This FAQ provides financing cost information for CFDs on FX, metals (except copper, platinum and palladium), indices, commodities (plus copper, platinum and palladium) and bonds. If you are looking for OANDA's daily funding rates and associated anticipated daily financing costs , you can find that via our website .
CFDs on FX, metals (except copper, platinum and palladium) and indices
If you have an open position on your account at the end of each trading day (5pm ET), the position is considered to be held overnight and subject to either a ‘financing charge’ or ‘financing credit’ to reflect the cost of funding you position (in relation to the margin utilised).
The financing cost is calculated on a per position basis and may be a charge or a credit, depending on whether the position is a buy/long position or a sell/short position, and after also taking into account the impact of our admin fee.
For FX and metal (except copper, platinum and palladium) CFD positions:
Daily financing charge or credit = size of position x applicable funding rate* days/365
For index CFD positions:
daily financing charge or credit = value of position* x applicable funding rate* days/365
*where value of position = size of position x price at the end of trading day (5pm ET)
Funding rates (sometimes called the "swap rate" for FX products) vary from instrument to instrument and may change on a daily basis. They are quoted as an annual rate with two quoted per instrument (one for a buy/long position and the other for a sell/short position). A negative funding rate results in a charge for you, and a positive funding rate results in a credit to you.
The daily financing charge or credit will be claimed/ passed from/ to your account each day and will be visible in your transaction history accessible via your account portal.
How does OANDA Europe Limited calculate funding rates?
| Asset class | Funding rates (long/buy positions) | Funding rates (short/sell positions) |
|---|---|---|
| FX and metals (excluding copper, platinum and palladium) | Rates are based on a blend of underlying liquidity providers’ tom-next swap rates, adjusted by the instrument specific admin fee, and annualised. On our financing costs webpage , you can select the instrument that you wish to trade and it will calculate both the annualised funding rate (including the specific admin fee) and anticipated daily financing cost based on prevailing rates. Additionally you will also see historic funding rates. | Rates are based on a blend of underlying liquidity providers’ tom-next swap rates, adjusted by the instrument specific admin fee, and annualised. On our financing costs webpage , you can select the instrument that you wish to trade and it will calculate both the annualised funding rate (including the specific admin fee) and anticipated daily financing cost based on prevailing rates. Additionally you will also see historic funding rates. |
| Indices | Rates are admin fee of 2.5% plus relevant* alternative reference rate , annualised. Represented by a negative rate, and hence a charge.*rate used in the country whose currency is the instruments’ quote currency using the table below. On our financing costs webpage , you can select the instrument that you wish to trade and it will calculate both the annualised funding rate (including the admin fee) and anticipated daily financing cost based on prevailing rates. Additionally you will also see historic funding rates. | When the relevant* alternative reference rate is greater than our 2.5% admin fee, the rate used will be the difference between the two, annualised. This is represented by a positive rate, and therefore a credit. When the relevant* alternative reference rate is lower than our 2.5% admin fee, the rate used will be the difference between the two, annualised. This is represented by a negative rate, and therefore a charge.*rate used in the country whose currency is the instruments’ quote currency using the table below. On our financing costs webpage , you can select the instrument that you wish to trade and it will calculate both the annualised funding rate (including the admin fee) and anticipated daily financing cost based on prevailing rates. Additionally you will also see historic funding rates. |
| Index | Alternative reference rate |
|---|---|
| Australia 200 | AONIA |
| China A50 | SOFR |
|
China H Shares |
HONIA |
|
Germany 30 |
ESTR |
|
Europe 50 |
ESTR |
|
France 40 |
ESTR |
|
Hong Kong 33 |
HONIA |
|
India 50 |
SOFR |
|
Japan 225 (USD) |
SOFR |
|
Japan 225 (JPY) |
TONA |
|
US Nas 100 |
SOFR |
|
Netherlands 25 |
ESTR |
|
Singapore 30 |
SORA |
|
Spain 35 |
ESTR |
|
Switzerland 20 |
SARON |
|
US SPX 500 |
SOFR |
|
Taiwan Index |
SOFR |
|
UK 100 |
SONIA |
|
US Russell 2000 |
SOFR |
|
US Wall St 30 |
SOFR |
FX and metals (excluding copper, platinum and palladium) admin fees
| Instrument | Admin fee |
|---|---|
| TRY pairs | 4.00% |
| CZK, HUF, SAR, THB, ZAR pairs | 2.00% |
| Other pairs | 1.00% |
How are financing costs affected by settlements in the underlying asset public holidays and weekends?
Different asset classes settle on different days.
FX and metals (except copper, platinum and palladium) trades typically settle on a T+2 basis, which effectively means that weekend financing is usually applied two days earlier on Wednesdays (tripling the usual daily rate), although this timeline is similarly impacted by public holidays. Indices typically factor in weekend financing on a Friday (tripling the usual daily rate), although this timeline is also similarly impacted by public holidays.
Accordingly, the actual funding rate on any given day may reflect more than one day’s costs.
No financing charges or credits are applied to clients’ accounts over the weekend for these asset classes.
Examples of financing costs for FX positions (illustrative purposes only)
Assumptions:
| Instrument | Daily long funding rate | Daily short funding rate |
|---|---|---|
| EUR/USD | -3.00% | +1.60% |
Example 1
Client opens a long 100,000 EUR/USD trade at 8:30am ET Wednesday and closes it at 3:30pm ET Wednesday.
There are no financing costs for this client, as no open position held at 5pm ET end of day.
Example 2
Client has a long 130,000 EUR/USD trade open at 5pm ET Tuesday.
