Your guide to understanding the calculation of administrative fees across different asset classes
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Administrative fees and trading days for Various Assets
After a grace period of seven days, daily administrative fees will be applied.
For all assets, excluding crypto CFDs, the seven-day grace period is determined as follows:
Each business day from Monday to Friday, where a trade remains open beyond 22:00 GMT, is counted as one day. However, the corresponding three-day fee for each asset (detailed below) is accounted for as three days.
For crypto CFDs, the seven-day grace period is determined as follows:
Each calendar day that a trade stays open past 22:00 GMT (including Saturdays and Sundays) is considered as one day. Crypto CFDs do not have a triple-fee day.
Consequently, for all assets, if you open your position on Monday, the administrative fees will start accruing on the following Monday.
The table below provides a quick overview of administrative fees for different asset classes.
Please note that the administrative fees in the table below depend on the instrument tier, and refer to a daily charge for a standard lot size. If your trade is smaller or larger than this lot size, the daily administrative fee will apply proportionally.
Continue reading for an in-depth understanding of these elements and how they will affect your account.
Administrative fees
| Asset | Instrument Tier | Instruments | Grace Period | Admin Fee per Lot Per Day | Lot Size | Three-Day Fee |
|---|---|---|---|---|---|---|
| Currencies | 1 | Pairs combining AUD, CAD, JPY, NZD, EUR, CHF, GBP, ILS, NOK, PLN, SGD, SEK, HKD | 7 days | $10 | 100,000 Units | Wednesday |
| 2 | Pairs that contain HUF, ZAR, KRW | 7 days | $15 | 100,000 Units | Wednesday | |
| 3 | Pairs that contain MXN, COP, CLP, BRL, TRY | 7 days | $20 | 100,000 Units | Wednesday | |
| Indices | 1 | China50, DJ30, ESP35, FRA40, GER30, NSDQ100, UK100 | 7 days | $5 | 1 Unit | Friday |
| 2 | AUS200, EUSTX50, HKG50, RTY, SPX500 | 7 days | $1 | 1 Unit | Friday | |
| 3 | JPN225, NL25, SGX, USDOLLAR | 7 days | $0.10 | 1 Unit | Friday | |
| Stock and ETF CFDs | – | Leveraged BUY stock and ETF CFDs (excluding real stocks, real ETFs, Stock CFDs with x1 leverage or SHORT Stock and ETF CFDs) | 7 days | $3 | $10,000 | Friday |
| Crypto CFDs | – | All Crypto CFDs | 7 days | $6 | $10,000 | None. Each week day, including Sat/Sun, count as 1 |
| Commodities | 1 | Aluminum | 7 days | $20 | 25 Units | Friday |
| 1 | Nickel | 7 days | $20 | 6 Units | Friday | |
| 1 | Zinc | 7 days | $20 | 25 Units | Friday | |
| 1 | Lead | 7 days | $20 | 25 Units | Friday | |
| 1 | Silver | 7 days | $20 | 5000 Units | Wednesday | |
| 1 | Gold | 7 days | $20 | 100 Units | Wednesday | |
| 1 | Platinum | 7 days | $20 | 50 Units | Wednesday | |
| 2 | Oil | 7 days | $10 | 1000 Units | Friday | |
| 2 | NatGas | 7 days | $10 | 10000 Units | Friday | |
| 2 | EuroOil | 7 days | $10 | 1000 Units | Friday |
Spot Price Adjustment
A daily Spot Price Adjustment applies to trades that remain open past 22:00 GMT on each of the commodities in the table below. Note that the Spot Price Adjustment applies from Monday to Friday, where Fridays count as three days.
| Instruments | Grace Period | Spot Price Adjustment | Three-Day Fee | |
|---|---|---|---|---|
| Commodities | Oil, EuroOil, NatGas, Aluminum, Nickel, Lead, Zinc | Not Applicable | Spot Price Adjustment = [(Next – Front) (Days)] Units Next: Price of the next futures contract Front: Price of the current futures contract Days: number of days between expiry dates of the previous futures contract and the current futures contract. | Same as Admin Fee |
Currencies
After a grace period of seven days, daily administrative fees will be applied. The seven-day grace period is calculated as follows: each business day from Monday to Friday counts as one day, except for Wednesday which counts as three days. Therefore, if you initiate your position on Monday, the administrative fees will start accruing on the following Monday. Monday, Tuesday, Thursday, and Friday each count as one day, totalling four days, while Wednesday counts as three, making a total of seven days.
The administrative fees charged depend on the currency tier and are calculated based on 100,000 units.
For example: If you have 100,000 units of a tier-1 instrument, you will be charged $10 per day after a 7-day grace period. If you own 10,000 units of a tier-1 instrument, the charge will be $1 per day after the seven-day grace period.
Indices
Similar to trading in currencies, when you open a trade on Monday, administrative fees won’t be charged until after 7 days, starting the following Monday. The days are counted as follows: Monday, Tuesday, Wednesday, and Thursday are all counted as one day. However, unlike currencies, in the case of indices, Friday is considered as three days.
