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As a investor, it is important to evaluate the impact that high performance fees have on your account equity, your overall results, and in the end why you should consider opening a Forex Managed Account with FXIBonline.

Here is a real life example of why we believe a low performance fee is in your best interest as a client and in our best interest as your account manager, compared to our competitors excessive fees.

 FXIBonline:

 

  • Minimum Deposit: $2,000
  • Performance Fee: 15% (only when your account has more money in it than the preceding month)
  • Commissions: No
  • Annual Fee: No

We do not charge a lower performance fee for someone with a larger account, because we realize that not everyone has a large amount of capital to invest. We also believe that equality and transparency is the best course of action that benefits our clients.

We also provide the option of re-investing your pip rebate back into your account. Something our competitors fail to do!

 Our competitors fees: 

On average, our competitor's performance fees are 25% (not including any management fees) Management fee's can range from 1-2%.



 
Impact of Higher Performance Fee's on Your Investment

In the scenerios below we will use the same ROI of 50% and a starting account balance of $50,000 for a trading period of two months to highlight how higher performance fee's lower your overall return and equity.

 

Scenerio One


An account with our competitors:

You deposit $50,000 with company x, the account earns a 50% ROI that month.

50% of $50,000 = $25,000 gained

Account balance without fee = $75,000

With a 25% performance fee on $25,000 of profit, your account would suffer a $6,250 'loss'

Ending account balance = $68,750 ($2,500 less then an account with FXIBonline)

Now skip to the end of next month:

Your $68,750 earns a 50% ROI again.

50% of $68,750 = $34,375 gained ($1,200 less then an account with FXIBonline)

Account balance without fee = $103,125 ($3,750 less)

25% performance fee on $34,375 = $8,593 'loss' for your account

Ending account balance = $94,532 ($6,999 less then an account with FXIBonline)

 

Scenerio Two


An account with FXIBonline

I deposit $50,000 with FXIBonline. My account earns a 50% ROI that month.
50% of $50,000 = $25,000
Account balance (without fee) = $75,000
With a 15% performance fee on $25,000 of profit, my account would suffer a $3,750 'loss'
Ending account balance = $71,250  (+$2,500 more equity left in your account)

Now skip to the end of next month:

My $71,250 earns a 50% ROI.
50% of $71,250 = $35,625 (+$1,250 more profit in your account, even though its the same ROI!!!)
Account balance without fee = $106,875 (+$5,625 more in your account)
15% performance fee on $35,625 = $5,343.75 'loss'
Ending account balance = $101,531 (+$6,999 more equity left in your account, compared with $94,532 at our competitors!!!!)

As you can see, over a 2 month period, an account with our competitors will have much smaller returns and less equity than an account with FXIBonline with the same investment and ROI. The only person that is hurt with a high performance fee is you! Its your hard earned money, and here at FXIBonline we value your hard earned money. We strive to show that appreciation with our lower performance fee and the option to re-invest your monthly pip rebate. Not only does it leave more equity in your account, but your account balance grows faster as well so you get a higher ROI! We invite you to open an account today, and to review the performance history of our account management service. If you are not ready to invest real money, you may sign up for a trial account management demo. If you have any questions or comments please contact us.