Managed forex account fees can be structured in several ways. Understanding the calculation method is as important as knowing the percentage.
IMAGE PLACEHOLDERManaged Forex Account Fees
Performance Fees
A performance fee is a percentage of trading profits. Investors should know whether the calculation uses gross or net profit and how deposits and withdrawals are handled.
High-Water Marks
A high-water mark can help prevent a manager from charging a new performance fee simply for recovering prior losses.
Other Costs
Broker spreads, commissions, swaps, platform fees or administrative charges can affect net returns.
