What funding and interest charges do you apply to cash CFDs?

Overview

If you keep a Cash CFD position open overnight (after 2am Dubai time)*, we will make an interest adjustment to your account to reflect the cost of funding your position. The interest adjustment is based on relevant interest rate benchmarks (e.g. SONIA).

For nearly all our markets, this is calculated in the same way for CFDs. When trading forex, the funding cost is calculated differently.

 

How we calculate charges

Long positions

We charge: 3% + interbank rate

• We debit your account for long positions
• Example: If the relevant interbank 1-month rate is 1%, you would be charged 4% (annualised)

 

Short positions

We charge: 3% - interbank rate

• When the interbank rate is greater than 3%, we credit your account
• When the interbank rate is less than 3%, we debit your account
• Example: If the relevant interbank 1-month rate is 1%, we would debit 2% (annualised) from your account
• Example: If the relevant interbank 1-month rate is 5%, we would credit 2% (annualised) to your account

 

Forex positions

We charge based on the current tom-next rate

Tom-next shows, in points, the difference between the interest paid to borrow the currency that is being notionally sold, and the interest received from holding the currency.

 

Important notes

• All rates are calculated on an annualised basis and applied daily to your account
• Charges are automatically applied after 2am Dubai time each day*
• *Our hours are based on UK hours, converted to UAE time zone. Due to UK clock changes during the year, the time difference between UK and UAE varies by 3 or 4 hours accordingly.