Guide to cTrader copy trading fees
On the cTrader platform, managing fees is essential for both strategy providers and copy traders. This guide will help you understand the fee structures associated with copy trading, including the types of fees, how they are calculated, and where to find a detailed fee log.
Types of cTrader fees
Some strategy providers offer their strategies for free, while others may charge a combination of performance, management, and volume fees based on their individual preferences. Here’s a breakdown of these fees:
- Performance Fee: This fee is a percentage of the trader’s net profit, with a maximum limit of 30%. This fee is calculated using the High-Water Mark (HWM) model, which ensures that performance fees are only charged when the account reaches a new high, protecting followers from paying fees multiple times for the same performance level. For example, if an account grows from EUR 10,000 to EUR 12,000, the performance fee applies to the EUR 2,000 profit. If the account value falls afterwards, no fee is charged until the account value exceeds the previous high.
- Management Fee: This is a periodic fee for managing trader funds, calculated daily as a percentage of the trader’s equity, with a maximum of 10%. This fee accrues daily and is shown in the trader’s account.
- Volume Fee: Charged per million of copied volume, this fee applies to each trade, both when opening and closing positions. The maximum volume fee is USD 10 per million, and it is reflected in the account’s transaction history.
Example of fees charged
Let’s assume a trader allocates USD 1,000 to copy a strategy:
Understanding copy trading fees: A detailed breakdown for copy traders and strategy providers
For copy traders
When a trader copies multiple strategies, each one is treated individually. As a result, the fees for each strategy are calculated and applied separately, rather than being combined into a single fee.
Before copying a strategy, traders can review all applicable fees after clicking the 'Start Copying' button.
After following a strategy, traders can view the performance and management fees applied in the 'Transactions' tab of their copy-trading account page. The volume fee log is available in the 'History' tab, and unrealised volume fees can be checked in the 'Positions' tab.
For strategy providers
Strategy providers determine their own fee structures, which can include a mix of performance, management, and volume fees, within the permitted limits. Any changes to these fees can only be made after the strategy has been stopped and no users are copying it. New fees will apply to traders only once they restart copying the strategy.
Fees are deposited into the strategy provider’s account by the broker, converted automatically to the provider’s account currency, and displayed as separate transactions for each copy trader. When fees are deposited, the strategy provider receives an email detailing the fees collected.
Fees are paid according to the following times and triggers:
- Monthly Charges: All fees are charged to the trader’s account on the 1st of each month, with payouts to the strategy provider made immediately after the trader is charged.
- Fee Triggers: Fees may be triggered by events such as stopping the provision of a strategy, a trader ceasing to copy the strategy, or a trader withdrawing funds from their copy-trading account. In these cases, all unrealised fees are calculated and charged accordingly.
Get started with copy trading today
Understanding cTrader Copy’s fee structure is essential for both copy traders and strategy providers. For copy traders, it ensures they make informed decisions and manage their trades effectively, while for strategy providers, it helps set competitive rates to maximise earnings. Transparent fee structures and detailed logs ensure clarity for both parties. To explore these features risk-free and gain practical experience, open a free demo account today!
Disclaimer:
Trading is risky. Past performance is not indicative of future results. It is recommended to do your own research prior to making any trading decisions.
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