Frequently Asked Questions
1. What is an alternative investment?
An alternative investment is an investment other than conventional investments such as stocks, bonds, mutual funds and exchange-traded funds (ETFs). Managed forex is one type of alternative investment. Many alternative investments including managed futures and managed forex accounts offer the use of a high degree of leverage, which can produce either significant gains or losses.
2. How high are the risks in the Forex market?
There are risks associated with all investments. FOREX trading is no exception. For most investors and institutions, trading the currency markets with risk capital is difficult. It requires the ability to monitor markets 24 hours a day and respond immediately to market events in order to gain a superior edge and profit. Through a CCA managed account, the investor or institution with risk capital can profit from these markets without having to devote their own time to the endeavor. FOREX trading is speculative and any capital used should be risk capital.
3. Are your trading programs suitable for all investors?
No, definitely not! Alternative investment programs, including managed forex programs such as those listed on our site, are speculative in nature. Only true risk capital should be used. Never invest what you can not afford to lose.
4. How are managed accounts traded?
CCA utilizes PAMM software provided by our clearing house’s back office system which allows CCA to trade/manage multiple client accounts as one account. The PAMM (Percent Allocation Management Module) distributes gains, losses and fees on an equal percentage basis. In this way all accounts regardless of size obtain the same percentage returns.
5. Are CCA’s activities regulated by any government agencies?
Yes, CCA is registered as CTA with the Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association (NFA). You can verify Commodity Futures Trading Commission registration and NFA membership status of CCA and check our disciplinary history by phoning NFA at (800) 621-3570 or by checking the broker/firm information section (BASIC) of NFA's Web site at www.nfa.futures.org/basicnet/.
6. Will I be able to access my account on the internet?
Yes, you will be provided with read only access to your account either through an online report viewer or the trading platform. You can view the account, including balance and activities, but you will not be able to place any trades.
7.Does CCA have access to my money and why do I need to sign a Limited Power of Attorney (LPOA)?
CCA does not have access to your money and cannot transfer, deposit, or withdraw your funds except for the fees specified on the LPOA. Your account is set up directly with the brokerage who clears all transactions and handles all transfers, deposits, and withdrawals. It is necessary for you to sign a Limited Power of Attorney (LPOA) to authorize the brokerage to allow the trader to direct the trading of your account.
8.Can I trade my IRA account in managed forex accounts?
Yes, you can allocate a portion of an existing IRA and other types of retirement accounts utilizing an IRS approved rollover form. CCA can assist you in setting up such accounts. For more information or assistance, please contact a CCA representative.
9.What is the minimum I can invest in a CCA managed forex account?
Currently the minimum to participate is $10,000.
10.Can I withdraw my money and close my account any time I want?
Yes. If for any reason you decide to withdraw all or a portion of your funds you simply fax a withdrawal form directly to Ikon Global Markets and your funds will be withdrawn from the trading account and transferred to you either by check, or wire depending on your instructions.
11.How do I open my account and get started?
The quickest way is to download an application form, complete and fax to CCA, or call a CCA representative for assistance.
12.What fees will I encounter when opening an account with CCA?
There are no fees associated with opening and maintaining a regular account with CCA. However, as with most retirement accounts, retirement accounts held at Millennium Trust will be charged a quarterly management fee (currently $75.00). In addition, there is an initial charge of $50.00 to open your Millennium IRA account. Each client may withdraw or add funds to their account whenever they chose. There are no penalties for withdrawing funds and no minimum holding periods. CCA earns its money by charging a total of 4 pips on one round lot ($100,000 of currency bought and sold). Depending on the currency pair traded, one pip is typically between $6.00 and $10.00.
RISK DISCLOSURE Trading foreign exchange carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
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