Charges and Fees

Charges and Fees

Additional Fees

Overnight Charges

An overnight charge or swap fee shall apply to each position which remains open overnight.

Conversion fees

Conversion fees apply when your account currency is different than the quoted currency of the underlying asset being traded.

Inactivity fee

If no trading activity occurs for over 90 days, we charge a monthly fee. For inactive accounts over a period exceeding 12 months, an Annual Inactivity Fee applies.

No Deposit / Withdrawal Fees

You will not be charged any Deposit / Withdrawal Fees, as they are all covered by Trade.com.

No other charges

We do not charge any live price data feeds, any account documentation fees or any other fees.

Definitions

A spread is the difference between the bid (buy) price and the ask (sell) price for a specific trade. It is therefore your cost of opening and closing a specific position and it could have a significant impact on the profitability of your trades.

Tighter spreads tend to mean lower trading costs, everything being equal. A tighter spread means that the market price doesn’t have to move as far from your entry price, for your trade to become profitable.

Volatility caused by major economic developments and market news can trigger sudden high fluctuations in the price of specific instruments, which can lead to an increase (or widening) of spreads, in order to cover the increased risk of volatile markets.

Margin: can be thought of as a deposit that is required when using leverage. Each time you open a leveraged position a certain amount of your account balance is secured as margin. The exact amount is dependent on the size of the position and the leverage which is being used. Margin is there to guarantee the position you have opened in case it goes against you.
PIP stands for Percentage in Point and it is a standardized unit and is the smallest amount by which a currency quote can change. It is usually $0.0001 for U.S.-dollar related currency pairs, which is more commonly referred to as 1/100th of 1%, or one basis point.
Leverage involves borrowing a certain amount of the money needed to invest in something. In the case of forex, that money is usually accommodated by a broker. Leverage allows investors to command a much larger investment than their capital will allow, thus allowing them to potentially increase their returns while only investing a percentage of the overall value of the asset in question.
An overnight charge or sometimes called a swap fee is charged when you keep a position open overnight.
A rollover refers to the process of closing out open positions in soon-to- expire contracts in favor of contracts with later expiration dates.

Conversion fees apply when your account currency is different than the quoted currency of the underlying asset being traded. The fee will be reflected as a percentage of the conversion rate used. This will affect any conversions made on the Used Margin, Profit and Loss, Overnight Rollovers (Financing), CFD Rollovers and adjustments for Corporate Actions (such as Dividends and Splits).

As an example, if the account currency is US dollars and you open a position on a Euro quoted asset (i.e. Germany30) your Used Margin is converted in US dollars. The conversion will include a fixed percentage on the conversion rate applicable at the time as a mark-up. The conversion fee is set at 0.3%.

Tighter spreads tend to mean lower trading costs, everything being equal. A tighter spread means that the market price doesn’t have to move as far from your entry price, for your trade to become profitable.

Volatility caused by major economic developments and market news can trigger sudden high fluctuations in the price of specific instruments, which can lead to an increase (or widening) of spreads, in order to cover the increased risk of volatile markets.

We charge a $25 monthly fee, if no trading activity has occurred for 90 days or more.

If your account remains inactive for a period exceeding 12 months, an Annual Inactivity Fee of $100 or equivalent per quarter shall apply, minus any monthly inactivity fees already charged.

A Deposit /Withdrawal Fee is a fee charged by the Company when depositing or withdrawing funds to and from your account. Currently you will not be charged any Deposit / Withdrawal Fees, as they are all covered by Trade.com. However we reserve the right to introduce minimum Deposit / Withdrawal Fees upon prior notification to our clients regarding the conditions and amounts of applying such fees.

Examples

Let’s use an example that you would like to trade Sugar.

Sugar’s quoted currency = USD
Position Direction = Long (Buy)
Webtrader Volume = 12,600 ( MT4 = 1.26 lots)
MT4 Contract Size for Sugar = 10,000 lbs
MT4 Volume= Lots * Contract Size = 1.26 * 10,000 = 12,600 lbs

Contract Price Difference (at the rollover from expiring to new month contract)

New contract price minus Old contract price = 0.79 USD
Sugar’s Spread = 0.04 USD
Sugar’s Mid Closing Price of the Day = 11.61 USD/lbs
Sugar’s Overnight Swap Charge = -0.0217 % = - 0.000217

The Daily Overnight (Swap) Charge is calculated as follows:

Daily Swap Charge = Volume * Instrument’s Mid Closing Price * Instrument’s Overnight Swap Charge
Daily Swap Charge = 12,600 * 11.61 * (- 0.000217) = - 31,74 USD

The Rollover Adjustment is calculated as follows:

Rollover adjustment = Volume * Price Difference between New contract and Old contract
12,600 * 0.79 = 9,954 USD

Since you have a buy position and the price difference is positive, the USD 9,954 will be charged to your account to compensate the corresponding floating P&L increase on your open position. (If, for the same example, you have a sell position, the USD 9,954 would have been credited to your account as a compensation for negative P&L)
The Rollover Spread Charge is calculated as follows:

Rollover Spread Charge = Volume * Instrument’s Spread
Rollover Spread Charge = 12,600 * 0.04 = 504 USD

The spread charge is always charged on your account regardless of the type of position (buy or sell).
The Total Rollover adjustment is calculated as follows:

Total Rollover Adjustment = Rollover adjustment + Rollover spread charge = (-9,954) + (-504) = -10,458 USD

If your account currency is different from the instrument currency, then the amount is converted to your account currency at current market price.
The Conversion fee is calculated as follows:

Assume your account is denominated in EUR and you want to open a position on Natural Gas CFD which is quoted in US dollars. If the required margin for this position is $1,000 it will be converted in EUR in the following way:

Used Margin Conversion Fee: 0.3%
EUR/USD Mid-price: 1.13612
At the time of position opening, Used Margin will be converted to EUR with the following rate:
1.13612 – 1.13612*0.3% = 1.1327
Used Margin = $1,000 / 1.1327 = 882.85 EUR

FAQs

How are rollover fees calculated:

Total Rollover Adjustment = Rollover adjustment + Rollover spread charge.

What are the trading hours and where can I see them:

You can see the trading hours of each instrument under the respective asset class on the homepage.

What is your balance

Your accounts value excluding P&L from open positions – it equals the funds you deposited into your account and your P&L from closed positions.

What is your equity

Your accounts value, it equals your balance, plus any P&L from open positions.

What is your free margin

The sum of funds you have available to use as initial margin for new positions. Calculated by subtracting the margin used by your current open positions from your equity.

What is your used margin

Indicates the sum of the margin currently being used by your open positions. Calculated by all of the initial margins of your open positions.

Professional clients are exempt from regulatory limits on leverage in place for retail clients, and are able to trade with higher leverage. Please refer to our Client Categorisation Policy.
During daily breaks and in major news, spreads may widen.
Leverage is estimated and depends on the real-time value of the instrument.

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