cTrader Copy Collateral

cTrader Copy is a Copy Trading service for cTrader, it was formerly known as cMirror and could be referenced as cMirror or cMulti in some sources. cTrader Copy is a completely open copy trading environment that allows Strategy Providers to sell their strategies to any cTrader user. Demo account can follow Live and Demo Strategy Providers, the same applies for Live account. cTrader Copy is available for Brokers in two packages:

Full membership: Strategy providers of this broker could charge commission for trade copying from live followers. Traders can copy any available strategies.

Demo membership: Traders of this broker could provide or copy only free of charge strategies.

Activation of full membership for a broker requires deposit $25,000 which is going to be used as a collateral for сopy payments. This document explains what the cTrader Copy Collateral is, how it is used and how it simplifies transactions between full member brokers.

Once full membership is activated for a broker, traders holding live accounts with this broker could setup a commis-sion fee for copying their strategies or start copy strategies where commission is required.

Strategy providers could setup commission for copying using three types of fees available in cTrader Copy - Volume based fees, Performance fees and Management fees. All copying fees are charged from balance of Copy Traders. Spotware retains 30% of Strategy Providers commission as a service fee the remaining volume is deposited to the Strategy Providers account balance once a day at 00:00 UTC. No additional fees charged from Brokers for offering cTrader Copy service. Initially broker holds all the copying commission and pays commission to the Strategy Providers. At the end of each month Spotware issue collateral invoice reflecting monthly collateral change.

Payments between Strategy Providers and Copy Traders of the same broker are done automatically. To secure payments between Strategy providers of one broker and Copy Traders of other broker/s Collateral is used. Even though invoices issued once a month collateral balance adjusted in run-time. Broker will get email notifications when Collateral reach critical levels. Trade Сopying will be paused automatically by reaching collateral balance 0 level. It means that copying will be stopped without actually closing all the currently opened positions. There will be no new trades opened. However, all the currently opened trades will still be copying close actions from the Strategy Provider.

Below we will give three examples on how the collateral is used.

Example 1This example illustrates how copying commision is collected and paid when a Copy Trader and and a Strategy Provider hold account with the same Broker.

We have the following preconditions

Copy Trader’s Broker

Strategy Provider’s

Strategy Provider’s Volume Based Fee

Broker 1 Collateral

Broker 1

Broker 1

10$/mil

$25000

Step 1The Strategy Provider opened and closed a position of 1 million USDJPY.

Step 2The Copy Trader has copied both opening and closing orders of the Strategy Provider’s position. $10 is charged for the opening deal and $10 is charged for the closing deal. In total $20 is collected by the broker as the copying commission, therefore this amount is added to the broker’s cash flow.

Step 3Broker 1 pays $14 to the Strategy Provider. This leaves $6 as the remaining amount of additional commission in Broker 1’s cash flow. $6 is deducted from the broker’s collateral as Spotware’s service fee. The broker’s collateral becomes $24994.

Broker 1 Has $6 in their cash flow

Broker 1 Has $6 from their collateral

Broker 1 Collects $20 frim MT

Broker 1 Pays $14to SP

Mirror Trader Paying $20

Fees need to be paid to SP

Strategy Provider Charging $10/mil

Example 2This example illustrates how copy commision is collected and paid when a Copy Trader and a Strategy Provider belong to the different Brokers.

We have the following situation

Copy Trader Broker

Strategy Provider Broker

Strategy Provider’s Volume Based Fee

Broker 1 Collateral

Broker 2 Collateral

Broker 1

Broker 2

10$/mil

$25000

$25000

Step 1The Strategy Provider opened and closed a position of 1 million USDJPY.

Step 2The Copy Trader has copied both opening and closing orders of the Strategy Provider’s position. $10 is charged for the opening deal and $10 is charged for the closing deal. In total $20 is collected by the Broker 1 as the copying commission, therefore this amount is added to the broker’s cash flow.

Step 3$20 of commission collected by Broker 1 as the copying commission is actually owed to Broker 2. Broker 1’s Collateral is adjusted accordingly and becomes $24980 ($25,000 - $20).

The Net amount of collateral adjustment and cash flow increase remains $25,000 (-$20 from collateral, + $20 Broker 1’s cash flow).

