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Frequently Asked Managed Forex Account Questions Forex Trading, Forex Returns, Account Information, and more

1) How much money do I need to start trading?

An account can be opened with as little as $50,000 USD. As always the amount should be based on your personal tolerance for risk and you should never invest with money you cannot afford to lose.

2) How is FOREX trading different from traditional securities and stock trading?

Forex currency trading is different in the sense that there are trading opportunities in both directions, long and short and the high degree of leverage is rarely available outside the Forex community.*

3) How high are the risks in FOREX trading?

The risks can be high but also controllable. Forex traders around the world are competing against other Forex traders, banks, and institutional traders who are seeking the same potential rewards from their own trading activities. One benefit to using FXCM is that they provide rapid execution at our Limit and Stop-Loss order prices and they will make their best effort to fill our trade at the price requested. But remember, FOREX trading is speculative and any capital used should be risk capital.

4) How do I open an account with PACE?

It's easy to open an account with Summit FX. Simply follow the directions on our Open an Account Page.

5) Who do I deposit my money with?

This is the most frequently asked question and the one that gives us at PACE the most pleasure in answering. Unlike other investment brokers who need a check written directly to them or their investment firms, investing in the Summit FX Managed Forex Account is completely different. YOU open your own account with OUR broker which gives you complete control over your own funds. You can deposit or withdraw any amount at anytime day or night. It's your money so YOU not PACE has control over it. When you open an account with our broker they will link your account to our Managed Forex currency trading account so you can have the benefits of our systems and have complete access to your money at the same time. This is a very unique approach but one that has proven to be greatly desired by investors throughout the FOREX market.

6) What can I expect in returns on my investment?

As always past performance is not a guarantee of future results. Your return will depend greatly on present market conditions in relationship to the specific trading models used for execution of trades.

7) What is the average number of trades entered per month?

The average number of trades executed per month is different for each system and will vary from day to day. The "Multi" system scans the entire market utilizing over 20 different strategies and trades a variety of pairs on any given day, while the "Flex" system trades only USD based pairs and may hold open positions that can exceed 30 days or more.

8) What percent of my account will be at risk during open trades?

The Leverage/Margin combination we use is approximately three percent (3%) @ 200:1 in the "Multi" system and ten percent (10%) to twelve percent (12%) @ 100:1 in the "Flex" system. Please note: This high degree of leverage can lead to large losses as well as gains.

9) What is an "LPOA" and why do I have to sign this document?

LPOA stands for "Limited Power of Attorney." After you set up your personal account with FXCM and your account is funded the "LPOA" allows PACE Capital to link your account to our Managed Account and trade your funds for you. If you do not sign the "LPOA" PACE Capital cannot institute trades on your behalf.

10) What is the "FPA" and how does it affect my account?

The "FPA" or "Fee Payment Authorization" form that you sign is the means by which FXCM and PACE Capital receives compensation for managing your funds during the various procedures that need to be monitored for the secure execution of trades throughout the day. There is a management and performance fee but note that the performance fee is applied to "net new gains" only and not the gross balance in your account.

11) Why do I sometimes see a Charge or a Payment of "Interest" on my account?

At 5:00 PM New York time, traders with open positions have their positions automatically rolled over to the next settlement date.

If the trader executed transactions during the previous 24-hours but has no open positions at 5:00 PM New York time, there will be no rollover of positions and therefore no interest earned or paid.

A rollover of positions will result in funds being added to or subtracted from the trader's account depending on whether they are buying or selling the U.S dollar. The "IntrB" column (you will see these columns in your live account statement) reflects the addition of funds and the "IntrS" column reflects the subtraction of funds.

The amount changes day to day for each currency pair depending on interest rates, day of the week, and market conditions. The rollover amounts are posted for each currency pair at 3:00 PM New York time, two hours prior to the rollover.

Our "Flex" system will always produce a "Payment" of interest to your account.

* Without proper risk management, this high degree of leverage can lead to large losses as well as gains.

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Risk Disclosure: The risk of loss in trading Commodity Futures, Options and Foreign Exchange ("Forex") can be substantial. The high degree of leverage associated with Commodity Futures, Options and Forex can work against you as well as for you. This high degree of leverage can have the effect of substantially magnifying potential losses as well as gains. You should carefully consider whether Commodity Futures, Options and Forex are suitable for you in light of your financial condition. If you are unsure you should seek professional advice. Past performance does not guarantee future success. In some cases managed accounts are charged substantial commissions and advisory fees. Those accounts subject to these charges may need to make substantial trading profits just to avoid depletion of their assets. Each Commodity Trading Advisor ("CTA") is required by the Commodity Futures Trading Commission ("CFTC") to issue the prospective clients a Risk Disclosure Document outlining these fees, conflicts of interest and other associated risks. A hard copy of these Risk Disclosure Documents are readily available by contacting a Summit FX representative at courtneymay3@gmail.com .The full risk of Commodity Futures, Options and Forex Trading cannot be addressed in this risk disclosure statement. No consideration to invest should be made without thoroughly reading the Disclosure Document of each of the CTA's in which you may have an interest. Requesting a Disclosure Document places you under no obligation and each document is provided at no cost. The CFTC has not passed upon the merits of participating in any of the following programs nor on the adequacy or accuracy of the Disclosure Documents. Other disclosure statements are required to be provided to you before an account may be opened for you. Past performance is not necessarily indicative of future results. Prospective clients should not base their decision to invest in these trading programs solely on the past performance presented. Additionally, in making an investment decision, prospective clients must also rely on their own examination of the person or entity making the trading decisions and the terms of the advisory agreement including the merits and risks involved.

Disclaimer: SummitFX is legally obliged to inform investors of a potential conflict of interest in recommending CTAs because SummitFX is compensated through fees or commissions by CTAs. This material and any views expressed herein are provided for information purposes only and should not be construed in any way as an endorsement or inducement to invest in any specific program. Before investing in any program, you must obtain, read and thoroughly examine its Disclosure Document or offering memorandum. Any performance included herein is based upon information that has been compiled by SummitFX from CTA disclosure documents and by third-party independent CTA tracking services and Institutional Advisory Services Group. All sources we use are free to the public. Such information has not been independently reviewed or audited by SummitFX or its affiliates and therefore neither SummitFX nor its affiliates make any representation as to its accuracy or completeness. Readers are solely responsible for how they use the information and for their results.

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