How to draw up a contract with an investor correctly?
does anyone have any experience in this matter? or a ready-made template? or just thoughts
Usually, an investor is not interested in who does what. He is interested in the interest, while all the work to choose brokerage companies, currency pairs, and how much and where to work - lies on you.
The investor gives you money, if he trusts you. Requires a guarantee (everyone has his own).
Agreed-upon percentage of profits.
Repayment period (every month to give him the profit or refinance it).
The ability to take the money if he needs it (stipulates a period during which he can get all or part of his money back, taking into account the penalty interest for urgency)
What you do in case of force majeure. What you do in the event of losing all of your money and what the investor gets.
I, for example, offer an investor 4% per month and the guarantees are my movable and immovable property. The rest is all mine.
7% per month and I guarantee that in the event of a loss, I will return 50% of the invested funds to him.
10% a month and I guarantee 25% of the money back if anything happens.
And half of my profits with no guarantee. On my word of honour.
All details must be negotiated with the investor personally, because he is interested in only 3 things:
1. What percentage of profit the Trader offers per month;
2. What guarantees can the trader provide;
3. What are the terms of urgent return of funds.
The rest are details to be negotiated depending on the investor and you personally.
does anyone have any experience in this matter? or a ready-made template? or just a thought?
in my opinion the following points should be stipulated:
1. in whose name an account is opened
2. the maximum drawdown from a fixed deposit after which all trades are closed
3. how to divide the profit and at what intervals, and how to consider the case if the equity is above the balance or equity is below the balance within the period specified for summing up, or maybe the profit is divided when a certain agreed amount is reached, rather than periodically, if the trader's share is formed on the deposit, how to divide the subsequent income, for example, initially the trader does not deposit any amount, and the investor 100%, but the profit is divided 50/50, the next division is that the account has 25% of trader's money, provided that no one withdraws, and what
4. Minimum initial period when the investor has no right to withdraw his money, let us assume 3 months, and, in general, the conditions under which an investor may close the account for reasons known to him only
5. term of the agreement, say a year, then the parties may separate or prolong it
6. during automated trading, which Expert Advisors the trader has the right to use, and should the trader notify the investor about the changes in the Expert Advisors, if these EAs have initially served as an incentive for the investor, or the investor should not care how and what trades are executed, except for the equity and balance charts
7. who selects the broker
etc.
I used to work in my youth at Fr.
The contract is between 2 individuals and the legal one does not have to be drawn up (with a notary, but preferably notarized!).
1.i.The account is always opened in the name of the INVESTOR ! (So he will be comforted, that the trader does not run away with the entire deposit).
2.e and 5.e Simply write in the end. The agreement expires if:
1.e. The agreement expires if the current funds are below .... ( it can be an amount or % of the initial funds on the account)
3.f. It is written in the LIABILITIES OF THE PARTIES, for example
Investor is obliged on an expiry of each calendar month, within 10 days, to transfer Manager (namely the trader usually in such contracts is not specified) in case of a positive balance for settlement periood ( calendar month here for example) % from a net profit on the account.
4.e. This is also stipulated in the parties' obligations.
6.f. Usually the Managing Director is obliged (but not always)...
7.e. The account is chosen in discussions (by mutual agreement).
These things have to be done properly.
Namely: The parties, the essence of the contract, the rights and obligations of the parties, force majeure (also specified), and the conditions under which the contract becomes null and void.
Normally, an investor is not interested in who does what. He is interested in the interest, and all the work on the choice of brokerage companies, currency pairs and how much and where to work - lies on you.
No way!
If you do not know how to do this, the market will become more attractive to you, and you will have to do it right away. MMM is long gone, so a real investor understands very well, and is also very good at it.
An investor gives you money if he trusts you. Requires Guarantees (everyone has their own).
An agreed percentage of profit.
Trust but verify, as they say.
I, for example, offer an investor 4% per month, and guarantees at the same time - my movable and immovable property. The rest is all mine.
7% per month and I guarantee that in the event of a loss, I will return 50% of the money invested to him.
10% a month and I guarantee 25% of the money back if anything happens.
And half of my profits with no guarantee. On my word of honour.
I wonder if you have a contract that secures this guarantee?
That on bail... (under such pledges amounts by God should be with our housing prices ...) And in general every investor understands that such a pledge is a problem (because the investor is not a bank, immediately the flat in case of what happened will not sue).
In general, every trader understands that such pledge is problematic (because the investor is not a bank, they cannot sue you for your apartment immediately...) such agreements are very serious, and a serious trader usually does not deal with them. it's a waste of nerves...)
And you can get 4% per month in real offices as it is ( the same bond portfolio, and the investor will sleep soundly, 48% per annum on bonds is a reality... even in our falling market)
Normally, an investor is not interested in who does what. He is interested in the interest, and all the work of choosing the DC, currency pairs and how much and where to work lies on you.
I, for example, offer an investor 4% per month and the guarantees are my movable and immovable property. The rest is all mine.
