Social Trading Performance Fee Explained
The Social Trading performance fee is a payment that investors make to Signal Providers when their investments generate profits. Within the Social Trading system, Signal Providers establish a predetermined performance fee rate, which determines the percentage of profits that investors will share with them for successfully copied strategies.
How Performance Fees Work
Example: If an investor earns a profit of 2,000 USD on their investment and the Signal Provider has set a performance fee rate of 25%, the investor will be charged 500 USD as a performance fee, which is transferred to the Signal Provider.
Collection and Management
Performance fees are automatically credited to a dedicated investment wallet that is created in the Signal Provider's Client Portal specifically for this purpose. Once these funds are credited, Signal Providers can:
Use them for trading
Withdraw them
Transfer them to other accounts
Adjusting Performance Fee Rates
Signal Providers have the flexibility to adjust their performance fee rates over time. However, it's important to note that any changes to the performance fee rate will only apply to newly opened investments after the change. All existing investments will continue with the performance fee rate that was in effect when they were initially opened.
This transparent fee structure ensures that both investors and Signal Providers have clear expectations regarding profit sharing arrangements in the Social Trading ecosystem.
For additional assistance with performance fees, please submit a ticket through our Service Hub, contact us via Live Chat, or email [email protected].