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.
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.
Where is the Forex Market located?
There is no centralized exchange for Forex Trading, such as the NASDAQ or NYSE. Due to the fact that these transactions are conducted between two counterparts over the telephone or via an electronic network, the Forex market is considered to be an Over the Counter (OTC) or \'Interbank\' market. However, both in the US and overseas, there are strict regulations as to how the transactions are carried out to create safety and liquidity in the system for both traders and brokers.
What is Forex exactly, and why should I get involved?
The reality of the Forex market is that money is never really made nor lost, but only changes wallets. Diversifying heavily into one major asset class such as Forex, is in our view, one of the few markets that will work with this type of diversification strategy. Strategy diversification is important from one trader to another to take advantage of this concept. However, currency markets are unique in that they are the only asset class that has never experienced an across-the-board bear market, or even a boom or bust like real-estate markets. In our collective opinion, it is as close to “crash-proof” investing as one can come. This makes currencies an excellent asset class for a diversification. When one trader is down, another is up. Experienced traders can always find a profitable trend to ride somewhere in the foreign exchange markets, as long as they completely understand the key factors that move world currencies.
Foreign exchange (FOREX) is the arena where a nation\'s currency is exchanged for that of another. The global foreign exchange market is the largest financial market in the world in terms of daily volume, with the equivalent of over $3 trillion changing hands daily; more than ten times the aggregate amount of the US Equity and Treasury markets combined, and about 6-8 times higher than the volume in the stock exchange worldwide.
The commodities traded on Forex are national currencies. Unlike other financial markets, the Forex market has no physical location and no central exchange. It operates through a global network of banks, corporations and individuals trading one currency for another. The lack of a physical exchange enables the Forex market to operate on a 24-hour basis, spanning from one zone to another in all the major financial centers. In essence, it is a truly global market, which operates around-the-clock and around-the-globe. The global nature of the Forex market, utilizing modern information technologies and financial services companies such as Gryphon FX, enables private investors to participate in the market from their homes or offices now via computer with an internet connection.
Traditionally, retail investors\' only means of gaining access to the foreign exchange market was through banks that transacted large amounts of currencies for commercial and investment purposes. Trading volume has increased rapidly over time, especially after exchange rates were allowed to float freely in 1971. Today, importers and exporters, international portfolio managers, multinational corporations, speculators, day traders, long-term holders and hedge funds all use the FOREX market to pay for goods and services, transact in financial assets or to reduce the risk of currency movements by hedging their exposure in other markets.
The Forex market is quite different than a market such as the stock market. As a result of its global dimension, the Forex market is open 24 hours a day, which enables investors to correct their positions at any point in time. Given the large number of players, the Forex market has narrow spreads and virtually no price gaps. The lack of price gaps typically enables investors to count on non-slippage order execution. However, in a very volatile market the possibility for slippage exists.
The large volume of participants also reduces opportunity for insider information. To put it simply, there has never been a case of complete non-recoverable currency collapse in a developed country. The volatility of leading currencies rarely exceeds 1% per day, in contrast to the volatility of stocks, which may fluctuate by up to 10% over one trading session. The Forex market generally provides more opportunities for leveraged trading (although it should be noted that a higher leverage size is associated with higher risks).
According to New York time, trading begins at 2.15pm on Sunday in Sydney and Singapore and progresses through to Tokyo at 7pm, London at 2am and reaches New York at 8am. This leaves investors free to respond to global political, economic and social events when they take place, day or night.
Who participates in the Forex market?
The Forex market itself was in the past mostly considered to be an \'Interbank\' market due to the fact that historically it has been dominated by banks, including central banks, commercial banks, and investment banks, and only available for institutional players with minimum orders of $5M or more. However, the percentage of other market participants is rapidly growing, and due to the convenience of companies such as Paladin FX, now includes large multinational corporations, global money managers, registered dealers, international money brokers, futures and options traders, and private speculators.
When does the Forex market actively trade?
The Forex market is a true 24-hour market, 5.5 days per week, beginning each day in Sydney (5PM Sunday EST), and moves around the globe as the business day begins in each financial center, first to Tokyo, then London, and New York until its close on Friday at 5PM EST. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.
What are the most commonly traded currencies?
The most often traded or \'liquid\' currencies are those of countries with stable governments, respected central banks, and low inflation. Today, over 85% of all daily transactions involve trading of the major currencies, which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and the Australian Dollar.
What are Alternative Investments, and why should I add them to my Portfolio?
