MICRO-CAP FREQUENTLY ASKED QUESTIONS 50k-100M
Effective 12/2020. Subject to change. Based on availability.
Below are questions from clients willing to enter into Micro-Cap Small Cap Trade minimum of $50,000. Client sends the docs with full contact information to intake. The provider will do the JVA docs and then submit.
• Can you please provide me info on the type of program? You can read information in the apposite page on our website. The provider takes over the responsibility of the trade desk to explain the program, so a call with the Trader is always available to any client according the explained procedure.
• Is there FX trading involved? Or is it a risk free type of program like the managed buy-sell type of trade? It is based on Forex with algorithms and stops in place to prevent losses, so if the market is going to produce loss, the account will not have an activity until profit would be able to be made again.
• “This trade is set up so that the client cannot lose their principle amount.” How is this done? And can the realized profits neither be lost? See above answer
• In the document it mentions “your new account”. Does that mean that it will effectively be an account in the name of my Company? And not a sub-account?
o In whose name is the account? The account name is created based on your company and date submitted
o Am I the Sole Signatory on the account? Yes you are, however the fees in the JV will be pulled from the account as mentioned
o Do I have online access? Yes, and can send wires, load debit cards, and even watch live trading if you are bored and want to view (no algorithms will be provided as that is proprietary to the program)
o Can I use the account as a regular account to pay invoices, add money, withdraw money, wire / transfer money to another account ? Can this all be done online? Yes, you can, and the JV is only applicable to the profit earned and is not taken on any future client deposits
o Am I able to withdraw part or all the funds at any time? (PS: You will accept that if your balance drops below the initial amount the program will stop) Yes, subject to your statement in parenthesis about dropping below the initial start amount and the program placed on pause if that happens.
o Is there a penalty if I stop / withdraw all the funds? No, other than the program stopping and no further profits being earned
o Is there a minimum time that the funds must stay in place? No, the account remains open and trading at your discretion
• Why a Bank in Taiwan? Can it be a bank in Europe? No, that is where the owner of the bank located the diplomatic bank, and the location can’t be changed
• Do the profits accumulate in the same account? Or will you create a separate account in the name of my company to receive the profits? Yes, same account and it is compounding, so whatever you leave in the account, is subject to earning profit
• Will I be able to follow the investments and returns online in real time? As answered above, YES
• What is the JVA split/ratio (%) between the client and provider ? The desk will take 5%. JV is 20% to the provider with up to 10% to intermediaries (no one intermediary can receive more than 4%). If the clients want to continue, the desk will set up an account (clients own account)
This trade is set up so that the client cannot lose their principle amount.
• Is there any guarantee issued by trade desk or provider for EUR deposit? No. I suggest you start with$ 50,000 The reason I say that as that is the minimum amount that the trade can begin with. However, if you start with 1M, that becomes your minimum trade amount, i.e., if you draw funds below 1M, your trade stops, you can add to it as you go along.
• Is application with CIS and POF possible at any time? Yes, and you can do this at any time as long as the program remains open.
• Please clarify whether the Micro-Cap program follows all of the same rules and procedures as the Small Cap and Large Cap programs. If not, then let me know how the micro-cap program is different in terms of the way the client is handled, and the way in which the client principal funds are protected. CIS –not– KYC is required. Client is referring to a 24-page full KYC: Different level of compliance , JVA documentation no escrow, Call with the trade desk to discuss opening your account, you ask questions , you will then be sent details how to open the account. Trade continues whilst you maintain the minimum amount in the account, it stops if you withdraw below the preset minimum and resumes when you replenish to the minimum
• Does the Micro-Cap program Applicant need to complete all of the fields in the CIS form? (for example do you need two bank officer signatories? Or will one Bank Manager be sufficient? It is a CIS and not a KYC , you will receive CIS to complete and supply copy of the passport and POF
• Does the Bank Statement need to show a history of transactions? I ask because I opened a USD dollar account recently for this purpose alone. It will only show recent activity related to my funds that have been transferred from my other transactional accounts into this one. Is that a factor in the due diligence review? Client sends the docs with full contact information to intake. The provider will do the JVA docs and then submit
• What is the typical turnaround time for this process? 1 week or thereabouts.
-Trade desk will schedule a call with the client to explain the program in detail.
– If the clients want to continue, the desk will set up an account (clients own account, can be used like any other bank account). At that point the client has 24Hrs to transfer funds into THEIR own trade account. Once funds clear, the trade will begin.
