Here is my review of Jad capital – forex managed account
Even before I start my search to create my shortlist of who will manage my forex account, I realise that there is a certain amount of risk to trading the foreign currency markets, and I have to sign over the rights to a certain amount of drawdown. So, the first thing that strikes me with jad capital is their first bold statement; don’t take risk, ask professionals. But aren’t I still going to have to take a certain amount of risk, even with the professionals trading my money? The second thing that strikes me is the language of the first paragraph, it just isn’t written in correct English, and doesn’t follow. I think the website tells you so much right from the first introduction. So my first question with jad capital is, is English their first language or is this brokerage based outside of the UK? So I may be wrong to discount certain companies because of their attention to detail on the website, but that is just me. Fine, get someone else to write it, but please, check it before it is available for all to see. For e.g. please fill up your details, appears more than once.
Looking at the application form to ‘fill up my details’ made me question the difference between Limited Power of Attorney (LPOA) which I have seen before, and POA which is on the jad capital site. Many investors are transferring their money from a standard brokerage account to managed accounts and a LPOA allows this broker to place the trades without having to get approval for each and every trade execution. This is what I found out “limited” when related to LPOA ensures some of the crucial account functions are still only accessible to the account holder. So does this mean that POA enables the broker to make cash withdrawals, or change the beneficiary or other major account actions?
Anyway, having not been very impressed with the initial wording and language of the jad capital website, this theme continues on as I clicked on the other links. It really doesn’t say a great deal about the company or the traders themselves but the information about the brokers they use is quite detailed. One of the brokers appears to have the necessary and appropriate licensing, which is registered in England and authorised and regulated by the Financial Conduct Authority (FCA) and also registered in Australia and regulated with the Australian Securities and Investment Commission (ASIC). The other broker is also registered and licensed in United Arab Emirates (UAE). Having said this I cannot immediately find information regarding if the traders themselves or the strategies they use are licensed. What I can’t see is if they are offering a regulated and compliant service.
I like the sound of a strategy that makes conservative trades, 5-10% risk factor, and 10% stop loss or trailing stop loss also sits comfortably with me. The home page states 10,000USD minimum investment yet another link on the jad capital website shows the minimum investment amount as USD$5000. But with this lower investment amount the performance fee is 35%. When all is said and done, if I am letting someone else trade my account for me, I guess I am just happy with a profit, but 35% does seem a bit steep.
Oddly, I checked out their performance last not first, and by this time “fill up the information below” was seriously getting my goat. So, OK I could fill up my details and request results but it is nice to just be able to see something straight away. After all, if the results are good, wouldn’t jad capital display them for the world to see!
Just not too sure about this one yet, as, amongst other things, I never did find their UK address and I was not entirely convinced by the answers on a chat forum where other potential clients had copied over the replies to their questions from jad capital. There was a risk warning and disclaimer but nothing I could really get my teeth into. Same with; who we are, really no information at all. It would be unfair for me to rate this one out of five, because for me, I was immediately put off by all the language errors within the writing of each page. But at a push I would have to give them 2 out of 5.
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