When trading CFDs, an FX fee is applied when closing a position. This fee is charged to account for currency conversion costs when your trade involves different currencies.
How does the FX fee work?
The FX fee ensures that currency conversion costs are covered when trading in different currencies. This helps maintain accurate trade calculations and ensures a smooth trading experience.
💡 Example
- Client's Account in EUR: The client has an account denominated in euros (EUR), meaning all final profits and losses will be settled in EUR.
- Nvidia Trade in USD: Since Nvidia is a US stock, its prices are in US dollars (USD). The client initially bought 310 Nvidia shares at an average price of $112.16 per share and later sold them at a closing price of $112.04 per share.
- Profit/Loss in USD: The difference between the buy and sell prices determines the profit or loss in USD. Since the stock price dropped slightly, the trade resulted in a loss of -$35.38 (gross result in USD).
- Conversion to EUR: Because the account is in EUR, this USD loss is converted to EUR at the applicable exchange rate. After conversion, the resulting loss amounts to -€35.38.
- FX Fee: A 0.5% foreign exchange (FX) fee is applied to the converted amount. The fee is calculated as:
- Calculation: −35.38 EUR ×0.005=−0.18 EUR
- Final Result in EUR: After deducting the FX fee, the total realized loss on the trade is -€35.56.
This process applies to all trades in non-EUR-denominated assets, ensuring all profits/losses are reflected in the account’s base currency (EUR).
Where can I see the FX fee?
- History Section: The FX fee is displayed when you check your closed CFD positions.
- Result/Closed Positions/Orders View: It appears alongside other trading details.
- Account Statements: The FX fee is included in all client-facing statements for easy reference
How is the FX fee calculated?
The FX fee is 0.5% of the realised profit or loss at the time of closing and it is applied automatically and recorded in your account history.