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: add up profitable closed positions
The Profit fee base is the sum of the positive net results from profitable closed positions copied from this master. A deposit is capital, not profit. A losing position is left out rather than subtracted.
Only profitable closed positions build the 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 25%. The investor opens the account with a 400 USD deposit, trades for a week, and closes two positions. The previous Profit fee HWM is 0 USD because no Profit fee has been charged yet.
Open the account and deposit 400 USD
The deposit gives the account trading capital. It is not profit, so it does not increase the Profit fee base.
Trade for a week and close two positions
Position A closes with +200 USD and is included. Position B closes with −100 USD and is excluded. The sum of profitable positions is therefore 200 USD.
Calculate the Profit fee
The fee is (200 − 0) × 25% = 50 USD. The investor pays 50 USD, the master receives it, and the Profit fee HWM moves up to 200 USD.
Keep the mark through later losses
A later losing position does not reduce the 200 USD HWM. If another profitable position adds 100 USD, the cumulative base becomes 300 USD; only the new 100 USD above the HWM is charged, so the next fee is 100 × 25% = 25 USD.
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.
