I noticed that most (all?) commissions being charged for systems are a flat fee per month or week, or whatever. Although, there is the option to charge only if the system is profitable, which is good.
But what happens when I have a subscriber with a $100,000 account, and another with a $10,000 account, and say I decide to charge $100/month for my system? That means the guy with the larger account is paying 0.1% per month, or 1.2% per year, while the one with the $10k account is paying 10 times as much, and that just doesn’t seem fair to the little guy. Is there any way to charge a flat percentage based on the subscriber’s account size, and perhaps an additional performance fee over a certain hurdle rate on the profits realized over a given time period? – This would put compensation on par with the way hedge funds are run and may seem more attractive to both providers and subscribers.
Was thinking the same thing. Good question.
Fat chance.
Anyway there is 1 website like this which does this, but require you to actually trade. I won’t list here the name, as I am sure C2 would be more than happy to close my account.
It’s illegal to do this in the U.S. unless you are a registered CTA or hedge fund. What you do at C2 is publish trading advice, and sell it for one fixed price, no matter what size the account. Once you start varying your pricing based on trading volume or profitability, you cross a line from publishing (protected by our First Amendment) to money-management, which requires registration and operates under a completely different legal scope.
Believe me, I’d love to allow you to charge clients in this way (and I think it would benefit clients, too), but legally it is not permissible.
MK
aww, shucks! I was afraid you’d say something like that. I guess that makes sense, otherwise no one would run a hedge fund when it’s so much easier to broadcast on C2 instead.
