Frequently asked questions

Got Questions? We have you covered. These FAQs are comprehensive! Each time we get asked a question – it gets listed here. If you don’t see something you are looking for, then drop us a line and we will get back to you fast!

1.) How do i get started?

Getting Started is quite simple. Please see our how it works page here for a good explanation. It basically boils down to taking a bit of initiative, opening your own trading account at an Brokerage House to trade on your behalf for you, and then (easily) configuring these to suit your personal risk tolerance and financial goals. Then all you need to do is go about your life. The rest is on auto-pilot. To apply, you can click here which takes you through a quick and easy digital application.

2.) How are you able to operate without charging management fees?

lets be honest – It’s a big waste of everyone’s time to have to sift through pages of “fine print” and line-item charges in order to understand the fees you are being charged (or uncover hidden ones). We don’t believe in nickel and dime charges for admin, service, maintenance or whatever other terms might be used to justify fees. Simplicity and transparency is our goal and we are happy to have clients pay only after they have received tangible value.

We don’t believe in paying up to x% per year in Management Fees either, only to get “leading-edge” investment management from someone who won’t give you even a small percentage of their time (and in return probably deliver lack-lustre performance at best). Rather, we aim to to keeping our overhead low, rely on the testimony of satisfied clients and partners, utilize smart technology, and produce funds that deliver real, solid performance.

By focusing on the cake, and not the icing, we do not need to charge these burdensome fees, and can pass the savings on to intelligent investors. Furthermore, our model clearly demonstrates our confidence in the ability of our funds to produce results. Thus, our income is the hands of our fund managers, much the same as your profits are; so we are all reaching for the same prize!

3.) Why is “Forex” an ideal asset class to diversify an investment allocation with?

Our belief with the Forex market is that money is never really made nor lost, but only changes wallets. Diversifying heavily into one major asset class such as Forex, is in our view, one of the few markets that will work with this type of diversification strategy. Non correlated strategy diversification is important from one FX strategy to another to take advantage of this concept. However, currency markets are unique in that they are the only asset class that has never experienced an across-the-board bear market, or even a boom or bust like real-estate markets. In our collective opinion, although volatile, the market itself is as close to “crash-proof” investing as one can come. This makes currencies a unique asset class for diversification. When one trader is down, another is up. Experienced traders can always find a profitable trend to ride somewhere in the foreign exchange markets, as long as they understand the key factors that move world currencies.

4.) What is the minimum investment amount?

Broadly speaking, our minimum investment is 10,000 EUR, USD, GBP and AUD for Boutique Forex Managed Account.

5.) What do you mean by the fact that we can Define and Limit Our Risk of Loss? How is this possible?

This is good ‘ol technology coming to save the day again, and is in our opinion, an industry game changer! We utilize custom software which is very, very, very important for investors. It is called a Custom Stop Equity tool. Investors can now set their own stop-loss equity levels at the simple click of a button. This ensures an investor never needs to worry about a rogue trader breaking rules, or technical problems with an algo, or black swan market events and crashes. It’s a “safety net” that catches ALL and lets investors sleep easy at night knowing that they will never lose a penny more than they decide. So investors can now easily cap their downside risk, and leave the upside open-ended. It’s basically safety – taken to a whole new level.

Example : If an investor’s initial deposit for participation in a managed account is $100K USD, and they decide that they do not want to ever lose more than $10K USD, they can set their own personal kill switch (Stop Equity) at a value of $90k USD. So if account equity reaches as low as $90K their account will systematically be disconnected from our trading software service (called a PAMM), and any open trades will be closed. At this point they are disconnected and their funds are safe from incurring any further losses. They can then decide to join back in (or not) at their own discretion and on their own time frames.

Investors need to be realistic of course when setting this and allow for drawdowns to occur (Our Max. Drawdown is set at 25% of equity), as these are a normal and an inevitable part of trading. Setting these stop losses to tight on your account, means they may be triggered more often than they should be. Most investors set this at a value slightly higher than what we ever expect to encounter naturally and use it as a safety brake (and thus, hopefully it never actually gets triggered, ever). Some investors get clever with this, and use it as a “trailing stop” and increase or decrease it each month based on profit or losses incurred on their account over time. If investors need any help setting these, just let us know. We are here to help, and we provide general best practice guidelines on using this for each strategy to help keep your investment safe.

