|
Common Galleon Specific Questions.
1. The most common account opening questions.How do I open an account? Where are the forms and instructions?
I am having problems opening my account?
My account is not trading?
What is the status of my account application and is it ready?
Follow the link on the top menu that say Open Account procedures for correct procedures and instructions
Keep in mind that Galleon is only the trader for your account and only sends trading signals to your account.
If you follow our Open Account procedures and instructions things should go smooth.
Any questions regarding your account including account opening, transferring funds,
depositing, withdrawing, account logins, IRAs, creating new accounts,
account setup and account status should be directed to your Forex
broker where your account is opened.
2. How do I withdraw funds or stop trading on my account?
You can withdraw funds at anytime for any reason by using withdrawal methods noted on the forex brokerage firm web page.
You can stop trading on your account at anytime by sending the brokerage firm an email. You can also call the brokerage firm directly to request trading on your account be stopped.
Return to Top
3. Are there restrictions, penalties or rules for withdrawals?
No, You can withdraw funds anytime for any reason. If you do withdraw, we just ask of you to send us a courtesy email to let us know.
Return to Top
4. How do I fund my account?
Bank wireis the most popular method. Other funding methods are available as stated on the forex brokers web site.
Some brokerage firms accept moneybookers and webmoney, if this interests you, please confirm with the brokerage firm where your account is opened.
Return to Top
5. How do I monitor trading activity in my account?
The brokerage firm will supply you with a login and password. You can monitor the daily activity on your account with this interface as well as generate detailed reports which can be or are usually emailed to you.
Return to Top
6. What leverage do you use when trading accounts? Can you trade my account at a higher or lower leverage? What about hard stops?
The answer to these questions vary depending on the trading strategies employees. For more information see look for details on this website that describe particular trading strategies and how they work.
Return to Top
7. What Brokerage Firm do you use?
Our main forex brokerage firm of choice is Broco Company which is the largest brokerage firm in Russia. For larger account sizes, we would be willing to entertain the possiblity of trading at other firms as well.
Return to Top
8. Are my funds safe and secure?
Funds are as secure as the institution where they are held. We make it a point to chose and work with the most respectful firms in the industry.
Return to Top
9. Can I fund my account with an electronic currency?
NO Possibly MoneyBookers and Webmoney if using Broco Company.
Return to Top
10. Who owns Galleon and where are you located?
Galleon Strategic Management LTD, (Galleon) was previously incorporated in Panama, but has since moved and is now incorporated in the country of Costa Rica. Though we are based in Costa Rica, we have support staff, research staff, system developers and traders in several other countries as well. Galleon is a privately held company owned by a handful of businessmen and traders. It is important to know that some of the worlds largest Forex Brokerage Firms have approved Galleon to work with them. Your funds are held safe with them. Galleon never has access to your funds. The next most important point is the performance and return on your account.
Return to Top
11. I have an account at XYX. Can you trade my already opened account?
If the account is of 50k US or more, we can consider it. Please use the Contact Us form to inquire.
Return to Top
12. Do you have a referral program?
We did before 2009 but due to us seeing to be licensed and regulated under NFA regulations, we are phasing this out for 2009 until we find an alternative and legal way for paying for referrals. If you have referral commissions pending and earned prior to 2009 please email us for more payment dispersement details.
Return to Top
13. Can I open an account in the name of my US Trust, partnership or Company?
This is a question better directed at the broker where your account is opened and is usually not a problem.
Return to Top
14. Can I open an account in the name of a FOREIGN/non-US based Trust, IBC or company name?
As long as you can provide legal documents which usually consist of a picture ID and photocopy of a phone bill or utility bill.
Return to Top
15. I want to have my account be outside of the US and as anonymous as possible. Is this possible?
For example, Broco Company is not part of the USA and UK system and is not required to report your information to regulatory bodies. But to be sure, it is best to ask the brokerage firm where your funds will be held.
Return to Top
16. Can I hold my main account value in a currency other than US Dollars?
USD is the main and most popular currency for trading accounts. If other options are available, you will see it noted on the account opening pages.
