of AUM 10000
The 1 percent annual AUM fee is not usually delivered in one lump sum. Instead, it is normally calculated as 1/12 of 1 percent every month, and the funds are automatically transferred from the investor's account to the trader's account at the beginning of every month. In order for this automatic transfer to occur, both the investor and the trader must have accounts with the same broker and must file the proper paperwork with that broker.
Forex brokers tend to be very helpful when facilitating this type of arrangement, because a good money manager with the ability to raise capital could potentially bring dozens of accounts (and millions of dollars) to the broker. They will "roll out the red carpet" for a good account manager, because of the amount of business the broker stands to gain.
Okay, that takes care of the 1 percent AUM. Now let's focus on the profit portion of the money manager's compensation:
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