What is a typical management fee split to pay a broker who brings you 7 figure client funds to your FX Fund? Is 10% or up to 30% of the monthly management fees typical? If the FX Fund charges clients 25% management fee how much of that would you payout to those who bring you client funds?
Typical Management Fees Split Percentage?
- Thread starter FX_Hedge
- Start date
Robert Morse
Sponsor
20%
That seems reasonable to me. If my group is doing all the work month to month managing the funds automated systems paying anything more than that seemed high to me.
MattZ
Sponsor
You mean you charge them 25% performance fee of new equity highs? Management fee should be 1-2%.
Yes - 25% Performance fee and no actual additional management fee to clients.
Robert Morse
Sponsor
Nothing wrong with 0/25, just understand that you will have monthly costs you will need to cover.
MattZ
Sponsor
No one can tell you how to compensate someone. What you need to consider is whether you provide the right incentives for professional to raise capital for you. Just because you have good performance does not mean that you will not need additional sales help. If I was you I would not have one price rather base it on several factors such as the experience of the person, the capital he raises and whether he will help you service the customers as well. Good luck!
Yes - we are considering all those factors for sure.
I take all monthly expenses out of my programming teams cut.
I'm kidding I'm kidding LOL!