The fee is calculated as 0.7% of the spot forex rate for retail clients.
Imagine you’re trading in an account denominated in USD.
You have an open CFD trade on Commonwealth Bank – denominated in AUD – that is in profit by AU$10.
This is shown on your position as $6.50 (AU$10 at the spot AUD/USD rate of 0.65028)
You decide to close the trade.
If no currency conversion fee had been applied, the profit of that position would be simply be calculated as follows:
AU$10 (your profit) x 0.65028 (spot rate) = $6.50
However, at the point of closure you will be charged the 0.7% currency conversion fee. The calculation is done as an ‘all-in’ conversion rate which encompasses the spot rate and the 0.7% fee.
The all-in rate is 0.7% less favourable than the spot rate, and therefore the profit realized on the position would be slightly less: 0.65028 (spot rate) x (1 - 0.7%) (currency conversion fee) = 0.64573
Therefore your profit after the currency conversion fee is:
AU$10 (your profit) x 0.64572 (all in rate) = $ 6.46
Therefore, in this example, you have been charged a currency conversion fee of $0.04.
| Conversion fee rate | Currency conversion cost | |
| Without the currency conversion fee | 0% | $0 |
| With the currency conversion fee | 0.7% | $0.04 |
You can see the ‘all-in’ rate used for the conversion of each transaction in the ‘Reports’ section of the platform, as well as on your statements.