[Pharaoh]

Those actually sound like very reasonable terms. Since the payments are handled externally to the account and you chose your own broker, there's no significant risk of fraud from the manager's side.

I would still want to see his performance over an extended period, and to discuss risk management and other issues first. Some traders are capable of amazing returns 80% of the time. The other 20% of the time, they end up with a margin call.

I would also want to have a better understanding of the whole ZuluTrade operation. Do they act as IBs in this case? If so, that would result in some limitations on the range of brokers, and would give them at least some motivation towards recommending managers with a tendency to overtrade. I don't know enough about them to know if they would give in to such temptation or not.