Managed Account or Regulated Fund?
There’s a difference in legal structure. It’s up to you to choose.
- Your own account with an FCA regulated broker
- UK based AAA receiving bank
- Licensed under Asset Management through LPOA
- Withdrawals on demand
- Restricted leverage in Europe due to ESMA regulations
- Cost heavy due to regulations framework
In a managed account setup, the client is seen as a retail client. He therefore has to pass a KYC check, a suitability assessment and he is tested when signing the LPOA (Limited Power Of Attorney) before being allowed to have an account.
Trading for retail clients involves many extra regulations, which makes legal framework very complex and expensive.
The benefit is that we work with a UK based FCA regulated broker with a receiving bank, which is seen as one of the healthiest banks in the world.
The UK, and especially London City, is considered the world's premier global hub for finance.
- Fully regulated
- Key appointments with trusted partnerships
- Low cost infrastructure
- Higher leverage possible
- Cayman Islands fund & bank account
- Monthly NAV calculation (monthly activation and withdrawals)
In essence, when a customer chooses to trade through a fund, with a minimum of 1.000€ in deposit, he buys a share in the fund at a par value.
The fund, which is owned by the customers, is seen by the broker as an institutional client. Trading restrictions don’t apply here, only the broker's restrictions do.
This makes the legal framework much easier, and the trade execution much cheaper.
The only drawback is that the fund is located in the Cayman Islands, even though it is fully regulated and audited. For some investors this might be a hurdle.
No worries, the Managed Account option is always available!