Managed accounts differ from hedge funds in that they are completely transparent. All trading activity and currently held positions are in full view for the account holder to see and monitor. If funds need to be withdrawn or the account needs to be closed, there are no “lock-out” periods in effect. These actions can usually be taken on the same day they are requested.
Prospective clients most often employ Introducing Brokers, (or IBs) to guide them through the process of opening a futures account to be traded. Clients should feel free to contact Clarke Capital for more company information or for an IB referral, if necessary.
IBs usually have good working relationships with the clearinghouses for futures trading accounts, commonly referred to as Futures Commission Merchants, or FCMs. Clarke Capital requests that clients choose an FCM from those with whom we currently have a working relationship. A list of approved client FCMs can be found on the FAQ page of this website.
The client then submits account opening paperwork that includes instruction to give the trader written authority to trade futures on his or her behalf. All trading activity can, and should be monitored by the client through real-time websites or by daily electronic or paper statements. Once opened, no outside trading activity can take place in this account other than those trades initiated by Clarke Capital Management.
Client accounts are balanced each day by Clarke Capital to ensure that all approved trading activity has taken place in the proper client accounts. FCMs are notified immediately of any discrepancies or changes that need to be made.
Trader’s fees are billed quarterly and invoices are sent directly to clients for approval before being debited from the client’s account. At no other time does the trader (or anyone but the client) have access to remove funds from the client’s account. Other account activity such as T-Bill purchases and currency conversions are the client’s responsibility, and should be handled by the client or the client’s IB.
Prospective clients should take time to read and thoroughly understand the risk disclosure found here.