By opening a trade, you incur various costs for a variety of reasons. We explore each one in more detail below.
Execution commission
Trading in the financial assets offered by Darwinex entails the payment of a very competitive commission. You can check them in the table of assets and spreads.
In the case of both Forex and commodities, the gross commission would be around 0.005% of the trade's nominal value in the base currency.
For instance, should you want to buy 1 lot on the EURUSD, which equals 100.000 € of nominal value, the total round-trip cost would be 5€ (commissions are displayed per order, a trade would be composed of 2 orders: entry order and close order)
Execution commissions will be charged in the base currency of the pair in question, and there would be an automatic conversion if the base currency in your MetaTrader account is different.
In the case of indices, stocks or ETFs there are important differences depending on the asset traded. We recommend you to check it on the table.
Execution commissions will be charged in the currency of the asset traded, and there would be an automatic conversion if the base currency differs from your MetaTrader base currency.
Should you be a Professional client or have a DARWIN with a D-Score greater than 60, you are eligible for price reductions up to 40%.
Swap/Roll-Over
Swap or rollover in Forex is an amount that is charged or deducted in the trader's account for trades open overnight, which is the result of the difference between the interbank interest rates of each currency pair involved in a trade.
If a trader is long a currency pair, and the base currency interest is greater than the interest of the quoted currency, Darwinex will credit that amount in the trader's account.
On the contrary, if the interest of the quoted currency is higher than the interest of the base currency, the amount will be subtracted from the trader's equity.
Please, bear in mind that swaps are not symmetrical since our liquidity providers may apply a markup to all of them.
You may check our swaps in the table of assets and spreads.
Please note that daily swap rates are subject to change and may vary each day
Spread
Spread is the difference between the BID and the ASK price in a financial asset.
Generally, a reduced spread means a higher level of liquidity in the asset and vice versa.
Keep in mind that if you open and close a trade in a fraction of a second, you will incur a loss simply because of the BID / ASK spread and the execution commission.
Related videos and podcasts
- On the differences between fixed and variable spread brokers.
- On requotes.