The basic premise of the Pro economic model is that you, not Darwinex, introduce the investors.
Since you carry the distribution risk, you set the distribution parameters. This is why you introduce investors to your brand, with your fee schedule (management and performance fees) and why your Darwinex Pro rev-share is higher than your Darwinex one.
The easiest way to explain it is in terms of what the investor pays and what it costs you.
- Your management and performance fees: Darwinex collects these and pays them into your Darwinex account as part of the signal purchase agreement - just as with DARWINs.
Darwinex sets an upper limit to protect investors against “abusive” fees
- Plaftform fee of 50bp of AuM per annum for:
- Risk management
- Deposit insurance
- VIP customer support
What Pro costs traders is:
- A one-off set-up fee for €/£/$10,000 - payable up-front. The set-up fee includes 20 investor invitations.
- €/£/$100 per investor as invitation fee.
Both the set-up fee and the invitation fee cover the support infrastructure for registration per investor
Regardless of whether the investor ends up investing, we charge for each invitation to avoid massive promotions that could pose regulatory risk.
Further, traders “underwrite” a yearly minimum €/£/$ 5000 platform fee. “Underwriting” in this context means that we’ll ask traders to top-up platform fees if these don’t reach the minimum.
E.g. if investors pay e.g. €/£/$3000 platform fees for €/£/$600,000 assets invested, Darwinex will invoice the trader for the “missing” (€/£/$5000 - €/£/$3000) = €/£/$2000.
There are no charges on this account once investors cover the minimum platform fee.