6.) What do you mean by the fact that we can Customize Our Own Risk? How is this possible?

Have you ever looked an an investment and thought “I like it, but it’s too conservative for my risk appetite, or alternatively, it’s too aggressive for my taste?” Investors participating with our Managed Forex Accounts, can now simply focus on a strategy’s risk-adjusted rate of return, and set their own risk level on their account to their own specific preference.

This is extremely valuable, as risk is like beauty … it is in the eye of the beholder! What we have learned over the years is that every person has their own unique perception of risk. What one person finds risky, another may not see as risky at all. This can depend on many factors such as age, experience, financial savings, investment amount, investment goals, and net worth. This can all impact ones perception of risk. Now, investors have the ability to customize any of our funds (using a multiplier) to their preference which best suits their own specific risk tolerance.

Example : if a client really likes a fund from a risk-adjusted return perspective, but wants it traded with more aggressive risk than what is traded by their fund manager at the default risk level, they can chose to set their account “Position Multiplier” to a value higher than 1, to receive trades at increased risk.

So an investor could set this at 2x (or double) risk for example. This means that for every trade a fund makes on its default account, you as an investor will receive it at double the risk and double the reward. This happens for every trade until changed (i.e., if a fund makes +2% in a month, you would make approximately +4%. Likewise if they lost -2%, you would lose approximately -4%). The monthly result is an approximation as the multiplier is set on a “per trade” level, so can compound throughout the month on higher frequency trading strategies.

Alternatively, if an investor prefers less risk, they can chose to set their account position multiplier to receive trades at a lower value, such as half risk (0.5x) for example. So if a fund made +5% in a month, you would then make +2.5% in this example. Likewise if it lost -5% in a month, you would only lose -2.5%.

Each client has the ability to set this per their own individual preference at any time and to any position multiplier they prefer (* within reason – being mindful of risk – please be careful not to get carried away and set these too high). If investors need any help setting these, just let us know. We are here to help, and we provide general best practice guidelines on using this for Onikami Capital strategy.

7.) Do you accept retail investors from the USA?

Under the US Dodd-Frank Act, unfortunately we cannot accept “retail” US resident clients. US persons are classed as this based on residency not citizenship. So US citizens residing outside of the USA are permitted. Clients resident in the US, who qualify as an ECP (Eligible Contract Participant) may also be accepted as applicants. An American ECP is essentially a “high net worth” or “sophisticated investor” generally having verifiable liquid investment capital in the amount of $5-$10M USD. This is unfortunate, as we have many great friends in the US, but it may change in the future should some of the restrictions around FIFO and hedging be lifted in the USA.

8.) What about us retail clients from all other countries globally? Can we invest?

For the most part – yes! This generally depends on our FCM’s and Broker’s policies. Generally speaking, clients from OFAC sanctioned countries cannot open accounts at most brokerages. A recent list of OFAC sanctioned countries includes… Afghanistan, Guinea Conakry, Sierra Leone, Botswana, Iran, Syria, Burma (Myanmar), Iraq, Togo, Cambodia, Lesotho, Yemen, Cote d’Ivoire (Ivory Coast), Liberia, Zimbabwe, Cuba, Libya, Tanzania, Democratic Republic of Congo, Mali, Bolivia, Niger, Angola, Gambia, North Korea, Kyrgyzstan, Belarus, Guinea Bissau, Senegal and Lebanon.

9.) OK, so what is a Managed Forex Account, what are the benefits, and how does it work?

The Managed Account structure is the best in the entire investment industry. Don’t let anyone tell you anything different. Most investment vehicles require you to send to your money away to someone, get limited access/transparency, and just hope for the best!

Not with a Managed Account. This is YOUR account! You simply give us permission to trade it for you by way of a signed LPOA / Limited Power of Attorney (which can be revoked at any time). Funds stay segregated in your own personal trading account(s) at all times, in your own name, at highly reputable and regulated Brokers. You remain in full control of your funds, in full control of your risk, and can close at any time and with no lock in periods!

What we are trying to say here, is that you keep the keys! Your investment is always fully secure, in your sole control, fully transparent, and liquid at all times. No other investment vehicle brings together so many favorable conditions for an investor.

