In Social Trading, performance fees are charges applied when a strategy provider earns profits for their followers. These fees reward successful traders for their expertise and are usually calculated as a percentage of the profit made. This article explains what performance fees are, how they work, and what you need to know before following or providing a strategy.
Strategy Profit is calculated based on High-Water Mark (HWM) rule which means it takes into account previous Trading results of a subscription. Fees are charged only for profitable trades and if the trade results in a loss, the performance fee calculation will be skipped.
A provider can specify the performance fee in the Offer settings:
- Performance Fee: is specified as a percentage of profitable trading results. It can be from 0% to 70%.
- Performance Fee Period: Daily, Weekly, Monthly
As a follower, you can see the performance fee deduction in the History tab of your follower’s account on MetaTrader (the account you use to log in to the Social Trading Platform).
To view it:
Go to the History tab.
Right-click anywhere in the tab and select Comment to enable the comment column.
The PerFee you see is the performance fee that is automatically deducted and sent to the provider.