Commissions Calculations



 

Commission for trading currencies and spot metals on Admiral.Prime accounts

Formula

A USD 35 commission is charged per 1 million of transaction's notional value on Admiral.Prime accounts. This is a commission for a single side trade. Commission for a round turn trade (opening and closing) is doubled and is fully charged at the opening of the order. The formula below shows how exactly the commission is calculated:

Commission (in the deposit currency) = (Contract size * Rate of traded instrument's base currency to USD / 1,000,000 USD) * 35 USD * 2 * Rate of USD to account's deposit currency

Where:

Contract size = Volume traded in lots * 1 lot of the underlying asset

For Forex currency pairs:

1 lot = 100,000 units of the base currency. Base currency is the currency quoted first in a currency pair (e.g. 1 lot of EURUSD = 100,000 EUR)

For spot metals:

1 lot = 5,000 troy oz. spot silver (XAGUSD)

1 lot = 100 troy oz. spot gold (XAUUSD)

35 USD - commission currently set for Admiral.Prime accounts

2 - this multiplicator means we take a doubled commission for a round-turn trade

To make the calculations more clear let's consider several exact examples.

 

Example 1

Initial values

  • Account's deposit currency: EUR
  • Instrument traded: USDCAD
  • Volume traded: 1 lot
  • Order opening rates:
  • USDCAD: 1.10574
  • EURUSD: 1.39116

Calculations

  • Commission (in account's deposit currency) = (Contract size * Rate of traded instrument's base currency (USD) to USD / 1,000,000 USD) * 35 USD * 2 * Rate of USD to account's deposit currency (EUR)
  • Commission (in EUR) = (100,000 USD * 1 / 1,000,000 USD) * 35 USD * 2 * (1 / 1.39116) = 5.03 EUR
 

Example 2

Initial values

  • Account's deposit currency: EUR
  • Instrument traded: CADCHF
  • Volume traded: 1 lot
  • Order opening rates:
  • CADCHF: 0.78940
  • USDCAD: 1.10574
  • EURUSD: 1.39116

Calculations

  • Commission (in account's deposit currency) = (Contract size * Rate of traded instrument's base currency (CAD) to USD / 1,000,000 USD) * 35 USD * 2 * Rate of USD to account's deposit currency (EUR)
  • Commission (in EUR) = (100,000 USD * (1 / 1.10574) / 1,000,000 USD) * 35 USD * 2 * (1 / 1.39116) = 4.55 EUR
 

Example 3

Initial values

  • Account's deposit currency: USD
  • Instrument traded: EURCAD
  • Volume traded: 1 lot
  • Order opening rates:
  • EURCAD: 1.53779
  • EURUSD: 1.38920

Calculations

  • Commission (in account's deposit currency) = (Contract size * Rate of traded instrument's base currency (EUR) to USD / 1,000,000 USD) * 35 USD * 2 * Rate of USD to account's deposit currency (USD)
  • Commission (in USD) = (100,000 USD * 1.38920 / 1,000,000 USD) * 35 USD * 2 * 1 = 9.72 USD
 

Example 4

Initial values

  • Account's deposit currency: USD
  • Instrument traded: XAUUSD
  • Volume traded: 1 lot
  • Order opening rates:
  • XAUUSD: 1292.47

Calculations

  • Commission (in account's deposit currency) = (Contract size * Rate of traded instrument's base currency (XAU) to USD / 1,000,000 USD) * 35 USD * 2 * Rate of USD to account's deposit currency (USD)
  • Commission (in USD) = (100 troy oz. spot gold * 1292.47 / 1,000,000 USD) * 35 USD * 2 * 1 = 9.04 USD
 

Commission for trading CFDs on Stocks on Admiral.Markets accounts

Formula

A USD 0.10 (or equivalent in another currency) commission is charged for trading 1 CFDs on Stocks on Admiral.Markets accounts. For CFDs on Stocks 1 lot equals 100 CFDs. Therefore commission for 1 lot equals USD 0.10 * 100 CFDs = 10 USD. To make the calculations more clear let's consider several exact examples.

Important notes:

CFD (Contract for Difference) is derivative contract that allows to take advantage of price fluctuations of the underlying asset without acquisition of the ownership rights for this asset. Thus in a second example you get an opportunity to benefit from Google stock price fall without being an owner of real stocks.

The difference between opening and closing prices of traded stock does not take part in CFDs commission calculations.

 

Example 1

Initial values

  • Account's deposit currency: USD
  • Instrument traded: #GOOG
  • Volume traded: 1 lot
  • Order type: Buy
  • Open price #GOOG: 573.15
  • Close price #GOOG: 575.15

Calculations

  • Commission (in account's deposit currency) = Contract size (in CFDs) * Commission per 1 CFD * Rate of USD to account's deposit currency (USD)
  • Commission (in USD) = (1 Lot * 100 CFDs on Google Stocks) * 0.10 USD * 1 = 100 USD
 

Example 2

Initial values

  • Account's deposit currency: EUR
  • Instrument traded: #GOOG
  • Volume traded: 10 lot
  • Order type: Sell
  • Open price #GOOG: 573.15
  • Close price #GOOG: 571.15
  • EURUSD price: 1.33961

Calculations

  • Commission (in account's deposit currency) = Contract size (in CFDs) * Commission per 1 CFD * Rate of USD to account's deposit currency (EUR)
  • Commission (in EUR) = (10 Lot * 100 CFDs on Google Stocks) * 0.10 USD * (1 / 1.33961) = 100 USD / 1.33961 = 74.65 EUR
Intro to Forex

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