MetaTrader 5 (MT5) is a powerful platform for trading various financial instruments. A clear understanding of its associated fees is crucial for effective trading and risk management. This guide breaks down the primary costs you'll encounter.
Trading Commissions Explained
When trading on an MT5 platform, a commission is charged per trade. This fee varies significantly depending on the asset class you are trading. It's vital to know these costs upfront to calculate your potential profits and losses accurately.
The commission structure is typically applied as follows:
- Forex & Metals: $6 per standard lot.
- Commodities & Oil: $3 per standard lot.
- Indices: Fees vary, from $0.1 per lot for Nikkei225 to $3 per lot for many others.
- US Stock CFDs: $0.04 per lot, with a minimum charge of $5 per order.
Crucial Risk Note: The platform checks your balance for sufficient margin to open a position but does not check if you can cover the commission. This fee is deducted directly from your account balance upon opening the trade. Insufficient funds for the commission can lead to immediate liquidation of your position.
How Commission is Calculated
The calculation is straightforward: Commission = Contract Quantity (lot size) x Commission Per Lot.
Example 1: Indices Trade
- Opening a 0.20 lot position on SP500.
- Commission = 0.20 lots x $3 = **$0.60**.
Example 2: US Stock CFD Trade
- Opening a 1 lot position on AAPL.
- Base Commission = 1 lot x $0.04 = $0.04.
- However, the minimum $5 per order fee applies**, so the total commission is **$5.
- For a 200-lot trade: 200 x $0.04 = **$8**.
How Commissions are Charged and Displayed
The commission is deducted from your account balance as soon as a position is opened. Unlike its predecessor MT4, the MT5 platform does not show the commission in the live "Trade" tab. To review these fees, you must check the "History" tab. Right-clicking in this section and selecting "Orders & Deals" will provide a full breakdown of all transaction details, including commissions.
Understanding Swap Fees (Overnight Financing)
A swap fee, also known as an overnight or rollover fee, is charged for holding a trading position open past the platform's daily closing time (usually 00:00 server time, UTC+3/UTC+2 during daylight savings). Each financial instrument has its own long and short swap rates, which can be viewed in the MT5 platform by right-clicking an asset in the "Market Watch" window and selecting "Specification."
There are three primary methods for calculating swap fees:
1. By Money (Indices)
This method uses a fixed monetary value.Formula = Swap Rate x Lot Size x Number of Holding Days
- Example: Holding 2 lots of DJ30 long for 2 days with a swap rate of -10.3341.
- Calculation: -10.3341 x 2 x 2 = -$41.3364.
2. By Points (Forex, Metals, Commodities, Oil)
This method uses points, which must be converted into a monetary value.Formula: Lot Size x Contract Units x Smallest Price Digit x Swap Rate x Holding Days
- Example: Holding a short position on GAS-C (Gasoline) with 1 lot.
- Units: 42,000 | Smallest Digit: 0.0001 | Swap Rate: -21.9
- Calculation: 1 x 42,000 x 0.0001 x -21.9 x 1 = -$91.98.
3. By Percentage (US Stock CFDs)
This method is based on a percentage of the position's value.Formula: (Number of CFDs x Share Price x Swap Rate%) / 360
- Example: Holding 10 long CFDs of AAPL with a share price of $198.36 and a swap rate of -6.88%.
- Calculation: (10 x 198.36 x -6.88%) / 360 = -$0.38 (rounded).
👉 Explore advanced trading calculators to model these costs before you trade.
The 3-Day Weekend Swap Explained
Financial markets are closed on weekends, but financing costs continue to accrue. To account for Saturday and Sunday, a triple swap fee, known as a "3-day swap," is applied on a specific weeknight. This is typically Wednesday, aligning with the T+2 settlement convention.
- How it works: The standard daily swap rate for your instrument is multiplied by three on the designated swap night (e.g., Wednesday).
- Example: If the daily swap for a forex pair is -0.1 points, the Wednesday charge would be -0.3 points.
This practice is standard across the industry and significantly impacts the cost of holding positions over the weekend. Traders must factor this into their strategy for mid-week position management.
Dividend Adjustments on Index Contracts
When trading indices on MT5, your account may be subject to dividend adjustments. These occur when companies within the index distribute dividends to their shareholders.
How Dividend Adjustments Work
The aggregate value of these dividends affects the price of the index. To ensure fair pricing for all traders, brokers credit or debit trading accounts to reflect this impact.
- Long Positions: If you are holding a buy position when a dividend is paid, you will receive a credit to your account balance.
- Short Positions: If you are holding a sell position when a dividend is paid, a debit will be deducted from your account balance.
The adjustment amount is based on the total dividend value per lot declared by the index's constituents.
Example Calculation:
- Dividend adjustment value: $5 per lot.
- Your position size: 0.2 lots.
- Long Position: $5 x 0.2 = **$1 credited**.
- Short Position: $5 x 0.2 = **$1 debited**.
These adjustments are automated and processed directly within your MT5 account.
Frequently Asked Questions
What is the most important thing to remember about MT5 commissions?
The platform does not check if your account balance can cover the commission fee when you open a position. The fee is deducted immediately, and if it causes your balance to become negative or your margin level too low, it can trigger an instant liquidation. Always ensure you have sufficient excess funds.
How can I find the swap rates for a specific asset on MT5?
Within the MT5 terminal, find the "Market Watch" window. Right-click on the desired symbol (e.g., EURUSD, XAUUSD) and select "Specification." A new window will open where you can scroll down to find the precise "Swap long" and "Swap short" rates.
Why am I charged a triple swap fee on Wednesday?
This is a standard industry practice called a "3-day swap." It accounts for the financing cost of holding a position over the weekend (Saturday and Sunday) when markets are closed. The triple charge is applied on Wednesday to settle the costs for the upcoming non-trading days.
Do I need to manually calculate all these fees?
No, the MT5 platform automatically calculates and applies all commissions, swaps, and dividend adjustments. However, savvy traders should understand how they are calculated to forecast trading costs accurately and manage their risk effectively. You can 👉 view real-time tools to help model these scenarios.
Are dividend adjustments a profit or a loss?
They are not inherently either. The adjustment is a mechanical credit or debit that offsets the price change of the index caused by the constituent stocks going ex-dividend. It ensures traders in both long and short positions are not unfairly advantaged or disadvantaged by the corporate action.
Does the minimum commission for US Stock CFDs apply per lot or per trade?
The minimum commission of $5 is applied per order. This means if your trade's calculated commission based on lot size is only $0.50, you will still be charged the full $5. This makes smaller trades on these instruments relatively more expensive.