Online ECN broker LiteForex has informed its clients today that due to a difficult situation in the oil market, the firm has to apply a daily fee for holding swap-free accounts with open oil trades.
The firm explains that the fees have been applied because of a significant margin increases the firm faces with its liquidity provider on their end.
“As a consequence, it is unsustainable for the company to continue servicing swap-free accounts with open positions involving oil without a commission applied,” the company says.
LiteForex informs its clients that the fees for oil contracts for UKBrent and USCrude blends is set as follows:
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Long position (buy): -25$ per lot;
Short position (sell): +13$ per lot.
The firm explains that fees for servicing might be adjusted according to the changes made by the firm’s liquidity providers and that all relevant data can be found on the oil contracts specifications page in note 3 below the table.
“According to the client agreement (paragraph 6.11.1):
Islamic accounts are provided solely with the purpose of avoiding a breach of religious canons. The Company has the right to start charging a fee for servicing Islamic Accounts at any time.
Please pay special attention to these changes and consider them in your oil trading”, LiteForex says in its client announcement.
Based in the Marshall Islands, LiteForex offers FX, stocks, indices, commodities and cryptocurrencies for trading on its platforms.