FX Commissions

Brief

This article describes commissions that may be charged for trading FOREX symbols.

Details

A commission is charged for trading FOREX symbols. The commission can be applied either to each position opened or order placed. The amount of the commission depends on the symbol traded. Note that more than one commission can be charged at a time.

Commission Per Position

The commission is charged on a per lot basis. The commission can be paid at one of the following events:

• Per Side (half of the commission is paid when a position is opened, another half – when the position is closed).
• Open Position (full amount of the commission is paid when a position is opened).
• Close Position (full amount of the commission is paid when a position is closed).

If the commission is applicable to a symbol, the amount of the commission per one lot as well as the event when the commission is paid are shown in the Commission column of the Simple Dealing Rates window.

According to the Simple Dealing Rates window, the commission rate for one 1K lot of EUR/USD is $0.08 round turn.

Open 10K EUR/USD.

The charge to open a position would be calculated as follows:

Open Comm = 0.08/2(commission) x 10(number of lots) = $0.40

Close 10K EUR/USD

The charge to close the position would be calculated as follows:

Close Comm = 0.08/2(commission) x 10(number of lots) = $0.40

The total charge would be calculated as follows:

Total Comm = 0.40(open commission) + 0.40(close commission) = $0.80

Commission Per Order

The commission is charged on a per order basis. The commission is paid when the order is executed. In the case of a partial fill, the commission is paid only once, when the first portion of the order is executed.

If the commission is applicable to a symbol, the amount of the commission per one order as well as the event when the commission is paid are shown in the Commission column of the Simple Dealing Rates window.

According to the Simple Dealing Rates window, the commission rate for one 1K lot of EUR/USD is $0.08.

Open 10K EUR/USD.

The order is executed in two portions.

The charge would be as follows:

First Portion Comm = $0.08

Second Portion Comm = $0.00

Total Comm = $0.08