When you deposit funds in a currency other than the base currency of your account, the company uses the current market rate. The information on the current conversion rate is available both in Client Cabinet and on the InstaForex India website (the conversion rate equals the BID price).
When you withdraw funds in a currency other than the base currency of your account, the company uses the weighted average exchange rate. Determining the rate, the broker takes into account the current rates and the amount of deposits.
The InstaForex India weighted average exchange rate is more beneficial than systems of internal rates used by other forex brokers. Internal rates include huge internal spreads, whereby the replenishment is charged at one rate, and the withdrawal at another. The difference between withdrawal and replenishment rates can be up to 10%, which means that when you deposit RUB 10,000 to your account, you can lose RUB 1,000, even if the withdrawal is done on the same day.
Using the weighted average approach to determine rates gives a trader an opportunity to replenish RUB 10,000 and get back the same RUB 10,000 for the same amount of US dollars. Example of calculating the weighted average exchange rate:
Initially, a client deposited RUB 10,000 to his dollar account at the rate of RUB 66.57 per USD 1. At the time of crediting this sum to an account, the amount equaled $150.22.
After a while, a client made one more replenishment of RUB 5,000 at the rate of RUB 63.81 per 1 USD. At the time of crediting this sum to an account, the amount equaled $78.36.
Sometime after that, a client decided to withdraw the earned profit of $300. The weighted average exchange rate is calculated according to the formula of the weighted arithmetic mean:
10,000/15,000*66.57+5,000/15,000*63.81=65.65.
Thus, the available amount for withdrawal is RUB 19,695.
InstaForex India
https://www.instaforexinindia.com
App link on Play store: https://play.google.com/store/apps/details?id=com.apps.instaforexinindia
Payment link for local transfer in India; https://pmny.in/hI9kahxxmdq6
Telegram: https://t.me/InstaForexIndia
YouTube: https://www.youtube.com/@instaforexindia
Instagram: https://instagram.com/instaforexindia
Facebook: https://www.facebook.com/InstaForexinIndia
E-mail: [email protected]