Return to Top
17. Can I open an account as a SEP, IRA or transfer funds from an IRA?
Normally yes, but this must be coordinated with your broker to be certain.
Return to Top
18. Is it possible to lose more than I invest?
No, but though we try to balance maximum gain with an expectable amount of risk and draw down, legally we can not make guarantees which guarantee maximum draw downs.
Return to Top
19. Can I elect to have my account traded more conservatively or more aggressively?
Only if you would like to open an account with at least $100k where we can tailor trading to your specific desires.
Return to Top
General Questions About Managed Accounts and Forex
1. What is an electronically facilitated FX or Futures Account?
An electronically facilitated FX or Futures Account is a discretionary account in which you give permission to allow a computerized systems' orders to robotically access and execute them on your behalf through a revocable and limited power of attorney.
An electronically traded account relieves you of the concerns associated with trading i.e. market timing, asset allocation, stop loss protection, etc. You should always be careful to review the system's performance track record.
Return to Top
2. What are Commodity Trading Advisors?
In the USA, CTAs are a type of professional trader known as a "Commodity Trading Advisors" regulated by the CFTC, (Commodity Futures Trading Commission). Traders with this designation are required by the US Government to submit a disclosure document which outlines who he or she is, states the fees and expenses charged to accounts and reveals the trader's performance track record.
As a general rule, CFTC jurisdiction does not extend to a trading advisors or electronic signal generation service providers (such as Galleon) who are located outside the United States and/or if the transaction is not on a US futures exchange.
Return to Top
3. Is a Facilitated Forex or Futures Account appropriate as a short-term investment?
This depends on the system one is working with. It is best to review each system's trading record and trading style and anticipate the possibility of being in that trader's drawdown period. Even the most successful systems experience periods of flat returns or even drawdowns. Consequently, losses will be incurred for those trading periods. The wise investor will remain steadfast to his/her investment plan and not close the account prematurely in order to allow the account to recover from those temporary losses in equity.
Return to Top
4. Why can adding futures to an investment portfolio improve its performance?
The foremost reason, according to research studies like Managed Account Reports and The Lintner Study, is low correlation (sometimes even negative) to the stock and bond markets. Additionally, the forex and futures markets have demonstrated an ability to provide opportunities on a highly leveraged basis to take advantage of major price movements in the financial and commodity markets- either bull or bear.
5. Why does an electronically traded account have less risk in a portfolio?
In our opinion, professionally designed trading software is necessary because the forex and futures markets are very complex, and trading experience as well as trading skills are largely responsible for success in this arena. Profitable trading requires discipline and temperament to respond to movements in the market; in addition to knowing when and how to liquidate positions as a part of a predetermined trading plan. All this has to be done systematically in the face of emotion to adhere to a proprietary plan designed to return profits.
Futures trading involves risk. The same leverage and market movements that can produce profits can also produce losses. This same scenario can occur in a professionally managed account; however, one characteristic investors should look for in a electronic signal generating program is a demonstrated ability to successfully manage risk over the long term. You must understand that losses can occur regardless of the forex trading system.
6. Are electronically traded accounts suitable for everyone?
No, they are not. You should be prepared to do some research in computerized systems trading, forex or futures before investing in order to determine your suitability and to make sure you understand both the risks and rewards of this type of investing. Generally, in addition to having the required risk capital, an investor needs to have realistic expectations about returns on investment, tolerance to temporary drawdowns that inevitably will occur, and acceptance of the reality that the risk of loss always exists.
Return to Top
7. How can I access the funds in my Trading Account?
A forex account offers a high degree of liquidity. Excess funds are usually available on one day's notice and can be wired to you overnight, if you wish.You have complete control over your account which allows you to deposit additional funds, withdraw funds or stop trading anytime you wish.
8. How do you find your traders for your clients?
We do not use outside traders. All the trading signal programs we use are developed in house by Galleon system developers.
