Fees
Index Options Program
Our normal fee structure for the "Index Option" program is graduated based on account size and we do not insist on our clients paying a management fee. Our incentive fee is 30% for accounts under $100K, 25% for accounts between $100K and $250K, and 20% for accounts over $250K.
If a client prefers to pay a management fee the incentive fee will be reduced by 2.5% for each 1% of management fee that is charged. The incentive fee is calculated monthly on the new open and closed profits for the month that exceed the high water mark for the account. Management fees, if any apply, will be calculated on the month end liquidating value of the account and will be invoiced directly to the Futures Commission Merchant (FCM) on a monthly basis.
Diversified Option Program
Our normal fee structure for the "Diversified Option Program" 0% management fee and 25% incentive fee. If a client prefers to pay a management fee the incentive fee will be reduced by 2.5% for each 1% of management fee that is charged. The incentive fee is calculated monthly on the new open and closed profits for the month that exceed the high water mark for the account. Management fees, if any apply, will be calculated on the month end liquidating value of the account and will be invoiced directly to the Futures Commission Merchant (FCM) on a monthly basis.
Investment Management Agreement
In order for Zenith Resources to manage a clients' funds, the client must establish an account with an FCM. If the client has an existing relationship with an Introducing Broker, we will strive to work with the broker and their affiliated FCM. In order for Zenith Resources to manage a clients' account, the client and Zenith Resources have to complete and sign the Investment Management Agreement, acknowledgement of receipt of disclosure document and give-up agreement forms, which are located at the end of the disclosure document.
Direct Clients
Zenith Resources is dually registered with the CFTC as a commodity trading advisor and introducing broker. If you do not have an existing relationship with an introducing broker and would like to open an account, Zenith Resources can assist you with all of the necessary account forms and paperwork. If you have an interest in setting up an account, please contact us and we will be glad to send out a highlighted and easy to understand set of account forms to fit your needs. Various types of accounts can be opened such as; individual, joint, partnerships, corporate, limited liability corporations, trusts and self directed IRA accounts.
Self Directed IRA Accounts
Zenith Resources accepts self-directed IRA accounts. Clients, who require a self-directed IRA futures account, will need to set up an account with Millennium Trust in Oak Brook, Illinois. We will be glad to help a client complete the additional paperwork necessary to establish an account with Millennium Trust.
Tax Benefits of a Futures Account
Due to an agreement between the U. S. Treasury Department and Congress, all gains earned from futures trades are taxed as if they were made up of 60% long term capital gains and 40% short term capital gains. This means that 60% of the gains are considered long term capital gains and are subject to a maximum federal income tax of only 15%, compared to the short term capital gains which are subject to a top tax rate of 38%. The net after tax results for gains made in futures and options on futures trading can be significantly higher for those clients who are in the upper U.S. income tax brackets. You should consult your tax advisor before investing.
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