ALL FEES AND EXPENSES

PAYMENT OF FEES

In signing the Trading Power, clients will authorise and direct the Broker to deduct all agreed upon fees from their accounts, and pay those to Raab & Moskowitz on a monthly basis. This monthly calculation period is typically from the first to the last calendar day of each month, at the open and close times as per the Broker server time.

The Broker will automatically deduct all applicable fees from clients’ accounts when due.

MANAGEMENT FEES

The management fee is prorated and charged on a monthly basis. There are no additional charges for the opening or closing of the account. Withdrawals incur the net banking fee, no extra charges.

The management fee amounts to either:

• 2% per annum for managed accounts with a total deposit of less than 500,000US$ (or the equivalent in other currency).
• 1.5% per annum for managed accounts with a total deposit of 500,000US$ or more (or the equivalent in other currency).
• 2% per annum for Trade Copier Accounts

ADMINISTRATIVE FEES

Raab & Moskowitz will, unless otherwise specified, bear its own administrative, legal, audit, and any other administrative fees or expenses. These fees are not passed on to the Client.

TRANSACTION FEES

Raab & Moskowitz charges a markup fee of 0.5 pip, or US$ 5.- commission per 100,000 (1 lot) traded per side.

PERFORMANCE FEES

The payment of Performance Fees for “earnings on account” is charged monthly based on the net earnings achieved on the client account. It represents 15 to 25% of monthly High-Water Mark profits; also known as net earnings.

• Starter Depot: Accounts with a total of deposits of up to 50,000US$: 25%
• Depot Plus: Accounts with a total of deposits between 50,000US$ and 500,000US$: 20%
• Investor Depot: Accounts with a total of deposits of 500,000US$ and up: 15%

High-Water Mark (HWM)

Chelton Capital programme applies the High Water Mark (HWM) principle, by means of which Performance Fees are only payable on net accumulated earnings. The break even point which dictates every subsequent “High Water Mark” level, equates to the original amount deposited in the account minus the Monthly Performance Fee being paid. The Monthly Performance Fee will not be paid unless the Account Net Equity is above its prior HWM value net of performance fees paid.

Performance Fee Notice

Considering that the Performance Fee is payable monthly, some Performance Fees may be paid to Raab & Moskowitz during a fiscal year even though the managed account sustains a net trading loss in that same fiscal year. All fees paid will be retained by Raab & Moskowitz even if the portfolio experiences subsequent trading losses.

Raab & Moskowitz does not charge any Performance Fee remuneration corresponding to the services provided during those months in which there are losses. In addition, any losses are carried forward to the next months until they have been offset by new net capital earnings.

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