• What type of access does the Trade Desk have to that bank account? Is it “trading access” only, with no ability to directly access funds in that account? Only to deposit funds and read the account balance, no capability to withdraw funds
• Can the account be established as a non-depletion account? Answered
• I am assuming that the account can be accessed via electronic web access? Yes
• Your newsletters have explained how the private placement trades operate, and how the traders perform the buy/sell transactions. Does this process also apply to micro-cap accounts? If so, are the micro-cap amounts pooled together in order to perform trading at the right level? No
• How does the return percentage vary? e.g. if the balance is 100K? $200K? $500K $1M? Same percentages apply , once you get to 1M look at other programs, use house money to enhance your position . The trade will continue until the client opts out of the program.
• Are there any limitations/restrictions regarding opting out of the program? No.
• Can a micro-cap be converted to a small-cap once the gains have compounded sufficiently? Yes
• Can the client transfer the funds anywhere worldwide? Client can use the account like any other account, online login, wires, bill paying, 2 debit cards, etc. This trade is set up to BUILD funds so that they can enter some of the mainstream trade programs.
• This trade is set up so that the client cannot lose their principle amount. Can you explain exactly how that is guaranteed? And who provides that guarantee? Is it the Trade Desk? Is that reflected in the JVA contract terms? You will need to look at the JVA, ask questions when you talk to the desk
• Is there any insurance coverage or insurance wrap in the event of loss of client capital? Not that I am aware of.
• It is an SUB account that will be opened and mentioned in the JV agreement and not a “normal account”? No, this is NOT a “sub” account, but an account created for and managed by you, since it is your account.
• It is clear that the JV Partner has the authority to touch any amount above the Client to transfer costs outside the JV Agreement, why is this not resolved by a Paymaster and is this regulated by an account block and limited that only said fees of the JV Partner can be touched/transferred by the JV Partner? This is incorrect and specifically the opposite is stated. The provider only has the ability to have the JVA fees drawn from the account. There is no paymaster because the amounts are too small, and all profit goes to the client’s account.
• It is stated that the JV Partner is fully authorized to enter into contracts on behalf of the VENTURER so that he can act in place of the Venturer on behalf of his JV Partner, thus the JV Partner is fully authorized and the VENTURER is fully liable and responsible for all that the JV Partner enters into contracts with third parties? Although there is a paragraph for this, the trade can only be entered into for the Venturer, who is the client, in the name of the client and it is for the purpose of fulfilling the program the client has been given.
• I come across online alarming messages warning to the JV Partner and co-signatory of the JV Agreement, can you explain this in more detail and is this person the same person as the JV partner? With a phone call I can easily explain the bogus claims online, that you will note have been posted anonymously, provide no proof of anything and that we have documentation that shows otherwise, in addition to the fact that we NEVER collect ANY funds directly from a client and all funds come through a paymaster or trade platform.
• Which of the JV Partners is the designated person as the signatory of the Program Principles Agreement? This program does not have a contract with the bank as you are allowed to stop the program at any time for any reason by drawing your funds out of your account, so since you are not locked into a contract period, there is no contract. Your returns are added to your account on an ongoing basis.
• I understand that this is Forex trading, how long has the algorithm been running what the historical 25-30% two Weekly returns are based on? Over a year easily but I do not have the full length of how long the bank has been open and using the algorithms.
• With respect to “there is no Contract with the Bank”, but how should I see this, is the Principal not used and only mirrored for the Program Algorithm’s own credit facility, or how does this work? Yes, it would be the equivalent of mirroring since the funds are not actually used or moved from the account. You can see the account online at any time and if you want to be bored out of your mind, you can watch live (although you are provided the actual algorithms). Look at it like any other bank account as to why there is no contract. When opening a regular bank account at a bank, they don’t give you contracts.
DISCLAIMER: IFA GROUP is not a licensed securities dealer, broker or US investment adviser or registered with any equivalent licencing/monitoring authority of any country, including the Financial Conduct Authority, or a certified public accountant or financial adviser. None of the information contained herein constitutes a solicitation for any purpose in any form or content, nor an offer to sell and/or buy securities and or properties. Any completed transaction is strictly one of private placement, and is in no way relying upon, or relating to the United States of America Securities Act of 1933, as amended, or related regulations. Merely describing the details or a cash-flow of a structured financial program or any other private placement program does not constitute an offer or solicitation of any kind and, if presented, is done so as a financial education or request for information.