Forex signal providers are real-time traders who share their approach with others. Whenever you open a trade it immediately gets copied into your followers’ accounts and you get monetary bonuses to help other traders make money.
Copy trading and signal trading platforms developed various for Forex signal providers compensation models. You set a monthly subscription charge for some of them people have to pay for following you. While others offer profit-sharing scheme, you will get the profit which depends on the amount of assets under control.
Fixed Monthly Fee
Under this model, consumers subscribe to a signal provider at a fixed monthly rate. The range can be from $10 to $500 a month and more. The signal provider typically decides the cost itself. But, the obligation shares to some of its income with the network for signal sharing.
First of all, subscription-based copy trading platforms are typically not free for both traders and end users. And also, the charge extra subscription fees for all parties. Second, if you’re new to the site, it may be more difficult to convince copy traders to support your plan because they need to pay the money in advance.
Throughout the plus side, services based in subscriptions typically support a wide variety of brokers and are fairly easy to set up.
Spread Sharing
Under the spread sharing model, for every lot exchanged on their follower account, a signal provider gets charged spreads. In this part, your primary goal is to more aggressively acquire followers. It altogether with a larger portfolio and trade to raise your profit.
This volume-based commission structure is very popular among copy trading networks as brokers. They are paid by spreads, and are involved in rising amount of turnaround.
Profit Sharing
Profit-sharing is a contract arrangement dependent on results. In this situation you are getting a fixed percentage of income from your followers. Your income as a Forex signal provider is rising proportionally to your customers’ benefit. It makes your strategy’s increased profitability a prime target.