Review of Currensee Costs
On October 31st 2014 Currensee ceased to exist. We left our review pages for them active for reference.
Using the Currensee Social Trading Network is totally free. However, two fees apply when you invest money through their Trade Leaders Investment Program:
- Currensee Service Fee: This is a 2% annualized service fee. It is charged monthly based upon the average capital in your account, which works out at 0.167% monthly.
- Success Fee: This 20% of the net profits generated by the trades of each Currensee Trade Leader in your account. The success fee is based on achieving the High Water Mark in your account, also known as the highest historical value of your investment by Trade Leader. I.e. if the highest value of your allocation with Trade Leader XYZ is $1500 at the end of the month and this trade leader loses $50 in the next month, you don’t pay a success fee that month for that Trade Leader. If the following month they make $30 profit, you still don’t pay a success fee, because the high watermark is still not reached (i.e. $1500 – $50 + $30 = $1480). Only on profit over and above the $1500 high water mark will the 20% success fee be charged again. This means that Trade Leader success is tied to your success.
The additional costs are your normal broker spread on the trades, though this totally depends on the broker you choose and there’re no additional hidden costs.
Currensee are the only social trading network to charge a fixed service fee on your account and the argument is that this fee is indeed charged to cover the extra “service” they provide. This includes the pre-vetting and monitoring of the Trade Leaders and the assignment of an account manager to work with you.
With regards to the success fee, the good thing is that it’s totally linked to the actual performance of your own account. I.e. if a Trade Leader does not trade or loses money for you in a given month, you do not pay the fee for that Leader. In fact you’ll only pay a Success Fee on the profits above your high water mark. One negative is that the success fee (which is actually reducing your profit) isn’t taken into account when calculating the high water mark.
At the beginning of each month you’ll also receive a summary of the Currensee service and success fee breakdown. For the first 6 months, the only way we’re able to get hold of that information is by asking our Currensee account manager to compile that data for us. However the automated e-mails are now received on a monthly basis.