What are 2 and 10 (Hedge Fund Fees)?
The 2 and 10 is a hedge fund compensation structure consisting of a management fee and a performance fee. 2% represents a management fee which is applied to the total assets under management. A 10% performance fee is charged on the profits that the hedge fund generates, beyond a specified minimum threshold.
Again, the 2% fee is charged on the assets under management regardless of the performance of the investments under the fund manager. However, the 10% fee is only charged when the fund achieves a certain level of profit.
Discounts for Capital Lockup
A hedge fund may decide to offer a substantial discount to investors who are willing to lock up their investments with the company for a specified time period, such as 6 months, or 1 year. This practice is most common with hedge funds whose investments typically require longer time frames to generate a significant ROI. In exchange for the longer lockup period, clients benefit from a reduced fee structure.
**up to 5% discount on our fee applicable
Competitive, Straightforward and with No Surprises
FR offers customers most of its services free of charge, and we are upfront with the few fees we do charge. There are no surprises. Our compensation is derived from our Bid/Ask spreads, which are among the tightest in the industry (based on internal monitoring)
FR is compensated for its services through the Buy/Sell (Bid/Ask) spread, so when you open a position, you essentially “pay” the spread. This spread is incorporated into the FR quoted rates and is not an additional charge or fee payable by you above the quoted rates.
To view the spread for a specific instrument, simply:
1. Log in to your account.
2. Search for a specific instrument.
3. Click on the Details icon (i) and scroll down to the Info section.
The fees below could be applied to your account, depending on your trading activity:
An overnight funding amount is either added to or subtracted from your account when holding a position after a certain time (referred to as the “Overnight Funding Time”).
Currency Conversion Fee
FR will charge a Currency Conversion Fee for all trades on instruments denominated in a currency different to the currency of your account. The Currency Conversion Fee will be reflected in real time into the unrealised profit and loss of an open position.
Guaranteed Stop Order
A unique order type used to help you manage risks by guaranteeing the stop loss level. If you choose to use this feature, please note that as it guarantees that your position closes at a specific requested rate, it is therefore subject to a wider spread.
A fee of up to USD 10 per month will be levied, should you not log in to your trading account for a period of at least three months. This fee will be charged once a month from that moment onwards, as long as no login is made to the account.
Deposits and Withdrawals
We Don’t Charge Deposit and Withdrawal Fees¹!
As part of our commitment to offer the best trading conditions available, we cover most payment processing fees. On rare occasions, you may incur fees when transferring money to and from your FR account². These are determined and levied by your payment issuer or bank, and not by FR.
¹ We may charge for exceeding the maximum number of monthly withdrawals.
² E.g. for international credit card transactions, incoming/outgoing bank transfers and transactions using a currency that is not supported (Forex conversion).