Copy Trading Fees & Profit Sharing: How the Costs Work

Copy trading isn't free, but the costs are straightforward once you understand them. Knowing what you'll pay — and to whom — helps you judge whether copying a particular trader makes sense. Here are the main cost types.

1. Trading costs (spreads)

Like any trading, copied trades carry normal trading costs such as the spread (the small difference between the buy and sell price). These apply to your copied positions just as they would to trades you place yourself.

2. Profit sharing (performance fee)

This is the one that's specific to copy trading. When you copy a trader, a pre-set percentage of the profit you make may be shared with that trader as their performance fee. It's an incentive: the trader earns more when the people copying them earn more, which aligns their interests with yours.

The important detail: the percentage is shown to you before you start copying, so there are no surprises. Different traders may set different rates.

3. Possible funding or overnight costs

Depending on the instrument, holding leveraged positions overnight can incur a small financing (swap) cost, and some funding methods may carry fees. These are shown at the relevant moment.

Why profit sharing exists

Profit sharing rewards skilled traders for building a track record worth following, and it keeps their goals aligned with yours — they only earn the performance fee when you actually profit. It's worth factoring into your expectations: a trader's net result to you is after their share.

What to check before you copy

• The trader's profit-sharing rate, shown on their profile.
• The typical spreads on the markets they trade.
• Whether their style holds positions long enough to incur overnight costs.

The exact spread, profit-sharing rate and any funding fees are always shown before you confirm — and you can read more about how Catchnex makes money in our FAQ. Before committing, read how to choose a trader to copy — a slightly lower headline return with a fair fee and low drawdown often beats a flashy one.