Frequently Asked Questions (FAQ)
Below you will find answers to the most frequently asked questions.
- 1Q: Who is Three Lakes Trading Company?
- 2Q: Who is ADMIS?
- 3Q: Where is my money held?
- 4Q: How often do I receive statements?
- 5Q: How can I keep track of the value of my account?
- 6Q: What information is provided to me for preparation of taxes?
- 7Q: What type of accounts do you accept?
- 8Q: Does my commission rate include exchange, clearing and any other nominal fees?
- 9Q: Do your trading platforms have monthly maintenance fees?
- 10Q: Can I use IRA or retirement assets to fund my account?
- 11Q: What are Managed Futures?
- 12Q: Can I have more than one CTA?
- 13Q: How do I open a futures IRA account?
- 14Q: Are gains and appreciation tax deferred in my futures IRA?
- 15Q: How do I figure out how many futures contracts I could buy?
- 16Q: If I find a CTA through my own research that you don’t sponsor, can Iopen and hold my account with you and have the CTA trade it withThree Lakes Trading?
- 17Q: Does my money earn interest?
- 18Q: How do I move money in and out of my account?
1Q: Who is Three Lakes Trading Company?
A: Three Lakes Trading Company Inc., is a guaranteed introducing broker of ADM Investor Services Inc. Three Lakes is also a member of the NFA and has been registered with the CFTC since August 2004..
2Q: Who is ADM Investor Services (“ADMIS”)?
A: ADMIS is the Futures Commission Merchant, clearing broker, for Three Lakes Trading Company that holds customer funds in a customer segregated account, clears trades, provides trading platforms, prints trade confirmation and monthly statements along with the 1099B tax forms after year end and provides account login for customers with open accounts. See more about ADMIS.
A: The monies in your commodity asset accounts are held in a Customer Segregated Funds account with ADMIS.
4Q: How often do I receive statements?
A: You will receive a confirmation statement each time a trade is transacted in your account (with a detailed summary of all holdings, commissions and fees), plus you will receive a regular monthly statement with activity and asset summaries. Both of these statements can be downloaded and viewed online, as well as emailed or mailed to you directly. Note that there may be a postage and processing fee for mailed statements.
5Q: How can I keep track of the value of my account?
A: You can track the value of your account 24 hours a day, 7 days a week through ADMIS’s member 1st customer portal which has many features such as live balances, activity, cash history, statements and positions.
6Q: What information is provided to me for preparation of taxes?
A: Around the last week in January, ADMIS will mail you a 1099 tax statement that itemizes your gains and losses for the preceding year. This form may also be downloaded on the Members 1st portal when you log in to your account.
7Q: What type of accounts do you accept?
A: Three Lakes Trading will accept the following account types: Individual , Joint Tenants with Right of Survivorship (JTWROS), Joint Tenants in Common (JTIC), Corporate , Partnership , Limited Liability Company, Trust, Foundation, Hedge , Custodial, IRA, ROTH, SEP, Profit Sharing Plans. For other types of accounts not listed here, please call us to inquire.
8Q: Does my commission rate include exchange, clearing and any other nominal fees?
A: No. All fees are itemized. Three Lakes Advisors will inform you of what your commission rate will be per futures and options contract. Additional fees such as regulatory, exchange, routing, clearing and other nominal fees will be added separately per trade and are subject to change without notice.
9Q: Do your trading platforms have monthly maintenance fees?
A: Platform prices are dependent on the platform and level of service selected. Our free platform is OAK WEB and OAK DESKTOP. For more information on the platforms visit PLATFORMS.
10Q: Can I use IRA or retirement assets to fund my account?
A: Yes. As long as an account is properly set up with Millennium Trust Company or another approved IRA Custodian. The money is transferred and deposited with the IRA Custodian and then they will send ADMIS the money to be invested. ADMIS will send the IRA Custodian monthly statements for proper reporting. Significant fees may be associated with a Custodial IRA account.
11Q: Can I have some more information on Managed Futures?
A: Managed Futures refers to having your account managed by a Commodity Trading Advisor, who accepts the responsibility for determining what trades to make and at what time, including discretionary authority for the direct trading of your account pursuant to their specific trading program. In this sense, the advisor is the account “manager”. Please visit our Managed Futures section of our site for more info.
12Q: Can I have more than one CTA?
A: Yes. Each CTA will require a separate account or a master account with sub accounts for each CTA which is allocated a trading size. The recommended method is to have separate accounts so you can track each manager’s margin usage, profit/loss and balances vs. having sub accounts for each CTA linked to a main cash account. For example, if you have 3 CTAs managing a portion of your portfolio, than you will have 3 separate account numbers. Only one ADMIS application needs to be signed for all, but for each additional CTA you hire, you will need to sign a one page second account request form and their respective Disclosure and POA Documents must be signed and completed.
13Q: How do I open a futures IRA account?
A: You must fill out the Millennium Trust IRA application located on our “Forms” section of the site. All forms must be completed including transfer forms. Once you fund your IRA at Millennium, you will direct how much for Millennium to send to your futures account.
14Q: Are gains and appreciation tax deferred in my futures IRA?
A: Yes. All IRA and retirement accounts are treated the same regardless of the assets held inside your IRA account. The money in your Traditional IRA or SEP grows tax deferred, until you make withdrawals, which then get taxed as ordinary income. Since ROTH IRA accounts are funded with after tax dollars, the money also grows tax deferred, but any withdrawals come out tax-free. You should consult with your tax advisor to confirm the tax treatment of your retirement account.
15Q: How do I figure out how many futures contracts I could buy?
A: Many factors go into making these decisions and your Three Lakes Broker is available to assist you on a case by case basis.
16Q: If I find a CTA through my own research that you don’t recommend, can I open and hold my account with you and have the CTA trade it with Three Lakes Trading?
A: Yes, as long as it’s approved by ADMIS’ compliance department. In addition to the ADMIS Account Application, all you need to do is provide us with a signed disclosure document and the Limited POA pages (found in our forms section). We will verify that the CTA is properly registered with the CFTC as a Commodity Trading Advisor, a member of the NFA, and has a current disclosure document and advisor agreement. ADMIS will need a copy of the CTA’s current disclosure document and the NFA acceptance letter associated with that document.
17Q: Does my money earn interest?
A: No. Commodity accounts do not earn interest. Most investors do not open commodity accounts for income and interest. They participate for hedging or speculative trading.
18Q: How do I move money in and out of my account?
A: ADMIS will accept personal checks, corporate checks or wire transfers. Funds must be drawn from an account in the exact name and with the same tax ID as the commodity account. ADMIS will not accept third party checks, cash or money orders. For withdrawals, ADMIS can send a check, or transfer the funds via a wire. Three Lakes Advisors can initiate your request through ADMIS Cash Manager.
If you have any further questions, please email us at firstname.lastname@example.org and we will gladly answer it and consider adding it to the FAQ’s section of our site.
Past performance is not indicative of future results. Trading futures and options involves substantial risk of loss and is not suitable for all investors.