At Trader’s Way, Prime Online Forex and CFD broker, we provide our clients with endless opportunities, resource info covering all topics related to trading, state-of-the-art trading platforms, tools and applications. As part of our ongoing series, here’s a brief recap on commissions. We charge a small commission for ECN accounts on a per-traded-volume basis. Usually, these are quoted in USD/1 million USD traded volume. Calculating the commission is quite easy, a trader can determine their volume in USD, divide it by one million and factor in the ECN commission value.
ECN commission = Traded Volume in USD / 1,000,000 x ECN commission in USD per 1M USD traded volume
Example: Sam is buying 1 lot of EURUSD. The current EURUSD rate is 1.3000. The ECN commission would be 30 USD per 1M USD traded volume.
Keep in mind that deal volume is measured in the base currency terms. In this example, Sam's deal volume is 100,000 EUR.
The commission when Sam opens the deal = 100,000 EUR x 1.3000 /1,000,000 x 30 USD = 3.9 USD
If, for example, Sam chooses to close the deal at the same rate of 1.3000, the commission will be = 100,000 EUR x 1.3000 /1,000,000 x 30 USD = 3.9 USD
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