A Performance Fee (PMF) is a fee paid by a follower to the Signal Provider when the follower generates eligible trading profits from copied trades.
The PMF is calculated based on the follower's trading performance and the applicable High-Water Mark (HWM). The fee is automatically settled at the end of the applicable trading interval when the relevant conditions are met.
Who sets the Performance Fee rate
- The Signal Provider sets the Performance Fee (PMF) rate within the permitted range.
- The applicable Performance Fee rate is displayed in the provider’s offer when you subscribe.
- This Performance Fee rate applies to eligible profits from copied trades.
What Profit Is Used for the PMF (Performance Fee) Calculation
The PMF (Performance Fee) calculation takes into account the follower's trading performance, including both realised and floating PnL where applicable.
Term | Meaning |
|---|---|
Realised profit and loss (PnL) | Profit or loss from copied positions that have been closed. |
Floating profit and loss (PnL) | Profit or loss from copied positions that remain open at the end of the applicable trading interval. |
The resulting trading performance is then compared with the follower's previous High-Water Mark (HWM).
Trading costs, such as spread, commission, and swap, are reflected in the trading result used for the PMF (Performance Fee) calculation.
What Is a High-Water Mark (HWM)
The HWM (High-Water Mark) is the highest eligible trading performance previously achieved under the follower’s subscription.
- A PMF is generated only when eligible performance exceeds the previous HWM.(High-Water Mark)
- Previous losses must be recovered before a new fee can be generated.
- Each follower has an independent HWM. (High-Water Mark)
- Floating PnL, including floating losses at settlement, is included in the HWM(High-Water Mark) calculation.
When Is the Performance Fee Deducted
The PMF(Performance Fee) is settled at the end of the applicable trading interval.
The applicable settlement frequency depends on the configuration of the offer. For example:
- For a Weekly interval, the trading period runs from Sunday to Saturday.
- PMF (Performance Fee) is settled based on the applicable system calculation at the end of each trading interval.
- Certain account activities, such as withdrawals or subscription cancellation, may trigger PMF Performance Fee) settlement based on the applicable system logic.
- Any PMF (Performance Fee) charged is recorded separately in the follower's account history.
How do trading results affect your performance fee?
- Individual High-Water Mark: Each follower has a separate High-Water Mark (HWM). Different subscription times may lead to different performance fee results, even when following the same provider.
- Floating profit or loss: Unrealised results from open copied positions, including floating losses, are included in the HWM calculation at settlement.
- Recovery of previous losses: A new performance fee is generated only when your results exceed your previous HWM. Previous losses must first be recovered.
- Differences from the provider: Account type, account currency, trading server, execution prices, and copied positions can cause your trading results and performance fee to differ from the provider’s.
How do withdrawals and unsubscribing affect fee settlement?
- Withdrawing funds: If you withdraw during a trading interval, the applicable performance fee is calculated using your trading performance up to the withdrawal point.
- Unsubscribing: Cancelling your subscription does not cancel applicable performance fees generated before cancellation. These fees may still be settled.
Risk Warning
Copy trading involves trading CFDs, which are complex instruments and carry a high risk of losing money rapidly due to leverage. You should ensure that you fully understand the risks involved before trading.
The information provided on this website is for general information purposes only and does not constitute investment advice, a recommendation, or an offer or solicitation to buy or sell any financial instrument.