Characteristically speaking, an alternative investment is an investment category comprised of non-traditional investments (stocks and bonds). Alternative Investments can include futures & options (derivatives), currencies, real estate, private purchase programs, as well as hedge fund investments and private equity investments - many using sophisticated, diversified strategies, and usually are considered riskier than traditional investments. We believe when properly structured, these investments can be extremely attractive even though they are still considered high risk. One of the largest advantages of many alternative investments is in their ability to profit in virtually ANY economic environment. Time after time, the successful growth of this investment class thrives regardless of conditions such as a strong economy, low inflation, high interest rates, or a depressed stock market. The success of these investments typically depends on performance, as well as the risk and diversification used. Investors adding this asset class to their portfolio can help reduce volatility, minimize risk, and possibly increase the risk versus return ratio of their overall portfolio. Because of this, it is no surprise that alternative investments have increased dramatically in popularity over the past 10 years as investors search for alternatives to traditional markets. It is more common now to see these types of investments used in typical portfolio management strategies.
Overall, what can I expect from using Paladin FX Managed Accounts?
You can expect to see a combination of both winning and losing days. Usually our winning days far outnumber our losing days, but we do have to contend with the odd losses from time to time. Those who let their funds compound for the full month, and from month to month, typically do very well and their investment grows at a nice and healthy pace based on historical performance. You will also notice that often we are adjusting our systems from time to time to adapt to ever-changing market conditions. Most importantly you can count on us managing accounts with proper risk management and being around for the long-term. For better results, it is best that you consider a minimum of six months of performance prior to making a decision to invest more funds.
What is available to satisfy my due diligence prior to investing?
Due diligence is a critical factor in your decision making process and this is why we have a totally transparent business model of which the major points to remember are as follows:
- We do not hold any funds, as you hold them in your personal brokerage account. Even if we go bust then this has no affect on your funds.
- If you don’t like what you see then you can withdraw your money at any time without penalty. You have total control over this.
- The custodians used hold all client funds at reputable well-known tier 1 banks such as Citibank.
- You can view your account live at any time with the read-only software that the brokerage will supply to you upon opening an account.
- Most of our fees are based on performance, so we only do well if you do well.
You will quickly be able to see for yourself the performance of the managed account within a few months of joining and therefore make a decision on whether you want to continue, add more funds or withdraw your funds altogether. But you have the control over this.
In most other business models, you would not have this kind of flexibility and you would have to hand over your money to the fund manager and you would not have access to your money for at least a year and in some cases 5 years. You would have no control over your funds in this example.
You would have no way of knowing what the real results are except for a statement that you receive at the end of the quarter or at end of year. You simply have to take their word for it and hope for the best that the money manager does not run away with your money as he holds your funds!
As you can see in this business model it eradicates these major due diligence issues and it creates a totally transparent and fair model.
Is there any risk involved to generate the returns you are showing?
Yes there is risk involved! The featured investments are alternative investments focused in the Foreign Exchange market, and as such it carries inherent risks. We believe the key to a successful investment is exposure to enough risk to generate a decent return, but not so much as to give rise to sleepless nights.
A disciplined approach restricts the risk and reduces the exposure to volatility in the marketplace. The risk has been reduced as much as possible, while still targeting consistent and above average returns. But rest assured - the risk is still present! So do not use money that your family needs, or money that is needed to pay the mortgage, use only what is considered “risk capital”, or funds that you would not miss if they were not readily available.You need to find your ideal \"risk vs. reward ratio\" before investing with any type of investment vehicle.
How quickly can we disconnect our account from the Master Account?
Simply submit the form to revoke the LPOA, and trading will stop once you have notified them and they have disconnected you from the master (MAM) account. However, if there are open positions then they will be closed (even if they are negative) and trading on your account will stop once flat.
I don't know much about trading or alternative investments, can I still benefit from working with you?
Yes, that is actually the purpose of Paladin FX! There is no need to be a professional trader to successfully and safely invest in a managed account. This alone is one of the biggest advantages to a managed account. It allows the modern investor the ability to have their account traded by institutional grade professionals (who trade for a living).
How do I handle taxes in my country?
Paladin does not offer any tax advice, and ultimately, you are responsible for your own taxes and should hire a knowledgeable accountant for any questions regarding this issue. We do not get involved, but as a general rule whatever you bring back into your country of origin is of course taxable. If your trading account is set-up through an IBC (our suggestion) then the tax will depend on the country your IBC is set up in.
How are the fees deducted from my account?
As per the LPOA (Limited Power of Attorney), you allow Paladin FX to take its Management and Performance Fees out of your account from any new profits made each month. So the Clearing House has the right to take this amount out of your account but only this amount. He has no right to take any other money out of your account whatsoever.
The LPOA is very standard in the industry and this is why it is limited. You will clearly see in your read-only trading terminal the withdrawal amounts for the performance fees every month and it is totally transparent to the client.