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Sales Fees per AUM

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Market Wizard
Boca Raton
Trading Experience: Advanced
Platform: Variety
Broker/Data: Optimus Futures, LLC
Favorite Futures: Futures
mattz's Avatar
Posts: 2,381 since Sep 2010
Thanks: 2,319 given, 3,458 received

Minds View Post
Thanks Matt,

I would like to know how much HFs pays third-party salesman.

Do you have any idea of how much they get from the 2/20? Do they get part of the fix and variable or only get compensated from management fee?

As I have mentioned, HFs can vary in terms of the compensation they provide. If you ask me specifically, "how much", I do not know because your question is general and does not have one universal answer. Call the HF you want to represent and ask.

I can tell you, in general, CTAs for example could pay licensed brokers up to 20% of the 2/20 in order to keep the commissions low and create an environment that is fair to all, customer, broker and CTA. I would assume that in the HF, they may go for the same arrangement. Just using my experience, I could tell you that highly established HFs would most likely pay less as they have substantial AUM. Those with less AUM, may potentially offer more.

Thank you,
Matt Z
Optimus Futures

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