Copy trading fees

Copy trading uses a performance fee model: strategy providers earn only when their investors earn. If you are new to it, start with What copy trading is.

The performance fee

• Each provider sets their own fee, anywhere from 0% to 60% of the profit generated on your invested amount.
• It is charged on profits only. If a strategy loses money, you pay no performance fee.
• It is shown clearly on every strategy card before you invest.

The high water mark

Performance fees are charged only on new profit above the highest value your investment has previously reached. If your allocation falls and then recovers, you do not pay again on the recovery, only on gains beyond the previous peak.

When fees are charged

Each provider chooses a billing period for their strategy: daily, weekly, every two weeks, monthly, quarterly, twice a year or annually. You see the billing period and agree to it when you subscribe, and the fee is calculated and charged at the end of each period.

Other costs

• Normal trading costs still apply. Copied trades carry the same spreads, commissions and swaps as any other trade on your account type.
• Subscription fee. Some providers also charge a fixed fee independent of performance. Like the performance fee, it is shown on the strategy card before you subscribe.

A worked example

You invest 1,000 US dollars in a strategy with a 20% performance fee and a monthly billing period. Over the month your allocation grows to 1,150, a profit of 150. The provider earns 30, which is 20% of 150, and your net profit is 120.

If the next month ends at 1,100, no fee is charged, because your investment is below its previous peak of 1,150.