How is the Commission Rate Set up for Strategy Provider? When is Commission Paid in Exness Social Trading

All about Commission Reports

As a strategy provider, knowing how much you receive in commission is helpful and made convenient with Commission Reports. 

This feature presents strategy providers with information about their commission on every investment and the cumulative figures for:  

• Total commission
• Earned commission
• Floating commission
• Total investments

The information presented in Commission Reports can be filtered down based on criteria such as the Trading Period, status of the commission, and profitability.

The status is either shown as Active in the case of ongoing investments or Closed if the investment was stopped.

Navigating to Commission Reports

To find Commission Reports, follow these steps:

1. Log in to your Exness Personal Area.
2. Choose Social Trading from the main menu on the left.
3. Click ‘Commission Report’ on the strategy you wish to check.

Please note that tracking for Commission Reports is updated every 15 minutes.

What is Commission rate?

A commission rate is a preference decided by a strategy provider when making a strategy, and it sets the amount of commission payable by investors if the investment turns profitable.

The commission rate can be set to 0%, or increments of 5% up until 50%: 0%, 5%, 10%, 15%, etc. Once the commission on a strategy is set, it cannot be changed.

How is the Commission rate set up?

Strategy providers set up their preferable commission rates from their Personal Area, at the time of creating a strategy account.

Commission rate can vary per strategy and cannot be changed later. The rates available are between 0% to 50% in increments of 5. This rate is used to calculate the commission payout to strategy providers at the end of trading period, when their investors make profit from copied strategies.

How is Strategy Provider commission calculated?

Commission is set by strategy providers as a fee that investors must pay when they make profits.
 

Commission calculation

Strategy commission is calculated at the end of trading period or when an investor stops copying as follows:

Investment_Commission (USD) = (Equity+sum(Paid_Commission) – Invested_amount) * %commission – sum(Paid_Commission)

where:

• Equity = current investment Equity
• sum(Paid_Commission) = total paid commission till date for the particular investment
• Invested_amount = Investment’s starting balance
• %commission = Commission rate set by the strategy provider

Let us look at an example:

Investment’s starting balance (invested_amount) = USD 1000. Let us assume the strategy provider’s commission is set at 10%.

Profits made at the end of trading period = USD 2000

Current investment equity at the end of trading period (Equity) = USD 3000

Calculated commission = (Equity + sum(Paid_Commission) – Invested_amount) * %commission – sum(Paid_Commission)

                                      = (3000 + 0 – 1000) * 10% – 0

                                      = 2000 * 10%

                                      = USD 200

Thus, the strategy provider will be paid USD 200 as commission and the investment’s updated balance at the end of trading period will be 3000 – 200 = USD 2800.

Now let us look at two scenarios for commission calculation – general and early investment closure.

General scenario

At the end of a trading period:

• Strategy provider’s orders remain unaffected.
• All copied orders are closed and reopened with the same price (zero spread).
• Profits from copied strategy and equity are used to calculate the commission.
• Commission is deducted from the investment account.
• Calculated commission is credited to the strategy provider’s Social Trading Commission account in the Personal Area (PA).

Early investment closure

If the Investor decides to stop their investment account before the end of the trading period:

• All copied orders are closed at the current market price.
• Profits from copied strategy and equity are used to calculate the commission.
• Commission is deducted from the investment account.
• Calculated commission is credited to the strategy provider’s Social Trading Commission account (in their PA), at the end of the trading period.

Details of commission calculated and paid per investment are available in the Commission Report found for each strategy in the strategy provider’s PA. If you have further queries regarding commission calculation, please contact our friendly Support Team.

When is Commission paid?

Commission for strategy providers is paid out at the end of a trading period. The duration of the trading period is one calendar month, ending on the last Friday at 23:59:59 UTC+0, with a new trading period starting immediately after.

At the end of the trading period, all investors’ open trades are automatically closed before the Social Trading platform reopens those trades instantly, at the same price, with zero spread. The calculated commission is then transferred to the strategy provider’s Social Trading Commission account in their Personal Area and can be used for trading, transfers, or withdrawals.

The entire process is completely automated for your convenience and required so that the strategy provider’s commission is paid accurately.

Details of commission paid per investment can be found in the strategy provider’s PA under Commission Report which is available for each strategy. This helps in keeping track of the incoming commission and strategy performance.