Pricing and fees FAQs
- What is a spread?
- What is the difference between fixed and variable spreads?
- Are there any data exchange fees associated with forex trading?
- What is a financing fee?
- Does FOREX.com charge inactivity fees?
- Does FOREX.com charge commissions?
- Do I need to pay taxes on my trades and transactions?
- Is there a currency conversion charge?
- What are dividend adjustments?
- What are borrowing costs?
- How does my order size affect my fill price?
- Does my order size affect how limit orders are executed on WebTrader?
- How do I view the volume weighted pricing on WebTrader?
- How do I access depth of market on MT5?
- Does my order size affect how limit orders are executed on MT5?
What is a spread?
When a price for a market is quoted, you will actually see two prices. The first price, known as the bid, is the sell price and the second price is the buy price, known as the offer, or the ask. The difference between the sell and buy price is called the spread.
What is the difference between fixed and variable spreads?
FOREX.com offers both fixed and variable spreads, depending on the market you wish to trade.
Fixed spreads don’t change according to market conditions such as volatility or liquidity. Depending on the market, fixed spreads may either be offered for a defined period of the day, or throughout trading hours.
Variable spreads may fluctuate throughout the day according to different factors such as underlying liquidity or market volatility. 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. View our live spreads.
Are there any data exchange fees associated with forex trading?
FOREX.com does not charge data exchange fees. However, you may incur a financing/rollover charge if you hold your positions overnight. Learn more about rollovers.
What is a financing fee?
Financing, also known as rollovers, is a charge that you pay in order to hold a position open overnight. The daily financing fee is automatically applied to your account each day that you hold an open position (including weekends). The financing rates are set at benchmark regional interest rate of +/- 2.5%.Learn more about our rollover rates.
Does FOREX.com charge inactivity fees?
FOREX.com charges an inactivity fee of $15 (15 base currency equivalent, or 1500 JPY) per month if there is no trading activity or no open positions for a period of 12 months or more.
Does FOREX.com charge commissions?
FOREX.com charges commissions on shares CFD trading and on FX trading when trading on a RAW Spread Account. We recommend you reference the Market Information Sheets in the FOREX.com desktop and MetaTrader platforms for complete details.
Do I need to pay taxes on my trades and transactions?
Please contact a tax professional for information on the tax situation in your country.
Is there a currency conversion charge?
Back to Base automatically converts any realized profits and losses, adjustments, fees and charges that are denominated in another currency, back to the base currency of your account before applying them to your account.
When Back to Base charges are applied, we strive to use commercially reasonable rates (which may be up to and including +/-1.0% away from our quoted prices or rates from time to time). Any conversions and the rates applied will be disclosed on your contract notes and statements.
What are dividend adjustments?
CFDs are subject to corporate actions including dividend adjustments. We may make dividend adjustments if a dividend is scheduled to be paid to the holders of the underlying instrument. These adjustments are normally made on the ex-dividend date. Long positions receive adjustments net of tax, whereas short positions are charged the declared amount of gross adjustment, where applicable.
For more information on US withholding tax on US equity derivative markets, please visit our page on US code section 871(m).
What are borrowing costs?
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 in the FOREX.com desktop or MetaTrader platform.
How does my order size affect my fill price?
The fill price of an order may vary based on the size of the order. FOREX.com applies different pricing to specified order-size tiers, as described in the applicable pricing schedule.
If your order falls entirely within one order-size tier, the price applicable to that tier will apply. If your order spans more than one tier, each portion of the order will be priced according to the applicable tier. You will receive one volume-weighted average execution price for the full order.
For example, if an $8 million order includes $5 million in the first pricing tier and $3 million in the next pricing tier, each portion will be priced according to its applicable tier. The resulting prices will then be combined into one volume-weighted average execution price.
The size-based spread adjustments shown in the pricing schedule are used to determine the prices applicable to the order. They are not separate charges added after the order has been executed.
Does my order size affect how limit orders are executed on WebTrader?
Yes. The treatment of a WebTrader limit order depends on whether the order is greater than $5 million.
For Limit orders of $5 million or less
A limit order of $5 million or less is, under normal market conditions, executed at your specified limit price or better.
Limit orders greater than $5 million
For a limit order greater than $5 million, FOREX.com will fill as much as possible at your specific limit price (or better). Any unfilled portion will remain as a working limit order and will be triggered and subject to execution when the market price reaches the specified limit price.
How do I view the volume weighted pricing on WebTrader?
To view the volume weighted pricing on Web Trader, enter or adjust the trade size in the order ticket. The displayed price will automatically update to reflect the blended execution price applicable to that order size. For larger orders, the price shown represents the blended price across the liquidity levels required to fill the full trade.
How can I access depth of market on MT5?
To open Depth of Market in MT5:
1. Find the market you want to trade in the Market Watch window.
2. Right-click the market.
3. Select Depth of Market from the menu.
The Depth of Market window will display the available liquidity and pricing across multiple levels. You can also use the shortcut Alt+B after selecting the market.
Does my order size affect how limit orders are executed on MT5?
Yes. The treatment of an MT5 limit order depends on whether the order is greater than $5 million.
Limit orders of $5 million or less
A limit order of $5 million or less shall be executed at your specified limit price or better.
Limit orders greater than $5 million
For a limit order greater than $5 million, the first $5 million shall be executed at your specified limit price or better.
The portion of the order above $5 million will be priced using the applicable order-size pricing tiers at the time of execution. This portion of the order may therefore be executed at a price that is less favorable than your specified limit price.