The management fee pays the master for managing an investment account over time. It is a percentage of the account’s balance or equity, adjusted for how long the subscription was active during the calculation period.
- 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.
- How much — a time-adjusted percentage of the account balance or equity at calculation time.
It does not depend on profit
Unlike the Performance fee, the Management fee can be charged whether the strategy made a profit or a loss. It does not use a High-Water Mark.
The Idea: Adjust the Fee for Elapsed Time
B2COPY multiplies the fee by the elapsed active time divided by a fixed denominator. For example, 10 active days with a monthly % / period plan means the investor pays 10/30 of the rate. The fraction is not capped at 1: if 31 days elapsed between monthly calculations, B2COPY uses 31/30.
Two Settings Control the Calculation
| Broker setting | Option | What it means |
|---|---|---|
| Calculation Formula | Based on Balance | Uses the investment account balance at calculation time. Open-position profit or loss is not included. |
| Calculation Formula | Based on Equity | Uses the investment account equity at calculation time, including the current result of open positions. |
| Period for percentage calculation | % / period | Treats the fee-plan rate as the percentage for one payment period: 1 day, 7 days, or 30 days. |
| Period for percentage calculation | % / year | Treats the fee-plan rate as an annual percentage and uses 365 days as the full interval. |
Where these are set
The two choices are platform-wide rules controlled by the broker on Settings → Fees. A master chooses the fee rate and whether it is charged daily, weekly, or monthly.
Formula
# when the broker selects "% / period":
Management fee = Account value × Fee rate × Active days / Period days
# when the broker selects "% / year":
Management fee = Account value × Fee rate × Active days / 365| Variable | Meaning |
|---|---|
| Account value | The investment account’s balance or equity at calculation time, according to the broker’s Calculation Formula. |
| Fee rate | The rate from the master’s fee plan, written as a decimal — 2% → 0.02, 15% → 0.15. |
| Active days | Elapsed active time expressed in days. A partial day is kept as a fraction rather than rounded to a whole day. |
| Period days | For % / period: daily = 1, weekly = 7, monthly = 30. |
| Annual denominator | For % / year: always 365 days, regardless of the payment schedule. |
Worked Example, Step by Step
A monthly plan charges 2%. The broker is set to Based on Balance and % / period. At calculation time, the investment account balance is 12,630 EUR, and the subscription has been active for 10 days of the 30-day period. Reading the calculation from top to bottom:
| Step | Amount |
|---|---|
| Account balance | 12,630.00 EUR |
| × Fee rate (2% = 0.02) | × 0.02 |
| Amount for the full period | 252.60 EUR |
| × Active fraction | × 10 / 30 |
| Management fee | 84.20 EUR |
The investor pays 84.20 EUR, which is one-third of the amount that would apply for a full 30-day period.
How the Two Settings Change the Fee
Using the same monthly 2% plan and 10 active days, the result changes with the account value and Period for percentage calculation:
| Calculation Formula | Period for percentage calculation | Calculation | Fee |
|---|---|---|---|
| Based on Balance (12,630 EUR) | % / period (30 days) | 12,630 × 2% × 10/30 | 84.20 EUR |
| Based on Equity (12,890 EUR) | % / period (30 days) | 12,890 × 2% × 10/30 | 85.93 EUR |
| Based on Balance (12,630 EUR) | % / year (365 days) | 12,630 × 2% × 10/365 | 6.92 EUR |
| Based on Equity (12,890 EUR) | % / year (365 days) | 12,890 × 2% × 10/365 | 7.06 EUR |
Monthly always means 30 days in this formula
For % / period, B2COPY uses fixed denominators: daily = 1 day, weekly = 7 days, and monthly = 30 days. Elapsed time is not capped, so 31 active days on a monthly plan produce a fraction of 31/30, not 30/30.
When the Active Time Starts
- After a Management fee calculation, the next interval starts from that calculation.
- For the first calculation, time starts when both the subscription and its current Management fee terms are active — whichever became active later.
- Because elapsed time is measured precisely, the first charge can cover a partial period or a fractional number of days.
- Daily fees are scheduled each day, weekly fees on Monday, and monthly fees on the first day of the month.
The account value is a snapshot
Balance or equity is taken at calculation time and applied to the active-time fraction. The fee is not built by averaging every balance or equity change during the period.
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.
