Trade with clear pricing and charges
Our pricing is transparent, so you’ll be aware of the charges you incur when you trade with us.
Trade with fixed and variable spreads
Benefit from retail client margins starting from just 5%
Benchmark SG financing is 2.5% +/- SORA
Costs & Fees
Every market has two prices – the buy and the sell price - and the spread is the difference between the buy and sell price. The tighter the spread, the less the market has to move in your favour for you to start making a profit.
In the same way a high-street retailer adds a little extra to the price when it buys stock from a wholesaler, the spread is how most trading providers compensate themselves for the service they provide.
Fixed and variable spreads
We offer both fixed and variable spreads, depending on the market you wish to trade.
Fixed spreads
Fixed spreads don’t change regardless of volatility or liquidity. Depending on the market, fixed spreads may either be offered for a defined period of the day, or throughout trading hours. It is possible for a market with fixed spreads to have a spread that differs throughout the day, but the spread will be fixed for clearly defined periods. For example 1pt between 8am – 4.30pm, 2pts between 4.30pm - 10pm.
Variable spreads
Variable spreads may fluctuate throughout the day, in response to market conditions. With variable spreads, FOREX.com will quote you the minimum spread it could be, plus an average spread for a defined historical period of time.
All our CFDs are commission-free, with the exception of share CFDs which we charge a small one-off fee per transaction i.e. opening or closing the trade.
Share CFDs are subject to commission charges which vary by market. Details on the commission rates for each share CFD can be found within the market information sheets on the platforms, but broadly will be as follows:
Market name | CFD spread | CFD commission | Minimum |
|---|---|---|---|
Singapore shares | Market | 0.08% | SGD 10 |
US shares | Market | 1.5 cents per share | USD 8 |
UK shares | Market | 0.10% | GBP 8 |
European shares | Market | 0.10% | EUR 8 |
Australian shares | Market | 0.08% | AUD 5 |
Hong Kong shares | Market | 0.15% | HKD 15 |
Japanese shares | Market | 0.05% | JPY 1,000 |
Margin is the amount of money you need in order to open a position on a market with us. You can find out more about margin and leverage as well as the benefits of trading on margin in our Education section.
The larger the trade size, the higher the risk level associated with the trade. Therefore, we will increase our margin requirements for larger size trades or any additional trades in that instrument. Below is an example of how this may work:
CFD stake size | Margin |
|---|---|
0-1,000 | 5% |
1,000-10,000 | 10% |
10,000-50,000 | 15% |
50,000+ | 20% |
When you hold a FX position overnight, you either pay or receive a rollover fee (also known as a financing charge). These fees fluctuate daily and are different for long and short positions.
Rollovers are only applied to positions that are open at market close in New York – 5pm ET.
A rollover fee is calculated using a swap rate. The swap adjustment is simply the accounting of the cost-of-carry on a day-to-day basis (we do not charge rollover on intraday trades).
The swap rate is measured by the difference in interest rates between the two currencies. We source the swap rate from major financial institutions which base it on a variety of factors such as inflation and key technical indicators.
The rollover rates as calculated as follows:
- Long positions – you are credited/debited by –1 x the trade size x swap points in the unit quote currency.
- Short positions – you are debited/credited by the trade size x swap points in the unit quote currency.
Example
The swap rates for EUR/USD are 0.817/1.28 and you have a long position of €10,000.
If you held the position overnight, you would be charged a $1.28 rollover fee.
If you had a short position, then you would receive $0.82.
The amounts are then converted back into your base currency.
Financing is a fee that you pay in order to hold a position open overnight (excluding futures contracts). The daily financing fee will be applied to your account each day that you hold an open position (including weekend days). There is no financing charged on futures contracts. Our financing rates are set at 2.5% +/- the benchmark regional interest rate . The financing rates we charge by territory are:
Country | Financing on long positions | Financing on short positions |
|---|---|---|
UK | 2.5% + SONIA | 2.5% + SONIA |
US | 2.5% + SOFR | 2.5% + SOFR |
EU | 2.5% + €STR | 2.5% + €STR |
Singapore | 2.5% + SORA | 2.5% + SORA |
Other International | Contact Client Management | Contact Client Management |
How are finance rates calculated?
