Financing costs

Find out how we calculate our financing costs. So you can better understand the financing charge or credit and other associated potential costs when you trade with us.

CFDs on FX, indices and commodities

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
This may be a charge or a credit to your account, depending on whether you hold a buy/long position or a sell/short position
The financing charge or credit also takes into account the impact of our admin fee
Funding rates for CFD positions

FX and metal (except copper):

Daily financing charge or credit = size of position x applicable funding rate / DAYS*.

Indices and commodities (including copper):

Daily financing charge or credit = value of position* x applicable funding rate / DAYS*.

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
A positive funding rate results in a credit into your account

*where value of position = size of position x price at the end of the trading day (5pm ET).

How we calculate funding rates

See how we calculate funding rates for our FX, metals and indices CFDs.

Funding rates (long/buy positions) Funding rates (short/sell positions)

FX and metals (excluding copper)

Rates are based on a blend of underlying liquidity providers’ tom-next SWAP rates, adjusted by the instrument-specific admin fee, and annualised.


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, and annualised.


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 an admin fee of 2.5% plus the relevant* alternative reference rate, annualised. Represented by a negative rate, and hence a charge.


*rate used in the country whose currency is the instruments’ quote currency using the table below.


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* alternative reference rate is greater than our 2.5% admin fee, the rate used will be the difference between the two, annualised. This is represented by a positive rate, and therefore a credit.


When the relevant* alternative reference rate is lower than our 2.5% admin fee, the rate used will be the difference between the two, annualised. This is represented by a negative rate, and therefore a charge.


*rate used in the country whose currency is the instruments’ quote currency using the table below.


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.

Share CFDs

Rates are admin fee of 3.0% plus relevant* annualised funding rate, annualised. Represented by a negative rate, and hence a charge.


*rate used in the country whose currency is the instruments’ quote currency using the table below.


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* one month annualised funding rate is greater than our 3.0% admin fee, the rate used will be the difference between the two, annualised. This is represented by a positive rate, and therefore a credit.


When the relevant* annualised funding rate is lower than our 3.0% admin fee, the rate used will be the difference between the two, annualised. This is represented by a negative rate, and therefore a charge.


*rate used in the country whose currency is the instruments’ quote currency using the table below.


*admin fee may be increased by the additional cost of borrowing rate for short positions held overnight


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 and alternative reference rates
Index Reference rate
AU200 AONIA
HKD DEPOSIT 1WK
EU50 ESTR
FR40 ESTR
DE40 ESTR
HKD DEPOSIT 1WK
JP225 SOFR
NL25 ESTR
SINGIX SORA
TWIX SONIA
UK100 SONIA
US30 SOFR
US100 SOFR
US500 SOFR
US2000 SOFR
Admin fees
Instrument Admin fee
ZAR pairs 2.00%
Other pairs 1.00%
Financing costs affected by holidays and weekends

Different asset classes settle on different days.

FX and metal (except copper) trades typically settle on a T+2 basis, which 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. Please note that USD/CAD settles on a T+1 basis and therefore has its three-day financing applied on a Thursday.

Indices and commodities (including copper) 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.

We don’t apply financing charges or credits to your account over the weekend.

See our FAQs for examples of financing costs for CFD positions.

CFDs on commodities (plus copper)

OANDA’s commodity CFDs (including copper) do not have an expiry date. To achieve this, OANDA generates its commodity CFD price by applying a premium or discount rate (called the "basis rate") to the price of the underlying active futures contract.

When a futures contract is near its expiry, the basis rate for the next contract is calculated using the prices of the expiring contract and the next contract. This application of the basis rate causes the CFD price to converge towards the active future contract price as the active futures contract approaches its expiration date by moving the CFD price either higher or lower.

The direction of this movement is determined by the price of the active futures contract and the CFD price. For example, if the price of the active futures contract is higher than the CFD price, the application of the basis rate will cause the CFD price to move higher to converge towards the active futures contract.

Positive Basis Rate (Green)
Negative Basis Rate (Red)

The funding rate applied on commodities at the end of the trading day (5pm ET) is intended to offset the price movements created by this pricing methodology, and as such could be a credit or debit depending on whether you are long or short and whether the price movement is positive or negative and the impact of the additional admin fee.

Calculating financing charges or credits

We calculate financing or credits as follows:

Financing charge or credit = size of position x applicable funding rate x [trade duration (in days) / DAYS*] x conversion rate to account currency
We charge financing on commodity (including copper) CFDs using the basis rate with a % admin fee applied
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).
CFDs on cryptocurrencies

The financing charges for cryptocurrencies CFDs are as below:

Daily financing charge = (position size x funding rate) x 1 / DAYS*
1 day financing will be charged Monday to Thursday; with three days financing charged on Friday

The funding rate for all crypto CFDs will be as follows:

Long positions = - 25% - SOFR
Short positions = - 25% + SOFR
Daily funding rates and associated anticipated financing costs

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 may differ from the finalised rates applied to your positions. Any difference in finalised rates charged due to different account types are not reflected here.

*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, 100 units for Share CFDs, 1 unit for Indices, 10 units for Metals excluding Copper and 100 units for Commodities including Copper.

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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