Equiti Support Center | Cost Calculation

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How to calculate the commission per million nominal currency on our Premiere 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 amount of units traded of the base currency.

Please note that we do not charge commission on CFDs.


The commission calculation on our Premiere account is based on the nominal currency amount and is USD 70.0 per USD 1 million on FX and USD 7.0 per 1 lot round turn on Metals.
This means that if you buy/sell any currency other than USD, the number of lots you bought/sold in the nominal currency need to be converted to USD in order to calculate the commission.
If your trading account currency is other than USD, then the calculated commission would then be converted into your trading account currency.


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.
100,000GBP will need to be converted to USD at the GBPUSD spot exchange rate at the time of execution (1.21556): 100,000 x 1.21556 = USD 121,556.00
The commission charged on your account would then be: USD 121,556.00 x 70/1,000,000 = USD 8.51

Example 2:

Your trading account currency is USD
You placed the following trade:
Sell 1.00 lot USDJPY at 116.127
This means you sold 100,000 USD
The commission charged on your account would then be: USD 100,000 x 70/1,000,000 = USD 7.00

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
The commission charged in USD would then be: USD 50,000 x 70/1,000,000 = USD 3.50
Since your trading account currency is EUR, the calculated commission will be converted into EUR. Assuming that the EURUSD spot exchange rate at the time of execution is 1.05532:
The commission charged on your account would then be: 3.50/1.05532 = EUR 3.32

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 the 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 (100 Lots). Spread 3.6 pips

  • Favourable Scenario → Client buys 100 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 100 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 100 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 100 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 100 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.

 

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