The fees are dependant on the type of remuneration model your Top Trader has chosen. So when selecting your Top Trader, you also select that trader's chosen remuneration model. In the case of following more than one trader, it may be the case that both fee models are also applicable. That means the fee for each individual Top Trader is calculated separately on your account.
Fees for performance-based remuneration model
The performance fee of 25% is calculated in accordance with the so called high watermark method. A fee is only due as soon as the traders performance reaches an individual high on the followers account. The fee calculation is based on the profits generated by the Top Trader. The daily management fee of 1% p.a. is calculated on the basis of the amount of capital allocated to the Top Trader. For detailed information regarding Management Fee (MF) or Performance Fee (PF) please see Terms and Conditions for ayondo auto execution.
Performance fee: 25%
Management fee: 1 % p.a
Fees for volume-based remuneration model
With volume based compensation, a signal fee (the opening and closing of a position from a Top Trader signal) of 1 Eurocent is charged to the Follower.
1 Eurocent per executed signal
- We charge for overnight financing, normally at the rate of 3%* p.a. plus relevant interbank rate
- For non-FX products, Long positions attract financing charges, but for short positions financial interest may be credited to your account For FX products, a financing credit or debit will apply and the nature of the transaction is dependent on the underlying interest rates of the constituent currencies within the FX pair. ⱡ
For more information on financing charges, click here.
We pass on 100% of dividends for UK shares, and 85% for US shares. Find out more in the Learn section.
Where futures are the reference market we only charge half of the bid offer for rollovers from one contract into the next. Therefore, the new position is only 50% of our standard spread for that market.
Financing charges in detail
Positions that are open overnight are subject to financing charges on a daily basis. Positions held on a Friday will attract a 3-day financing charge/credit for the weekend.
- For long positions, you borrow capital from us and so you will attract financing charges
- For short positions, you are lending capital to us, so financing charges may be paid to you
Note: Positions on futures do not incur such treatment.
The charge is influenced by three elements:
- Notional value of the position: This is the amount you borrowed or lent on the position
- Interest rate: This is normally calculated by adding a 3%* rate to the one-week deposit rate of that currency, e.g. in the UK that would be LIBOR
- Number of nights: We take the annual rate and divide it by 360 days to calculate the nightly cost, and then multiply that by the number of nights
We’ve simplified the equations to calculate these transactions:
- Long positions: Daily Financing Transaction = -[value of trade x Effective Financing Rate x 1/360**]
- Short positions: Daily Financing Transaction = [value of trade x Effective Financing Rate x 1/360**]
*Note that SGD and HKD denominated products are charged at the rate of 5% p.a. plus relevant interbank rate. Bitcoin products are charged at a rate of 25.5%.
**or 365 for GBP denominated assets
ⱡ If the calculated financing charge is lower than 0.01 (0.10 for DKK or SEK) units in the account base currency a minimum fee of 0.01 (0.10 for DKK or SEK) will apply. Note: this does not apply in the case of zero leveraged long positions where financing charges will always be zero.
Example: A Long Position
A client has a long position in 2,000 shares (equivalent) of company XYZ. At our daily financing time, the stock is valued at £20. If the current 1 week deposit rate for GBP is 1%, the calculation would be:
|- (2,000 x £20) x (1% + 3%) x 1/365 = -£4.38|
If they traded on a 10% margin, they will be charged 90% of the above value, so £3.45.
Example: A Short Position
A client has a short position in 500 shares (equivalent) of company ABC. At our daily financing time, the stock is valued at $300. If the current 1 week deposit rate for USD is 5%, the calculation would be:
|(500 x $300) x (5% - 3%) x 1/360 = +$8.33|
If they traded on a 25% margin, they will only be credited for 25% of that amount, so $2.60.