My question is how the results from positions in other currencies are calculated. For CFDs, T212 informed me that it applies 0,5% to the exchange rate itself and that this is automatically reflected in my result. However, according to my calculations, the foreign exchange fee varies from 1,5% to 10,5% - or there is another hidden fee!
I used these basic calculations and applied the closing price as exchange rate:
When I had a positive result:
- ([Start price] - [Closing price]) x [Amount] / ([exchange rate] x 1 - [T212 interest rate]) = [final result]
When I had a negative result:
- ([Start price] - [Closing price]) x [Amount] / [exchange rate] x 1 + [T212 interest rate] = [final result]
Example of a 3,57% charge - positive result, sell EUR/USD, held in USD, POS812589142, closing 14.01.2021 03:30 (GMT+1), open for 2 days:
- (1,21752 - 1,21378) x 45000 / (1,21378 x 1,0357) = 133,71 €
Example of a 10,52% charge - negative result, sell GBP/USD, held in USD, POS675038821, closing 21.12.20 13:03 (GMT+1), open for 40min:
- (1,31941 - 1,32316) x 50000 / 1,32316 x 1,1052 = -156,61 €
Can someone help me to figure out whether there is a mistake in my calculation or whether T212 really charges more?
Could this have to do with the spread? It is unlikely that it is linked to the duration of the held position, the currency the position is held in or the lent capital as the fee seems to vary independently of these variables.
I have been trying to get an answer to this by email but the customer service seems to only spend 5 seconds on each request, so they don’t get my question.