10.) What is available to satisfy my due diligence before I invest in Onikami Capital Fund?

Please read through our trading program profile carefully. We have included as much information as humanly possible to make it easy for prospective investors to make an informed decision.

We offer detailed prospectuses, detailed performance analysis, 3rd party CPA audits, 3rd party analysis via social trading and verification utilities like Darwinex, and finally live forward trading results on real money. If there is anything more we can do, please contact us and we will be happy to help get you the comfort level you are looking for.

In our experience, many people coming from the traditional investment space often over-analyze alternatives, and do so improperly. We advise any paranoid or fearful investors who may interested not to invest if it provides any feelings of discomfort. This type of investment may not be suitable for all people.

The key points to remember is that your investment is always transparent, and liquid, and your risk can be restricted, and your risk level can be customized to your preference. Therefor your risk of loss is defined and “risk-limited” by yourself (you set this). There are no surprises.

Starting slow and dipping a toe in the water is always a smart approach, and we will never give high pressure sales tactics to any investor. Taking a disciplined approach to new investments is an intelligent plan. Smart investors focus their analysis on the data (performance and risk – most importantly the risk adjusted rate of return. Meaning how much risk is being assumed to generate said returns).

11.) Surely to generate above average returns, there is great risk involved. Is this correct?

Yes it is. It would be irresponsible for us to say otherwise. Because our Managed Forex Accounts are Alternative Investments, they carry a high level of risk and may not be suitable for all types of investors (please see our Risk Disclaimer for more information).

We believe the key to a successful investment is exposure to enough risk to generate a decent return, but not so much as to give rise to sleepless nights. A disciplined approach and utilization of risk management technology, restricts the risk and reduces the exposure to volatility in the marketplace.

Our Managed Forex Accounts have been designed to specifically mitigate against many different types of risk as efficiently as possible. We try to first and foremost clearly define, and then protect our downside risk, and leave the upside open ended on a best efforts basis. Rest assured though –risk is still present! So do not use money that your family needs, or money that is needed to pay your bills. We always advise investors to try to feel what it would be like if you encountered any of your worst case loss scenarios and ensure you will be OK with this, in the event that it happens. You need to find your ideal “risk vs. reward ratio” and comfort zone before investing with any type of investment, and Managed Forex is no exception to this. Be responsible with your allocations and don’t be greedy.

12.) What can I expect once I am invested in your fund?

You can expect to see a combination of both winning and losing days, and winning and losing months. This is normal. Usually our winning months out number our losing months (or are bigger than the losing months) over the span of a year (this is our objective), but obviously there are no guarantees, and obviously we do have to contend with losing months.

This makes it tricky to “time the market” in terms of a good time to participate. Those who dive in, start early, and let their funds compound over time and from month to month stand the greatest chance of success. In our experience investors who try to time the market or jump from one shiny object to another chasing gains and running away from losses are doomed! Have the conviction to stick to your plan in the best and worst of performance times.

You can also expect regular updates and commentary on our fund. You can expect recommendations from us on portfolio adjustments. You can expect full transparency and prompt communication.

13.) How Onikami Capital make money?

We charge a monthly performance fee and only make money if investors make money. Simple. Transparent. Fair. We use this model because we keep our costs down and have confidence that our programs will make money over the long term.

Our operating costs are reduced highly vs. traditional managers as we exist globally and online, which helps to streamline our compliance, negates the need for branch visits, and increases our ability to provide global coverage and fast and efficient support. This also means we don’t set up shop in expensive ivory towers on Wall Street or Canary Row. We don’t advertise on yachts or sponsor football teams. We focus on substance and instead pass these savings on to clients under this business model.

14.) What exactly is an “incentive fee” or “performance fee” on returns received of “New High Water Mark” profits?

The High Water Mark is truly a measure designed explicitly as an investor-friendly provision that essentially prevents a manager from taking a performance fee on the same gains more than once. Simply put, it ensures that investment managers and advisors are not making profits unless their clients are. We simply can’t think of a fee structure that is more aligned with client interests than that.

