We charge an advisory fee and a royalty fee. The royalty fee is currently waived. For the advisory fee, you may choose between:
A performance based fee
The tiered fee is based on a percentage of the size of your account and is calculated and charged based on:
Size of account: Annualised Fee
Assets less than USD 10,000: 0.88%
USD 10,001 to USD 25,000: 0.68%
USD 25,001 to USD 100,000: 0.48%
USD 100,001 to USD 500,000: 0.38%
USD 500,001 and above: 0.28%
All assets held in your account (margin or cash) will be subject to this fee, including cash. The fee will be calculated on an annualised basis but based on the market value of your account on a daily basis. The fee will be billed and payable monthly within 10 days after the end of each calendar month.
The standard tiered will be prorated based on the number of days in the month that you have been a client of Crea8.
Your account has cash and securities worth USD 10,000 in the first 15 days of June and USD 11,000 in the last 15 days of June. Total fees payable is USD 7.14 for June, being USD 3.61 for the first 15 days (10,000 x 0.88% x 15 / 365), and USD 3.53 for the last 15 days (11,000 x 0.78% x 15 / 365).
The performance fee is is triggered when the Time Weighted Return (TWR) exceeds the agreed benchmark. You shall have discretion to select the agreed benchmark. Depending on the chosen benchmark, a percentage of return exceeding the agreed benchmark is chargeable as performance fee. The fee is applied quarterly as of 31 March, 30 June, 30 September and 31 December and payable within 10 days after the end of every quarter.
Your account grew from USD 10,000 to USD 11,000 in the quarter ending June, representing a 10% increase. The benchmark index increased 7% during the same period. If the agreed performance rate is 30%, a performance fee of USD 9.00 is charged (30% x (10%-7%) x 1,000). No fee is charged based on the size of the account.
The fees are deducted from your brokerage account or charged separately depending on your account choice. The monthly and tiered fees are deducted monthly whereas the performance fees are collected quarterly.
If you do not have any cash deposits in your account, our broker partner will not be able to deduct from your account but you are still liable for the fees.