Understanding Profit Sharing and Fees in Copy Trading
Learn how profit sharing works between lead traders and followers, including fee calculations and settlement cycles.
Profit sharing is a percentage of the gains a lead trader makes for you, charged only on new profit above the high-water mark. That last clause is the one worth understanding: after a drawdown, nothing is charged until the previous peak is passed again, so you never pay twice for the same recovery. The high-water mark is what makes the arrangement fair over time rather than only in a good month, and it is the mechanism worth checking when a fee looks surprising.
Before you start
- An active subscription. The mechanics are the same whether you follow one trader or several.
How Profit Sharing Is Calculated
When a copied position is closed in profit, the lead trader receives their profit-sharing percentage from the follower's net gain. For example, if the profit share is 20% and a follower earns $100 on a copied trade, the lead trader receives $20 and the follower keeps $80.
When Fees Are Collected
Profit-sharing fees are calculated and settled when copied positions are closed. There are no fees on losing trades. The net profit is calculated after deducting trading fees, ensuring the profit share is based on your actual realized gain.
View Your Profit Sharing History
Navigate to Copy Trading > Profit Sharing to see a complete history of all profit-sharing charges and earnings. Followers see charges deducted, while lead traders see the profit share received, with a breakdown per follower.
High-Water Mark Protection
Midas uses a high-water mark system to protect followers. The lead trader only earns profit shares when the follower's equity exceeds its previous peak. This means if a follower loses money and then recovers, no profit share is charged until the recovery exceeds the previous high point.
If something goes wrong
- A fee appeared when your account is down overall.
- The high-water mark is per subscription, not per account. A profitable trader can charge while another subscription is underwater.
- The amount charged does not match your arithmetic.
- The share is taken on realised profit at settlement, after trading fees. Open positions are not counted until closed.
- You were charged after switching lead traders.
- Each subscription carries its own high-water mark. Starting with a new trader starts a new mark, so early profit there is chargeable even if the previous subscription is down.
Frequently asked questions
- What is a high-water mark?
- The highest value your copied portfolio has reached with that trader. Profit share applies only above it, so losses must be recovered before any new fee.
- Are there fees if the trader loses money?
- No profit share — but ordinary trading fees still apply to the trades themselves.
- Where can I see what I have paid?
- In the profit-sharing history on the subscription, itemised by settlement.
- Is profit share taken from the position or my balance?
- From the realised profit at settlement, which is why the credited amount differs from the raw position result.
- Does the high-water mark reset over time?
- It persists for the life of the subscription. Ending and restarting a subscription is what resets it, which is worth knowing before doing it casually.