Trading Conditions

Trading Conditions & Charges

Explanation of Terms: *from table headings

Instrument – The FX currency pair or underlying asset of the CFD product to be traded.
Country – The country that the equity or bond is based in.
Lot size – The lot size traded on each platform (Note: Ava Trader lot sizes represent the minimum lot size tradable. MT4 represents the standard lot size).
Standard Spread – The difference between the BID & the ASK price quote for each instrument under normal market conditions.
Leverage – The usage of margin to trade on a larger capital base. Leverage can significantly increase your losses as well as your gains.
Margin Per Lot – The required margin to open a single lot of each instrument (Note: It is shown in notional terms).
Increment – The minimum increment of price movement for each instrument.
Overnight Interest Sell/Buy – The overnight interest debited/credited in daily % terms for each instrument.
Trading Time – The time that trading is available for the specified instrument.
Quoted Months – The months of the futures contracts that Friedberg Direct quotes on its platforms.
Exchange – The exchange of the underlying asset.
Units – The unit that each lot size is quoted in.

Risk Warning:
Trading CFD’s on margin carries a high level of risk, and may not be suitable for all investors.

TRADING CHARGES:

All trading performed on this website/platform shall be subject to the following potential charges:

  • SPREADS
  • OVERNIGHT INTEREST
  • MATURITY ROLLOVER
  • CORPORATE ACTIONS
  • INACTIVITY FEE

See below for detailed calculations for each instrument type charge:

FX (3)
FX Spread Calculation

The FX Fixed Trading Conditions display the Standard Bid-Ask Spread (Pips) for FX Instruments unless otherwise stated. Standard Spreads are as stated under Normal Market Conditions. Spreads can widen depending on market conditions up to a maximum of Standard Spread x3 (Triple).
Spread Cost Formula: Spread x Trade Size = Spread Charge in Secondary Currency*
*Secondary Currency is the Second Currency quoted in an FX pair (CUR1/CUR2 USD/JPY, EUR/USD, etc.)
Example
For a 1,000 EUR/USD Trade, with a Spread of 3 pips (0.0003), the calculation is as follows:
0.0003 X 1,000 = $0.30*
Friedberg Direct is compensated through the Bid-Ask spread, except when otherwise stated.
Friedberg Direct does not charge commissions on any trade.

FX Margin/Leverage Calculation

All Instruments are traded on Margin allowing you to Leverage your positions. The FX Fixed Trading Conditions display both Margin & Leverage Amounts; Margin is displayed as a Percentage (%) while Leverage is displayed as a Ratio.
Percentage Margin Formula: Trade Size x Margin (%) = Margin Required in Primary Currency*
Leverage Margin Formula: Trade Size / Leverage = Margin Required in Primary Currency*
*Primary Currency is the First Currency quoted in an FX pair (CUR1/CUR2: USD/JPY, EUR/USD, etc.)
Example
USD Account – For a 1,000 EUR/USD Trade, with a Margin Requirement of 3.00% or Leverage of 33:1, the calculation are as follows:
Percentage Margin Requirement: 1,000 x 0.03 = €30.00 ($34.8 USD)
Leverage Margin Requirement: 1,000 / 33.333 = €30.00 ($34.8 USD)

CAD Account – For a 1,000 EUR/USD Trade, with a Margin Requirement of 5.20% or Leverage of 19.23:1, the calculation are as follows:
Percentage Margin Requirement: 1,000 x 0.052 = €52.00 ($78 CAD)
Leverage Margin Requirement: 1,000 / 19.23 = €52.00 ($78 CAD)

USD Account – For a 1,000 USD/CAD Trade, with a Margin Requirement of 2.20% or Leverage of 45.45:1, the calculation are as follows:
Percentage Margin Requirement: 1,000 x 0.022 = $22.00 CAD ($17 USD)
Leverage Margin Requirement: 1,000 / 33.333 = $22.00 CAD ($17 USD)

CAD Account – For a 1,000 USD/CAD Trade, with a Margin Requirement of 2.20% or Leverage of 45.45:1, the calculation are as follows:
Percentage Margin Requirement: 1,000 x 0.022 = $22.00 CAD
Leverage Margin Requirement: 1,000 / 33.333 = $22.00 CAD

FX Buy/Sell Overnight Interest Calculation

The FX Fixed Trading Conditions display the Over-Night (O/N) Interest Rates Charged/Paid on a daily basis for holding a position open past our End of Day time. These rates are displayed in the “Overnight Interest – Buy” and “Overnight Interest – Sell” columns. End of Day is 22:00 GMT except during Daylight Savings when it changes to 21:00 GMT.
You can use the following formula to calculate your Daily Overnight Interest amount:
Trade Amount x Daily Overnight Interest = Daily Overnight Interest Charged/Paid*
*Overnight Interest Charged/Paid will be calculated in the Primary Currency; Primary Currency is the First Currency quoted in an FX pair (CUR1/CUR2: USD/JPY, EUR/USD, etc.)
Example
For a 1,000 EUR/USD Trade, with a Daily Overnight Interest Buy (or Sell) rate of -0.0053% and subject to a charge for 1 day, the calculation is as follows:
1,000 x -0.000053 = -0.053 = -€0.05* rounded
Note: FD platforms display overnight interest (swaps) in annualized terms.

