The fee is calculated as 0.7% of the spot forex rate for retail clients.
Imagine you’re trading in an account denominated in EUR.
You have an open CFD trade on US 500 – denominated in USD – that is in profit by $10.
This is shown on your position as €9.21 ($10 at the spot EUR/USD rate of 1.08577)
You decide to close the trade.
If no currency conversion fee had been applied, the profit of that position would be simply be calculated as follows:
$10 (your profit) / 1.08577 (spot rate) = €9.21
However, at the point of closure you will be charged the 0.7% currency conversion fee. The calculation is done as an ‘all-in’ conversion rate which encompasses the spot rate and the 0.7% fee.
The all-in rate is 0.7% less favourable that the spot rate, and therefore the profit realised on the position would be slightly less: 1.08577 (spot rate) x (1 + 0.7%) (currency conversion fee) = 1.09337
Therefore your profit after the currency conversion fee is:
$10 (your profit) / 1.09337 (all in rate) = €9.15
Therefore, in this example, you have been charged a currency conversion fee of €0.09.
| Conversion fee rate | Currency conversion cost | |
| Without the currency conversion fee | 0% | €0 |
| With the currency conversion fee | 0.7% | €0.06 |
You can see the ‘all-in’ rate used for the conversion of each transaction in the ‘Reports’ section of the platform, as well as on your statements.