The profit fee is a percentage of the new realized profit from profitable closed positions copied from a specific master. It is calculated periodically — not immediately after each winning position closes.
- Who pays — the investor, out of the investment account.
- Who receives it — the master.
- When — periodically, on the schedule set in the fee plan: daily, weekly, or monthly.
- Other calculation events — before a withdrawal or unsubscription, and when an administrator triggers an early payout.
- How much — a percentage of the increase above this Profit fee’s previous High-Water Mark.
Profit fee is not Performance fee
Profit fee includes only closed positions that finished with a positive net result. Losing positions and open positions are excluded. The Performance fee uses a different profit base and a separate High-Water Mark.
The idea: only profitable closed positions add to the total
Every subscription has its own running total of realized profit. A profitable closed position raises that total; a losing closed position does not lower it. The fee applies only to the increase since the previous Profit fee calculation.
Losing positions do not reduce the Profit fee base
What “profitable” means
What counts is the closed position’s net result: Profit + Commission + Swap + Fee. The position is included only when that combined result is positive.
Formula
Profit fee = max(0, Current realized profit − Previous Profit fee HWM) × Fee rate| Variable | Meaning |
|---|---|
| Current realized profit | The cumulative net result of profitable closed positions copied from this master. Open and losing positions are excluded. |
| Previous Profit fee HWM | The Current realized profit recorded by the previous Profit fee calculation for this subscription. |
| Fee rate | The master’s share of the profit increment: at 10%, the master receives 10% and the investor keeps 90%. In the formula, 10% → 0.10. |
Names shown in the fee breakdown
The breakdown shows Current Realised Profit, Previous Realised Profit, and Fee %. Previous Realised Profit is the Profit fee High-Water Mark; Fee % is the plan rate.
Worked example, step by step
A daily plan charges 10%. The previous Profit fee HWM is 266.67 USD. Since then, two profitable positions added 2,400 USD in total, while one losing position closed at −700 USD. The loss is excluded, so Current realized profit reaches 2,666.67 USD. Reading the calculation from top to bottom:
| Step | Amount (USD) |
|---|---|
| Previous Profit fee HWM | 266.67 |
| Profitable position A | +1,500.00 |
| Losing position (−700.00) | excluded — total unchanged |
| Profitable position B | +900.00 |
| Current realized profit | 2,666.67 |
| − Previous Profit fee HWM | −266.67 |
| Profit increment | 2,400.00 |
| × Fee rate (10% = 0.10) | × 0.10 |
| Profit fee | 240.00 |
The Profit fee HWM then becomes 2,666.67 USD. At the next calculation, only profitable closed positions added above that level can create another Profit fee.
Profit fee vs performance fee
Both fees charge a percentage of profit under a High-Water Mark, but they measure profit differently. For the full rules of the other one, see Performance fee.
| Question | Profit fee | Performance fee |
|---|---|---|
| Which positions count? | Profitable closed positions only. | Copied positions included by the broker’s Calculation Formula. |
| Do losing closed positions reduce the base? | No — they are excluded. | Yes — losses can reduce net profit. |
| Can open positions count? | No. | Yes, depending on the broker’s Calculation Formula. |
| Do Settings → Fees calculation options apply? | No. | Yes — Calculation Formula and Trade Fee Accounting control the base. |
| High-Water Mark | A separate Profit fee HWM for this subscription. | A separate Performance fee HWM for this subscription. |
The two fees can both be in one plan
Because Profit fee and Performance fee use different bases and separate High-Water Marks, they can produce different charges for the same period. Review the complete fee plan before subscribing.
When no profit fee is charged
- Current realized profit is not greater than this subscription’s Profit fee HWM.
- For example, no new profitable position has closed since the calculation that recorded the mark, or only losing positions have closed.
Calculated separately for each master
If one investment account follows several masters, every subscription is tracked separately. Profit and loss connected to one master do not change another master’s Profit fee calculation.
Currency conversion
If the master receives fees in a different currency from the investment account, the payout is converted at the applicable MetaTrader exchange rate.
If it cannot be collected
If the account lacks free funds when the fee is charged, the shortfall becomes accrued fee debt and is recovered later.