COMMODITY MATURITIES AND ROLLOVERS (3)
Commodities Spread Calculation

The Commodities Trading Conditions display the Standard Bid-Ask Spread OR ‘Spread Over Market’ for Commodity Instruments unless otherwise stated. Standard Spreads are as stated under Normal Market Conditions while the ‘Spread Over Market’ is the Mark-up Friedberg Direct adds to the Current Market Spread.
Spread Cost Formula: Spread x Trade Size = Spread Charge in Currency Instrument is denominated in.
Example
For a 10 barrel Crude Oil Trade, with a Spread of 4 pips ($0.04), the calculation is as follows:
0.04 X 10 = $0.40*
Friedberg Direct is compensated through the Bid-Ask spread, except when otherwise stated.
Friedberg Direct does not charge commissions on any trade.

Commodities Margin Calculation

All Instruments are traded on Margin allowing you to Leverage your positions. The Commodities Trading Conditions display Margin Amounts as a Percentage (%).
Percentage Margin Formula: Position Size x Current Price x Margin (%) = Margin Required*
* Margin Required is calculated in the Currency the Instrument is Denominated in.
Example
For a 10 barrel Crude Oil Trade, with a Market Price of $70.00 and a Margin Requirement of 11.00%, the calculation is as follows:
Percentage Margin Requirement: 10 x 70 x 0.11 = $77 USD/$100 CAD

Commodities Buy/Sell Overnight Interest Calculation

The Commodities Trading Conditions display the Over-Night (O/N) Interest Rates Charged/Paid on a daily basis for holding a position open past the End of Day time. These are displayed in the “Overnight Interest – Buy” and “Overnight Interest – Sell” columns. End of Day is 22:00 GMT except during Daylight Savings when it changes to 21:00 GMT.
You can use the following formula to calculate your Overnight Interest amount:
Trade Size x End of Day Market Price x Daily Overnight Interest = Daily Overnight Interest Charged/Paid*
*Overnight Interest Charged/Paid is calculated in the Currency the Instrument is Denominated in.
Example
For a 10 barrel Crude Oil Trade, with an End of Day Market Price of $50.00 and a Daily Overnight Interest Buy (or Sell) rate of -0.0028%, and subject to a charge for 1 day, the calculation is as follows:
10 x 50.00 x -0.000028 = -0.014 = -$0.01* rounded.
Note: FD platforms display overnight interest (swaps) in annualized terms.

STOCK INDICES (3)
Stock Indices Spread Calculation

The Stock Indices Trading Conditions display the ‘Spread Over Market’ for Stock Index Instruments unless otherwise stated. The ‘Spread Over Market’ is the Mark-up Friedberg Direct adds to the Current Market Spread.
Spread Cost Formula: Spread x Trade Size = Spread Charge in Currency Instrument is denominated in.
Example 1
For a 1 index S&P500 Trade, with a Spread of 75 Pips ($0.75), the calculation is as follows:
0.75 X 1 = $0.75*
Friedberg Direct is compensated through the Bid-Ask spread, except when otherwise stated.
Friedberg Direct does not charge commissions on any trade.

Stock Indices Margin Calculation

All Instruments are traded on Margin allowing you to Leverage your positions. The Stock Indices Trading Conditions display Margin Amounts as a Percentage (%).
Percentage Margin Formula: Position Size x Current Price x Margin (%) = Margin Required*
* Margin Required is calculated in the Currency the Instrument is Denominated in.
Example
For a 1 Index S&P500 Trade, with a Market Price of $2800 and a Margin Requirement of 4.25%, the calculation is as follows:
Percentage Margin Requirement: 1 x 2,800 x 0.0425 = $119 USD/$155 CAD

Stock Indices Buy Sell Overnight Interest Calculation

The Stock Indices Trading Conditions display the Over-Night (O/N) Interest Rates Charged/Paid on a daily basis for holding a position open past the End of Day time. These are displayed in the “Overnight Interest – Buy” and “Overnight Interest – Sell” columns. End of Day is 22:00 GMT except during Daylight Savings when it changes to 21:00 GMT.
You can use the following formula to calculate your Overnight Interest amount:
Trade Size x End of Day Market Price x Daily Overnight Interest = Daily Overnight Interest Charged/Paid*
*Overnight Interest Charged/Paid is calculated in the Currency the Instrument is Denominated in.
Example
For a 1 Index S&P500 Trade, with an End of Day Market Price of $2800 and a Daily Overnight Interest Buy (or Sell) rate of -0.0028%, and subject to a charge for 1 day, the calculation is as follows:
1 x 2,800 x -0.000028 = -0.078 = -$0.08* rounded.
Note: FD platforms display overnight interest (swaps) in annualized terms.

