Typical Management Fees Split Percentage?

Discussion in 'Professional Trading' started by FX_Hedge, Aug 23, 2018.

  1. FX_Hedge

    FX_Hedge

    What is a typical management fee split to pay a broker who brings you 7 figure client funds to your FX Fund? Is 10% or up to 30% of the monthly management fees typical? If the FX Fund charges clients 25% management fee how much of that would you payout to those who bring you client funds?
     
  2. Robert Morse

    Robert Morse Sponsor

    20%
     
  3. FX_Hedge

    FX_Hedge

    That seems reasonable to me. If my group is doing all the work month to month managing the funds automated systems paying anything more than that seemed high to me.
     
  4. MattZ

    MattZ Sponsor

    You mean you charge them 25% performance fee of new equity highs? Management fee should be 1-2%.
     
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  5. ajacobson

    ajacobson

    Typical introduction fee is 5 - 10% forever.
     
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  6. FX_Hedge

    FX_Hedge

    Yes - 25% Performance fee and no actual additional management fee to clients.
     
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  7. Robert Morse

    Robert Morse Sponsor

    Nothing wrong with 0/25, just understand that you will have monthly costs you will need to cover.
     
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  8. MattZ

    MattZ Sponsor


    No one can tell you how to compensate someone. What you need to consider is whether you provide the right incentives for professional to raise capital for you. Just because you have good performance does not mean that you will not need additional sales help. If I was you I would not have one price rather base it on several factors such as the experience of the person, the capital he raises and whether he will help you service the customers as well. Good luck!
     
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  9. FX_Hedge

    FX_Hedge

    Yes - we are considering all those factors for sure.
     
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  10. FX_Hedge

    FX_Hedge

    I take all monthly expenses out of my programming teams cut.

    I'm kidding I'm kidding LOL!
     
    #10     Aug 24, 2018