Social Trading offers Top Traders a modern form of investment that allows them to benefit not only from their own trading performance, but also from Followers who follow their trading strategies with real money accounts. It doesn’t matter whether traders trade over longer time periods, pursue short-term trading strategies or trade at an increased frequency. Ultimately, the strategy selected can help decide on the remuneration model that Real Money Top Traders choose at ayondo.
The remuneration models at ayondo
At ayondo, Real Money Top Traders can choose between two remuneration models: either a performance-based model or volume-based remuneration model. Based on your trading frequency and investment horizons of your trading strategy, you can choose the model that suits you best.
The performance-based remuneration model
For Top Traders seeking a remuneration structure that is similar to that of classic wealth management, the performance-oriented remuneration model is the obvious choice. This model is based on a performance and management fee that guarantees two independent revenue streams with permanent and trade-independent cash flows while successful trading is also rewarded. Top Traders receive a portion of the performance fee that is due when the trader reaches an individual high watermark for the Follower and thus also achieves an individual performance high for themselves. Additionally, traders receive a percentage of the daily management fee paid by Followers of 1% p.a.
This is calculated on the amount of capital allocated to the Top Trader plus the unrealised P&L. The management fee is calculated on the basis of the available capital allocated to the Top Trader.
What does High Watermark mean?
Followers pay a performance fee when the Top Trader achieves a new performance high or “High Watermark” on the Follower’s account.
You can see exactly how this works in the following video.
Want to get started as an ayondo Top Trader and demonstrate your skills in public? You can open your trader account in just a few minutes using the following link.