Find out how we calculate our financing costs, so you can better understand the financing charge or financing credit and other associated potential charges when you trade with us.
If you have an open position on your account at the end of each trading day (5pm ET), the position is considered to be held overnight and subject to either a financing charge or credit to reflect the cost of funding your position (in relation to the margin utilised).
The financing cost is calculated on a per position basis and may be a charge or a credit to your account, depending on whether you hold a buy/long position or a sell/short position, and after also taking into account the impact of our admin fee.
| FX, gold, and silver: | daily financing charge or credit = size of position x applicable funding rate/365 |
|---|---|
| Indices: | daily financing charge or credit = value of position* x applicable funding rate/365 |
*where value of position = size of position x price at the end of trading day (5pm ET)
Funding rates (or ‘swap rates’ for FX products) vary depending on the instrument and may change on a daily basis. These are quoted as an annual rate. Each instrument has two quoted rates: one for a buy/long position and the other for a sell/short position.
A negative funding rate will result in a charge being debited from your account, and a positive funding rate results in a credit to your account.
The daily financing charge or credit will be claimed/passed from/to your account each day, and will be visible in your transaction history accessible via your account portal.
The below table shows how we calculate funding rates for our FX, metals and indices CFDs.
| Funding rates (long/buy positions) | Funding rates (short/sell positions) | |
|---|---|---|
| FX, gold, and silver | Rates are based on a blend of underlying liquidity providers’ tom-next swap rates, adjusted by the instrument specific admin fee.On our financing costs webpage, you can select the instrument that you wish to trade and it will calculate both the annualised funding rate (including the specific admin fee) and anticipated daily financing cost based on prevailing rates. Additionally, you will also see historic funding rates. | Rates are based on a blend of underlying liquidity providers’ tom-next swap rates, adjusted by the instrument specific admin fee. On our financing costs webpage, you can select the instrument that you wish to trade and it will calculate both the annualised funding rate (including the specific admin fee) and anticipated daily financing cost based on prevailing rates. Additionally, you will also see historic funding rates. |
| Indices | Rates are admin fee of 2.5% plus relevant* benchmark rate. In the event this results in a negative rate, a charge will be levied to your account.On our financing costs webpage, you can select the instrument that you wish to trade and it will calculate both the annualised funding rate (including the admin fee) and anticipated daily financing cost based on prevailing rates.Additionally, you will also see historic funding rates. | When the relevant* benchmark rate is greater than our 2.5% admin fee, the rate used will be the difference between the two. This is represented by a positive rate, and therefore a credit. When the relevant* benchmark rate is lower than our 2.5% admin fee, the rate used will be the difference between the two. This is represented by a negative rate, and therefore a charge.On our financing costs webpage, you can select the instrument that you wish to trade and it will calculate both the annualised funding rate (including the admin fee) and anticipated daily financing cost based on prevailing rates. Additionally, you will also see historic funding rates. |
| Index | Reference rate |
|---|---|
| Australia 200 | AONIA |
| China A50 | SOFR |
| Germany 30 | ESTR |
| Europe 50 | ESTR |
| France 40 | ESTR |
| Hong Kong 33 | HKD DEPOSIT 1WK |
| Japan 225 | SOFR |
| US Nas 100 | SOFR |
| Netherlands 25 | ESTR |
| Singapore 30 | SORA |
| US SPX 500 | SOFR |
| Taiwan Index | SOFR |
| UK 100 | SONIA |
| US Russell 2000 | SOFR |
| US Wall St 30 | SOFR |
| Spain 35 | ESTR |
| Switzerland 20 | SARON |
| ChinaH Shares | HKD DEPOSIT 1WK |
| Japan 225 (JPY) | TONA |
| Instrument | Admin fee |
|---|---|
| TRY pairs | 4.00% |
| CZK, HUF, SAR, THB, ZAR pairs | 2.00% |
| Other pairs | 0.75% |
Different asset classes settle on different days.
FX, gold, and silver trades typically settle on a T+2 basis, which effectively means that weekend financing is usually applied two days earlier on Wednesdays (tripling the usual daily rate), although this timeline is similarly impacted by public holidays.
Indices typically factor in weekend financing on a Friday (tripling the usual daily rate), although this timeline is also similarly impacted by public holidays.
Accordingly, the actual funding rate on any given day may reflect more than one day’s costs.
No financing charges or credits are applied to clients’ accounts over the weekend.
See our FAQs for examples of financing costs.
The prices of our commodity, metal (excluding gold and silver) and bond CFDs are based on underlying futures contracts. When an underlying futures contract is near expiry, we calculate the basis rate, which represents the difference in price between the expiring futures contract and the next futures contract. From that point forward, our CFD price is calculated as the present value of the price of the next futures contract, using the basis rate for the present value calculation. The present value is calculated continuously, second-by-second.
When the basis rate is positive, the CFD price will tend to move upwards towards the futures contract price. When the basis rate is negative, the CFD price will tend to move downwards towards the futures contract price.
Financing costs on commodity, metal (excluding gold and silver) and bond CFDs are therefore calculated on a continuous second-by-second basis. These charges or credits are applied at the close of a trade. Additionally, if you have an open commodity or bond CFD position on your account at the end of each day (5pm ET), including weekends, it will be subject to either a ‘financing charge’ or ‘financing credit’ to reflect the cost of funding your position.
Financing charges or credits are calculated as follows:
Financing charge or credit = size of position x applicable funding rate x [trade duration (in seconds) / 31536000**] x conversion rate to account currency
**31536000 = number of seconds in 365 days
OANDA charges financing on commodity, metal (excluding gold and silver) and bond CFDs using the basis rate with a % admin fee applied. The basis rate portion of the financing amount is intended to offset the price movements caused by the present value calculation.
For long positions, your account will be debited the basis rate plus a 2.5% admin fee. For short positions, your account will be credited the basis rate minus a 2.5% admin fee (which could result in a charge where the basis rate is less than the admin fee).
See our FAQs for examples of financing costs for CFDs on commodities (plus copper) and bonds.
Rates and costs for today's date are approximate and will not be finalised until 5 pm ET.
The rates displayed for the current date are indicative, based on rates from liquidity providers and administrative fees. Our finalised rates for the current date are published shortly after the New York day close (5pm ET).
Indicative rates are published as a reference and guide, and we will only charge the finalised rates to your positions, if any. Any difference in finalised rates charged due to different account types are not reflected here (e.g. discounted fees for premium accounts).
*Long financing charge = the financing charge on a long position of the given instrument
^Short financing charge = the financing charge on a short position of the given instrument
(Financing charges are based on positions of 100,000 units for FX, 1 unit for Indices, 10 units for Gold, Silver, Palladium and Platinum, and 100 units for Commodities, Metals & Bonds)
†Copper is included within commodities
The long-term and short-term rates displayed on the webpage are computed annually. Conversely, the long-term and short-term costs are computed daily.
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**Subjected to meeting the criteria set out in the account package offering.
As a leading, regulated broker, your funds are safe with us. It is easy and straightforward to deposit, withdraw and transfer funds between your OANDA sub-accounts from your ‘My Funds’ page.
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