Talk to the trader. Get them on the phone. Ask about their previous history, and evidence that they can back it up. Ask for an investor password to one of their managed accounts or a client's PAMM account for proof. Use only safe(r) methods of money transfer like bank wires that can be traced.

Traits i expect are a level of professionality and a sense of integrity. The most successful traders are not just nice people to their clients, they are nice people to everyone. Get to know them personally, but not too close, as you are still a client. If their personality or ethics seems to be incongruent with contrast to their professionality, toss them out the door.

Honesty is important, if they are hesitant, non-confident or diversive when talking about risk management or worst drawdown history or any mistakes they have made while trading, then they are only 'half a trader'. A good trader knows how to manage and be responsible for losses as well as profits and will have no problems telling you when they f***ed up, and how they managed it or fixed it.

What makes me special as a trader? Mostly that like everything else in life, i seem to suck at practical elements, but be well informed and communicative in theory. I am not an account manager although I have access to two very successful managers of which both have helped develop my personal integrity as a trader, win or lose. I am not outwardly soliciting managed accounts here as it is against my ethics/professionality, but anyone is free to message me if they are interested in performance.

Hope this helps

Agree with what most of SCM says - though, I would point out that distance may or may not be a deciding factor - one of my managers lives on the other side of the world, and I trust him more than I trust some local managers here. And he's pulled through. The main thing is to make sure you have accessible contact in a variety of manners. Phone, email, business address, etc.

Unfortunately these days I believe the creation of PAMM style accounts actually means that people can LPOA without necessarily requiring registration - and so every man and his dog are opening PAMMs. This has had no impact on the legitimate fund managers, although it has made them harder to locate. Whether or not a manager is licenced is the same issue as whether or not you should pick a licenced broker - in both cases, broker or manager, licenced or not, they have the capacity to serve you well or do you harm, so all you can do is research, due diligence, and trust your instincts, and build up a relationship, dont just jump in with all your spare change.

hm, ... a regulated money manager has a real company. office, maybe staff, tax, etc. and why should a trust an amateur with my money. i have seen amateur money managers, they take half their clients and go long and the other half to go short. of course, the leverage is far too high but on one side they make a huge profit and charge a nice performance fee. i would never give a not-licenced person my account to trade. never ever.

I have just went through an investigation process, and in the end I invested 40 000 USD with one manager (http://perfectofx.com/index.php?rid=129647

not regulated managers often brake the law by trading on behalf of other people. i would never invest my money with not regulated brokers and i don't understand people doing this.