Introduction to Managed Accounts

Managed accounts differ from hedge funds in that they are completely transparent. All trading activity and currently held positions are in full view for the account holder to see and monitor. If funds need to be withdrawn or the account needs to be closed, there are no “lock-out” periods in effect. These actions can usually be taken on the same day they are requested.

Prospective clients most often employ Introducing Brokers, (or IBs) to guide them through the process of opening a futures/margin account to be traded. Clients should feel free to contact World Capital for more company information or for an IB referral, if necessary.

IBs usually have good working relationships with the clearinghouses for futures/margin trading accounts, commonly referred to as Foreign Exchange Merchants, or FEMs. World Capital requests that clients choose a FEM from those with whom we currently have a working relationship. A list of approved client FEMs can be found on the FAQ page of this website.

The client then submits account opening paperwork that includes an instruction to give the trader written authority to trade on his or her behalf. All trading activity can, and should be monitored by the client through real-time websites or by daily electronic or paper statements. Once opened, no outside trading activity can take place in this account other than those trades initiated by World Capital Management.

Client accounts are balanced each day by World Capital to ensure that all approved trading activity has taken place in the proper client accounts. Brokers are notified immediately of any discrepancies or changes that need to be made.

Performance fees are billed monthly and debited from the client’s account directly. At no other time does the trader (or anyone but the client) have access to remove funds from the client’s account. Other account activity such as T-Bill purchases and currency conversions are the client’s responsibility, and should be handled by the client or the client’s IB.