Trader commission

Maroun asked 2 weeks ago

Hello guys,
I’m starting a small trading business (cryptocurrencies and commodities) (between 5k and 15k total capital) and some of my friends want to join in the capital.
What would be a fair commission for me as a trader on the profit (please try to give a minimum and a maximum) Appreciate your reply.
Thanks,
Maroun

1 Answers
Steven Hay answered 2 weeks ago

Hey Maroun,
 
Well… that’s a tough one. I’d say you should charge them a percentage of whatever profit you make. If you make losses, then charge them nothing. I think it’s very important that you let them know upfront that trading is a risky business and you can’t guarantee they’ll make any money…
 
Honestly, managing other people’s money is kind of a burden, especially if they’re friends – it’s a pretty terrible feeling to let them down. So I think charging 10% for the responsibility is reasonable. 20% would be too much and 5% too little. That’s just my opinion though, I have no idea of the going rates for this sort of thing.