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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 which will be FXCM.
All account openings need to go through FXCM compliance. FXCM will
let you know what documents if any you are missing and what the status
is of your account. If you have questions with regard to your account
status, Please contact FXCM directly using the information below.
For FXCM Customer Service
Tel (212) 897-7660
Fax (212) 897-7669
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
http://www.fxcm.com
If you followed our Open Account procedures and instructions, trading should start automatically when FXCM approves your account
and it is funded. You should then see trading activity in your account
with 24-48hrs during week days when you login to your FXCM account. If you do not see trading activity your
your FXCM online account. Contact FXCM directly since they are the ones
responsible for turning trading on.
2. How do I withdraw funds or stop trading on my account?
You can withdraw funds at anytime for any reason by bank wire or by check by contacting the brokerage firm directly. Both checks and wires have to be made out to or be transferred to persons or accounts of the same name. Your brokerage account name must match the name on your account. Funding is also possible with a credit or debit card as well as withdrawls to the same card.
You can stop trading on your account at anytime by sending us an email. You can also call the brokerage firm directly to request trading on your account be stopped.
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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.
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4. How do I fund my account?
Bank wire, electronic check, paper check, credit card or debit card. No third party checks or wires are allowed. The funding bank or check name must match your brokerage account name.
You can not fund accounts with e-gold, e-bullion or any other form of electronic currency. You can only fund with the methods just stated.
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5. How do I monitor trading activity in my account?
The brokerage (FXCM) 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.
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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 systems that could pass through the
careful screening above were then grouped together under a cautious
money management mechanism. Our initial balance requirement for the
fund itself has been selected on the basis of withstanding a 10% max
draw down in the last 10 years under a 1 mini lot scenario per
strategy scenario, and to gear up by 1 mini for each profit
equivalent of our initial balance requirement. In effect, we will be
trading 1 mini ($10,000) lot per $200,000 account size, or 1: 20
leverage per trade (i.e., twenty times less than 1:1). Because of the
higher number of strategies and currencies involved, there can be an
accumulation of strategies / trades open at once, and thus there will
be a higher gearing up on leverage on the basis of open trade
accumulation, though even then it will be usually less than 4:1
combined leverage (and usually less than 5% margin). We are striving
to redistribute the risk away from one trade / one system, and more
on the number of diversified systems and currency pairs working
together in the same fund. We have many intelligent systems together
working in concert that can perform remarkably well with a more
modest combined leverage than we have ever worked with before. Bear
in mind that draw downs will still happen and we are not immune
against them, and there is always a degree of uncertainty going
forward.
We also use hard stops and trailing stops to lock in profits. Hard stops are generally no more than 150pips.
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7. What Brokerage Firm do you use?
Our automated trading software is very sophisticated and it currently only works correctly with FXCM NY. We are always exploring other options but there are no other brokerages that we have found that can support the level of complexity and intenseness of our trading systems. Companies that lease FXCM's trading platform are the best bet for alternatives as they do have plans to lease software to other entities. We are continuing to watch this and when other options are available our website will be updated.
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8. Are my funds safe and secure?
All deposits with the forex brokerage firms we represent are held at participating banks which are FDIC insured. These brokerage firms hold client funds separate from its corporate funds and never use client funds for their operating expenses. The only risk to your funds is in a losing trade. The goal is to win more than you lose when trading, which is why we are here.
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9. Can I fund my account with e-gold or another electronic currency?
NO
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10. Who owns Galleon and where are you located?
Galleon Strategic Management LTD, (Galleon) is incorporated in the country of Panama. Panama's business laws allow us to more easily operate in an international market place. Though we are based in Panama, 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 handlful 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.
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11. I have an account at XYX. Can you trade my already opened account?
No, not unless you already have an account at a brokerage we are operating with.
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12. Do you have a referral program?
We did before 2009 but do to us becoming 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.
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13. Can I open an account in the name of my US Trust, partnership or Company?
Yes, any legal US entity can hold an account in their own name.
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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 a picture ID and photocopy of a phone bill or utility bill. If you do not want to provide this personal information than no. FXCM Asia may not be as strict with some of these documents.
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15. I want to have my account be outside of the US and as anonymous as possible. Is this possible?
If you are seeking a more private way to invest without giving your personal information out, FXCM Asia will likely work for you. They will likely allow the use of IBC to hold accounts.
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16. Can I hold my main account value in a currency other than US Dollars?
Yes, Euro and Yen accounts are available and highly recommended. When you transfer US Dollars into a Euro account at FXCM your dollars are automatically converted so the process is fairly simple. If you also believe like us that the longterm direction of the dollar is down.
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17. Can I open an account as a SEP, IRA or transfer funds from an IRA?
YES, the brokerage application provides the forms for this.
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18. Is it possible to lose more than I invest?
No, With our new strategies in place as of Feb 2009, we now have even more checks and stops in place that will close open trading positions long before your account loses even 10-15% of its value. This is not like an equity account where you are buying stocks on margin. Based on back testing our trading systems, your account should dip down no more than 15% in any one month.
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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 $500k. It is possible we may start another trading program using half leverage if enough clients are interested.
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General Questions About Managed Accounts and Forex
1. What is an electronically facilitated FX or Futures Account?
An electroncially facilitated FX or Futures Account is a discretionary account in which you give permission to allow a computerized systems' orders to robotically acess 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.
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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.
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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.
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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.
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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.
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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?
All deposits with the forex brokerage firms we represent are held at participating banks which are FDIC insured. These brokerage firms holds client funds separate from its corporate funds and never use client funds for their operating expenses
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.
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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.
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FAQs