From trader to trusted account manager · Lesson 3 of 4
A clear agreement and fees
7 min
Why a written agreement
Disputes between managers and investors are rarely about profit; they are about what was never made clear: the fee percentage, when it is calculated, the exit conditions. A written agreement protects both sides.
The minimum clauses
| Clause | Example |
|---|---|
| Method and account | A specific MAM account with a specific broker |
| Performance fee | Thirty percent of profit, monthly, with a high-water mark |
| Risk ceiling | A target maximum drawdown of twenty percent; immediate notice if it is crossed |
| Exit | The investor may leave at any time; fees settled up to that day |
| Reporting | Permanent access to the account page and the monthly record |
Fees with a high-water mark
Charge fees only on profit that takes the account above its previous peak. The rule shows that your interests and the investor's point the same way. On PAMM Iran you can register a fee agreement so that calculation and invoicing are automatic and transparent.
A warning
Taking investor money into a personal card, even with good intentions, destroys trust and carries legal risk. The money should stay in the investor's own account with the broker.
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