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5. Conversion of Agent's commission remuneration
Posted by on 29 January 2014 11:56 AM

Partnership commission is calculated in USD regardless of the base currency of the referral's trading account.

Before commission remuneration is calculated, 1 point value and % of ECN commission is converted into USD at the Company's internal exchange rate. To view current and previous currency rates use the Currency Rates History in your FXOpen personal area.

Example:

An Agent (with a trading account in EUR) refers a client, whose trading ECN account is in EUR, too. The client closes a trade. The Agent commission makes up 15% of the ECN commission.

Follow the steps of the agent's commission calculation:

  1. Conversion rate of EUR/USD = 1.27151 (Bid);
  2. €24 (Commission in MetaTrader) will be converted in USD;
  3. €24 × 1.27151 = $30.52;
  4. 15% of $30.52 = $4.58;
  5. Conversion rate of EUR/USD = 1.333(3) (Ask);
  6. $4.58 will be converted in EUR;
  7. $4.58 / 1.333(3) = €3.44.

As we can see, there is double conversion that reduces the commission remuneration.

If you open a trading account for the purpose of getting referral commission, we strongly recommend that you choose USD as the account currency, in order to avoid unnecessary additional conversions.

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