Capital.com fees are one of the vital pieces of information that investors are always interested in. When you know the details of the transaction fees of each security code, you will calculate it to come up with a proper trading strategy, thus optimizing your investment strategy. This article will learn about transaction fees and how to view the transaction fees of a specific ticker on your phone.
What are transaction fees?
A transaction fee is a commission that you pay your broker (here, Capital.com) an amount each time your trade is completed. Each stock ticker on Capital.com has a different price.
In Capital.com, the transaction fee is usually based on the spread of the difference between the bid and ask prices. This is considered compensation for using the platform Capital.com for trading.
In addition, you also have to pay fees for leveraged trades. This fee will be calculated as a percentage (%). This fee is like paying interest on the amount you borrowed from Capital.Com to trade.
How to calculate transaction fees on Capital.com
Overnight commissions on Capital.com are calculated as a percentage. If you open a leveraged position overnight, you will be charged an overnight fee. This ratio is different between the Buy (long) and Ask (short) price compared to the leverage ratio.
The formula for calculating swaps for shares is as follows:
Trading volume * Closing price * (3% +/- LIBOR)/100%/365 (or 360)
- Trading volume – the number of shares purchased.
- Closing price: The price of that stock at the time of the closing price (usually at 22h UTC).
- 3% is the rate of return of Capital.com.
- LIBOR: 1-month interbank interest rate.
- Stocks using the GBP currency will be divided by 365.
- Shares in other currencies are divided by 360.
- Buy 10 shares of Netflix, the closing price is $260. USD’s LIBOR that day was 1.44%.
- Your overnight commission for that day’s trade will be:
- 10 shares * $260 * (3%+1.44%)/100%/360 = $0.32.
- This means you’ll be charged $0.32 for an overnight order to buy Netflix shares.
The formula for calculating overnight forex on Capital.com is as follows:
Trading volume * (0.07% +/- Premature ratio)
- The forward rate is the difference between the interest rates of the two currencies in the currency pair.
Spread (dynamic spread) on Capital.com = Ask Price – Ask Price.
Capital.com: How to view fees for an action on your mobile phone
Two types of transaction fees on Capital.com. You can see the details in each activity class. Here’s how to watch it on your phone:
Step 1: To view the prices for a particular title on Capital.com, you need to log in to your account. Then click [Search] to select a stock code whose information you want to view.
If you do not have a Capital.com account, please register at the link:
Step 2: In the [Transaction] window of that stock code, scroll down to view the detailed information:
- Swap Fee: is the fee charged based on the leverage used.
- Dynamic spread: the difference between bid and ask prices
Here’s how to view and calculate detailed transaction fees for an asset on Capital.com. You can see that Capital.com only charges on the spread of each purchase. If no leverage is used, the spread is the minimum commission that every broker has. In addition, you do not incur other costs. In particular, the spread on Capital.com is also quite comfortable, which is a plus point for this broker.