Financing cost = 130,000 x -3.00% * 1/365 = -10.68 EUR
A financing charge of 10.68 EUR, converted to the client’s account home currency, will be levied on their account.
Example 3
Client has a short 130,000 EUR/USD trade open at 5pm ET Wednesday.
Financing cost = 130,000 x 1.6% * 3/365 = 17.10 EUR
A financing credit of 17.10 EUR, converted to the client’s account home currency, will be applied to their account.
Examples of financing costs for index positions (illustrative purposes only)
Assumptions:
| Instrument | Daily long funding rate | Daily short funding rate | Long/buy price (ET 5pm) | Short/sell price (ET 5pm) |
|---|---|---|---|---|
| US SPX 500 | Alternative reference rate annualised, plus admin fee 2.5%. For example: 1.50% + 2.50% = 4.00% | Alternative reference rate annualised, less admin fee. For example: 4.50% - 2.50% = 2.00% | 3040.50 | 3040.42 |
Example 1
Client has a long 1 unit of US SPX 500 (S&P 500) trade open at 5pm ET Tuesday.
Financing cost = (1 x 3040.50) x 4.00% * 1/365 = 0.33 USD
A financing charge of 0.33 USD, converted to the client’s account home currency, will be levied to their account.
Example 2
Client has a short 10 units of US SPX 500 trade open at 5pm ET Friday.
Financing cost = (10 x 3040.42) x 2.00% * 3/365 = 5.00 USD
A financing credit of 5.00 USD, converted to the client’s account home currency, will be applied to their account.
CFDs on commodities (plus copper, platinum and palladium) and bonds:
The prices of OANDA’s commodity (including copper, platinum and palladium) and bond CFDs are based on underlying futures contracts. When an underlying futures contract is near expiry, OANDA calculates the basis rate, which represents the difference in price between the expiring futures contract and the next futures contract. From that point forward, the OANDA CFD price is calculated as the present value of the price of the next futures contract, using the basis rate for the present value calculation. The present value is calculated continuously, second-by-second.
When the basis rate is positive, the CFD price will tend to move upwards towards the contract price. When the basis rate is negative, the CFD price will tend to move downwards towards the contract price.
Financing costs on commodity (including copper, platinum and palladium) and bond CFDs are therefore calculated on a continuous second-by-second basis.
For the duration of the trade the resultant financing charge/ credit is debited/ credited at the end of each day (5pm ET), including weekends and public holidays, and when the trade is closed.
Financing charges or credits are calculated as follows:
Financing charge or credit = size of position x
applicable funding rate x [trade duration (in days) / 365] x conversion rate to account currency
OANDA charges financing on commodity (including copper, platinum and palladium) and bond CFDs using the basis rate with a % admin fee applied. The basis rate portion of the financing amount is intended to offset the price movements caused by the present value calculation.
For long positions clients will be debited the basis rate plus a 2.5% admin fee. For short positions, clients will be credited the basis rate minus a 2.5% admin fee (which could result in a charge where the basis rate is less than the admin fee).
| Asset | Long positions | Short positions |
|---|---|---|
| Commodities (including copper, platinum and palladium) and Bonds | Basis rate + 2.5% admin fee | Basis rate – 2.5% admin fee |
Examples of financing costs for commodity positions (illustrative purposes only)
Example 1
The Brent Crude Oil CFD has a basis rate of +5.00%, indicating that the CFD price is going to tend upwards towards the next contract price.
Client has a USD account, and the conversion rate from the Brent Crude Oil CFD to USD is 63.00.
Client has a 100 unit long position of Brent Crude Oil, which was opened between 3:00am and 3:00pm ET.
Financing amount = position size x funding rate x trade duration (in days) / 365 x conversion rate
Position size = 100
Funding rate = (5.00% + 2.50%) = 7.50%
Trade duration (in days) = 12 hours = 0.5 days
Financing amount = 100 x (5.00% + 2.50%) x 0.5 / 365 x 63.00 = 0.65 USD
A financing debit of 0.65 USD will be applied to the client's account.
Example 2
The Brent Crude Oil CFD has a basis rate of +5.00%, indicating that the CFD price is going to tend upwards towards the next contract price.
Client has a USD account, and the conversion rate from Brent Crude Oil CFD to USD is 63.00.
Client has a 400 unit short position of Brent Crude Oil, which was opened between 9:00am ET and 3:00pm ET.
Financing amount = position size x funding rate x trade duration (in days) / 365 x conversion rate
Position size = 400
Funding rate = (5.00% - 2.50%) = 2.50%
Trade duration (in days) = 6 hours = 0.25 days
Financing amount = 400 x (5.00% - 2.50%) x 0.25 / 365 x 63.00 = 0.43 USD
A financing credit of 0.43 USD will be applied to the client’s account.
Example 3
The Natural Gas CFD has a basis rate of -20.00%, indicating that the CFD price is going to tend downwards towards the next contract price.
Client has a EUR account, and the conversion rate from Natural Gas CFD to EUR is 2.50.
Client has a 100,000 unit long position of Natural Gas, which was opened between 2:00am ET and 2:00pm ET.
Financing amount = position size x funding rate x trade duration (in days) / 365 x conversion rate
Position size = 100,000
Funding rate = (-20.00% + 2.50%) = -17.50%
Trade duration (in days) = 12 hours = 0.50 days
Financing amount = 100,000 x (-20.00% + 2.50%) x 0.5 / 365 x 2.50 = -59.93 EUR
Since the resulting amount to be debited is negative, a financing credit of 59.93 EUR will be applied to the client’s account.