Does Plus500 charge conversion fees?
If you’re trading in a currency different from your base account one, Plus500 will charge a currency conversion fee on it. This includes trades on all kinds of instruments. This fee will factor into an open position’s unrealized profit and loss in real time. At the moment, the fee is up to 0.7% of the realized net profit and loss of any trade in real time.
Let’s take an example. If a user’s base currency is EUR and the EUR/USD rate were 1.101, they would lose €9.08 off a 500 USD sell position. The broker would charge an overnight fee because they held a position open past a certain time. The overnight funding fee is subtracted from or added to the account. This fee would be €0.09 based on the overnight funding rate of -0.02%. The conversion fee will be €0.064, corresponding to 0.7% of the position’s net loss. €9.24 is the overall net loss after that.
The broker’s spread mainly compensates them. If a sell rate of 1.12072 corresponds to a buy rate of 1.12078, then the spread is 0.6 pips. There is no commission on dealing. If a user doesn’t log in to their account for three months, they’ll be charged an inactivity fee of up to USD 10 per month. From that moment on, this fee will be charged monthly unless they log in. The inactivity fee offsets service costs. It’s only deducted from the Real Money account. If your funds are insufficient, it won’t be deducted at all. To stop them from charging a fee, just log in from time to time even if you have no intention of trading. This suffices to avoid the inactivity fee and you won’t be penalized for logging in for this reason alone.