High Water Mark Incentive Fees are paid ONLY on NET new rises in asset value. If a temporary decline occurs, it must be recouped before new incentive fees are paid. Thus – profits come first, fees come afterwards.

Example how it works…

1.) When a Client deposits their initial funds, that balance becomes the first High Water Mark (HWM). In this example the Client deposits € 100,000 EUR.

2.) After 1 month the Trader/Advisor produces 10% in gross profit (for easy rounding in this example) which brings the Client account up to a gross value of € 110,000 EUR.

3.) € 110,000 EUR in equity, minus the last HWM (€ 100,000 EUR) = € 10,000 EUR in new profit.

4.) In this example the Performance Fee is 20%. So 20% of € 10,000 EUR new profit is € 2,000 EUR Performance Fee (PF) which is payable to the Trader/Advisor.

5.) After paying € 2,000 EUR Performance Fee to the Trader/Advisor, the Client retains € 8,000 EUR of the profit. His account balance after paying the Performance Fee is € 108,000 EUR, which is then reset as the new High Water Mark for the following month. There will be no more fees charged to the client if the balance declines in value. Only if the trader/advisor makes profits and brings the account higher than the new High Water Mark of € 108,000 EUR.

15.) How do I know the results you publish are real?

We are always transparent in the results we publish and will never publish a result without the proper disclosures explaining how it was generated (i.e.,  live, demo, historic, or something different).  That said, we do not expect any person to “take our word for it” as trust is something that must be earned.

Our core funds typically undergo 3rd party CPA audits and/or 3rd party software verifications. In the latter case, we rely on technology again and have started to use 3rd party social trading and verification utilities for our products, which have been phenomenal in their relevance. These include Darwinex primarily. These are excellent utilities that verify the authenticity of trading performances, and that also update trading performance live in real time, all while providing some very rich and detailed statistics and analysis tools. Investors love these as a way to follow and track performance and get easy and quick on-demand access to comprehensive statistics. In our opinion these are much better than a CPA audit, however we often do both, to satisfy both the old schoolers and new schoolers alike.

16.) Where are the Brokerage that I must open my accounts at?

Our programs are offered at  strong and reputable brokerages typically domiciled in the UK, Offshore, and Australia but all of which generally service a global client base. Our brokers provide us with the perfect mix of features, liquidity, technology, security, and safety. The top two brokers we trade at are Mt.Cook Financial and Darwinex. We have no desire to trade elsewhere at the moment as we are extremely happy with our partner brokerages – so please no external brokerage requests.

17.) Is My Personal Information Safe and Private With You?

We are firm advocates of respecting, practicing, and teaching privacy. All client information is stored digitally in an online encrypted secure storage vault, with backups stored in another private data facility as well. All information is kept 100% PRIVATE AND CONFIDENTIAL – Please read our Privacy Policy for more details.

18.) How can I arrange a meeting with a representative of Onikami Capital?

If you are located in Portugal simply contact us with a suitable time and location. Alternatively, we’re happy to fly to you to arrange a meeting (wholesale clients only).

Couldn’t find what you are looking for? Get in touch with us.

We will add your Qs to the list, if not already on here!

We respect your privacy and 100% guarantee your information will never be shared.

In the foreign exchange market, we work relentlessly to uncover and capture new opportunities. Across a diverse range of investment strategies, we deploy our capital with the goal of generating industry leading investment results for our investors and capital partners.

© Copyright 2018 Onikami Capital. All Rights Reserved

Trusted Partners

Any information or advice contained on this website is general in nature only and does not constitute personal or investment advice. Before acting on any information on this website, you should consider the appropriateness of it (and any relevant product) having regard to your circumstances and you should carefully read and review the PDS of the relevant financial product as provided before acquiring the product. All securities and financial products or instruments transactions involve risks. Please remember that the past performance results are not necessarily indicative of future results. Trading derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. The information on this site may be accessed worldwide however it is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. Onikami Capital is not registered with any US regulator including the National Futures Association (“NFA”) and Commodity Futures Trading Commission (“CFTC”) therefore products and services offered on this website are not intended for RETAIL clients who are Resident (living) in the USA as account holders. USA account holders are only accepted on a conditional basis should they qualify as an ECP (Eligible Contract Participant). An ECP is essentially a high net worth or professional/accredited investor.