Commissions & charges
FX and Commodities spot
|All crosses||0.0025% of the notional traded in|
the second-named currency
|AUD contracts||0.20 AUD per contracts|
|GBP contracts||0.25 GBP per contracts|
|EUR contracts||0.30 EUR per contracts|
|USD contracts||0.40 USD per contracts|
|JPY contracts||40 JPY per contracts|
Commissions will be charged by the position opening and closing as well.
Commission calculation example for 10 contract EURUSD buy at 1.38000:
- 1 contract EURUSD = 10,000 EURUSD
- 10 contracts = 100,000 EURUSD
- Notional value in the second-named currency: 100,000 × 1.38000 = 138,000 USD
- Commission: 138,000 USD × 0.0025% = 3.45 USD
If you have a trade open overnight in a non-expiry CFD (i.e. a CFD that does not have a fixed future expiry date) you will be charged with a financing charge on a long position and you will be normally paid with a financing charge on a short position. The financing charge will be applied to your account each and every day that you have an open trade (including on weekends and on public holidays in England).
The financing charge is calculated as follows:
F = V × I / b where:
F = Financing charge
V = notional value of your trade (quantity x contract size x end of day closing mid price)
I = applicable Financing Rate
b = day basis for currency (quoted as the first currency in the pair -365 for GBP, HKD, AUD and NZD,
360 for all other currencies)
The Financing Rates that are applied are outlined in the table below. The Financing Rates are, however, subject to change and changes in the Financing Rates will be notified to you.
|Instrument||Reference rate||Long Financing||Short Financing|
|UK instruments||1 month Libor||+1.5%||-1.5%|
|Euro instrument||1 month EUR Libor||+1.5%||-1.5%|
|US instruments||1 month US Libor||+1.5%||-1.5%|
There may be instances when a financing charge is charged on short positions, rather than paid to you. This may occur if a reference rate used to calculate the financing charge is at an exceptionally low rate.
As explained above, the notional value of your trade for the purposes of calculating the financing charge is calculated using the end of day closing mid price. The closing mid price will be calculated at the end of the day from the average trusted bid and ask prices on the MTF in the last few minutes of the trading session.
Example of Financing on a CFD
You are long 10 contracts in UK 100 CFD overnight where the closing price of the instrument is 5265.0 – 5267.0. The closing mid price is 5266.0. The LIBOR rate that day is 0.725%. Your financing charge would be:
Financing = Notional value of your trade x financing rate / day basis for currency = 52660 × (0.725% + 1.5%) / 365 = £3.21
That means that you would be charged £3.21 for holding 10 long contracts overnight.
If you were to hold a short position in the same instrument overnight your financing would be calculated as:
Financing = Notional value x financing rate / day basis for currency = 52660 × (0.725% – 1.5%) / 365 = £1.12
Even though you are holding a short position you will be charged £1.12 overnight as LIBOR is at a very low rate.
The financing charge for a Rolling Spot FX reflects the relative interest rates of the two currencies comprising your open trade plus a premium dependent on market conditions and including a LMAX charge. When a position is held overnight night, LMAX Exchange will apply a financing entry to your account. This may be a debit or credit entry depending on the contributing factors outlined above, namely relative interest rates and LMAX premium.
Spot FX trades settle on a T+2 basis, with the exception of USD/CAD, USD/TRY, EUR/RUB and USD/RUB which settle on a T+1 basis. If a Rolling Spot FX position is held through the market roll over (17:00 NY for all FX pairs except NZD pairs which roll at 07:00 Auckland), your account will be credited or debited with a financing charge. You will be credited or debited your 3-day (weekend) roll based on your open positions at the market close on Wednesday for all T+2 pairs and based on your open positions at the market close on Thursday for all T+1 pairs. In the event of a Bank Holiday in one of the currencies, your position will be rolled an additional day to reflect the bank holiday(s). The financing debit or credit on your account will always be in the second named currency.
Swap charges are quoted in swap points. A negative swap point if you are net long the FX pair will result in your account being credited, and you will receive funding. A positive swap point charge when long will result in your account being debited and you will pay funding.
If your position is net short, then a negative swap point charge will result in your account being debited and you will pay funding and a positive swap point will result in your account being credited, and you will receive funding.
How to calculate financing charge
To calculate the overnight financing event, the following equation can be used:
F = V × R × D where:
F = Financing Credit/Debit.
V = Notional value of your open position in the front currency (quantity x contract size).
R = Swap Point.
D = Number of days the position is rolled.
Example of financing on an FX contract
You are short 10 contracts of EUR/USD overnight. The position is rolled for 1 day.
The cost of holding the position overnight is:
V = 10 × 10,000 = 100,000
R = 0.000003
D = 1 day
Financing event: Credit = 100,000 × 0.000003 × 1 = $0.30
This means that a credit of $0.30 will be applied to your account at market close.
No separate financing charge is applied on CFDs based off futures prices which have a fixed expiry date.
Online trading increases the speed and efficiency of trading. But does not lower the risk. The use of higher leverage together with not knowing the specificity of certain derivatives and other instruments could lead to total loss of your investment. FX and CFDs are leveraged products that can result in losses exceeding your deposit. They are not suitable for everyone so please ensure you fully understand the risks involved.
UltraFX is the name of the service provided by Moneywheel Research Zrt. Moneywheel Research Zrt. is a tied agent of LMAX Limited which is authorised and regulated by the Financial Conduct Authority in United Kingdom (firm registration number 509778). Moneywheel Research Zrt. is registered with the Central Bank of Hungary (identifier: 23521050) under the Act CXXXVIII of 2007 on Investment Firms and Commodity Dealers, and on the Regulations Governing their Activities with reference number 26590-2/2013.