How is a Self-Directed Copy-Trading Account different from typical Managed Account services?
When opening a Managed Account, you must grant a Power of Attorney to a CTA, CPO or other asset manager who will trade your funds in active markets for you, essentially making decisions on what trades to place and offset, without your input. To check your account status, you must contact your asset manager or wait for your account statements to come. Thus, you may not have continuous visibility and control over your account or your funds! When opening a Self-Directed, copy-trading account via Broker Junction, however, no one other than you has discretion over your account. Therefore, you alone bear responsibility for all trading activities taking place in your account. You may opt to trade on your own and/or you may decide to copy someone else's trades. No matter which of these options you go for, you always retain full control of your self-directed trading account. Should you copy trades of a licensed trader, like our Senior Trader for example, you get to benefit from his experience and his trading knowledge. In a best case scenario, you copy him and his trades produce profits for you. In a worst case scenario, he places losing trades which you can decide to exit from at any time. In order to do so, you simply turn off the Copy function of the idealTrader! (which is our proprietary trading platform), and then you offset that losing trade on your own. Essentially, you have the power to instantly interfere, which is not the case with a Managed Account. Therefore the main difference is that you keep control of your self-directed copy-trading account, ...more control than you would have in a managed account for sure.
Is it risky to copy-trade Forex, Futures and Options contracts at Broker Junction?
Trading Forex, Futures and Options on your own is very risky indeed and it remains just as risky when you copy-trade off of another account holder.
What is web-conferencing and what does it cost me?
Web-conferencing refers to a service that allows conferencing events to be shared with others at remote locations. The service allows real time point to point communications as well as multicast communication from one sender to many receivers. It offers information of text-based messages, voice and video chat to be shared simultaneously, across geographically dispersed locations. Applications for web-conferencing include meetings, training events, lectures, or short presentations from any computer. It comes at a cost of $36 per session and allows you to host up to 25 visitor seats per session.
Can I safely copy trades placed by any other account holder and rely on same trades to turn profitable at all times?
No, you cannot! No guarantees or promises are made as to the profitability of any trades placed by any other account holder at any given time. No trader, no matter whether they are CFTC-registered industry professionals or not, is immune to losing funds in their live accounts due to bad trade decisions they make.
Is it easy to replicate trades placed by a HeadTrader ™?
No it is not. Replicating automatically the exact, same trades is oftentimes very difficult to manage. Market orders might get filled at different prices for HeadTraders ™, than they are for TrailTraders™. Slippage costs, also, may cause trailing traders to be stopped out at greater losses than HeadTraders ™ are.
Can every client take advantage of Broker Junction’s Copy-Trading Services and the automatic/manual copy-trading features of the "idealTrader!"?
No! In order to benefit from our Copy-Trade Services, clients must open up Self-Directed accounts with Gain Capital, L.L.C. (i.e. Forex.com) via Broker Junction!
Does the HeadTrader ™ announce when he is going to buy or sell a Forex lot or a Futures and/or Options contract and why?
Yes he/she may do just that, if they have decided to host a webinar session, which comes at a cost of $39 per session to them, and you happen to be one of their webinar's attendees. HeadTraders have the right but not the obligation to present themselves and their trading styles live via web-conferencing at Broker Junction. In such a web-conference session all HeadTrader ™ are free to comment on the reasons that cause them to place a trade as they execute a buy or sell order, but they do not have to. Broker Junction does not endorse or hold as its opinions any of the statements or examples used in any web-conference sessions. Traders with Self-Directed accounts must decide for themselves whether they would like to copy-trade that HeadTrader or take their advice.
Does the Copy-Trading feature of the idealTrader! allow users to actively manage their risk?
Yes it does. Imagine a HeadTrader’s ™ account is funded with $20,000.00 and a TrailTrader's account funded with only $5,000.00. In such a case the HeadTrader ™ is able to withstand markets running against him/her much longer due to the fact that he/she has 4 times the funds that the TrailTrader has. In Forex, Futures and Options markets, all account holders can adjust the portion of risk they are willing to face by adjusting the number of lots/contracts they look to trade in order to minimize the risk of losing too much in any given trade. Also, they can use stops to determine the amount of loss they are willing to bear. Note: no order types placed by any HeadTraders are guaranteed to be filled, except for market orders. Decreasing the number of lots/contracts you look to copy into your account does not necessarily reduce your risk exposure especially in cases where the HeadTrader that you are copying opts to increase the number of lots/contracts he/she is going to trade in exactly the same moment that you decide to reduce your risk by lowering the number of lots/contracts you look to copy.
What kind of people join Broker Junction as HeadTraders ™?
Broker Junction allows all CFTC-registered/licensed professionals to act as HeadTraders™. This includes Associated Persons of other licensed brokerages, as well as licensed Asset Managers (including Commodity Trading Advisors (CTAs) and Commodity Pool Operators (CPOs)). If you are not a CFTC-registered industry professional and would like to become one, please contact Broker Junction, Series L.L.C. and ask about our sponsorship program for aspiring brokers and traders.
Once I turn on the Copy-Trade function of the idealTrader!, do I need to attend entire trading sessions as a TrailTrader?
No.. you can go to work or to the gym for example, if you selected to automatically copy trades of other account holders, instead of copying them manually. The idealTrader! essentially mirrors all trades placed by HeadTraders ™ into your Self-Directed trading account almost instantly and on its own. However, we suggest you check your account as often as you can though! Keep in mind: When copying someone's trades, we are mirroring their trades into your self-directed account. You chose to open a self-directed account rather than a managed account so you could keep control over your account. To exercise your control, you best keep checking your account as often as possible throughout any given day!
How much do I pay when I copy Forex trades of other account holders?
The Total Cost of Copy-Trading at Broker Junction consists of the Bid-Ask Spreads quoted to you by our Forex Dealer (Forex.com) and the Commissions charged per round-turn trade. The spreads offered at Broker Junction, Series L.L.C. are not fixed, and range approximately between 1.5 and 2.2 pips for any of the major currency pairs like, for example, the EUR/USD.
Round-turn commissions charged per trade to your account vary depending on the FX contract size that you decided to buy or sell. For example, the round-turn commission is $1.00 per mini Spot-FX contract (size: $10k) or $10.00 per standard Spot-FX contract (size: $100k).
Fees will be charged directly to any FX trading account upon Broker Junction's collection of a signed "Fee Payment Authorization" form from account holders. All account holders grant their Fee Payment Authorization to Broker Junction's Forex Dealer(s) at the time of their account-opening.
Note: Broker Junction reserves the right to raise commissions at any point in time. You will receive an advance notice of 14 days via email in case commissions are raised.
How much do I pay when I copy Futures trades of other account holders?
The cost to you per round-turn trade excluding exchange & NFA fees is scaled in the Live Trading Club: > than $3k, but < than $25k @ $15.00; > than $25k, but < than $50k @ $12.50; > than $50k, but < $150k @ $9.50; > than $150k @ $8.50! Note: Broker Junction reserves the right to raise commissions at any point in time. You will receive an advance notice of 14 days via email in case commissions are raised.
How much do I pay when I copy Options on Futures trades of other account holders?
All Options on Futures trades come at a cost of $45, including all fees to you. Note: Broker Junction reserves the right to raise commissions at any point in time. You will receive an advance notice of 14 days via email in case commissions are raised.