Some important questions about Autotrading with c2

I have some questions about Autotrading and collective2. Please note I only wish to Autotrade.



I am an Australian resident. Is any tax deducted from my trading account(s) by your local authorities or is how I handle tax left up to me?



How do I allocate my funds to one trading system or another? Also if I change my allocations, how fast are they updated. Eg are current positions in one trading system closed in order to transfer funds to another system?



How do I know what the minimum funds are that are assignable to a given system to allow the system to operate properly and with the same risk profile as in the simulated example on the website. Eg some forex brokers require trading in specific lot sizes (while others don’t) which may or may not be compatible with my account size. Will I be advised if I attempt to allocate too little funds to a trading system than are required for it to operate properly?



Certain combinations of trading systems will require me to have accounts with more than one broker since no one broker handles all markets. How exactly does this work? Do I deposit all my funds directly to an account held with collective2 from which collective2 transfers funds as necessary to various brokers? If not this, then how does it work?



There is a choice of more than one broker for certain market types. Is it my responsibility to research the commissions/spreads of various brokers or do you publish a comparison so I can easily choose the one with the best rates?



Thanks

Answers to your questions:



I am not an accountant, or a lawyer, but I can answer that - as far as I know - taxes are not removed by brokers. It is your responsibility to report and pay your taxes to Australian authorities.



You can allocate funds between systems by simply logging into C2’s AutotTrade Setup page and modifying the “scaling percentage” allocated to each system that is turned on for AutoTrading, and/or removing systems or adding them.



The updated allocations are reflected quite quickly within your brokerage account: for Generation 2 Autotrading, usually within minutes.



Yes, C2 automatically warns you if you attempt to allocate too small an amount to a given system.



C2 is not a broker. All funds are held by you, and deposited in a brokerage account in your name. You are responsible for opening the account, funding it, etc. C2 and its AutoTrading technology affiliates do not touch your funds or have access to them.



Yes, you are required to research which broker you want to use. Obviously, to use C2 AutoTrading, the broker needs to be C2-compatible.

Thanks Matthew for such good answers.



So just to clarify one point, if for example I have use 2 forex systems that require one broker and 2 futures systems that require another broker, then I will be transferring funds from my bank account to these to broker accounts myself. Let’s say I had $100K with each broker, any changes to scaling between the 2 futures systems I was using could be accomplished via your website, but if I wanted to adjust the scaling between futures and forex overall, then I would have to transfer funds from one broker to another first. Have I got all that right?

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That’s correct.



The way to think about it is: You are responsible for moving money into a broker account or out of a broker account (because, indeed, it is your broker account, and no one but you can access your funds).



Once the money is in your account, however, you can tell C2 how you want to allocate trading within your account – that is, what percentage of the account to allocate to each trading system.