If you’re thinking about becoming a PAMM Manager or investing in a PAMM account, understanding fees is essential. These charges - like performance fees and management fees - determine how managers earn and how investors pay. This article gives you a quick overview of the most common PAMM fees and what they mean for you.
Performance Fee
Performance Fee is a commission charged from the Investor's account for received profit. This commission is also known as Profit Sharing.
Performance fee can be charged:
- On Payment period (can be set Daily, Weekly, Monthly and Quarterly)
- at the moment of disconnection
- by Administrator manually
Performance Fee is calculated according to the following principles:
- Commission is charged only for profit received from current Investor's MM
- Commission is not charged for profit that has already been charged
- Commission is not charged for loss
To secure a charged profit Performance Fee is calculated according to the High-water mark (HWM) principle.
Management Fee
Management Fee is the commission charged each time Investor transfers his funds to management of the Money Manager.
Commissions are charged at the moment of:
- connection to MM (from the Investor's balance)
- deposit if Investor is already connected to MM (from the amount of deposit)
Annual Management Fee
Annual Management Fee is a commission charged for management of Investors' funds as a monthly subscription. Commission is calculated as an annual percentage.
Annual Management Fee is charged:
- every month on a set date
- at the moment of disconnection from MM
- at the moment of withdrawal (if option to Charge PAMM fees before the withdrawal is enabled)
Per Lot/ Per Deal Fee
Per lot/ Deal Fee is a commission charged for any executed orders. The commissions Per lot charges a fixed amount for each lot received in the order. The commission Per deal charges a fixed amount for order and doesn't depend on traded volumes.
Commission Detail:
- Commission is charged instantly as order is closed.
- Commission is charged from the value of the order.