What is an administration fee and how is it calculated?
Our swap-free accounts are designed specifically for clients who cannot receive swap credits or pay swap charges on overnight positions for religious or other reasons.
Instead, an administration fee is applied to positions, which is deducted from the account balance. This account type is designed to cater to traders who, due to their religious beliefs, are unable to engage in swaps or interest-related transactions.
The administration fee is made up of the fee imposed by our liquidity providers plus an internal processing fee. As the fee imposed by our liquidity providers is variable, admin fees also tend to vary. This is primarily a related expense we made to manage our client's swap-free accounts as all our liquidity providers charge us a certain fee to keep the client's positions open, and this cost is then passed onto the clients in the form of the administration fee.
Apart from this difference, swap-free accounts have exactly the same trading conditions and terms as our regular trading accounts.
Keywords: admin fee
