This FAQ contains the following information:
What are currency conversion fees?
Trading products in a different currency from your account's home currency will incur a currency conversion charge.
OANDA charges a 0.5 % mark-up on the midpoint price at the time of conversion. This is the mark-up/mark-down portion applied to currency conversion rate.
When will I be charged a currency conversion fee?
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 realised profits and losses, adjustments, fees and charges that are denominated in a currency other than the account’s home currency and as such, needs to be converted to the account’s home currency.
Where can I see my fees?
Fees will be located under the Conversion Fee column on the Transaction History page.
The Transaction History page is not currently available on our mobile applications.
To access your Transaction History, click here .
How are the fees included in currency conversions?
Below is the methodology of how OANDA 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% = mark-up (0.50%)
Midpoint price = (ask + bid)/2
Example
Assumptions:
A client has an account denominated in USD. They opened a long position of 10,000 EUR/GBP @ 0.88500 and closed their trade @ 0.89500. They generated a profit of 100 GBP.
The cost of converting the 100 GBP profit back to their home currency (USD) would be 0.64 USD.
How is this calculated?
In order to convert 100 GBP of profit to their account home currency (USD), they would use the GBP/USD exchange rate plus the currency conversion fee.
Let’s assume the GBP/USD exchange rate is:
|
(BidThe prevailing buy price.)
|
(AskThe prevailing sell price.)
|
|---|---|
|
1.29530 |
1.29550 |
In this case, the profit is a credit to the account, so the bid price is used (if it had been a debit as a result of a loss, the ask price would have been used):
Profit converted to USD without the mark-up = 1.29530 X 100 = 129.53 USD
However, OANDA’s methodology is to charge a mark-up on the mid-price for the currency conversion to a client’s account’s home currency:
Midpoint price = (1.29530 + 1.29550)/2 = 1.2954
Calculation:
Fee adjusted exchange rate to convert GBP to USD = 1.2954 x (1 - 0.5%) = 1.288923
The 100 GBP profit on the trade will result in a credit to a client’s account when it is denominated in USD of:
1.288923 X 100 = 128.89 USD
This is 0.64 USD less than using the straight exchange rate and represents the cost of trading in GBP when the account is denominated in USD for this example.
