Payments for Performance Fee and Equity to Equity Ratio

Created at 13 Sep 2020, 02:14
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dani20102015

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Joined 13.09.2020

Payments for Performance Fee and Equity to Equity Ratio
13 Sep 2020, 02:14

Dear members

I hope you find well.

I want to confirm the following information:

Payments for Performance Fee

I would like to use the Copy Trading Ctrader Service and charge only Performance Fee.

I understand that every last day of the month is paid a performance fee to the Strategy Provider. This means that me as the Strategy Provider will get paid in monthly basis, the last day of the month. So If I have win all days and opened 100 operations in the whole month, then the all the fees will be paid in the last day.

Now, who is actually making the payment? I mean, I know investors pays but legally, are you or the broker that sends the monies to me? 

Finally, what happens when Investor stop the copy process but month has not ended yet? Will the Strategy Provider get their perfomance fee as well? 

Equity to Equity Ratio

As I understand, the copy process is taking into account the Investor's and Strategy Provider's Equity and the trading volume will be calculated automatically for the Investor.

This means that all investors will be automatically trading right? and they will also have can get a Trading History that they were trading but following another person. 

Now, let's assume that Strategy Provider (SP) has an equity of 10 Million and Investor (INV) 10 Million as well. Now SP opens today a trade of 100 lots, does this means that INV also open a 100 lot as well, right? And what about if there are 5 investors with 10 Million Equity? Does this means that SP + 5 investors will be 600 lots all together right? 

Thank you so much for reading and answering. 

@dani20102015
Replies

PanagiotisCharalampous
14 Sep 2020, 08:32

Hi dani20102015,

See below the answers to your questions

I understand that every last day of the month is paid a performance fee to the Strategy Provider. This means that me as the Strategy Provider will get paid in monthly basis, the last day of the month. So If I have win all days and opened 100 operations in the whole month, then the all the fees will be paid in the last day.

This is not correct. Fees are paid one month after the follower has started following your strategy and not at the end of the calendar month. If your followers started following you on different days, then you will receive fees on different days.

Now, who is actually making the payment? I mean, I know investors pays but legally, are you or the broker that sends the monies to me?  

The payment is made by your broker.

 Finally, what happens when Investor stop the copy process but month has not ended yet? Will the Strategy Provider get their perfomance fee as well? 

You will receive the fees up that moment.

 This means that all investors will be automatically trading right? and they will also have can get a Trading History that they were trading but following another person. 

Correct

 Now, let's assume that Strategy Provider (SP) has an equity of 10 Million and Investor (INV) 10 Million as well. Now SP opens today a trade of 100 lots, does this means that INV also open a 100 lot as well, right? And what about if there are 5 investors with 10 Million Equity? Does this means that SP + 5 investors will be 600 lots all together right? 

Correct

 

Best Regards,

Panagiotis 

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@PanagiotisCharalampous
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