Turnover commission can be set by a trader when creating a strategy. The turnover fee varies from 0 to 25 USD per 1 million USD of trade turnover. The fee is calculated and paid to a trader when a position is being opened or closed.
For example, for currency pairs where USD is the base currency (USD/CAD, USD/CHF, USD/JPY), the turnover fee is calculated as follows:
- Instrument: USD/CHF;
- Turnover fee: 10 USD per 1 million USD of trading volume;
- Volume: 0.5 lots;
- Turnover fee calculation = 0.5 (lot) * 100,000 (contract size) * $10 (commission) / 1,000,000 = $0.5 for opening a trade;
- An additional $0.5 fee will be charged when the trade is closed.
For currency pairs where USD is the quote currency (AUD/USD, EUR/USD, GBP/USD, NZD/USD):
- Instrument: EUR/USD;
- Current exchange rate: 1.1236;
- Turnover fee: 20 USD per 1 million USD of trading volume;
- Volume: 1 lot;
- Turnover fee calculation = 1 (lot) * 100,000 (contract size) * 1.1236 * $20 (commission) / 1,000,000 = $2.25
- An additional $2.25 fee will be charged when the trade is closed.
For cross currency pairs that do not include USD (AUD/CAD, CAD/JPY, EUR/JPY, GBP/CHF, etc.):
- Instrument: EUR/JPY;
- Current exchange rate: 129.33;
- Turnover fee: 15 USD per 1 million USD of trading volume;
- Volume: 0.1 lot;
- Turnover fee calculation = $15 (commission) * 0.1 (lot) * 100,000 (contract size) * 129.33 / 115.10 (current USD/JPY exchange rate) / 1,000,000 = $0.17;
- An additional $0.17 fee will be charged when the trade is closed.
- Instrument: GBP/AUD;
- Current exchange rate: 1.90267;
- Turnover fee: 25 USD per 1 million USD of trading volume;
- Volume: 0.7 lot;
- Turnover fee calculation = $25 (commission) * 0.7 (lot) * 100,000 (contract size) * 1.90267 * 0.7066 (current AUD/USD exchange rate) / 1,000,000 = $2.35;
- An additional $2.35 fee will be charged when the trade is closed.
For CFD instruments (commodities, indices, stocks):
- Instrument: S&P500;
- Current exchange rate: $4,490;
- Turnover fee: 25 USD per 1 million USD of trading volume;
- Volume: 1 lot;
- Turnover fee calculation = 1 (lot) * 50 (contract size) * $4,490 * $25 (commission) / 1,000,000 = $5.61
- An additional $5.61 fee will be charged when the trade is closed.
