FEES AND EXPENSES
ALL FEES AND EXPENSES
PAYMENT OF FEES
In signing the Trading Power, clients will authorise and direct the Broker to deduct all agreed upon fees from their accounts, and pay those to Chelton Wealth on a monthly basis. This monthly calculation period is typically from the first to the last calendar day of each month, at the open and close times as per the Broker server time.
The Broker will automatically deduct all applicable fees from clients’ accounts when due.
The management fee is prorated and charged on a monthly basis. There are no additional charges for the opening or closing of the account. Withdrawals incur the net banking fee, no extra charges.
The management fee amounts to either:
- 2% per annum for managed accounts with a total deposit of less than 500,000US$ (or the equivalent in other currency).
- 1.5% per annum for managed accounts with a total deposit of 500,000US$ or more (or the equivalent in other currency).
- 2% per annum for Trade Copier Accounts
Chelton Wealth will, unless otherwise specified, bear its own administrative, legal, audit, and any other administrative fees or expenses. These fees are not passed on to the Client.
Chelton Wealth charges a markup fee of 0.5 pip, or US$ 5.- commission per 100,000 (1 lot) traded per side.
The payment of Performance Fees for “earnings on account” is charged monthly based on the net earnings achieved on the client account. It represents 15 to 25% of monthly High-Water Mark profits; also known as net earnings.
- Starter Depot: Accounts with a total of deposits of up to 50,000US$: 25%
- Depot Plus: Accounts with a total of deposits between 50,000US$ and 500,000US$: 20%
- Investor Depot: Accounts with a total of deposits of 500,000US$ and up: 15%
High-Water Mark (HWM)
Chelton Capital programme applies the High Water Mark (HWM) principle, by means of which Performance Fees are only payable on net accumulated earnings. The break even point which dictates every subsequent “High Water Mark” level, equates to the original amount deposited in the account minus the Monthly Performance Fee being paid. The Monthly Performance Fee will not be paid unless the Account Net Equity is above its prior HWM value net of performance fees paid.
Performance Fee Notice
Considering that the Performance Fee is payable monthly, some Performance Fees may be paid to Chelton Wealth during a fiscal year even though the managed account sustains a net trading loss in that same fiscal year. All fees paid will be retained by Chelton Wealth even if the portfolio experiences subsequent trading losses.
Chelton Wealth does not charge any Performance Fee remuneration corresponding to the services provided during those months in which there are losses. In addition, any losses are carried forward to the next months until they have been offset by new net capital earnings.
Risk Disclosure: Trading the financial markets on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to open a trading account, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading financial instruments, and seek advice from an independent financial advisor if you have any doubts.
Chelton Wealth will not accept any US, Australian or Canadian residents with following exceptions: US: those clients that qualify as an ECP (Eligible Contract Participant); Australia: those clients that are defined as “wholesale clients” under the Corporations Act 2001; Canada: those clients who meet the “Permitted Client” criteria.
Under no circumstances will Chelton Wealth accept any clients from the following restricted jurisdictions: Belarus, Burma (Myanmar), Côte d’Ivoire, DR of Congo, Ethiopia, Iran, Iraq, Japan, Liberia, North Korea, Sierra Leone, Sri Lanka, Sudan, Syria, Yemen and Zimbabwe.