INDIVIDUAL EQUITIES (4)
Individual Equities Spread Calculation

The Individual Equities Trading Conditions display the ‘Spread Over Market’ for Individual Equity Instruments unless otherwise stated. The ‘Spread Over Market’ is the Mark-up Friedberg Direct adds to the Current Market Spread.
Spread Cost Formula: Spread x Trade Size = Spread Charge in Currency Instrument is denominated in.
Example
For a trade of 1 APPLE share, with a Spread of 12 pips (0.12), the calculation is as follows:
0.12 X 1 = $0.12*
Friedberg Direct is compensated through the Bid-Ask spread, except when otherwise stated.
Friedberg Direct does not charge commissions on any trade.

Individual Equities Margin Calculation

All Instruments are traded on Margin allowing you to Leverage your positions. The Individual Equities Trading Conditions display Margin Amounts as a Percentage (%).
Percentage Margin Formula: Position Size x Current Price x Margin (%) = Margin Required*
*Margin Required is calculated in the Currency the Instrument is Denominated in.
Friedberg Direct may double margin requirements on specific stocks prior to earnings release. This is a preventative measure to avoid clients with large exposures in the said equity, falling into negative equity.
Example
For a trade of 1 APPLE share with a Market Price of $200 and a Margin Requirement of 30.00%, the calculation is as follows:
Percentage Margin Requirement: 1 x 200 x 0.3 = $60 USD/$78 CAD

Individual Equities Buy/Sell Overnight Interest Calculation

The Individual Equities Trading Conditions display the Over-Night Interest Rates Charged/Paid on a daily basis for holding a position open past the End of Day time. These are displayed in the “Overnight Interest – Buy” and “Overnight Interest – Sell” columns. End of Day is 22:00 GMT except during Daylight Savings when it changes to 21:00 GMT.
You can use the following formula to calculate your Overnight Interest amount:
Trade Size x End of Day Market Price x Daily Overnight Interest = Daily Overnight Interest Charged/Paid*
* Overnight Interest Charged/Paid is calculated in the Currency the Instrument is Denominated in.
Example
For a trade of 1 APPLE share, with an End of Day Market Price of $200 and a Daily Overnight Interest Buy (or Sell) rate of -0.0083%, and subject to a charge for 1 day, the calculation is as follows:
1 x 200 x -0.000083 = -0.016 = -$0.02* rounded.
Note: FD platforms display overnight interest (swaps) in annualized terms.

Individual Equities Corporate Actions & Calculation

Individual Equities may at some stage partake in a Corporate Action; these can include Dividends, Rights Issues, Stock/Reverse Splits, Mergers, Acquisitions, Takeovers etc.
Dividends: For any individual equity on the trading platforms that declares a dividend, Friedberg Direct will make an Adjustment to every account that holds said equity, at the end of the cum-dividend day. This will be one day before the ex-dividend day.
The adjustment made to accounts will be:
1. Long Positions will be Credited with 90% of the Gross dividend.
(Amount of Shares x Gross Dividend) x 0.90
2. Short Positions will be Debited with 100% of the Gross dividend.
(Amount of Shares x Gross Dividend) x -1
Note: There are no other costs to clients in relation to Dividends.
Example
For a trade of 1 APPLE share, with a GROSS Div. of $1.00, the calculation is as follows:
Long Position: (1 x 1.00) x 0.90 = 1.00 x 0.90 = +$0.90
Short Position: (1 x 1.00) x -1 = 1.00 x -1 = -$1.00
For ALL other Corporate Actions: Rights Issue, Stock/Reverse Splits, Mergers, Acquisitions, Takeovers etc, and as these actions can happen suddenly and without prior knowledge, Open Positions and Orders will be Closed/Removed at the end of the cum-action day at market price on the particular equity.
Note: There are no costs to clients in relation to these other Corporate Actions.

BONDS (3)
Bonds Spread Calculation

The Bonds Trading Conditions display the ‘Spread Over Market’ for Bond Instruments unless otherwise stated. The ‘Spread Over Market’ is the Mark-up Friedberg Direct adds to the Current Market Spread.
Spread Cost Formula: Spread x Trade Size = Spread Charge in Currency Instrument is denominated in.
Example
For a trade of 10 Bonds on the 5 Year US T-NOTE, with a Spread of 5 pips (0.05), the calculation is as follows:
0.05 X 10 = $0.50*
Friedberg Direct is compensated through the Bid-Ask spread, except when otherwise stated.
Friedberg Direct does not charge commissions on any trade.

