The fee is calculated as 0.7% of the spot forex rate for retail clients.
Imagine you’re trading in an account denominated in USD.
You have an open CFD trade on France 40 – denominated in EUR – that is in profit by €10.
This is shown on your position as $10.85 (€10 at the spot EUR/USD rate of 1.08461)
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) x 1.08461 (spot rate) = $10.85
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: 1.08461 (spot rate) x (1 - 0.7%) (currency conversion fee) = 1.07701
Therefore your profit after the currency conversion fee is:
€10 (your profit) x 1.07701 (all in rate) = $10.77
Therefore, in this example, you have been charged a currency conversion fee of $0.08.
| Conversion fee rate | Currency conversion cost | |
| Without the currency conversion fee | 0% | $0 |
| With the currency conversion fee | 0.7% | $0.08 |
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.