Frequently Asked Questions

Do you have a question about futures trading, commodities or forex markets? Needing help with understanding Commodity Trade Advisor and introducing-broker relationship? Ask Wisdom Financial for help using the form below…

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Q&A

Who are Commodity trading advisors?
Commodity Trading Advisors, also known as CTAs, are a type of professional trader/money manager. They are typically registered with the National Futures Association and give advice regarding the buying and selling of futures or options contracts.

Who should invest in managed futures?
Managed futures are not appropriate for everyone. A determination must be made as to a particular investor’s suitability, at which point the investor will be provided with all of the necessary information to make sure he or she understands both the risks and possible rewards of this type of investing. Generally, in addition to having the required risk capital, an investor needs to have realistic expectations about returns on investment and tolerance to temporary drawdowns that inevitably will occur with managed futures products.

Are there special risks associated with managed futures?
Yes. Managed futures investing carries specific risks. In particular, it is important to understand that the high degree of leverage often obtainable in commodity trading, can work against an investor as well as benefit an investor. The use of leverage can lead to large losses as well as gains. In some cases, managed futures accounts are also subject to substantial charges for management and advisory fees. There are many other risks to consider with trading in the commodity markets. Investors should carefully study the disclosure document of the CTA before making any investment in a managed futures product.

How do I open an account with a new fund or CTA?
To open a new account with a fund or Commodity Trading Advisor contact a Wisdom Financial Account Executive at 800-854-8203 to ensure that the product is appropriate to your risk tolerance, investment goals, and investment experience. If suitable, your account executive will provide you with the necessary disclosure documents and account applications to establish the account.

How do I track the performance of my Wisdom Financial account?
For up to date information, you have several options for managing your accounts. Through a strategic partner, Altegris Investments, you have full access to Altegris Net, a powerful application that provides superior account transparency, record keeping, and performance analysis. In addition, you will receive statements via email and have access to an online record keeping system for daily and monthly statements.

How do I transfer an account to Wisdom Financial?
Transferring a self directed futures account or managed futures account to Wisdom Financial is quick and easy. In most cases a new account form and account transfer form will be required to facilitate the transfer. Once complete, your Wisdom Financial account executive will process the transfer on your behalf. In most cases you can keep your existing positions and T-bills in the account through the process. Your Wisdom Financial account executive can assure that you do not incur any down time from the markets during this process.