Financing charges for positions which remain open at our market close are calculated using the following formula:
Short Positions F = V × I / b
Long Positions F = V × I / b, where:
- F = Daily Financing Fee
- V = value of equivalent (quantity x end of day closing price)
- I = applicable Financing Rate
- b = Day basis for currency (365 for GBP, HKD, PLN, SGD and ZAR,360 for all the other currencies)
The daily financing fee will be applied to your account each day that you hold an open position (including weekend days). The financing rates are set at benchmark regional interest rate +/- 2.5%.
For example, say you are long £10 on the UK 100 and hold the position overnight. The UK 100 closes at 7000, and the SONIA rate for that day is 0.33.
F = V x I/b
V = £10 (quantity) x 7,000 (end of day closing price ) = 70,000
I = 0.33% + 2.5% = 2.83%
V x I = £70,000 x 2.83% = £1,98
F = £1,981 / 365 = £5.43 (overnight financing paid by you per day)
Financing on hedged trades
If you have a hedged position open overnight, you will be charged overnight financing on both sides of the trade.
Transactions involving debit or credit card deposits will be subject to a 2% charge. Bank transfers and payments made via our other funding methods will not incur any additional charges from FOREX.com.
Foreign currency withdrawals (other than SGD) may incur charges from your bank. For all telegraphic transfers overseas, all charges will be borne by you. USD-denominated wire withdrawals will incur an interbank transfer fee determined by the transferring bank if your bank account is not associated with DBS or HSBC.
Being a successful trader means understanding what charges and adjustments you may come across. Below we break down the different costs & fees involved and the reasoning behind them.
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With CFD trading accounts, the trade P&L will be in the currency of the instrument you trade.
For example, you may have SGD as your base currency for your CFD account, but if you trade Wall Street the profit and loss for that trade will be in USD. By trading a host of international instruments you would end up with balances that are comprised of multiple currencies.
FOREX.com has a process called ‘Back to Base' which automatically converts any realised profits and losses, adjustments, fees and charges that are denominated in another currency, back to the base currency of your account.
We will apply commercially reasonable rates for back to base currency conversions (which may be up to and including +/- 0.5% away from our quoted prices or rates from time to time). Conversions and the rates applied will be disclosed on your contract notes and statements.
A Guaranteed Stop Loss Order (GSLO) is an order that closes your trade at an exact level chosen by you, regardless of market gapping. A regular Stop Loss may not cover you in times of heightened volatility where markets can “gap” between one price and the next without trading at the prices in between.
At FOREX.com you can add a Guaranteed Stop Loss to thousands of markets and will only pay a fee (known as the 'stop premium') for added protection if your GSLO is triggered. Stop premiums vary by market, and details can be found on the market information tab for your chosen market.
Please be advised that you can place/amend/update your GSLOs within market hours for free, minimum distances apply. Minimum distance will be shown on the deal ticket.
You’ll receive a 50% spread discount if you automatically roll a futures contract at expiry. Rollover requests are by telephone, or can be selected in Web Trader on the Positions tab. For more information on futures rollover discounts, visit our CFD Trading page.
When trading our share CFDs, you do not receive any dividends because you do not own the actual stock. Instead, what occurs is a dividend adjustment.
This is because when a company pays out its dividends on the ex-date, the share price takes a slight dip; money has flowed out of the company and into the pockets of the shareholders.
At FOREX.com, we balance the positive effect of the dividend against this dip in the share price.
What happens is that a dividend adjustment occurs at the close of business before the ex-dividend date:
* Long positions are credited
* Short positions are debited
Then all things being equal, the market then opens lower on the ex-date by the dividend amount.
Therefore, the dividend has not impacted your trade or any profit/loss you may have made.
For more information on US Withholding Tax on US equity derivative markets, please visit our page on US code section 871(m).
