Home currency conversion: OANDA Asia Pacific

Trading products in a currency different from your account's home currency will incur a currency conversion charge.

OANDA charges a 0.5 % mark-up / mark-down on the midpoint price of the applicable currency at the time of conversion.

Home currency conversion charges are applicable only when a trade/transaction is conducted in a different currency to the account’s home currency, and therefore needs to be converted to that home currency. It is applied to any realized profits and losses, adjustments, fees and charges that are denominated in a currency other than the account’s home currency, and therefore needs to be converted to the account’s home currency.

Below is the methodology of how clients’ transactions are converted to the account’s home currency:

Formula:

New bid = midpoint price x (1 - x%)

New ask = midpoint price x (1 + x%)

Where x% = 0.50%      

Midpoint price = (ask + bid)/2
        

A client has an account denominated in GBP. He opened a long position on 1 unit of US Wall St 30 @ 29,000 and closed his trade at 29,100, resulting in a profit of 100 USD. Let’s assume the USD/GBP exchange rate is:

BidThe highest price at which buyers are willing to buy an asset from potential sellers.	AskThe lowest price at which sellers are willing to sell an asset to potential buyers.
0.77000	0.77005

OANDA’s methodology is to charge a mark-up/mark-down of 0.5% on the midpoint price for the currency conversion to a client’s account’s home currency:

Midpoint price = (0.77000 + 0.77005)/2 = 0.770025
   

Fee adjusted exchange rate to convert USD to GBP = 0.770025 x (1 - 0.5%) = 0.766174875
   

So, the 100 USD profit on the trade will result in a credit to a client’s account when it is denominated in GBP of:

0.766174875 X 100 = 76.61 GBP