Standart compensation for introducing capital?

Discussion in 'Professional Trading' started by zzzap, Aug 1, 2008.

  1. zzzap


    Let's say "standard" fee for a manager is 2% of managed funds + 20-30% performance fee.
    What is a standard compensation for someone introducing clients/capital?
    Let's say he is an introducing broker and getting something from commissions already, or maybe not.
    % from introduced funds, % of manager's fee, commission overrides?
    Combination of all? Any idea?
    Any info appreciated.
  2. 20% of what the firm earns from the capital is standard.

  3. zzzap


    Thanks H:J
    I guess that could be negotiated to less, if the introducer of capital is also the introducing broker for the manager and the manager uses hih-frequency trading with considerable commissions for the broker, right?


  4. anything is negotiable.

    you asked for standard.