Step 4As Spotware retains 30% of copy commissions Broker 2 will pay $14 ($20-30%) to the Strategy Provider. This amount is automatically deposited to the Strategy Provider’s balance 00:00 UTC next day.

$14 is taken from the broker’s cash flow because of this transaction, so Spotware will increase Broker 2’s collateral balance by $14 to correct this transaction. Broker 2’s Collateral balance becomes $25,014.

This example is illustrated in the following diagram:

cTrader Copy Collateral

cTrader Copy is a Copy Trading service for cTrader, it was formerly known as cMirror and could be referenced as cMirror or cMulti in some sources. cTrader Copy is a completely open copy trading environment that allows Strategy Providers to sell their strategies to any cTrader user. Demo account can follow Live and Demo Strategy Providers, the same applies for Live account. cTrader Copy is available for Brokers in two packages:

Full membership: Strategy providers of this broker could charge commission for trade copying from live followers. Traders can copy any available strategies.

Demo membership: Traders of this broker could provide or copy only free of charge strategies.

Activation of full membership for a broker requires deposit $25,000 which is going to be used as a collateral for сopy payments. This document explains what the cTrader Copy Collateral is, how it is used and how it simplifies transactions between full member brokers.

Once full membership is activated for a broker, traders holding live accounts with this broker could setup a commis-sion fee for copying their strategies or start copy strategies where commission is required.

Strategy providers could setup commission for copying using three types of fees available in cTrader Copy - Volume based fees, Performance fees and Management fees. All copying fees are charged from balance of Copy Traders. Spotware retains 30% of Strategy Providers commission as a service fee the remaining volume is deposited to the Strategy Providers account balance once a day at 00:00 UTC. No additional fees charged from Brokers for offering cTrader Copy service. Initially broker holds all the copying commission and pays commission to the Strategy Providers. At the end of each month Spotware issue collateral invoice reflecting monthly collateral change.

Payments between Strategy Providers and Copy Traders of the same broker are done automatically. To secure payments between Strategy providers of one broker and Copy Traders of other broker/s Collateral is used. Even though invoices issued once a month collateral balance adjusted in run-time. Broker will get email notifications when Collateral reach critical levels. Trade Сopying will be paused automatically by reaching collateral balance 0 level. It means that copying will be stopped without actually closing all the currently opened positions. There will be no new trades opened. However, all the currently opened trades will still be copying close actions from the Strategy Provider.

-$20 Broker 1 collateral

Mirror Trader Fees need to be paid to SP

Strategy Provider Charging $10/mil

+$14 Broker 2 collateral

+$14

+$6

Broker 1 has + $20in their cash flow

Broker 2 has + $20in their cash flow Broker 2 Pays

$14 to SPBroker 1 has + $20in their collateral

Broker 2 has + $14in their collateral

Broker 1 Collects$20 from MT

Example 3This example illustrates what happens in the opposite scenario to example 2, where the Copy Trader belongs to Broker 2 and copies a strategy from a Strategy Provider that belongs to Broker 1. The collateral balances are kept the same as already calculated at the end of Example 2.

We have the following situation

Copy Trader Broker

Strategy Provider Broker

Strategy Provider’s Volume Based Fee

Broker 1 Collateral

Broker 2 Collateral

Broker 1

Broker 2

10$/mil

$24980

$25014

Step 1The Strategy Provider opened and closed a position of 1 million USDJPY.

Step 2The Copy Trader has copied both opening and closing orders of the Strategy Provider’s position. $10 is charged for the opening deal and $10 is charged for the closing deal. In total $20 is collected by Broker 2 as the copying commission which is added to the copy trader’s deal.

Step 3$20 is collected by Broker 2 as the copying commission, therefore this amount is added to Broker 2’s cash flow. However, this commission is actually owed to Broker 1, Broker 2’s Collateral is adjusted accordingly and becomes $24,994 ($25,014 - $20). .

Step 4As Spotware retains 30% of copy commissions Broker 1 will pay $14 ($20 - 30%) to the Strategy Provider. This amount is automatically deposited to the Strategy Provider’s balance 00:00 UTC next day.

