Trading

Financing costs

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.

CFDs on FX, gold, silver, and indices

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.

How we calculate funding rates

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* alternative reference rate. In the event this results in a negative rate, a charge will be levied to your account. *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. 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. 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.

Index	Alternative reference rate
Australia 200	AONIA
China A50	SOFR
Germany 30	ESTR
Europe 50	ESTR
France 40	ESTR
Hong Kong 33	HONIA
Japan 225	SOFR
US Nas 100	SOFR
Netherlands 25	ESTR
Singapore 30	SORA
US SPX 500	SOFR
UK 100	SONIA
US Russell 2000	SOFR
US Wall St 30	SOFR
Spain 35	ESTR
Switzerland	SARON
ChinaH Shares	HONIA
Japan 225 (JPY)	TONA

Financing costs affected by holidays and weekends

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.

Admin fee table

Instrument	Admin fee
TRY pairs	4.00%
CZK, HUF, SAR, THB, ZAR pairs	2.00%
Other pairs	1.00%

CFDs on commodities, metals (excluding gold and silver) and bonds

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 days) / 365] x conversion rate to account currency

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.