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Money Managers

All Professional Financial Advisors are considered to be Wealth Managers. As a Wealth Manager, you can optionally add Money Managers to trade for your client accounts. Money Managers direct trading and investment activity in client accounts. They cannot add client accounts, fund client accounts, set client fees or set client trading permissions.

A Money Manager must first complete a separate Money Manager account application. Once a Money Manager’s account is activated, you can add him or her to your Advisor account, then assign client accounts to the Money Manager for trading purposes, set trading permissions and set client fees. Both Money Managers and Wealth Managers can trade for client accounts.

To add a Money Manager

1. Access the Money Manager Marketplace and shop for available Money Managers. Either contact a Money Manager directly or request that a Money Manager contact you.
2. Once you and the Money Manager have agreed to do business together, add the Money Manager to your account by using the Add button in the Money Manager Marketplace. You can also add a Money Manager on the Manage Account > Money Manager > Administration page if you know the Money Manager's Account ID.

Note: Money Managers must log into Account Management with their username and password to accept assignments from Wealth Manager on the Wealth Manager Assignment page (only Money Managers can view this page).

3. Set Up a Client Fee Schedule - This fee schedule represents the fees that will be paid to you, the Wealth Manager, when you trade for client accounts. Typically, you will have already done this for your client accounts on the Manage Clients > Fees > Configure page in Account Management.

You set up a separate fee schedule for a Money Manager when you set up the client accounts for the Money Manager in the next step.

4. Set Up Client Accounts - After a registered Money Manager accepts your assignment, you can set up the client accounts for each Money Manager. This setup includes assigning client accounts to a Money Manager, setting trading permissions for the Money Manager and setting Money Manager client fees (fees that will be paid when the Money Manager trades for client accounts). The client setup process takes you through a series of pages in Account Management. You start the setup process on the Manage Account > Money Manager > Administration page in Account Management.

• Money Managers can start trading the next business day (client assignments and trading permissions require one business day to take effect). But Money Manager client fees will be collected from client accounts and transferred to the Money Manager only after the client signs the Money Manager client agreement.
• Note that fee per trade unit is NOT available for Money Managers.
• Client accounts assigned to a Money Manager can only receive trading permissions for products and countries that they already have permission to trade as Advisor clients. For example, if a client account can trade stocks as an Advisor client, and you assign trading permissions for a Money Manager that gives the same client account trading permissions for stocks and options, then the Money Manager will only be able to trade stocks for that client account.

5. Create a Client Fees Template - Optionally, create a common client fee schedule to for Money Managers without having to set client fees separately for each Money Manager. You can create a client fees template on the Manage Account > Money Manager > Administration page in Account Management.
6. Fund Client Accounts - When you assign a client account to a Money Manager, we create a second version of the client account that is linked to the Money Manager. When you fund or transfer positions into a client account for a Money Manager, you are actually funding or moving positions into the linked client account.

Other Tasks You Can Perform as a Wealth Manager

In addition, Advisors acting as Wealth Managers can perform the following optional steps, all available on the Money Manager Assignment page in Account Management:

• Modify Client Fees for a Money Manager - You can edit the client fees for one or more client accounts assigned to a Money Manager. Note that any changes to Money Manager fees require approval from the client.
• Modify Trading Permissions - You can edit the trading permissions for one or more client accounts assigned to a Money Manager.
• Change Money Manager Client Account Assignments - You change Money Manager client account assignments at any time by adding or removing client accounts from the Money Manager. Before you can remove a client account from a Money Manager, you must first move all cash and positions from the Money Manager-linked client account back to the client account.
• Remove a Money Manager - When you remove a Money Manager, all client accounts assigned to that Money Manager will be closed. Remember to move all cash and positions from the Money Manager-linked client account linked back to the client account before you remove a Money Manager.

The Manage Account > Money Manager > Administration page in Account Management is shown below.

 

For more information

• For more information about Money Managers, see the Money Manager topic in the Account Management Users' Guide.