Who sets the performance fee?
The CopyMate leader sets the performance fee for each strategy. Copiers see and agree to the fee before they begin copying. A leader may set the fee to 0%.
Can a leader charge different copiers different fees?
Each strategy has one current performance fee for new copiers. Existing copiers may remain on the fee they originally accepted.
What happens if a leader changes the fee?
A fee change does not automatically update existing copier agreements. The new rate applies to new copiers. To move to the new rate, an existing copier must stop copying and subscribe again, then accept a new agreement showing the updated fee.
| Event | Performance fee |
|---|---|
| Copier starts copying | 50% |
| Leader later changes the strategy fee | 0% |
| Existing copier keeps copying | Remains on 50% |
| Existing copier stops and subscribes again | Accepts a new agreement at 0% |
Can a leader offer strategies with different fees?
Yes. A leader can connect multiple MT5 accounts and list them as separate strategies. Each strategy may have its own performance fee, but a single strategy cannot offer different current rates to different new copiers.
How is a performance fee calculated?
The fee is calculated as a percentage of eligible profit generated by the copied strategy. The calculation considers closed trades and open positions and is subject to a high watermark.
In brief: first combine the strategy's realised profit or loss from closed trades with the unrealised profit or loss on its open positions. Next, compare that result with the strategy's previous high watermark. Only new eligible profit above the high watermark is fee-bearing. The performance fee is the agreed fee percentage multiplied by that eligible profit.
Performance fee = agreed fee rate × eligible profit above the high watermark.
What is a high watermark?
The high watermark is the strategy's previous profit benchmark. A new performance fee is charged only when eligible profit moves above that benchmark. After a loss, the strategy must first recover the loss before another fee becomes payable.
Are open positions included?
Yes. Open positions are considered when calculating the fee. If closed trades are profitable but open positions are in drawdown, the fee may be reduced. The deferred amount may become payable in a later calculation period if the open losses recover and the profit is eligible above the high watermark.
Worked example
Assume the performance fee is 30%. Closed trades have made $100, while open positions show a $50 loss. Current eligible profit is therefore $50, so the performance fee is $15 (30% of $50).
The additional $15 that would have applied if the full $100 closed profit were eligible is deferred. It may become payable later if the open loss recovers and the profit remains eligible under the high-watermark calculation.
What happens after a losing period?
No new performance fee is charged until the strategy has recovered its previous losses and produced additional eligible profit above the high watermark.
Are different strategies combined?
No. Each copied strategy is calculated separately. A loss on one strategy does not reduce the performance fee owed on another profitable strategy, and results are not combined using the copier's overall trading-account profit or loss.
How often are fees calculated?
The calculation schedule depends on the broker and may be instant, daily, weekly or monthly. Performance fees are charged in arrears under the broker's applicable schedule.
Where can I see the fee?
The fee and its terms are shown before you start copying a strategy. The copier also receives an agreement confirming the accepted performance fee.
What happens if I stop copying or close my account?
Any performance fee owed up to the point of closure may be calculated and deducted before the remaining balance is returned.