The fee collection feature of our Investment API allows you to easily configure, manage and collect the revenue charged to the end user for the services you provide.
This guide will walk you through the implementation steps required to integrate and configure the fees of your choice.
The fees you want to charge your end users depend strongly on the specifics of your business model.
Upvest supports two types of fees you can charge your end users:
- Service fees / administration fees – ongoing fees calculated as a percentage of assets under management (AUM).
- Transaction fees – per-order fees charged at the point of order execution.
It is important that you analyse the different types of fees you want to charge your end users and select the approach that best matches your needs.
The Upvest team can help you find the most suitable fee structure for your business model.
| AuM-based fees | Transaction fees | |
|---|---|---|
| Calculation & Intake on Upvest side | Pre-funding and Post-trade settlement The client defines fee models and assigns them to accounts. The fee is calculated and charged by Upvest. | Pre-funding only The client defines transaction fee models and assigns them to orders. The fee is calculated and charged by Upvest, and the client receives a separate fee treasury. |
| Calculation on Client side & Intake on Upvest side | Pre-funding and Post-trade settlement The client calculates the fee amount to be charged. Upvest collects the fee amount requested by the client via the API. This method is useful if fee calculation logic is more complex or if clients want to retain it. | Pre-funding only The client calculates the fee amount to be charged. Upvest collects the fee amount requested by the client via the Order API. This method is useful if fee calculation logic is more complex or if clients want to retain it. |
| Calculation Upvest side & Intake on Client side | Not applicable | Post-trade settlement only The client defines transaction fee models and assigns them to orders. Upvest calculates the fee amount and communicates it with the order data; the client intakes the fee. |
| Calculation & Intake on Client side | Post-trade settlement only The client intakes the fees when necessary and communicates the collected fees to Upvest for reporting. | Post-trade settlement only The client calculates the fee amount to be charged and communicates it to Upvest in the order request for it to be reported correctly in taxes and reporting. |
Learn more about the calculation and intake of fees in the next chapters: