This is the email that i just got from Oanda. What do you all think of this change? Do you all know of other brokers doing this? Looks to me like another way to get more money…
Beginning in Q2 2020, we will be changing the way in which currency conversions of profits, losses and trading costs take place on the platform.
This means that trades you place on products which have a different base currency to your account currency will now incur a conversion charge. This charge is based on the prevailing mid-price of the applicable FX spot rate for the conversion, plus an additional spread of 0.5%. For example, placing a EUR/USD trade in a CAD based account your trade settles in USD and then it is immediately converted to CAD at the USD/CAD rate with the added 0.5% spread.
This charge is applied to profit & loss conversions and to any trade related cash booking applied to the account which is not in the account currency, for example:
You will receive additional details about this change and an updated Client Agreement in the coming weeks.