Costs and Charges
Introduction
commercepro24 International (hereinafter called as the “Company”) is an Investment Firm incorporated and registered under the laws of the Republic of Cyprus, with registration number HE 346662. The Company is authorized and regulated by the Cyprus Securities and Exchange Commission (hereafter the “CySEC”) under the license number 301/16. commercepro24 is a trade name of the Company.
Legal Framework
Following the implementation of the Markets in Financial Instruments Directive 2014/65/EU (“MiFID II”) along with the Delegated Regulation EU 2017/565 and in accordance to the provisions of the Investment Services and Activities and Regulated Markets Law of 2017, L.87(I)/2017 (the “Law”) of the Cyprus Securities and Exchange Commission (“CySEC”), the Company is required to provide to clients or potential clients in good time information on all costs and related charges. Such information relates to both investment services and ancillary services, including the cost of advice, where relevant, the cost of the financial instrument recommended or marketed to the client and how the client may pay for it, also encompassing any third-party payments. When providing investment services to professional clients, the Company has the right to agree to a limited application of the detailed requirements set out in this document with these clients, except irrespective of the investment service provided, the financial instruments concerned embed a derivative. When providing investment services to eligible counterparties, the Company has the right to agree to a limited application of the detailed requirements set out in this document, except when, irrespective of the investment service provided, the financial instruments concerned embed a derivative and the eligible counterparty intends to offer them to its clients.
Ex-Ante and Ex-Post Disclosure of Information
Under MiFID II, the Company need to provide both ex-ante and ex-post disclosure in order to improve transparency for clients. The ex-ante disclosure is given before the provision of services about the costs related to the financial instrument or ancillary service and will be provided based on an assumed investment amount. The ex-post disclosure is the information related to costs and charges which should reflect the client’s actual investment amount at the time the disclosure is produced. Article 50(2) of MiFID II Delegated Regulation 2017/565 provides that for ex-ante and ex-post disclosure of information on costs and charges to clients, investment firms shall aggregate the following:
a. all costs and associated charges charged by the investment firm or other parties where the client has been directed to such other parties, for the investment services(s) and/or ancillary services provided to the client; and
b. all costs and associated charges associated with the manufacturing and managing of the financial instruments. The obligation on the disclosure of information on all costs and charges applies to all clients irrespective of their categorisation i.e. retail, professional or eligible counterparties. The Company shall have the right to agree to a limited application on the disclosure with professional clients and eligible counterparties (where applicable).
Types Of Costs And Charges
Spreads
Spread is the difference, usually indicated in pips, between the Bid (buy) and Ask (sell) price. The Spreads values vary for different accounts as well as depend on the instrument traded. The spread is floating; therefore, it may increase depending on the market conditions and the volatility. Spread is a cost present both at entering and exiting a trade, and it applies to all the accounts.
Example
This is the swap cost for keeping a position held open overnight. The swap cost can be positive or negative depending of the instrument to be traded. An overnight funding amount is either added to or subtracted from the Client’s account when holding a position after a certain time A rollover occurs when reinvesting funds from a mature security into a new issue of the same or a similar security, or moving a forex position to the following delivery date. Energy products offered to Clients, as specified on the Company’s website, have a monthly expiration. Clients that hold an open position on the ‘commercepro24 Expiration’ date will be debited or credited by the price difference from the closed contract to the newly opened contract along with a 20% contract rollover fee (the charge for the rollover of the position). Clients are strongly advised to close positions before the rollover take place.
Account Currency: USD
Pair: EURGBP
Lots:5
Type of Order: Sell
Pair Quote Currency: GBP
Example
Account Currency: USD
Pair: EURGBP
Lots:5
Type of Order: Sell
Pair Quote Currency: GBP
Swap Fee:
The Company provides the option for Islamic Forex accounts, also known as swap-free Forex accounts which are compliant with the very strictest interpretations of sharia and completely free of riba of any kind. This works by eliminating the usual carry payments and swap charges that normally apply for positions held overnight or over weekends. Further details can be found at the Company’s Client Agreement
Commission Fees
The Company charges commission fees with regards to specific type of accounts i.e. for VIP. Such commission applies only to Contract for Differences (the “CFDs”) on futures and CFDS on shares and is on either per lot or per round-lot.
Example
Total charge example combining Spread, Swap and Commission
Below we provide an example that combines total charges on opening/closing a position combining charges on spread, swaps and commissions:
Account Currency: EUR
Pair: EURGBP
Lots:5.50
Type of Order: Sell
Pair Quote Currency: GBP
Spread Cost
Swap Cost
Swap Short in points -0.255
Swap charge for 1 day in Quote Currency for 1 Lot 0.255 GBP
Swap charge for 1 day in Quote Currency for 5.5 lots 1.40 GBP
1 Day Swap Charge in Account Currency 1.53 EUR at EURGBP 0.91754
Dormant Account
Dormant accounts will be subject to relevant charge/cost(s), relating to the maintenance/administration of such accounts. In the absence of any trading activity for a period of at least one (1) calendar year, the account is classified as dormant and the Company has the right to charge a fixed administration fee of 10 units of Currency of Account every month in order to maintain the account, on the condition that the Client account has the available funds. The maintenance fee shall be deducted from the Client’s account on the last day of the period of which the account becomes dormant. If the Client account does not have the necessary funds for the maintenance fee and has remained inactive for a following 3 months’ period, the Company reserves the right to charge a lower amount to cover maintenance expenses and close the account unilaterally. If the Client account does not have any funds or the account has remained inactive for a following 1 (one) month the Company reserves the right to close the account. For additional information on Dormant Account you may refer to the Client Agreement
Fees for internal transfers
In the event that a client submits a request to transfer funds internally between his own accounts of different currency, he will be charged 0.5%. If his accounts are of the same currency,then no fees shall be charged.For example:
Client submits a request to transfer 100 EUR from his account to his USD account.
0.5% fee will be applied on the 100 EUR.
100 * 0.5 /100 = 0.5 EUR.
100 – 0.5 = 99.5. This 99.5 will be converted in USD in his USD account.
Currency Conversion
This is the cost for converting realised profits and losses as well as any costs and charges that are denominated in a currency other than the base currency of your trading account.
Example
Account Currency EUR
Pair EURGBP
Closed Profit 100 GBP
EURGBP at time of position closing 0.9
Conversion 100 / 0.9 = 111.11 EUR
Account Currency EUR
Pair EURUSD
Closed Profit 450 USD
EURGBP at time of position closing 1.18
Conversion 450 * 1.18 = 531 EUR
Other Charges
The Company reserves the right to charge the client based on the deposit and withdrawals methods used. Further details can be found in the Client Agreement (Clause 15) as well as in the information provided on the Company’s website at https:///en-us/funding-andwithdrawals/. The Company reserves the right to charge at its discretion, an investigation fee for the amount of at least 150units of Currency of Account for any chargeback requests that considers that have been placed fraudulently and/or without reasonable grounds. Moreover, the Company may pass on to the Client any expenses incurred for investigating with the respective banks or other intermediaries used the status of any attempted deposits that have not reached the Company’s accounts within the expected timeframe. Additionally, the client may refer to the Company’s Key Information Document uploaded on the Company’s website which contains useful information concerning the services provided to the client by the Company, inclusive information about charges and fees which may incurred by the client.
Annual ex-post information
The Company shall provide annual ex-post information about all costs and charges related to both the financial instrument(s) and investment and ancillary service(s). Such information shall be based on costs incurred and shall be provided on a per trading account basis