For example, if you open a trade for the SPX500 with 10 units on Monday, you will begin paying a daily administrative fee of $10 the following Monday. The fee per unit of the SPX500 (which falls under Tier 2) is $1 per unit. This fee will be $10 per day for each subsequent day and $30 on Friday, as Friday is considered as three days for indices.
Stocks & ETFs CFDs (leveraged trades)
Similar to indices, if you open a trade on Monday, you will only begin paying administrative fees after 7 days. Therefore, you will only begin paying administrative fees the following Monday. The days are counted as follows: Monday, Tuesday, Wednesday and Thursday are all counted as one day each, and like indices, Friday is counted as three days.
Please note:
- For stocks and ETFs CFDs, only leveraged BUY trades are subject to administrative fees.
- For LeverageX1 BUY, or any short trades, administrative fees are currently waived.
- Real stocks & ETFs do not incur any administrative fees.
For example, if you invest an amount of $1,000 with x2 leverage for a $2,000 exposure on Apple Stock CFD on Monday, the following Monday at 22:00 GMT, an administrative fee of $0.60 will be charged. This is because the fee is $3 per $10,000 exposure, and the trade is a $2,000 exposure, which is 1/5 of $3 and, therefore, $0.60.
For simplicity’s sake, this example assumes that the price of the Apple stock has not changed.
It’s important to note that for CFDs on stocks and crypto, where the admin fee is exposure-based, the exposure of an open trade is assessed nightly using the closing prices of that specific day.
Crypto CFDs
For crypto CFDs, each day of the week, including Saturdays and Sundays, counts as 1 day for grace period and fees considerations.
Commodities
Fees on commodities can be divided into three:
- Administrative Fees
- Spot Price Adjustment
- Commodities traded as futures contracts incur no fees at all.
Administrative Fees
For example, if you open a 50-unit trade for gold on Monday, you will only begin paying an administrative fee the following Monday at 22:00 GMT. For gold, silver and platinum, Monday, Tuesday, Thursday and Friday are counted as one day each, and Wednesday is counted as three days.
For a 50-unit trade on gold, the fee after the seven-day grace period will be $10 per day, and $30 on Wednesday, which is counted as three days in commodities. Since gold is a tier-1 commodity, there is a $20 fee per standard lot, which in this case is 100 units. A 50-unit trade is half the standard lot and will, therefore, only incur a $10 fee per day.
Spot Commodities With Administration Fees and Spot Price Adjustment
Oil is a tier-2 commodity, and similar to tier-1 commodities, there is a seven-day grace period after which you begin paying administrative fees daily. The daily administrative fee for oil is $10 per a standard lot of 1,000 units. If you open a 50-unit trade, after a grace period of seven days, you will begin to pay $0.50 per day administrative fee. Bear in mind that for oil, EuroOil, NatGas, aluminium, nickel, lead and zinc, Fridays count as 3 days for grace period and fees considerations.
Spot Price Adjustment
The formula for calculating the Spot Price Adjustment is as follows:
Spot price adjustment = [(Next – Front) / (Days)] x Units
Next: Price of the next futures contract
Front: Price of the current futures contract
Days: number of days between expiry dates of the previous futures contract and the current futures contract.
Here is how the formula is implemented. If you buy a commodity where the price of the next futures contract is $80,
the current futures contract is $76, and the number of days between expiry dates of the previous futures contract and the current futures contract is 30, then the formula would look as follows:
Spot Price Adjustment = [(Next – Front)
(Days)] Units = [($80 – $76) 30] 50 = $6.67
Take note that in this example, the next futures contract was priced higher than the preceding one. Therefore:
If you hold a long (BUY) position, your account will be subject to a Spot Price Adjustment of $6.67.
Conversely, if you have a short (SELL) position, your account will receive a Spot Price Adjustment credit of $6.67.
This is because the spot commodity price is adjusted each night. This adjustment follows the curve of the futures contracts on which it is based. Depending on this adjustment, your open trade may either generate profits or suffer losses. As a result, a Spot Price Adjustment charge or credit is applied to your balance to offset that amount.
In either scenario, the Spot Price Adjustment aims to balance the unrealised profit or loss that your open trade experiences when the spot commodity price is adjusted in line with the future contracts’ curve.
In essence, if you have a long (BUY) position and the price escalates, your profit & loss (P&L) will increase, but a Spot Price Adjustment charge will be deducted from your balance. Conversely, for a short (SELL) position, a Spot Price Adjustment credit of $6.67 will be added to your account, counterbalancing any unrealised P&L from your trade due to the nightly price adjustment.
This process repeats every day the trade remains open past 22:00 GMT, using the relevant futures prices of that day for the Spot Price Adjustment calculation.
The Spot Price Adjustment applies from Mondays to Fridays, where Fridays count as three days.
Understanding the fees associated with Islamic accounts on eToro is crucial for well-informed trading decisions. The next step? Creating your own Islamic account.