Commissions
At Propywise, we make sure that our simulated commission fees remain organized and straightforward for beginners. We have broken down our simulated commission fees for customers as follows:
Below chart displays the commissions for all account stages:
Platform | Instruments | Commission Per Lot |
cTrader | Forex | $3 |
cTrader | Metals | $3 |
cTrader | Indices / Crypto / Oil | $0 |
Understanding Swap Fees with Propywise
Swap fees are incurred for holding a forex position overnight, which reflects the interest rate differential between the currencies involved. These fees vary by asset and are influenced by central bank rates, liquidity, and market conditions. Depending on the direction of the trade and the differential in interest rates, traders may either pay or receive interest for positions held overnight. The market rollover occurs daily at 5 PM EST.
Mechanics of Rollover
Interest rates for each currency are set by its respective central bank, and the rollover rate is derived from the difference between these rates.
Currency Pairs: The rollover rates apply specifically to the currency pairs traded, where one currency is effectively borrowed against another. The rate reflects the interest rate disparities between the two currencies.
Position Directions: For long (buy) positions, traders earn interest if the base currency's rate exceeds the quote currency's. Conversely, traders pay interest if the base currency’s rate is lower. The reverse applies to short (sell) positions.
Rationale Behind Forex Rollover: Given the forex market’s 24/5 operational nature, rollover rates are essential for adjusting interest rates over weekends and holidays when financial institutions are closed.
Special Case for Wednesdays: On Wednesdays, swap fees are tripled to account for the weekend settlement, as forex transactions typically settle on a T+2 basis (i.e., trades from Monday settle on Wednesday), including the actual currency exchange.
Trader Impact
Day traders, who open and close positions within a single day, may not be significantly affected by swap fees. However, swap fees can reduce profits for swing traders, long-term investors, or carry traders who maintain positions for extended durations.
Challenges and Risks for Traders
Price Gaps: Market closures can lead to significant price fluctuations at reopening, risking substantial losses. Note that market conditions vary daily, and stop loss or take profit settings may not be honored during these times.
Control During Rollover: Positions cannot be managed or closed during the rollover period.
Increased Volatility: Market openings and closings generally see heightened volatility and potentially wider spreads, affecting trade executions.
Strategies for Managing Swap Fees
Timing: Avoid holding positions over the rollover period to reduce swap fees.
Currency Selection: Choose currency pairs with favorable interest rate differentials that suit your trading strategy.
Viewing Swap Fees on the Propywise cTrader platform
Open the trading platform and log in.
Navigate to the "Trade" tab.
Use the 'Symbol Search' or browse to find your desired currency pair.
Click the currency pair, then check the "Symbol Info" on the right for "Swap (long)" and "Swap (short)" rates.
For detailed swap timing and period, refer to "Swap Time" and "Swap Period, hours."
Please note, actual swap fees might vary based on market conditions. Always check specific instrument specifications before trading.
Rollover Rate Calculation
The formula for calculating rollover rates is: Swap Rate x Volume (Lots) x Number of Nights.
Example: For a long position in AUD/USD, holding 2 lots for 5 nights with a swap rate of -4.38, the swap fee would be -43.8 AUD (a charge).
Conversion: Charges are initially in the base currency of the pair and are then converted to your account's currency.