Note that the minimum investment allowed in Archer Trading's Managed Forex Program is $10,000 and is operated according to the fee schedule detailed below:

Monthly Performance Fee = 35% of net new profits

Annual Management Fee = 2%*

*Fee is charged monthly at 0.1667% per month

The 35% performance fees are taken on a high-watermark basis. A high watermark is the previous high in the account-participant's account (adjusted for deposit, withdrawals, and fees). It ensures that the fees are only deducted based on new performance, rather than just recovery from poor performance. In other words, if an account loses money over a period, the account must first recoup previous losses and then any profit above the high watermark is subject to a 35% performance fee. For example (assuming no management fees for simplicity):

Your account opens with an initial investment of $10,000.

At the end of the first month, the account makes $2000, bringing its equity up to $12,000 on which there is a 35% performance fee of $700 is deducted; correspondingly, the watermark is raised to $11,300 ($2,000 profit less a $700 fee).

Then, at the end of second month, it loses $200, lowering its equity to $11,100, on which a performance fee is not charged.

At the end of third month, the account makes $150, bringing its equity up to $11,250, on which no performance fees are charged because the watermark was not reached.

Lastly, at the end of the fourth month, it makes $3,000, bringing the equity up to $14,250, which is a new-equity high by $2,950 over the watermark of $11,300 in the first month, on which there is a 35% performance fee of $1,030 deducted. The watermark is now raised to $13,020.