August 14, 2011
If my dad is investing 2/3 into my Forex trading account and i am investing 1/3, what profit should he keep?
By Planet Wealth
I would also like to add that before i take any profits, my number one priority is to return his amount invested.
He thinks i should give him back 2/3 of the profits, even though i will be doing all of the work, so, what do you reckon is a honest share?
Topics: trading tips | 6 Comments »
6 Responses to “If my dad is investing 2/3 into my Forex trading account and i am investing 1/3, what profit should he keep?”
Comments
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August 14th, 2011 at 7:57 am
He is providing capital and bearing the risk of capital loss- that is his contribution which makes it perfectly honest. You could always charge him a service or management fee for performing the service (say 1.5% of contributed capital) but if it’s all within the family, I don’t reckon you should be too fussed especially considering he’s essentially lending you money with a high risk of loss!
That being said, as an avid physical and margin FX trader myself, there are many risks and pitfalls involved so don’t try too hard to count your chickens before they hatch!
August 14th, 2011 at 7:57 am
Are you willing to take a share of the losses similar to the share of gains you want?
August 14th, 2011 at 7:57 am
2/3 of profits to dad. you can charge him a fee to manage account. but it would be like 2% of his balance annually.
you are entitled to something for managing his money. a part of the 2/3 profits should go to you as a fee.
August 14th, 2011 at 7:57 am
Why don’t you structure it like a hedge fund. You could charge a 20% performance fee on your dad’s part of the profits. That way you’re being compensated for trading the account.
I know it sounds heartless seeing how this deals with family, but what incentive would there be to trade his money in addition to your own if you’re not compensated for providing a service.
August 14th, 2011 at 7:57 am
who is doing trading? if you are doing trading so you will keep 50 % of your profit.
August 14th, 2011 at 7:57 am
I guess you guys should choose for your self.