How the fees of a managed programme work
A package can carry two fees: a management fee, charged on the capital you put under the mandate whether or not there is a profit, and a performance fee, charged only on profit above your high water mark. Each package states its own two rates before you join.
What one month costs
| Fee | How it is worked out | Amount |
|---|---|---|
| Management fee | 1% a year on 5,000.00, for 30 of 365 days. Charged whether or not there is a profit. | 4.11 |
| Performance fee | 20% of the profit of 500.00. This example month starts exactly at your high water mark, so the whole profit is above it. | 100.00 |
| All fees | The two together. | 104.11 |
| Your result after fees | The month's result less all fees. | 395.89 |
The high water mark
Your high water mark is the highest total result your copy has reached. A performance fee is charged only on the part of a month's result that lifts your total above the mark. After a loss, the profit that only brings you back to the mark is not charged again.
| Month | Result | Total so far | Mark before | Charged on | Performance fee | Mark after | Why |
|---|---|---|---|---|---|---|---|
| 1 | 500.00 | 500.00 | 0.00 | 500.00 | 100.00 | 500.00 | The total is above the mark by 500.00. |
| 2 | -300.00 | 200.00 | 500.00 | 0.00 | 0.00 | 500.00 | A loss: no fee, and the mark stays. |
| 3 | 300.00 | 500.00 | 500.00 | 0.00 | 0.00 | 500.00 | A profit, but the total is still at or below the mark: no fee. |
| 4 | 300.00 | 800.00 | 500.00 | 300.00 | 60.00 | 800.00 | The total is above the mark by 300.00. |
The performance fee here is 20%, the rate typed above. The results are those of closed trades, each with its commission and swap, and fees are worked out once a month.
The high water mark is a rule about fees. It does not protect you from a loss.
How a programme sizes a trade →
Trust Scores describe past, verified behaviour and conduct. They are not a prediction of future results or a recommendation to trade. Trading carries a substantial risk of loss; only trade with capital you can afford to lose.