What costs are there when investing in DARWINs?

Beside the execution costs of the trades, investors pay the trader, on a quarterly basis, a 20% performance fee of the profits obtained with their DARWIN.

From the moment an investor buys a DARWIN, the DARWIN automatically replicates the trader's trading strategy.

Therefore, the investor will be subject to execution costs of the trades.

Beside the execution costs of the trades, investors pay the trader, on a quarterly basis, a 20% performance fee of the profits obtained with their DARWIN.

Execution Costs Calculator

Execution Costs

Every time a a DARWIN replicates a trade the trader opens or closes on the underlying strategy, there are execution costs, namely:

  • The spread is the difference between the BID and the ASK, or the buy and sell price. 
  • The commission is the retribution which Darwinex receives for providing you with access to the market.
  • Swaps are for the differences in interest rates between currencies.

DARWINs have  execution costs factored into the quote price.

Performance Fees

This is the performance commission that the DARWIN Providers recieve. This amounts to 20% of the profits generated by the investor in terms of the maximum profit generated. It's paid every three months.

The Performance Fees will be paid by the investors only when they have made a profit during the quarter in question. This means that the investor receives 80% of the returns, and the DARWIN Provider receives the remaining 20%.

Where can I see the Performance Fees?

Under the ''Performance fees' tab of your portfolio, you can consult all the details about the Performance Fees that you pay to DARWIN Providers.

performance-fees-subsection

Tips

Regarding the investment costs, take the following into account.

  • Execution costs are factores into the DARWIN's return. You do not have to calculate nor take away anything from the DARWIN's return because the execution costs are already factored into the return. In other words, the bid/ask spread, the commission and the swaps have already been subtracted before return calculation.
  • Performance Fees are only paid if there is a new profit in the relevant quarter. The Performance Fees won't be charged if your investment hasn't had any new profits in the relevant quarter.
  • The quarter starts when you first invest in a DARWIN. Your subsequent investments in the same DARWIN won't alter the date when your quarter starts in a DARWIN.

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