FAQs - Managing a Model

Thinking of Signing Up?

Why Should I Do This?

• Do I need to be registered as an Investment Advisor?
  No. We license trading data from both professional and non-professional investors to manage models on Covestor. As an unregistered investor you sign up to our Non-Registered Publisher Agreement where your prime responsibility is to license your trading data to us. You have no direct relationship with, or responsibility to, our clients.
• How much can I earn?
  There is no limit to how much you can earn. We share the management fees we charge with you. If you are an unregulated individual investor we pay you a fixed fee for each subscriber to your model, and if you are a Registered Investment Advisor we split the fees with you 50:50. Find out more about manager compensation.
• What will Covestor do to market my model?
  We work hard to understand and promote models to our clients. Our marketing team promote both the platform and individual models. If you would like to be included in webinars, press releases or other marketing materials please contact Manager Relations.

How it Works

• I am unregistered, why can't I earn fees based on the assets following me?
  Managing money is an activity regulated by the SEC. In managing a model on Covestor you are not acting in an advisory capacity, you are simply a publisher of data which you license to us. We pay you a fixed fee for each subscriber to your data.
• Why do you impose trading rules on model managers?
  We have a fiduciary responsibility to our clients, as an SEC registered investment advisor, to ensure that we act in their best interests. Our trading rules are to ensure that our clients are not unduly exposed to risky or unsuitable trades.
• Do I have to disclose my identity?
  Yes. When managing a model your identity must be disclosed both to us and to our clients.
• If you have access to my account do you execute trades or withdraw funds?
  No. We have a limited view into your account for the sole purpose of monitoring your trading activity to enable us to maintain your model on Covestor.
• Do I have to reveal all of my trades and holdings?
  No. Members can choose to keep their holdings and trades hidden from public view, from everyone but logged in clients.
• Does Covestor support currency, futures or options trading?
  Not at this time.

Opening an Account

• I am not a US citizen, can I manage a model?
  Yes. Non-US citizens can manage models as long as they are able to open a US dollar denominated brokerage account with Interactive Brokers. You are only able to take positions in US listed equities (including ADRs) and ETFs.
• Do I have to fund a brokerage account, can't I just enter signals?
  You have to open and fund a new brokerage account to manage a model on Covestor. One of the core principles of Covestor is that the model managers stand behind their strategies by having their capital at risk, in the same way as our clients subscribed to them.
• Can I use my existing brokerage account?
  Not at this time. Only Interactive Brokers is currently able to provide us with a real-time view into your trading activity and cash position for live replication in Mirroring Accounts. Once you have signed up we send you a link to open the specific account this requires with Interactive Brokers.
• How do I send in my performance history?
  Once you have returned the agreement and model profile form, our Manager Relations team will be in touch about this. We require either brokerage statements, audited performance documents or a Covestor Personal Track Record.
• How do I submit the agreement?
  Email it to us at managerrelations(at)covestor.com, or fax to 1.212.202.3595. Emailed agreements require digital signatures - find out how

Already Signed Up?

Using the Service

• My model doesn't look up to date
  Model profiles and performance are updated in time for market open the following trading day. This allows us to apply corporate actions (dividends, stock splits etc.) and reconcile our records to those of Interactive Brokers.
• My performance doesn't look accurate
  If you have a query about your model's performance displayed please contact us.
• Are benchmarks assigned to individual models?
  Benchmarks relevant to each model are assigned by Covestor based on overall strategy, model trade history, and/or other criteria as determined by Covestor. See a complete list of benchmarks that may be assigned to any given model.

Managing My Account

• Can I add more models?
  Yes. You can manage as many models as you want on Covestor. If you have already signed an agreement just tell us about your new model/s by sending back a new Model Risk Form, and open and fund a new account at Interactive Brokers.
• How do I switch from being an individual investor to an investment advisor?
  Let us know and we can switch your account in either direction. Be aware you can only be compensated as an investment advisor if you are a Registered Investment Advisor (RIA).
• How can I market my model?
  Feel free to share or link to your profile on Covestor, we will be adding tools to help you market yourself. Marketing Guidelines to protect your legal status are available on request from Manager Relations. If you would like to be included in our own PR please also let us know.
• Can I remove my model?
  Send an email to support(at)covestor.com with your name, details of your model and the reason you would like to be removed and we will take care of it for you.