Borrowing costs are incurred when you short a shares CFD position, and reflect a charge incurred in the underlying market when the underlying asset is borrowed in order to sell and return at a later date. Very few markets will incur a borrowing charge, and to determine whether the market you wish to trade has borrowing costs or not, please check the relevant market information sheet within the trading platform.
Where no activity has occurred on your account(s) for a period of 24 months or more, your account(s) will be deemed inactive. 'Activity' is defined as placing a trade and/or maintaining an open position during this period. Placing an order on an account without executing a trade will not qualify as ‘Activity’ for these purposes. A monthly inactivity fee of $15 (or currency equivalent) in aggregate (or your cash balance if less than $15) will be applied for accounts that are inactive for 24 months or more.
If your account has been inactive for 3+ years, we'll need to reassess your trading experience and ensure that we have your up-to-date contact details. You will need to complete our account reactivation form and a member of our Account Management Team will be in touch to let you know if we need anything further from you or to let you know that your account(s) have been reactivated.
FOREX.com complies with Italian law and we apply the Italian Financial Transaction Tax to all CFD trades on Italian Indices and Italian Equities where relevant. For more information on how this could affect your trading, please contact our Client Management team or read our FAQs.
When trading spot commodity markets, there will be an adjustment to the market price every day. Your account will then be adjusted in the form of a credit or debit to offset the price adjustment.
To price these non-expiring markets, we use two sufficiently liquid futures contracts on the underlying commodity. This is usually the two with the nearest expiry date.
The contract with the closest expiry date is called the ‘front month’ contract and the second-nearest expiry date is called the ‘far month’ contract.
Throughout the duration of the front month contract, the price of the spot commodity market will gradually move from the price of the front month to the price of the far month.
For example, if the front month is market ‘A’ and the far month is market ‘B’ the following would be true.
The market prices move from the price of market ‘A’ towards the price of market ‘B’ as the expiry date of ‘A’ becomes closer. The price of market ‘B’ may be higher or lower, depending on the commodity, than that of market ‘A’.
Daily adjustments for spot commodity markets reflect a day’s movement from ‘A’ towards ‘B’.
For example, if the spot commodity contract is adjusted by +2 points, clients with long positions will be debited 2 x stake and clients with short positions will be credited 2 x stake.
We may use further months should the near, far or both months, become unsuitable to trade.
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The fastest way our team can help you with any questions you may have about our costs and charges is via live chat. Start a new live chat session by clicking the button below.
Costs and charges FAQs
The spread is the difference between the buy and sell prices on a market. The buy price (or ask price) is always slightly higher than the market’s current level, and the sell (or bid price) slightly lower.
The spread reflects the difference between the prices buyers are willing to pay for an asset and sellers want to receive for it. When you trade CFDs, it also includes your cost to open and close your position – so instead of paying commission, you’ll pay a slightly wider spread.
Share CFDs are the only exception to this. When you trade shares with CFDs, you’ll pay commission to cover the cost of your trade, meaning spreads are typically much tighter.
Fixed spreads don’t change, even if the conditions surrounding a market change. Variable spreads, on the other hand, may fluctuate over the course of the day – usually in response to changes to volatility or liquidity.
Some markets may have a fixed spread that changes at clearly defined periods of the day. For example, a market might have a spread of 1 point from 8:00 to 16:30, but 2 points from 16:30 to 22:00.
There are two main fees you’ll encounter when trading the markets: the spread and overnight financing. Each covers a different aspect of your position and is calculated differently.
The spread is the cost to open and close your trade. To calculate how much you’ll pay via the spread, simply take your position’s value per pip – the FOREX.com platform calculates this automatically on your deal ticket – and multiply it by the current spread.
Overnight financing is the cost to maintain your overnight, which is essentially capital you have borrowed to make your trade. It’s calculated using the relevant rate benchmark for your chosen market. If you’re long, you’ll pay 2.5% more than the current benchmark, if you’re short we’ll pay you 2.5% minus the current benchmark.
To trade equities, you’ll also pay commission. Because of this, spreads are typically much tighter on equity markets.
Find out more about the costs of CFD trading.