How to Calculate ECN Commission

How to Calculate ECN Commission

The commission rate depends on the account equity and the monthly trading volume. The commission rate can therefore decrease or increase from month to month depending on the traded volume in USD terms for previous period and also the account balance at the recalculation time. 

The round-turn commission for positions with volume of 100,000 units of Base Currency (BC) or Underlying Asset (UA) is equal to 5 units (for round turn) of the base currency or underlying asset. Let us assume that  Equity  is in the  interval 1,000-5,000 and  Trade Volume  is less than 5,000,000 (50 lots).

The detailed commission calculation for currency pairs

  • where USD is the quote currency:

    • Contract size = 100,000 BC units
    • 1 unit of the BC = 1 GBP for GBP/USD, 1 EUR for EUR/USD etc.
    • Commission = 5 units of the BC for the volume of 100,000 BC
    • Traded volume (in units of BC) = 100,000 × V (in lots)
    • Traded volume (in USD) = 100,000 × V (in lots) × Price

    The definition implies, that commission in USD for the traded volume of 100,000 BC (1 lot) is:

    5 BC units = 5 × Price (of the currency pair)

    Let us assume that commission (in USD) for the traded volume V (in lots) is X (USD).

    We can find out the value of X by solving the proportion:

    So,



    or 0,005% of the traded volume in USD:

    where Price = the BID Price for SELL positions or the ASK Price for BUY Positions.

  • where USD is the base currency:

    • Contract size = 100,000 USD
    • 1 unit of the base currency = 1 USD for USD/CHF, etc.
    • Commission = 5 units of the BC for the traded volume of 100,000 BC
    • Traded volume (in units of BC) = 100,000 × V (in lots)

    The definition implies that commission in USD for the traded volume of 100 000 base currency units (1 lot) is 5 base currency units.

    Let us assume that commission (in USD) for the traded volume V (in lots) is X (USD).

    We can find out the value of X by solving the proportion:

So,

or 0.005% of the traded volume in USD:


where Price = the BID Price for SELL positions or the ASK Price for BUY Positions.

for crosses no USD (the base currency in the cross pair is quoted  directly against USD):

  • Contract size = 100,000 base currency units
  • 1 base currency unit = 1 GBP for GBP/JPY, 1 AUD for AUD/CAD etc.
  • Commission = 5 base currency units for the volume of 100,000 base currency units
  • Traded volume (in BC units) = 100,000 × V (in lots)
  • Volume (in USD) = 100,000 × V (in lots) × Price (BC/USD)

The definition implies that commission in USD for the traded volume of 100,000 BC (1 lot) is:

5 BC units = 5 × Price (BC/USD)

Let us assume that commission (in USD) for the traded volume V (in lots) is X (USD).

We can find out the value of X by solving the proportion:


So,

or 0.005% of the traded volume in USD:


where Price = BC/USD BID Price for SELL positions or BC/USD ASK Price for BUY Positions, when the base currency in the cross pair is quoted directly against USD.

for crosses no USD (the base currency in the cross pair is quoted against USD  indirectly):

  • Contract size = 100,000 base currency units
  • 1 base currency unit = 1 CAD for CAD/CHF, 1 CHF for CHF/GPY etc.
  • Commission = 5 base currency units for the volume of 100,000 base currency units
  • Traded volume (in BC units) = 100,000 × V (in lots)
  • Volume (in USD) = 100,000 × V (in lots) ÷ Price (USD/BC)

The definition implies that commission in USD for the traded volume of 100,000 BC (1 lot) is:

5 BC units = 5 ÷ Price (USD/BC)

Let us assume that commission (in USD) for the traded volume V (in lots) is X (USD).

We can find out the value of X by solving the proportion:

So,


or 0.005% of the traded volume in USD:

where Price = USD/BC ASK Price for SELL positions or USD/BC BID Price for BUY Positions if the base currency in the cross pair is quoted against USD indirectly.

The detailed commission calculation for metals

  • Gold

    • Contract size = 100 units of the underlying asset
    • 1 unit of the underlying asset = 1 oz (troy ounce) for GOLD/USD
    • 1 lot for GOLD/USD = 100 oz.
    • Commission = 5 units of the underlying asset for the traded volume of 100,000 oz.
    • Traded volume (in oz) = 100 (oz) × V (in lots)
    • Traded Volume (in USD) = 100 (oz) × V (in lots) × Price

    The definition implies that commission in USD for the traded volume of 100,000 units of the underlying asset (1,000 lots) is:

    5 UA units = 5 (oz) × Price

    Let us assume that commission (in USD) for the traded volume V (in lots) is X (USD).

    We can find out the value of X by solving the proportion:

    So,


    or 0.005% of the traded volume in USD:

    where Price = the BID price for SELL positions, or the ASK price for BUY positions.

  • Silver

    • Contract size = 5,000 units of the underlying asset
    • 1 unit of the underlying asset = 1 oz (troy ounce) for SILVER/USD
    • 1 lot for SILEVR/USD = 5,000 oz.
    • Commission = 5 units of the underlying asset for the traded volume of 100,000 oz.
    • Traded volume (in oz) = 5,000 (oz) × V (in lots)
    • Traded Volume (in USD) = 5,000 (oz) × V (in lots) × Price

    The definition implies that commission in USD for the traded volume of 100,000 units of the underlying asset (20 lots) is:

    5 UA units = 5 (oz) × Price

    Let us assume that commission (in USD) for the traded volume V (in lots) is X (USD).

    We can find out the value of X by solving the proportion:

    So,


    or 0.005% of the traded volume in USD:


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