Transaction fee models allow you to define a set list of fees where the fee amount varies depending on the value of the order. This is useful if you want to apply lower per-trade fees for higher-value orders, or vice versa.
With transaction fee models, you can setup the following fee structures:
Applies a simple absolute fee per transaction. You can create a flat or tiered absolute fee structure.
Examples:
Simple adds a set fee, for example 1 EUR, per each order.
| Tier | Thresholds (e.g., the order’s cash amount) | Transaction fee |
|---|---|---|
| 0 | Up to €499.99 | €1.00 |
| 1 | €500.00 – €1,999.99 | €2.00 |
| 2 | €2,000.00 – €9,999.99 | €5.00 |
| 3 | €10,000 and above | €10.00 |
Charges a percentage of the transaction's monetary value. This scales the fee directly with the size of the transaction, ensuring that the fee is proportionate to the financial exposure or benefit. For instance, a fee of 1% of the trade value.
The value of the transaction fee is set as basis points (bps) and the transaction fee model allows you to set minimum and maximum amounts for each tier if necessary.
Applies a simple flat fee percentage regardless of the order value.
Applies a flat fee percentage with minimum and maximum fee amount.
Example: 1 % fee per order, not less than 1 EUR, not more than 100 EUR.
You can define a tiered fee model with the percentage applying to the whole order volume or only to the part of the order that exceeds the tier threshold:
Depending on the order volume, each next EUR is charged less fee than the previous.
Example:
| Tier | Thresholds (e.g., the order’s cash amount) | Fee basis point (bps) |
|---|---|---|
| 0 | First €5000.00 of the order volume | 300 |
| 1 | Amount exceeding €5000.00, but less than €10000.00 | 250 |
| 2 | Amount exceeding € 10.000.00 | 200 |
If the end user’s order amount is €7000.00, the total fee amount will be calculated as:
(€5000*3%) + (€2000*2.5%) = € 200.
Example:
| Tier | Thresholds (e.g., the total order’s cash amount) | Fee basis point (bps) | Fee limits |
|---|---|---|---|
| 0 | Up to €4999.99 | 300 | Min: 1 |
| 1 | €5000.00 – €9.999,99 | 250 | Min: 150 |
| 2 | 10.000.00 and above | 200 | Min: 250 Max: 300 |
If the user’s order amount is €7000.00, the total fee amount will be calculated as:max(€7000*2.5%,150) = €175.
Important: If you’re defining a percentage on the total order volume, the minimum fee amount in the next tier shouldn’t be lower than the maximum fee amount in the previous tier.