Percentage of Profit: How to Use the New Commission in Headway Copytrade
Copytrade has recently been updated for all: Now you can pay and receive not only fixed but also percentage-based commissions. In this article, we will explain what the new feature implies and how you can use it for your benefit today!
What is a % of profit?
When you open the Copytrade section in the Personal Area, you see an updated field in the strategy card.
The field now shows that a strategy has two commission types: fixed and percentage-based.
Previously, we touched upon the commission in Copytrade. Read the article to remember its role in the social trading service. The fixed commission suggests that investors pay money to the strategy owner for copying their positions. It is a fixed sum of US dollars starting from 1 USD paid monthly.
% of profit is a type of commission when investors pay a percentage from their daily profit based on equity. It means that all closed and open positions are taken into the calculation by the end of the period.
The percentage-based commission extends the platform’s functionality and makes copying more flexible.
What is the difference?
To compare the two types of Copytrade commissions, study the table below:
| Fixed commission | % of profit | |
| Commission size | Fixed, from 1 USD | Flexible and depends on daily profit, from 1% up to 99% |
| How often is it paid? | Monthly, on the 1st day of a month | Daily |
| Does it depend on trading? | It is paid regularly regardless of trading success | It is paid only for successful trades |
| Required starting balance | The balance must be enough to cover the future copying days of the month | The balance must be positive when starting copying. It can be of any size |
| Is it possible to refund when the strategy is unpublished? | Yes. Investors receive a refund for the unused days of the copying month | No. Refund is impossible. Investors pay for all profitable positions at the moment of unpublishing |
Benefits for traders. Attract more investors
With percentage-based commission, strategy owners can widen their options and give a choice to their investors who are not ready to pay fixed commission. That way, they can attract additional investors and benefit from more commission daily.
The percentage-based commission gives the potential to increase profit. With a fixed fee, a trader’s monthly income is limited. With a percentage-based commission, it can be unlimited if they trade frequently and successfully.
Benefits for investors. Stay budget-conscious
With percentage-based commission, strategy owners can widen their options and give a choice to their investors who are not ready to pay fixed commission. That way, they can attract additional investors and benefit from more commission daily.
The percentage-based commission gives the potential to increase profit. With a fixed fee, a trader’s monthly income is limited. With a percentage-based commission, it can be unlimited if they trade frequently and successfully.
Benefits for investors. Stay budget-conscious
With % of profit commission type, investors will be able to copy strategies in accordance with their earnings and rest assured that they pay only for profitable trades. They can make a better choice when subscribing to a strategy and plan their investment more accurately.
How to use percentage-based commission: An example for investors
Imagine you have found a strategy with a percentage-based commission of 10%. Once you subscribe to the strategy, you pay 10% of your daily profits to the strategy owner.
Day 1. In one day, the trader opens three positions and brings you the following profit:
- Position A – Profit 10 USD.
- Position B – Profit 40 USD.
- Position C – Loss 20 USD.
Positions A and C are still open and taken into calculation with their current values.
Your total profit is: A + B + C = 10 + 40 – 20 = 30 USD
At the end of the day, you pay 10% commission: 30 * 0.1 = 3 USD
Day 2. The next day, the trader makes the following progress:
- Position A has been closed with a profit of 15 USD (= A’).
- Position C has been closed with a loss of 10 USD.
Your total profit is: (A’ – A) + C = (15 – 10) – 10 = –5 USD
At the end of the day, you will not pay a 10% commission because no profit was generated.
Please note that in the case of open positions, you don’t pay a commission for the same profit twice. You pay only for the new profit made during the day.
Day 3. The next day, the trader closed a new position D with a profit of 10 USD.
Your loss from the previous day (–5 USD) is summed up with the daily profit: –5 + D = –5 + 10 = 5 USD
At the end of the day, you pay a 10% commission: 5 * 0.1 = 0.5 USD
How do I change my commission now?
For investors:
If you invest in a strategy and want to change your commission type, you need to stop following the strategy first.
After that, go to the strategy page and start copying it again. Remember to choose the option ‘% of profit’ on stage 3, Depositing.
For traders:
If you already have a strategy, go to your Trader Area and click on the pen icon (🖊️) next to your strategy.
In the editing menu, tick the ‘% of profit’ option. Please note that both commissions can be applied to your strategy simultaneously. If you want only one commission type, make the necessary choice – tick or untick the options.
Once you save the changes, new investors will copy your strategy with new commission settings. But for the existing investors, the commission will not change: They have to resubscribe to get the opportunity to copy you with the new commission set-up.
New opportunities for everyone
The percentage-based commission is a highly anticipated feature in the Headway Copytrade community. We are glad that we can make social trading more transparent and profitable to our clients, both investors and strategy owners. Use the new settings and earn more with Copytrade!
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