Traders Allied through its Advisory Service and at client’s request, we offer our internal expertise to help guide or manage your investment objectives according to a preset rules and policies. There are two types of advisory services offered at this stage: Non-discretionary Investment Advise and Fully Managed Accounts. Fees associated with each service also depends on client’s requirement and/or investment capital. All fees must be acknowledged and accepted by all parties before any service may be rendered.
Advisors may charge their clients for services rendered either through automatic billing, electronic invoice or direct billing. In the case of fee increases, the client will be required to acknowledge the fee increase with a signature. In addition to the advisor client fees specified, Traders Allied will charge its normal commissions to the client.
Non-Discretionary Investment Advise
This is a monthly subscription service which must be renewed by the client at the end of each calendar month. Under this agreement, clients may request from their Advisor(s) suggestions, help, idea or ‘how to…‘ style of queries regarding use and deployment of tactical strategies derived from the Trade Mate or Trade Orbiter applications. Clients may also request an investment analysis or study for a particular financial product if such documentation is readily available with the advisor.
Clients may expect a daily service of up to 2 hours of discussion and time utilization from their advisor.
Fully Managed Accounts
Traders Allied offer Portfolio Management service to our high network clients with aim to achieve one of the following goals: Capital Growth, Capital Preservation and Income. Each goal is defined through specific Investment Plans we have developed and run over the years. More details about our existing Investment Plans can be found here.
Under this service level agreement, you may expect a team of Portfolio Manager, Client Liaison Office and Research Analyst to be working with you or reporting to you on a regular basis. There are two ways your investment and account reporting are communicated to you in real time via the Trade Orbiter portal and through monthly meetings (Web-conferencing).
Charge Commissions and Client Fees to the Advisor
Your Advisor may charge your account commissions and performance related fees on first (1st) day of the (following) month.
However, Performance related fees are only posted to your account if that happened to be a positive profit and loss result by the end of the full calendar month.
Client Fee Reimbursements
Once you have agreed a particular service level be it Non Discretionary or Fully Managed you may not apply or request for a Fee reimbursements if you have already received work or advisory service from your advisor.
What Qualifies as an Advisory Service?
Any queries pertaining to the use of the Trade Mate market predictions, applying Tradebook reports, one-to-one investment study with an Advisor and Account Management for any period of time including canceling the service before maturity date counts and qualifies as earned Advisory Service. Please make sure you have discussed this particular point with our Customer Service and/or Customer Liaison Officer (Fully Managed Accounts) before you subscribe.
Communication, Service Level & Expectations
Clients who opted for a Non Discretionary Investment Advise should expect up to 2 hours of service from their Advisor, 5 days a week Monday th Friday between 8 AM and 5 PM GMT *.
Clients who opted for Fully Managed Account investment service may expect a team of Portfolio Manager, Client Liaison Office and Research Analyst to be working with you or reporting to you on a regular basis. There are two ways your investment and account reporting are communicated to you in real time via the Trade Orbiter portal and through monthly meetings (Web-conferencing).
*: Traders Allied does not and cannot guarantee availability of your Advisor at a specific time of your choice.
Advisor fee is automatically billed to the client’s account with blanket client authorization using any of the following in any combination:
Percent of Net Liquidation Value
Entered as an annualized percentage, applied on a daily, monthly or quarterly basis.
Entered as an annualized amount, applied on a daily, monthly or quarterly basis (apportioned by 252 days).
Percent of P&L1
A fixed percent is applied to the mark-to-market P&L (positive or negative in case of Non Discretionary service and positive-only in case of fully managed accounts) at the end of each period. Any changes made to the specified percent during a period will only be applied on a forward looking basis and will not be applied retroactively. If no changes made during a period, we break the period into two pieces and apply fees accordingly. If at the end of the billing period the accumulated fee calculation is negative, no fee will be charged. Two periods may be specified for this calculation:
- Quarterly as of 3/31, 6/30, 9/30, and 12/31. Fees will be posted 10 days after the close of a quarter.
- Annually as of 12/31. Fees will be posted 10 days after the close of the year.
The maximum percent of P&L that you may be charged for either period is 35%.
Fee per trade unit (shares, contracts, %) – Specified by currency/asset class (i.e. stocks, options, futures, etc.)
A fee per trade unit may be entered as an absolute markup over and above Traders Allied standard commissions, as a percentage of Traders Allied Commissions Schedule, or as an absolute amount (Traders Allied standard commissions will be subtracted from this amount). Fee per trade unit is not available for US or US protectorate legal residents due to regulatory restrictions, with the exception of US commodity-registered advisors, who are allowed a per-trade schedule for futures.
1 For the purpose of calculating performance fees, P&L on FX trades is included solely on the dates at which the position is either open or closed and excludes the effect of any exchange rate fluctuations between those dates. On the open and close dates, P&L is calculated based upon the difference between the trade price and the end of day conversion rate.
Caps and Limitations
Automatic Billing and Electronic Invoices are subject to the following caps and limitations:
- If an auto-liquidation occurs, no client fees will be automatically billed.
- Client fees are based on Tangible Equity. Tangible Equity is calculated as follows:Tangible Equity = Equity (including Payables) – Receivables.There is no client fee to be collected if Tangible Equity is under $1000.
Traders Allied caps the amount of advisor fees earned in any 360 day period to 25% of the client’s average equity over this period, with additional cap limits at 30 day increments in between (i.e. 7.2% over the last 30 days, 17.7% over the last 180 days). When any fee cap is exceeded for a client, the advisor will not receive any client fees until the fee cap is no longer exceeded. Traders Allied will continue to charge its standard commissions when the fee cap limit is exceeded. Please be aware that advisors are solely responsible for ensuring that the fees they charge are reasonable and in accordance with regulatory requirements.
|Period||Fee Cap %|
A fee per trade may be charged for clients outside of the US (or US protectorates). In addition, a fee per trade may be charged for futures, futures options, Single Stock Futures and Forex trades of US clients if the advisor is registered with the NFA. This fee may not exceed 15 times Traders Allied commissions, and no fee per trade will be applied if the client calls Traders Allied to close a trade. For non-registered advisors whose accounts have less than USD 25,000 (or non-USD equivalent), the fee per trade charged for futures and futures options will be limited to three times Interactive Brokers standard commissions.