Frequently Asked Questions

An MDA is a similar to a managed account, with the major difference being that the trading team has full discretion on trading decisions. This allows our professional traders to capitalise on opportunities as they become available, in a timely and efficient way. Our managed discretionary account is an opportunity to have a professional to trade on your behalf whilst you retain the ownership.
We are a performance fee-based company, we make our income from our performance in absolute terms. Basically, if our traders are not growing your Managed Discretionary Account (MDA) we are not getting paid. This is what a Performance Fee based on a High Watermark means. For example, let’s say we begin a Managed Discretionary Account (MDA) with an opening amount of $50k and we grow the capital to $60k, the performance fee is charged on the $10k growth. Then the account begins a draw-down period and goes to $55k over a couple of months. There would be no fee until the account exceeds the last high water mark of $60k. In other words, we don’t make any money unless you are making money, unlike many other managed fund services which continue to charge fees regardless of your account balance or performance. HWM
There are no hidden charges, membership, or administration fees. The brokerage cost for an equities and futures accounts are covered in detail in the Information Memorandums for each MDA strategy offered. There are no brokerage costs in FX accounts.
Since we offer strategies across different asset classes, the minimum requirements to entry differ. Our Foreign Exchange (FX) MDAs start at a minimum of $10,000. Our Equities MDAs start at a minimum of $25,000. For more information, please see our strategies page or inquire below.
Margin FX and Derivatives markets are typically categorised as high risk predominantly because of the leverage involved. This leverage is the very reason why most brokers and exchanges actively disclose to you that participation in these types of markets exposes your capital to losses greater than your initial investment. Most brokers will proudly advertise leverage levels 500:1 or 400:1. There is nothing wrong with this, provided you know how to use it.   Operationally we usually gear this leverage 2:1 on behalf of our clients. What this means for you is that your funds will never be exposed to any levels which will cause losses that cannot be recovered by normal trading activity. Typically our trades are never more than 1-2% of margin capital. Again what this means to you is your funds will be traded with strict risk management rules which ensure any losses incurred through normal trading activity can be recovered via professional risk reward ratios of 3:1 on the next series of winning trades. Of course, our legal peers remind us that there can be no guarantee that financial losses will not be incurred.   The mission statement for Jade Capital Managed Discretionary Accounts is “capital growth through educated speculative decision making based on a rules-based strategy with stringent risk management over the medium to long term”. What this means to you is that you are in partnership with a group of people who have their interests aligned with you, and that is to achieve capital growth. We are the holders of an Australian Financial Services Licence and we cannot operate with an “all care no responsibility” attitude due to the heavy and thorough compliance and regulatory procedures which ensure our conduct is in the best interest of all parties.
As you know, past performance is not indicative of future results. This is standard rhetoric for any reputable financial services company or managed discretionary account providers.
The reason these statistics are important is because they give you a foundation, a base level to measure performance. Most importantly it gives you a historical track record, it is supposed to show you and give some level of confidence that we did not just get started and had a lucky streak. It gives you an understanding that what we have been doing; has worked in the past, and that we are continuing forward with a positive expectation about our methods and results. Also, those statistics are all after fees and charges. Therefore providing you with reliable numbers, and also provides you with further confidence that we do not trade your managed discretionary account to drum up brokerage and fees, as this would be reflective on the strategy’s equity curve. We can also provide you with a third party audited results to further ensure our credibility to you. In order to see our past performance results, please see our Information Memorandums.
Jade Capital Partners is a financial services company and this is our core business, that is the financial markets. We have a proportion of wholesale funds and proprietary company funds all under management including directors private funds. We provide financial services to all segments of our market. We believe this is one of the most professional products everybody is looking for without all the fees. This is our niche market and we will cap funds under management in order to remain boutique in the future.
WE ARE regulated. The trading process has always relied on a certain level of trust. Every trader knows if there is no one to take the other side of the trade, there is no trade. Having complete confidence in the financial system and its participants is essential for clients to believe that their investment decision is the correct one. Clients also should know that their chosen investment managers are committed to their business and you; their client. All Jade Capital products and managed accounts are regulated and compliant with Australian Financial Services Lic 425895 and Financial Services Giude (FSG) are to provide you with our accountability.
Technology over the last decade has enabled trades to be replicated across a variety of platforms. When the trader places a trade on the platform at the top level or the primary master account. The system then allocates the trades down through the accounts to all the individual [sub] accounts. This is achieved by a specifically designed software widely used in the industry called Multi Account Manager [MAM] based on the MT4 trading platform. Trades are allocated proportionally to account size and the risk management algorithm. The system will allocate position sizing accordingly. Your managed discretionary account will always be traded according to the correct position size your balance will allow. This is based on mathematics. Depending on the traders allocation of position sizing, your account will usually be activated and trades will be placed. This top-down process creates a level playing field. When the trader places a full position each account will receive a position size accordingly. For example, an FX account, with a $10K MDA would most typically trade “Mini to Micro” lots and the pip value would be between $1.00 – $0.10 whilst an account with $100K may be traded in full Lots and thus, the pip value would be $10.00 You can suspend and/or close your managed discretionary account at any time. If this request is received with open positions unless specifically requested, your request will be processed from when current position’s are closed by the trader.
When opening an MDA, you will be provided with unique login details by the respective Broker. Since each of our strategies use different brokers, depending on which strategy you use, you will view your account across different platforms. For our FX strategies, we use the common MT4 platform. Other platforms include IRESS and Saxo Capital Markets online portal. You will be able to log-in to your account as often as you like for a read-only view of your account details, such as balance, trade history and open positions.
Here at Jade Capital Partners, we prefer a more personal approach rather than online. Get in touch with us directly by contacting our Business Development Manager Rudolf Meinhardt. phone: 0435 098 175 or email: rm@jadecapital.com.au. Once your expression of interest is received together we will guide you through the application process with client services and compliance. Usually Managed Discretionary Accounts can be opened within 48 hours.