$14 is taken from the broker’s cash flow because of this transaction, so Spotware will increase Broker 1’s collateral balance by $14 to correct this transaction. Broker 1’s collateral balance becomes $24,994 ($24,980 + $14).

cBroker

Deals (History)At the Deals (History) section the deals submitted by Copy Trading are listed under cMulti channel, which could be applied as a view filter. Copied deals also have the followed Strategy name specified in the Comment section and the amount of Copy Commission trader has paid to the Strategy Provider.

TransactionsThe Copy Trading Commissions are combined from all the traders copying the Strategy and deposited to Strategy Providers accounts from Monday to Friday 00:00 UTC. Since the strategies provided by Full Member brokers could be followed by the clients on their own and the clients of other Full Member brokers, there are two types of related Deposit Transactions :

Inner Copy Trading Payments: Copy commissions collected from your clients (followers) and paid to Strategy Providers, also the clients of yours. Outer Copy Trading Payments: Copy commissions collected from other brokers clients (followers) and paid to Strategy Providers, the clients of yours.

Outer Copy Trading Payments are reimbursed to the Collateral balance of each Broker and the according amount is charged from the other brokers Collateral balance in order to compensate the Outer Copy Trading Payments paid.

Also two new types of transactions have been introduced. These are

Management Fee. Performance Fee.

These are fees charged by Strategy Providers to Strategy Followers and can be viewed in the Transactions as well as withdrawals from accounts.

Copy Trading Collateral At the Copy Trading section you can view all details about your cTrader Copy Сollateral status in real-time and the end of the month expectations.

1. Remaining CollateralThis section displays your Remaining Collateral balance in real time. You will receive the invoices for Collateral Used on monthly basis. Copying will be paused as soon as your balance reaches zero. Therefore it is important to constantly monitor your balance.

Collateral Limit - Collateral Balance required to cover monthly Copy Trading Commissions.Collateral Used = All time Collateral Used - Paid Invoices + Reallocated FundsCollateral Balance remaining after Copy Trading Commissions applied = Collateral Limit - Collateral Used

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2. Email AlertsYou can set up email alerts to make sure you are notified as soon as your Collateral falls to a certain level. The level is customizable.

3. Reporting TimeframeThe Collateral Report is built for the selected period of time. You can choose one of pre defined timeframes or use the custom period with up to minute precision.

4. Owed to other Brokers’ Strategy ProvidersThe commission your customers are paying to other brokers Strategy Providers, where 30% retained as Spotware’s service fee.

5. Owed to your Strategy Providers by OthersThe commissions that Other Broker’s Copy Traders are paying to your Strategy Providers, where 30% is retained as Spotware’s service fee. This amount will be offset against what you owe to that broker and realized at the end of the month.

6. Owed to your Strategy Providers by YouThe commissions you have collected from your Copy Traders and payed to your Strategy Providers, where 30% is retained as Spotware’s service fee.

7. Collateral ExpectationsThe collateral expectations section shows how your invoice will be adjusted in order to restore your collateral to its original state. This value is based on all of the calculations which take place within this section.

Short Summary and Important Notes

The Copy Collateral is only a security against all commissions accumulated throughout a one month period and by no means could be

interpreted as a fee.

If your Copy Collateral exceeds $25,000 USD you may either withdraw the excess funds to reimburse yourself for a commissions which have

been paid to your Strategy Providers, or use this additional balance to pay your invoices to Spotware.

Once your Copy Collateral is depleted you will be required to redeposit to continue the live service, Spotware will formally request you to do

so once your collateral falls below $5,000 USD.

Once your Copy Collateral has been exhausted copying will be paused. It will not be possible for new opening orders to be copied, only

existing ones will be maintained.

Spotware will issue monthly balance statements for your Copy Collateral account.

Copy commission adjustments are fully automated by cBroker and no additional administration is required.

Commissions are automatically collected from Copy Traders on each closing trade. These commissions are charged in the same way as

trading commissions, however they are collected and accounted separately.

Strategy Providers fees are settled automatically from Monday to Friday 00:00 UTC as a Deposit Transaction.

Copy commissions are not considered as Brokers PnL when running reports from cBroker.