commission-calculation

How to calculate the commission on a trading account

A nominal exchange rate is defined as the number of units of the base currency that can purchase a unit of a given quote currency. As such the nominal amount of a currency pair trade, is the number of units traded of the base currency.

Please note we charge USD 7.0 or EUR7 or 6 GBP based on your trading account deposit, per 1 lot round turn on FX, and Metals, 0.6 USD on Indices (per lot round turn) and 0.7 USD on commodities (per lot round turn)

The commission calculation is based on 1 lot round turn trade.
This means that if you buy/sell any currency, the number of lots you bought/sold will determine the commission value.

Example 1:

Your trading account currency is USD
You placed the following trade:
Buy 1.00 lot GBPUSD at 1.21556
This means you bought 100,000 GBP.
The commission charged on your account would then be = USD 7

Example 2:

Your trading account currency is USD
You placed the following trade:
Sell 1.00 lot USDJPY at 116.127
The commission charged on your account would then be = USD 7

Example 3:

Your trading account currency is EUR
You placed the following trade:
Sell 0.50 lot USDCAD at 1.32266.
This means you sold 0.50 x 100,000 USD = USD 50,000.00
Since your trading account currency is EUR, the calculated commission will in EUR.
The commission charged on your account would then be= EUR 3.5

Example 4:

Your trading account currency is USD
You placed the following trade:
Sell 1.0 lot XAUUSD (Gold)
The commission charged on your account would be: USD 7.0

Swap/Rollover Calculation 

Example: The formula for financing cost is as follows:

Closing Price of the Index * the interest rate / 100 / Number of Days +/- Dividends * Trade Size

On Fridays, if you hold a position over the weekend, rollover is charged 3 times as usual.

You can close your position before 20:45 GMT to avoid rollover and the charge will not apply.

Example: How to calculate CFD Swaps:

If US30 is subject to costs of 0.75 for short and -3.25 for long and you have an open position for one week has of 1 lot (100,000 USD).

Long Charge for 1 week: – 3.25 x 7 = USD -22.75

Short Credit for 1 week: -0.75 x 7 = USD -5.25

If your account is in another currency than the P/L currency, then the result needs to be converted to the account currency at the spot exchange rate of the two currencies.

Example: How to calculate FX Swaps:

If GBPUSD is subject to costs of 1.96 for short and -4.32 for long and you have traded 1 lot (100,000 GBP).

Long Charge for 1 week: – 4.32 x 7 = USD -30.24

Short Credit for 1 week: 1.96 x 7 = USD +13.72

If your account is in another currency than the P/L currency, then the result needs to be converted to the account currency at the spot exchange rate of the two currencies.

Cost calculations for Entry and Exit:

USOIL scenario

Assuming the following: Initial deposit: USD 1,500. Client trading account currency is USD.  Leverage: 1:100 Initial Margin required: USD 57 Nominal Value of the position:1000 barrels (10 Lots). Spread 3.6 pips

  • Favourable Scenario: Client buys 10 lots of USOil at 57.018 (ASK) and the market moves up 33.6 pips within two hours. The client decides to close out his position at 57.318 (BID) making a profit of USD 300.
  • Moderate Positive Scenario: Client buys 10 lots of USOil at 57.018 (ASK) and the market moves up 16.8 pips within two hours. The client decides to close out his position at 57.150 (BID) making a profit of USD 132.
  • Moderate Negative Scenario: Client buys 10 lots of USOil at 57.018 (ASK) and the market moves down 16.8 pips within two hours. The client decides to close out his position at 56.814 (BID) making a loss of USD 204.
  • Unfavourable Scenario: Client buys 10 lots of USOil at 57.018 (ASK) and the market moves down 33.6 pips within two hours. The client decides to close out his position at 56.646 (BID) making a loss of USD 372.
  • Stress Scenario: Client buys 10 lots of USOil at 57.018 (ASK) and the market moves down 185.0 pips within two hours. Client’s position is stopped out and the system closes out his position at 55.132 (BID) making a loss of USD 1,886.
Risk warning: Trading leveraged or "geared" products on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you so before deciding to invest in Forex or CFDs you should consider your investment objectives, expertise and risk appetite. You may lose more than your initial deposit and could be required to deposit additional funds. You should not invest money that you cannot afford to lose and should appraise yourself of all the risks associated with Forex and CFD trading and seek advice from an independent financial advisor if you have any questions.
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Risk warning: Trading leveraged or "geared" products on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you so before deciding to invest in Forex or CFDs you should consider your investment objectives, expertise and risk appetite. You may lose more than your initial deposit and could be required to deposit additional funds. You should not invest money that you cannot afford to lose and should appraise yourself of all the risks associated with Forex and CFD trading and seek advice from an independent financial advisor if you have any questions.

OneTrade is a trading name of FxStat Ltd and is authorised and regulated by the Financial Conduct Authority in the United Kingdom under FCA Firm Reference Number 537787. FxStat is a company registered in England and Wales under registered number: 07212997.

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Please also make sure to read all the risk disclosure notice page here.