9. What are the fees and expenses associated with Galleon's Facilitated Trading Program?
In summary, the entire fee structure (primarily performance based with deeply discounted commissions) in an account comprises:
Systems providers such as Galleon share in profits generated in the account by charging an incentive fee based on the difference between each old and new profit high for the account. These fees are usually paid from the account on a monthly or quarterly basis as detailed in each trader's disclosure Document.The incentive fee can only be earned by producing on-going new profits for an account net of all costs. (all commission charges and per trade transaction costs must be made up before an incentive fee is applied) Some TAs charge a management fee whether the account is profitable or not.( fee normally ranges between 3%- 6% annually). If the signal provider is trading forex, there are no brokerage commissions deducted.
Return to Top
10. How can I track the activity and performance of my account?
A complete listing of all the activity in your account with your previous day's balance can be securely viewed 24 hours a day worldwide with internet access at select brokerage firm(s). You will also be provided the same timely reports you would receive if you were trading your own account. This includes immediate mailed reports of all purchases and sales, and a month end summary of transactions, gains, losses, open positions, and current account value.
11. What common pitfalls of investing should I be especially aware of before opening a Forex account with Electronically Traded signals?
Foremost, forex accounts are not suitable for everyone in spite of their potentially attractive returns! Risk of loss is present even with computerized system orders. Therefore, unless you are confident it's appropriate for you, it would not be wise to invest at all. Second, don't chase returns. By that we mean, do not trade with a system just because he or she is currently hot. All traders, computerized or live will inevitably experience drawdowns or periods of flat returns. A wise investor will select a TA based on being comfortable with the money management skills and trading style that have been employed in the past to achieve consistent returns. Finally, have an investment plan and stick with it. Investors, who prematurely close accounts out of panic and fear when they have encountered a period of flat returns or drawdown, will inevitably experience losses. Patience and perseverance is required to 'weather the storm'. Electronic signal traded accounts should not be looked upon as quick fixes to an ailing portfolio, but as a long term portfolio component designed to help balance overall risk while adding diversification.
12. Are the funds in my account safe?
Funds are held with large respectful brokerage firms.
13. How can I open an account and how much money should I invest initially in the Account?
Only risk capital should be used in managed futures or any speculative investment. Risk capital is defined as capital that you do not want to lose, but if you did, your lifestyle would not be affected. We recommend that the amount of money you invest depends on your own temperament, financial goals and risk tolerance and should usually be approximately 5% to 25% of your overall portfolio. Each CTA trading program has different account minimums as detailed.
Return to Top
14. I'm not new to trading forex or futures. Why do I need a electronically traded system?
Trading your own account limits your returns to your own ability and system. By employing an automated trading robot and system which has a good performance record, you are developing a diversified portfolio of your own. Thus you can gain the potential benefits of adding futures to your portfolio. See the research section below.
Research
The Lintner Study refers to a landmark paper presented in 1983 by the late Prof. John K. Lintner of Harvard University entitled, "The Potential Role of Managed Commodity-Financial Futures Accounts (and/or Funds) in Portfolios of Stocks and Bonds," to the Financial Analysts Federation. Using a composite performance of 15 trading advisors, Lintner showed that the return/risk ratio of a portfolio of trading advisors (or futures funds) is higher than a well-diversified stock/bond portfolio. Furthermore, he found a low correlation between the returns of trading advisors and those of stock, bonds, or a combined stock/bond portfolio. Lintner examined the period July 1979 through 1982.
Managed Account Reports (MAR) is widely recognized by investment professionals as a primary source for Commodity Trading Advisor (CTA) performance statistics. Their performance analyses of trading advisors and futures funds are often quoted in such financial publications as Barron's, The Wall Street Journal, Forbes, Futures Magazine, and other leading financial publications. The studies cited were conducted to specifically examine the effect of managed futures in an overall portfolio. A detailed 52-page study on "The Role of Managed Futures in Investment Portfolios" can be purchased for $10 dollars from MAR. They can be reached at 220 Fifth Avenue, New York, NY 10001.
|