Trading Costs And Charges
How much does it cost to trade with Hantec Markets
A breakdown of our trading costs
When you trade with Hantec Markets, the only charge you’ll need to consider is the spread, and/or a commission if you choose to trade specific CFD markets. The spread is the difference between the bid and the ask price and can vary depending on market conditions. We charge our own spread on top of the market spread as our fee for the trade. CFD’s are different as you can pay either a commission and/or a spread. The commission/spread combos vary depending on the CFD chosen, please see the trading conditions per CFD for each breakdown. There are other cost factors to be considered, including Swap rates (overnight funding) shown below.
Currency Conversion Fee
What is a Currency Conversion Fee and how does it work?
A currency conversion fee may need to be applied to a trade depending on the base currency of your trading account, the currency you fund the account with and the settlement currency of the market you trade in.
The currency conversion fee will be charged at 0.6% and will be added to the settlement exchange rate based on the market rate at the time of that settlement. To add this conversion fee, we multiply the underlying exchange rate by 1.006 before converting.
For example, if the GBP/USD exchange rate is 1.1, the FX conversion rate applicable would be 1.1 x 1.006 = 1.1066.
CFD accounts are set to ‘instant’ conversion by default. This means that we automatically convert any realised profit, loss, funding, dividend adjustments or commission to your base currency.
Let’s see an Example:
You’ve bought £20 per point worth of FTSE (UK100) and the base currency of your trading account is USD. Since you have chosen to trade in GBP, which is different to your base currency, we need to convert any related transactions to USD.
Assume the exchange rate is 0.7576 ($1 equals £0.7576). After adding our conversion fee of 0.6%, we get a conversion rate of 0.7576 x 1.006 = 0.7621.
If FTSE increases by 30 points, your profit will be £600. This will be reflected as £600/0.7621 = $787.30 on your account. To calculate the admin fee charged, multiply your profit by 0.6%:
$787.30 profit x 0.6% = £4.72 currency conversion fee (already included – not charged separately)
How do I see the Currency Conversion Fees I’ve paid?
We do not itemise currency conversion fees by individual transaction. This would make the statements too complicated and long for our clients to review easily.
Instead, currency conversion rates inclusive of the conversion fee are displayed and ‘costs and charges’ statements are provided annually on or shortly after 1st July every year.
‘Cost and charges’ statements will include aggregated currency conversion fees paid throughout the period of 1st July to 30th June every year. These statements are sent via email and will be made accessible through the Hantec Markets Client Portal.
To calculate a conversion fee charged, you can simply multiply the amount converted by 0.6%.
Example:
Say it costs £7,263.44 after conversion to purchase 10 shares of Tesla at $550 per share*.
Currency conversion fee paid = £7,263.44 x 0.6% = £43.58
This amount will be added along with any other conversion fees to your ‘costs and charges’ statement.
Please check the costs and charges before trading. All figures shown are for illustrative purposes only.
Overnight funding
Also known as the ‘Swap’ charge, this is the cost of holding a position overnight. The amount will be dependant on the size of your trade, whether you have a long or short position, and the instrument you are trading. Swap rates are determined by the underlying interest rate’s of the products or currency pairs you have open positions in.
All of this can also be found on our MT4 platform.
