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Are there any requirement to become a social trading provider?
There is no requirement to become a social trading provider. Anyone with the necessary knowledge and experience can set up their own social trading account and start trading. All that is required is an understanding of the financial markets, the ability to identify profitable trading opportunities, and the willingness to take risks.
What is interval meaning ?
Trading Results are the aggregated profits of copied trades of a Subscription. They are later on used to calculate Payments. Trading Results’ calculation is performed by the Social Trading. Trading Interval is specified as one of the Offer conditions. We have a fews options for Interval;
Per Trade
Daily
Weekly
Monthly
General Examples;
Example 1:
Performance Fee = 20%
Interval: Per Trade
Performance Fee = 20%
Interval: Per Trade
Trading result Mode: Positive Profit
Trade 1 PnL = $50 → $10 Performance Fee will be paid out;
Trade 2 PnL = - $100 → No Fee;
Trade 3 PnL = $20 → $4 Fee will be paid out;
Trade 4 PnL = $60 → $12 Fee will be paid out.
Example 2:
Performance Fee = 20%
Interval: Daily
Trading result Mode: Positive Profit
Day 1 Trade 1 PnL = $50;
Day 1 Trade 2 PnL = - $100;
Interval’s Profit = - $50 → No Fee
Day 2 Trade 3 PnL = $20;
Day 2 Trade 4 PnL = $60;
Interval’s Profit = $80 → $16 Fee will be paid
Example 3:
Performance Fee = 10%
Interval: Weekly
Trading result Mode: HWM
Week 1 PnL = $400 → $40 Performance Fee will be paid out;
Week 2 PnL = -$200 → No Fee ($400 - $200 = $200 < $400 HWM);
Week 3 PnL = $300 → $10 Fee will be paid ($400 - $200 + $300 = $500; $500 - $400 = $100)
...and so on.
Why is my social trading account not present in the provider's listing?
Copytrading is a popular way to make money in the financial markets, but sometimes it can be difficult to find the right provider. If your copytrade account does not exist in the provider's listing, there are several potential reasons why.
The most common reason is that the provider has not yet started trading. Many providers require that their traders have a certain amount of experience before they can open a copytrade account.
Another potential reason is that the provider has set their account to private. This means that only certain people can access the account, and your account may not be included in the listing.
Finally, it is possible that provider's account is inactive. If there is no active trading within one month, the system may have automatically deactivated it.
In conclusion, if your copytrade account does not exist in the provider's listing, it is likely due to one of the reasons mentioned above. Make sure to contact the provider to find out the exact reason before attempting to open a new account.
What is performance fee?
Performance Fee is the way for Followers to pay Providers for their work. This is a portion (in percent) of a profitable Trading result of a Subscription paid to the Provider. In case of a negative Trading result, Performance Fee calculation is skipped. Performance Fee calculation is controlled by Follower configurations (Trading Result’s calculation Mode and Trading profits) and Offers (Performance Fee Percentage and Trading Interval).
The fee is processed as a pair of withdrawal and deposit balance operations with custom comments. The calculated fee amount is withdrawn from the Follower as a Withdrawal PerformanceFee transaction type and deposited to the Provider as a Deposit PerformanceFee transaction type. By default, the receiver of the Fee is the Provider’s Trading account itself, but if a Provider has a Fee Receiver Account specified in the Provider’s Settings, Performance Fee transactions will be routed there.
Performance fee formula:
Performance Fee = Subscription’s Raw Profit * Fee %
Example:
Performance fee = 20%;
Interval: Per Trade
Mode: Positive Profit
Commission = -$10/lot
Trading volume = 0.5 lot
Raw Profit (based on the open-close price difference) = $20
- Performance Fee if MetaTrader fees are included:
Performance Fee = $20 * 20% = $4
What is agent fee?
Agent Fee, paid by Providers to the third-parties such as Introducing Brokers or social media influencers who attract Followers to the broker’s social trading platform. Agent Fee are paid as percentages of the Performance Fee deducted from a Follower trading account. The person paying the Agent Fees is the Provider, but technically, the Provider does not issue these transactions. Provider only set how much will be allocate and system will be automated calculate the fees
Agent fee formula:
Agent Fee = Performance Fee * Agent Fee
Example
Agent fee: 10%
Performance fee: 20%
Fee type: Positive profit
Follower closes a trade with $100 profit
Follower pays = $100 * 20% = $20 Performance fee withdrawn
Agent Fee = $Performance fee withdrawn * Agent fee % = $20 * 10% = $2
Provider receives = Performance fee withdrawn - Agent fee = $20 - $2 = $18