I was approached by someone that wants to manage an account for me. Now i have a few questions concering the protection of my investment.
He suggested a broker to open the account with (ibfx.com.au) he gave me an affiliate link (I am having that link checked by the broker ibfx.com.au). Now my plan is to open an account and give him trading access to the account without the ability to withdraw funds.
now appart from the risk that he is making the wrong trades I am wondering:
1. can he somehow work with the broker to steal my money and disappear? (granted that the affiliate link is no scamm in itself, which Im already having checked) 2. can he somehow benefit from making the wrong trades to destroy my account? 3. he suggested to open a mini account with that broker instead of standard account, does that indicate anything fishy? 4. appart from losing my money by the wrong trades, can you think of any other risks Im taking by this endevor?
Anything else to add?
Please do not comment on weather its a smart idea to trust in his skills of trading, as I am fully aware of that riks, Im really just making sure I am not overlooking something.
Why would he use ibfx? You should tell him you know a better broker for example icmarkets or fxopenau etc.
1. Nope, he can't steal your money. 2. If you know how he is trading then there should not be problem with this. 3. Is he trying to arbitrage or martingale kind of strategy? If you have his myfxbook i can tell whether he is doing either one of the two. 4. Same as number two.
There are actually no problem except whether he is profitable or not. If he is then go ahead, but you must know what you are doing. I can advise you as i have been there. I am still on my way to success though. Do check my account this week :)
Hi, do you sign a LPOA ? It seems it is managed aa an individual account so you have to pass PSW. Anyway the antilaundering laws do not allow to a broker to send money to a third person. So there's no risk that he can withdraw your money.
Sava said why he want use ibfx? Usually managers have their brokers where they think their strategy performs better and also they can be Introduce Broker and have some revenue for the commissions, but there's nothing strange with this.