CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

73.5% of retail investor accounts lose money when trading CFDs with this provider.

You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Trading

Financing costs

Find out how we calculate our financing costs, so you can better understand the financing charge or financing credit when you trade with us.

Financing Fees Hero

CFDs on FX, metals (except copper) 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 and metals (except copper): 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 and metals (excluding copper) Rates are based on a blend of underlying liquidity providers’ tom-next swap rates, adjusted by the instrument specific admin fee, and annualised.

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, and annualised.

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* interbank funding rate, annualised. This is represented by a negative rate, and hence 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.
When the relevant* interbank funding rate is greater than our 2.5% admin fee, the rate used will be the difference between the two, annualised. This is represented by a positive rate, and therefore a credit.

When the relevant* interbank funding rate is lower than our 2.5% admin fee, the rate used will be the difference between the two, annualised. 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 Interbank funding rate
Australia 200 Australia Bank Bill - 3 month
China A50 USD LIBOR - 1 month
Germany 30 EURIBOR - 3 month
Europe 50 EURIBOR - 3 month
France 40 EURIBOR - 1 month
Hong Kong 33 HKD HIBOR - 1 month
India 50 USD LIBOR - 1 month
Japan 225 USD LIBOR - 3 month
US Nas 100 USD LIBOR - 3 month
Netherlands 25 EURIBOR - 1 month
Singapore 30 SGD SIBOR - 1 month
US SPX 500 USD LIBOR - 3 months
Taiwan Index USD LIBOR - 1 month
UK 100 GBP LIBOR - 3 months
US Russell 2000 USD LIBOR - 3 months
US Wall St 30 USD LIBOR - 3 months

Admin fee table

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

Financing costs affected by holidays and weekends

Different asset classes settle on different days.

FX and metals (except copper) 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.

CFDs on commodities (plus copper) and bonds

The prices of our commodity (including copper) 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 contract price. When the basis rate is negative, the CFD price will tend to move downwards towards the contract price.

Positive Basis Rate (Green)
Negative Basis Rate (Red)

Financing costs on commodity (including copper) and bond CFDs are therefore calculated on a continuous second-by-second basis.

For the duration of the trade the resultant financing charge/credit is debited/credited at the end of each day (5pm ET), including weekends and public holidays, and when the trade is closed.

Financing charges or credits are calculated as follows:

Financing charge or credit = size of position x applicable funding rate x [trade duration (in seconds) / 31536000**] x conversion rate to account currency

**31536000 = number of seconds in 365 days

OANDA charges financing on commodity (including copper) 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.

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Transparent trading costs

We are upfront about our fees so you know how much you are paying when you trade with us.

CFD trading

We offer CFD prices on a range of financial instruments, including indices, forex pairs, commodities, metals and bonds.

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