7) How much are management and incentive (performance) fees in this type of investment?

Generally speaking, most CTAs charge a 2% annual management fee and a 20% annual, performance-based incentive fee. These fees can vary among managers depending on trading strategy and CTA philosophy. For example, some CTAs may not charge a management fee but will increase their incentive fee to gain greater participation in upside performance. Depending on the investment size, fees may be negotiable. CTAs may have a fee scale that is dependent upon the net liquidity of the client account or the percentage that the program is profitable. Lastly, in rare instances, CTAs may charge an accounting fee in addition to the management and incentive fees. All fees charged by a CTA are described in the CTA’s Disclosure Document and should be scrutinized carefully by both the broker and client before opening an account. Special approval processes apply to the broker’s participation.


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Past performance is not necessarily indicative of future results. Trading commodity futures, options, and foreign exchange ("forex") involves substantial risk of loss and is not suitable for all investors. In no way is the advisor of the month a direct recommendation of aiSource or any of its affiliates. Please carefully review the disclosure documents and any other promotional material prior to investing with any program. Managed accounts and/or managed futures are very risky and may not be suitable for all investors. Please consult with a Managed Futures specialists prior to investing.