an investor to have their funds traded professionally by an experienced Paladin trade team. 

This is the best method to have your money traded for maximum safety and control. You can check the balance of your account at anytime, see the daily trade activity through your account or View-Only trading platform, and withdraw or deposit funds when you please.
 
How many trades per month are there on average?
Paladin\'s Trade Teams are averaging about 100-200 trades per month, but it varies depending on market conditions and our target levels for each month.
 
What is a High Watermark for profits, and how does that affect my account?
A High Water Mark, is a commonly used investment approach to calculate incentive fees in a way that is fair for the Gryphon client. It means that incentive fees are paid only on rises in asset value that are considered NEW. If for any reason a temporary decline occurs, it has to be recovered prior to any new performance fees being paid. By doing so, it ensures that Gryphon investment managers receive a performance fee ONLY when the account value exceeds its previous high. 

(Example) 

Let’s say you start with $100,000 in an account with a performance fee of 30%, and during the month there is $10,000 gross profit. The performance fee deducted would be 30% of $10,000, which is $3,000, so your net profit would be $7,000 and your account would now have a “watermark” new account balance of $107,000. 

If in the next month there was a loss of $3,000, there would be no performance fee deducted, since there is no profit, and your new account balance would be $104,000. 

Your “watermark” is still $107,000. So there will be no performance fee deductions until you get past your current “watermark”. 

If the following month produces profits of $6,000, your new account balance would now be $110,000. The NEW profits would be the difference between the “watermark” and the new balance (110,000 – 107,000) or $3,000. The performance fee deducted for this month would now be 30% of $3,000 ($900) and your net profit would be $5,100. The new “watermark” account balance then would be $109,100 (104,000 + 5,100).
 
Since I am connected to a Master Account, can my money be stolen?
Absolutely not, since it is electronically connected by the broker. This means that every time a trade is taken you get a duplicated order electronically into your account. The trading agent cannot steal your money, as it is firewalled by the liquidity provider to prevent this from ever happening. Also, because of very strict money laundering laws if you opened the account in your name, then the money has to go back into an account with your name on it. So it physically cannot be sent to anyone else\'s account anyway.
 
How can I stop my account from being traded by Paladin Trade Teams?
In order to stop trading on your account, you can easily revoke your LPOA. As soon as you have done this you will be disconnected from the Master account. Please note that you can withdraw (or add) funds at any time from your account in part or in full, as you are the only one to have total control over your account.
 
 
The performance results seem too good to be true? How are these achieved?
Remember that the account balance is compounding daily with every trade made. This means that every day, positive equity balances are followed up the next day with increased trade sizes and thus the compounding effect creates a very rapid growth. Since the results are not like regular bank accounts, every trade placed is compounding on top of the previous trades, creating a powerful growth curve. Of course, we all know that past performance is no guarantee of future results, and it would be incorrect for us to say that there are no losing trades and/or trading days! However, these losses can be limited by the proper use of stop loss orders and Maximum drawdown orders (of 20% of account) to protect gains on a daily, monthly, and annual basis.
 
How safe are the Liquidity Providers you use?
We chose to use Boston Prime as our liquidity provider due to their outstanding record of working with institutional traders and the principal’s experience in the Forex Market. We only use brokerages that are non-dealing desk ECN brokerages with tight inter-bank floating spreads. In addition, Boston Prime is a UK FCA Authorized top level Prime Broker offering direct liquidity to such large institutions as Citibank, Deutsche Bank, Nomura and many others. By using STP (Straight Through Processing), our clients are assured that every order is going straight to the market and not being held by the broker.
 
What kind of money management is in place to protect my investment?
Forex Trading carries with it inherent risks, and of course you understand that past performance is not a guarantee of future results. However, the managed accounts have extremely strict risk parameters in place as they only ever risk a very small percentage of your account balance per trade. Normally it’s in the region of 2-3% in most cases. The managed accounts are monitored continuously to make sure they are not going outside of these pre-set strategic risk protection parameters. The draw down is cut down to a minimum, however you must understand that these trading programs are geared for a high return each month, and to target 3-4% NET return to clients per month does involve some risk. If you cannot accept this or don’t understand it then you should not be investing in this kind of alternative investment.
 
What currency is my trading account traded in?
The USD is the trade currency used at Paladin FX, and at most Forex Brokerages worldwide. When making deposits, you should instruct your bank to do the exchange from your own country’s currency into USD. This will avoid any undue delays in having your account opened and funded properly.