7% per month and I guarantee that in case of a loss I will return 50% of the invested funds.
10% per month and I guarantee 25% of the money back, if anything.
And half of my profits with no guarantee. On my word of honour.
I used to work for the Fr. in my youth.
This kind of contract is between 2 natural persons and the legal one does not have to be drawn up (by a notary, but preferably!).
1.i.The account is always opened in the name of the INVESTOR ! (So he will be comforted, that the trader does not run away with the entire deposit).
2.e and 5.e Simply write in the end. The agreement expires if:
1.e. The agreement expires if the current funds are below .... ( it can be an amount or % of the initial funds on the account)
3.f. It is written in the LIABILITIES OF THE PARTIES, for example
Investor is obliged on an expiry of each calendar month, within 10 days, to transfer Manager (namely the trader usually in such contracts is not specified) in case of a positive balance for settlement periood ( calendar month here for example) % from a net profit on the account.
4.e. This is also stipulated in the Obligations of the parties.
6.f. Usually the Managing Director is obliged (but not always)...
7.e. The account is chosen in discussions (by mutual agreement).
You have to make these things properly.
Namely: To write in full the parties, the essence of the contract, the rights and duties of the parties, force majeure (also it is specified), and conditions at which the contract becomes void.
You do not need to do anything for the profit, you already know that you are dealing with a real estate broker, and you do not need to compromise on the profit.
What should I enter in my advisor to calculate my free funds with trader's salary and not to play with trader's interest, which actually remains in the securities account. What if I sink or reach a critical level and the account is closed?
does anyone have real contracts and not on word of mouth?
two questions are of general interest
1. how to properly calculate profits during continuous trading
2. whether it is possible or necessary to make the theme of the contract not "management of funds" but "use of mts in accounts".
There are templates for contracts, you can also send them. You can find them on the internet, no problem. But it is better to draw up an agreement with a notary to whom you tell the main provisions and nuances of the relationship with the investor, and he will draw it up properly.
The choice of the broker is formally up to the investor. If he is still undecided, he will of course consult you. He also decides on conflicts with the broker. Be sure to specify in the contract his and your real contact phone numbers for constant communication.
Invest opens an account in his name. He is the owner. The deposit/withdrawal of funds as well as blocking the account is in his name. You are only the manager of his assets.
You can't leave your funds "growing" in the investor's account. Experience shows that the amount of toad in investors is much larger than that of the trader (if you are a successful trader, not a happy camper). You can get screwed.
The Expert Advisor that you will use in trading, the investor is unlikely to be interested in. You, not MTS, are the sole agent responsible for handling the money.
The settlement is based on equity, of course. At the agreed point in time.
On transfer to the manager... How would it have to be calculated to become "...mis-calculated"? There is your "share" and it's not going anywhere from the calculator. The error, wittingly or unwittingly, overlaps with the next period(s).
I have a good manager's funds, but it is 10 days, during this time a lot may change in the account, theoretically, even a loss, 3 days is not enough.
I suggested to enter an Expert Advisor to calculate free funds with trader's salary and not to play with trader's interest, which actually remains in the securities account. What if I fail, or it reaches a critical level and the account is closed?
Does anyone have real contracts and not just a word of honour?
Nah...10 days I gave you an example.
You just prescribe that the balance is counted and recorded on the last calendar day. And 10 days to settle with the trader. (I gave an example, so everything can be discussed with the investor).
On the other hand, if during manual trading the investor trusts one trader, but his money is traded by another trader, the investor will not be interested in the trader, who uses his investment, though how can he verify that the trader is not interested in the trader's activity.
Try it....
The investor is a picky person, and he cares who is in charge of his money.
You can write in the contract that the investor agrees to the use of Expert Advisors by the trader.
If necessary, I can help you draw up a good agreement.
Icq:248222477.
P.s. I do not work for free.
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does anyone have any experience in this matter? or a ready-made template? or just a thought?
in my opinion the following points should be stipulated:
1. in whose name the account is opened
2. the maximum drawdown from a fixed deposit after which all trades are closed
3. how to divide the profit and at what intervals, and how to consider the case if the equity is above the balance or equity is below the balance within the period specified for summing up, or maybe the profit is divided when a certain agreed amount is reached, rather than periodically, if a trader's share is formed on the deposit as it increases, how to divide the subsequent income, for example, initially the trader does not deposit any amount, and the investor 100%, but the profit is divided 50/50, the next division is that the account has 25% of trader's money, provided that no one withdraws, and what
4. Minimum initial period when the investor has no right to withdraw his money, let us assume 3 months, and, in general, the conditions under which an investor may close the account for reasons known to him only
5. term of the agreement, say a year, then the parties may separate or prolong it
6. during automated trading, which Expert Advisors the trader has the right to use, and should the trader notify the investor about the changes in the Expert Advisors, if these EAs have initially served as an incentive for the investor, or the investor should not care about how and what trades are executed, except for the equity and balance charts
7. who selects the broker
etc.