Trade all our FX contracts commission-free. You can open a new position from just 1%* of the contract value.
Depending on conditions in the underlying market, our FX spread can be as low as 1 pip on currency pairs such as NZD/EUR, AUD/USD, EUR/USD and USD/JPY. Spreads start from 2 pips on NZD/USD, NZD/GBP and many other major currencies. All our contract sizes are set out in the Dealing spreads.
Buying AUD/USD
Opening the position
You decide to go long on the Australian dollar against the US dollar. In September, our quote is 0.8316/0.8317, and you buy 5 mini contracts (the equivalent of A$50,000) at 0.8317. The value of your position is A$50,000 x 0.8317 = US$41,585. To open the position you supply a deposit of just 1% of the position. Your deposit is therefore 1% x US$41,585 = US$415.85 There is no commission to pay on FX trades.
Interest adjustments
While the position remains open, your account is debited or credited to the current Tom-Next rate. Tom/Next expresses in pips the difference between the interest paid to borrow the currency that is being notionally sold overnight, and the interest received from holding the currency that is being notionally bought overnight. An administrative charge not exceeding 0.3% per annum applies on either side of the current Tom/Next spread. This maximum charge will apply to both regular and mini-contracts.
Closing the position
A few days later, the AUD/USD has risen to 0.8575/0.8576 and you take your profit by selling 5 mini contracts at 0.8575. Your gross profit on the trade is calculated as follows:
Profit
| Closing transaction | A$50,000 (5 mini contracts) x 0.8575 = US$42,875 |
| Opening transaction | A$50,000 (5 mini contracts) x 0.8317 = US$41,585 |
Gross profit: US$1,290
To calculate the net result you also have to include interest adjustments. For more information see Contract Details.
* Applies to Trader Accounts
Selling USD/JPY
Opening the position
You decide to go short on the US dollar against the Japanese Yen. In September our quote is 0.9311/0.9312, and you sell 5 mini contracts (the equivalent of US$50,000) at 0.9311.
The value of your position is US$50,000 x 0.9311 = US$46,555. To open the position you supply a deposit of just 1% of the position. Your deposit is therefore 1% x US$46,555 = US$465.55. There is no commission to pay on FX trades.
Interest adjustments
While the position remains open, your account is debited or credited to the current Tom-Next rate. Tom/Next expresses in pips the difference between the interest paid to borrow the currency that is being notionally sold overnight, and the interest received from holding the currency that is being notionally bought overnight. An administrative charge not exceeding 0.3% per annum applies on either side of the current Tom/Next spread. This maximum charge will apply to both regular and mini-contracts.
Closing the position
A week later the USD/JPY has fallen to 0.9021/0.9022, and you take your profit by buying 5 mini contracts at 0.9022. Your gross profit on the trade is calculated as follows:
Profit
| Closing transaction | $US50,000 (5 mini contracts) x 0.9022 = US$45,110 |
| Opening transaction | $US50,000 (5 mini contracts) x 0.9311 = US$46,555 |
Gross profit: US$1,445
To calculate the net result you also have to include interest adjustments. For more information see Contract Details.
* Applies to Trader Accounts