Bonds Margin Calculation

All Instruments are traded on Margin allowing you to Leverage your positions. The Bonds Trading Conditions display Margin Amounts as a Percentage (%).
Percentage Margin Formula: Position Size x Current Price x Margin (%) = Margin Required*
* Margin Required is calculated in the Currency the Instrument is Denominated in.
Example
For a trade of 10 Bonds on the 5 Year US T-NOTE, with a Market Price of $124.50 and a Margin Requirement of 4.00%, the calculation is as follows:
Percentage Margin Requirement: 10 x 124.50 x 0.04 = $50 USD/ $65 CAD*

Bonds Buy/Sell Overnight Interest Calculation

The Bonds Trading Conditions display the Over-Night (O/N) Interest Rates Charged/Paid on a daily basis for holding a position open past the End of Day time. These are displayed in the “Overnight Interest – Buy “and “Overnight Interest – Sell” columns. End of Day is 22:00 GMT except during Daylight Savings when it changes to 21:00 GMT.
You can use the following formula to calculate your Overnight Interest amount:
Trade Size x End of Day Market Price x Daily Overnight Interest = Daily Overnight Interest Charged/Paid*
*Overnight Interest Charged/Paid is calculated in the Currency the Instrument is Denominated in.
Example
For a 10 Bond 5 Year US T-NOTES Trade, with an End of Day Market Price of $150 and a Daily Overnight Interest Buy (or Sell) rate of -0.0028%, and subject to a charge for 1 day, the calculation is as follows:
10 x 150 x -0.000028 = -0.042 = -$0.04* rounded.
Note: FD platforms display overnight interest (swaps) in annualized terms.

INACTIVITY AND ADMINISTRATION FEES (2)
Inactivity Fee

Customer acknowledges that the Customer’s trading account may be subject to an inactivity fees unless prohibited by law. After 3 consecutive months of non-use (“Inactivity Period”), and every successive Inactivity Period, an inactivity fee will be deducted from the value of the Customer’s trading account. This fee is outlined below and subject to client relevant currency based account:
Inactivity Fee:

  • USD Account: $50
  • CAD Account: $50

Applicable fees subject to change periodically.

Administration fee

Customer acknowledges that the Customer’s trading account may be subject to an annual administration fee unless prohibited by law. After 12 consecutive months of non-use (“Annual Inactivity Period”), an administration fee will be deducted from the value of the Customer’s trading account. This fee is outlined below and subject to client relevant currency based account: This is to offset the cost incurred in making the service available, even though it may not be used.
Administration Fee:

  • USD Account: $100
  • CAD Account: $100

Applicable fees subject to change periodically.

TRADING CONDITIONS:

Spreads:

  • All Spreads are Over Market.
  • FX Standard Spreads are as stated under Normal Market Conditions.
  • FX Pairs may not be tradable shortly before and after End-of-Day (22:00 GMT or 21:00 GMT during US DST) – due to liquidity constraints during the Interbank settlement period
  • Gold & Silver spreads may be wider than stated from approx 22:00 – 02:00 GMT.
  • Crude & Brent Oil spreads may be wider than stated from approx 22:00 – 05:00 GMT.
  • Crude Oil & Natural Gas spreads may be wider during Weekly Inventories.
  • PIP FX Pairs = 0.0001; 1 PIP JPY FX Pairs = 0.01.

Overnight Interest Rates:

  • All Overnight Interest Rates are indicative and subject to change.
  • MT4 FX, Gold & Silver Positions: Saturday/Sunday Overnight Interest will be Debited/Credited on the Wednesday before.
  • MT4 Non-FX (excl. Gold & Silver) Positions: Saturday/Sunday Overnight Interest will be Debited/Credited on the Friday before.

Margin:

  • Margin requirements can increase based on position size.

Maximum Trades/Orders:

  • MetaTrader Minimum Nominal Trade Size = 0.01
  • Trading Hours may change due to Daylight Savings Time.

Max Positions Limits

  • Palladium = $400K Max*

* Maximum Position Limits may be reduced during periods of volatility.

Friedberg Direct reserves the right to cancel any excess trades or exposures that exceed the outlined threshold limits, all cancelled trades will be closed at their opening rates.
Friedberg Direct reserves the right to modify its threshold limits, affected clients will be notified in advance and may be required to reduce their exposure.

Your access to and use of the website and/or platform constitutes your acceptance of these Trading Conditions and any other legal notices and statements contained on same. Friedberg Direct may modify these Trading Conditions at any time and without prior notice. Your continued access to and use of the website and/or platform constitutes your acceptance of these Trading Conditions as modified.