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Two subscription types exist:
- Timed Fee - a set fee per month.
- Pay-Per-Performance (PPP) – subscriber pays only if he/she profits.
The PPP structure must meet the following criteria before a trader is required to pay any fees:
- The caller must have a total positive P/L at the end of the month.
- The subscriber only pays for profitable trades during the time he/she was logged into the trading application.
Caller A charges $100 per month, Trader X decides to subscribe to Caller A. Trader X will pay $100 to Caller A to receive unlimited signals for one month.
Advantage: A set fee per month.
Disadvantage: The full fee is paid even if the caller has an unsuccessful month.
Example 1
Caller B charges .10 cents per profitable pip. Trader Z subscribes to Caller B. At the end of the month Caller B has made a total P/L of -20 pips.
Result: Since Caller B had an overall losing month Trader Z is not required to pay any fees.
Example 2
Caller B charges .50 cents per profitable pip. Trader Z subscribes to Caller B. At the end of the month Caller B has made a total P/L of 200 pips. We will assume Trader Z was logged into the FxSpyder application for all trades called.
Result: According to PPP criteria, Trader Z will be required to pay .50 x 200 pips or $100 to Caller B.
Advantages: Fees are only paid to callers whom had a successful trading month. Trader only pays fees for winning trades that they actually witnessed while logged into the trading platform.
Disadvantage: Fees are unknown and depending on the size of the per pip fee, lot size may need to be adjusted. Example -If caller charges $1.00 per pip then the trader will need to trade more than 1 mini-lot to make a profit.
Example 3
Caller B charges .50 cents per profitable pip. Trader Z subscribes to Caller B. At the end of the month Caller B has made a total P/L of 200 pips. Trader Z only signed in for 1 successful trade called that resulted in a 30 pip profit.
Result: According to PPP criteria Trader Z will be required to pay .50 x 30 pips, or $15 to Caller B.
Advantages: Fees are only paid to callers whom had a successful trading month. Trader only pays fees for winning trades that they actually witnessed while logged into the trading platform.
Disadvantage: Fees are unknown and depending on the size of the per pip fee, lot size may need to be adjusted. Example - If caller charges $1 per pip then the trader will need to trade more than 1 mini-lot to make a profit.
Depending on the subscription type the subscriber will be required to submit payment in the following manner:
- Timed Fee – one month’s payment is required at the start of the subscription for each caller in which you wish to receive signals. Once payment is submitted you will receive unlimited signals from the signal caller.
- Pay-Per-Performance (PPP) – a deposit equivalent to 400 pips times the caller’s per pip fee is required to receive signals for a PPP subscription. These funds are not released to the Signal Caller until the end of the subscription month and only if the Signal Caller had a profitable month. Furthermore, funds are only released in the amount of the per pip fee times the number of pips obtained while the subscriber was logged into the trading platform. When and if the caller exceeds a 400 pip profit for the current month, a request for additional funds will be required in order to continue to receive signals.
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