Costs and Charges for Retail and Professional Clients for Financial
Instruments
This section of the website presents the costs and charges associated with our products and markets, when trading CFDs. It specifies information on the methodology used to calculate our costs and charges and provides multiple examples, for the clients, to have the best understanding regarding Costs and Charges.
It is noted that the methodology used to calculate our costs and charges is the same for both Retail and Professional Clients. For brevity purposes, the examples provided herein are relevant to the costs and charges of Financial Instruments available for Retail Clients.
It is important to understand that the total costs will increase in proportionate basis given the size and volume of the open positions.
When the client opens a position on one of the products available in the platform, the following fees will be deducted from the client’s equity, i.e. the margin deposited or paid for the financial instrument plus any unrealized profits or unrealized losses due to changes in the value of the underlying:
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COSTS AND CHARGES RELATED TO THE FINANCIAL INSTRUMENTS |
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COSTS |
DESCRIPTION |
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Spread |
Spread is the difference between the Bid Price (Sell) and the Ask Price (Buy). All of our spreads are variable and are charged automatically once the position is open. Under normal trading conditions the minimum spread is applied while the spread might be widened under extreme trading conditions. Our spreads are set at our absolute discretion and any changes are effective immediately. Please refer to our website for more information. |
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Overnight Financing Fee |
A daily overnight Financing Fee charge will apply to all open positions that remain open every day at 21:00 UTC time. Wednesday Exception Rule: The charge for positions being held over Wednesday and swapped to Thursday is different than other days and includes the charge over weekend. Please note that on the CFDs market, when a position is held open overnight from Wednesday to Thursday, the overnight swap is tripled. This is because for a position opened on Wednesday, the value date is Friday. When a position is kept open overnight from Wednesday to Thursday, the value date will be moved forward 3 days, to Monday, skipping over Saturday and Sunday. Therefore, the overnight Financing Fee is tripled since the Client must be charged charges for 3 days instead of just one. More information in regards to the Overnight Financing Fee charges can be found on our website: href="/en//swap-charges |
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Currency Conversion |
Any cash, realized profit and losses, adjustments, fees and charges that are denominated in a currency other than the base currency of your account, will be converted to the base currency of your account and a currency conversion fee will be charged to your account. |
Financial Instruments
R1investing is offering 5 categories of instruments, as shown below:
- CFDs on Forex Pairs
- CFDs on Commodities (Energy, Agriculture, Soft, Metals)
- CFDs on Indices
- CFDs on Shares
- CFDs on Virtual Currencies
Methodology
Kindly note that this section provides information on the methodology used for the calculation of the costs and charges associated with the financial instruments offered by R1Investing , for both Retail and Professional Clients.
When you trade with R1investing CFDs on various underlying assets the below charges will be applied in your account:
- Spread Charge
- Financing Fee Charge
1. Spread Charge Calculation Formula
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Spread Charge = Volume x Contract Size x Minimum Spread Charge |
2. Financing Fee Formula
The fee is charged in the instrument’s Base currency and calculated as follow:
For FX pairs:
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Fee Value = Volume x Contract Size x Markup Value x Days |
For CFD instruments:
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Fee Value = Volume x Contract Size x Reference Price* x Markup Value** x Days |
*Reference price is the market price at the end of each month
**As provided in the table below:
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MARKUP VALUES |
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Asset Type |
Long |
Short |
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FX Majors |
-0.000484 |
-0.000484 |
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FX Minors |
-0.000484 |
-0.000484 |
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FX Exotics |
-0.002032 |
-0.002032 |
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World Shares |
-0.003505 |
-0.003505 |
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Indices |
-0.001349 |
-0.001349 |
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Metals |
-0.000500 |
-0.000500 |
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Energy |
-0.000950 |
-0.000950 |
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Commodities |
-0.000400 |
-0.000400 |
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Cryptocurrencies |
-0.025000 |
-0.025000 |
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Bitcoin |
-0.015000 |
-0.015000 |
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Bitcoin CNY |
-0.025000 |
-0.025000 |
3. Net Profit/Loss Calculation Formulas
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Net Profit/Loss Calculation = Realized Profit/Loss – (Financing Fee + Swap) |
where:
For a Buy position
Realized Profit/Loss = (Closing Price – Opening Price) x Volume x Contracts Size
For a Sell Position
Realized Profit/Loss = (Opening Price – Closing Price ) * Lots * Contracts Size
Examples
This section provides information on the procedure to be followed for the calculation of the net profit using different examples of the financial instruments offered by the R1Investing .
- CFDs on Forex
Assume that you hold a EUR trading account with R1Investing .
You decide to open a BUY position on EURUSD for 0.01 lots at a price of 1.22984, for 1 day.
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Financial Instrument CFD on Forex |
EURUSD |
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Direction of Position |
Buy |
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Minimum Spread |
0.00021 |
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Volume in Lots |
0.01 |
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Contract Size |
100.000 |
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Number of Days |
1 |
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Opening Price |
1.22984 |
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Closing Price |
1.23028 |
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Currency Conversion Rate[1] |
1.23028 |
⮚ Spread Charge Calculation
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Spread charge calculation = (0.01) x (100,000) x (0.00021) = 0.21 USD = 0.18 EUR |
IMPORTANT NOTES:
- The result shown in the calculation been converted from USD to EUR which is the denominated currency of the trading account.
- The spread used for this example is the minimum variable spread but this is subject to changes under extreme trading market conditions.
- The spread is deducted once position is opened. Please refer to our website for further information.
⮚ Financing Fee Calculation
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Fee Value = (0.01) x (100,000) x ( -0.000484) = -0.49 EUR |
IMPORTANT NOTES:
- Financing Fee charges are calculated in the base currency of each instrument.
- Please refer to our website for the swap charge per instrument.
⮚ Net Profit/Loss Calculation
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Net Profit/Loss Calculation |
= Realized Profit/Loss + (Financing Fee + Swap Charge) |
|
|
= (1.23028 - 1.22984) x (0.01) x (100,000) – (0.49 +0.18) |
|
|
= 0.23 EUR |
2. CFDs on Commodities (Energy)
Assume that you hold a GBP trading account with R1Investing .
You decide to open a SELL position on CL-APR21 of 0.10 lots (lots * contract size) at a price of $53.03 for 2 days.
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Financial Instrument CFD on Forex |
CL-MAR21 |
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Direction of Position |
Sell |
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Minimum Spread |
$0.20 |
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Volume in Lots |
0.10 |
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Contract Size |
1,000 |
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Number of Days |
2 |
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Opening Price |
53.03 |
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Closing Price |
52.10 |
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Currency Conversion Rate GBP/USD |
1.39175 |
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Reference Price for CL-APR21 |
51.78 |
⮚ Spread Charge Calculation
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Spread charge calculation = (0.10) x (1,000) x (0.20) = 20.00 USD = 14.37 GBP |
⮚ Financing Fee Calculation
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Fee Value = (0.10) x (1,000) x (-0.00095) x (51.78) X 2 = -9.84 USD = -7.06 GBP |
⮚ Net Profit/Loss Calculation
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Net Profit/Loss Calculation |
= Realized Profit/Loss + (Financing Fee + Swap Charge) |
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= (53.03 – 52.10 ) x (0.10) x (1,000) – (7.06 +14.37) |
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= 63.16 USD |
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= 45.24 GBP |