Fees and Charges

TradeSocio NewUX - Broker Admin manual

Overview

There is a number of different types of fees and charges that investors can pay to the broker and to fund manager while investing. The types of fees depend on the type of the investment product.

All types of charges can be charged only to broker or only to fund manager, or for both at the same time depending on the settings for each fund individually. If the same type of charge is set for both broker and fund manager, then investor will see the total amount as a brokerage charge.

Charges are deducted from the allocation amount of the investors and deposited in broker virtual wallet account. Fund manager can see his part of the revenue amount in his Funds Admin module and is be able to send a withdrawal request to the broker.

All charges paid by investors to you and to fund managers can be managed from virtual wallet report in Broker Admin - Reports - Revenues

Revenues

Strategies charges

Type of charge	Mode	Frequency	Example
Subscription fee	Set amount defined in currency of the fund	At the time of investment and then on the monthly basis	If broker SF is 10 USD and fund manager SF is 20 USD, then total charge is 30 USD. If investor allocates 1,000 USD, he will be charged -30 USD at the time of the investment. Equity of the allocation will become 970 USD. Next time SF will be charged -30 USD next month after 30 days timeframe.
Trade charges (Broker Commission profile)	Charges defined per asset class, set as USD/Lot	Roundtrip charge, 50% of the set value is charged upon open trade and 50% upon close trade	If broker commission is 2 USD/Lot for FX Majors and fund manager trade charge is 4 USD/Lot for FX Majors, total investor charge 6 USD/Lot. If investor copies 1 lot trade on instrument from FX Majors asset class, then he will be charged 3 USD upon trade open and 3 USD upon trade close.

SMA charges

Type	Mode	Frequency	Example
Subscription fee	Percentage (%) of the allocated amount	Once, at the time of investment	If broker SF is 1%, fund manager SF is 2%, then total investor charge 3%. If Investor allocates 1,000 USD, he will be charged -30 USD at the time of investment and equity of allocation will be 970 USD.
Management fee	Percentage (%) of the balance or equity of the allocation, estimated as an annual charge	At the time of investment and then on monthly basis at the set date & time defined by broker	If broker MF is 0.5% and fund manager MF is 0.5%, then total investor charge 1%. If investor allocates 1,000 USD then his charge: 1,000 * (1% / 12) = 0.83 USD will be deducted at the time of investment. If the balance/equity of the next month deduction time is 1,500 USD, then next month charge will be: 1,500 * (1% / 12) = 1.24 USD
Performance fee	Percentage (%) of accumulated profits based on balance or equity of the allocation	Monthly, at the set date & time defined by broker or in the event of stop allocation	Charged only in case of a positive performance. Calculation is based on the HWM (High Water Mark) - only the new accumulated positive performance will be charged. Balance based calculation applies only for closed positions Equity based calculation applies for both closed and open positions
Exit fee	Percentage (%) of the equity of allocation at the moment of stop	Upon stop allocation / stop-out	If broker EF is 1% and fund manager EF is 1%, then total investor charge 2%. If investor stops allocation or gets stopped out, he will be charged 2% of the equity of allocation at the moment of stop.
Fixed fee	Set amount in the currency of the fund	Monthly at the set date & time defined by broker, on a day count basis.	If broker FF is 2 USD and fund manager FF is 2 USD, then total investor charge 4 USD. Investor will be always charged only for the number of days when allocation was active before the calculation time.