QUESTION

How much does copy trading cost?

SHORT ANSWER

Usually ten to thirty percent of profits as a performance fee, occasionally up to fifty. The rate matters less than whether it is charged against a high water mark, and there is a second cost that never appears on the price list.

A high water mark means the fee applies only above the account's previous peak. Without one, a provider who loses 20% can charge you again as they recover ground they lost. Confirm this before subscribing — it is the difference between paying for performance and paying for volatility.

The unlisted cost is execution. Your fill lags the provider's, you pay your broker's spread rather than theirs, and requotes are possible. That gap is a percentage of every trade and it never falls in your favour.

Compared against software, the shape of the cost differs more than the size. A performance fee is a permanent share of everything the account ever earns; a subscription is fixed and does not scale with success. On a small account the fee is cheaper, and the crossover arrives sooner than most people expect.

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