CFD Trading Fees
Anyone opening a contract for difference (CFD) trade is likely to encounter costs and charges as part of that transaction. These CFD fees can vary significantly depending on the market and broker in question, so it’s important that you understand how they function.
This guide explains the different types of CFD trading fees, as well as explaining how the charges work in a simple working example. Read on for a list of the key factors to look out for when choosing between the top brokers with the lowest CFD fees.
UK Brokers With Low CFD Fees
Plus500 offers commission-free CFDs on a huge range of markets, including currencies, stocks, indices and commodities. Traders can go long or short on popular assets with flexible leverage and no hidden charges. The WebTrader platform has been specifically designed for trading CFDs.
FTSE Spread GBPUSD Spread Leverage 1.8 1.1 1:30 Stocks Spread FCA Regulated MT4 Integration 0.08 Yes No
IG offers an impressive suite of 17,000+ CFD instruments. Negative balance protection ensures accounts cannot drop below zero while custom price alerts and the IG Academy enhance the trading experience.
FTSE Spread GBPUSD Spread Leverage 1.0 0.9 1:30 (Retail), 1:222 (Pro) Stocks Spread FCA Regulated MT4 Integration 0.02 Yes Yes
CMC Markets offers leveraged CFDs on an extensive list of 12,000+ instruments with transparent pricing, powerful trading software and ultra-fast execution speeds. Out-of-hours trading on CFD indices is also available, plus 24/5 award-winning customer support.
FTSE Spread GBPUSD Spread Leverage 1 pt 0.9 1:30 (Retail), 1:500 (Pro) Stocks Spread FCA Regulated MT4 Integration 0.02 Yes Yes
Trade CFDs 24/5 on popular markets including forex, commodities, indices, stocks and bonds. IC Markets offers deep liquidity, raw spreads and high leverage.
FTSE Spread GBPUSD Spread Leverage 1 0.5 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global) Stocks Spread FCA Regulated MT4 Integration 0.02 No Yes
Trade all markets via CFDs, with retail leverage up to 1:30. With the RStocks Trader account, clients can access over 12,000 CFDs with algorithmic analysis tools and intuitive charts.
FTSE Spread GBPUSD Spread Leverage 0.5 2.0 1:30 (Retail), 1:300 (Pro) Stocks Spread FCA Regulated MT4 Integration Variable No Yes
Traders can speculate on 1000+ financial markets with high leverage up to 1:500. You can bet on rising and falling prices in currencies, commodities, indices, shares, and more without owning the underlying asset. With the comprehensive choice of CFD trading platforms, users can also switch between desktop, web and mobile for a seamless trading experience.
FTSE Spread GBPUSD Spread Leverage 1.0 0.5 1:500 Stocks Spread FCA Regulated MT4 Integration 0.01 Yes Yes
Trade leveraged CFDs on thousands of instruments, including forex, equities, commodities, indices, bonds and futures. The selection of asset classes is decent, but the trading software, particularly the mobile app, lags behind competitors.
FTSE Spread GBPUSD Spread Leverage 2.5 points 0.00028 pips 1:30 Stocks Spread FCA Regulated MT4 Integration 0.2% Var Yes No
Trade a large suite of 2100 CFDs with ultra-fast execution speeds and 24-hour trading. You can build a diverse portfolio with access to forex, indices, commodities, cryptos, stocks and ETFs. Retail traders also get negative balance protection and zero commissions.
FTSE Spread GBPUSD Spread Leverage 0.08% 0.1 1:30 Stocks Spread FCA Regulated MT4 Integration 0.2% Yes No
Trade CFDs on over 3,000 assets and enjoy rich market data through integrated TradingView charts. There is also comprehensive free learning tools via the eToro Academy, ideal for beginners. Fees are low and leverage is in line with regulatory requirements, helping to provide a secure trading environment.
FTSE Spread GBPUSD Spread Leverage 1.5 pt 2 pips 1:30 Stocks Spread FCA Regulated MT4 Integration 0.24% Var Yes No
IronFX's asset list of 300+ instruments including forex, stocks, commodities and indices are traded via CFDs. Spreads are floating and vary by account type, and maximum leverage from 1:30 to 1:1000 is available depending on your account location.
FTSE Spread GBPUSD Spread Leverage From 140 From 0.8 1:30 (FCA), 1:30 (CySEC), 1:500 (FSCA), 1:1000 (BM) Stocks Spread FCA Regulated MT4 Integration Variable Yes Yes
AvaTrade's 1250+ leveraged CFD products span a range of asset classes including stocks, indices, commodities, bonds, crypto, and ETFs. You can speculate on rising and falling prices in the broker’s feature-rich web and mobile platforms with market-leading research tools.
FTSE Spread GBPUSD Spread Leverage 0.5 1.5 1:30 (Retail) 1:400 (Pro) Stocks Spread FCA Regulated MT4 Integration 0.13 No Yes
Go long and short on a range of popular financial markets with intuitive platforms and reliable execution. 99.76% of trades are executed in less than a second with an average speed of 0.02 seconds.
FTSE Spread GBPUSD Spread Leverage 1.0 1.0 1:30 (Retail), 1:500 (Pro) Stocks Spread FCA Regulated MT4 Integration 0.1% (Min Commission Applies) Yes Yes
Pepperstone is a fast and reliable CFD broker with 1250+ assets covering forex, commodities, shares, indices, and ETFs. CFDs can be traded on four leading platforms with a choice of accounts and base currencies. The broker boasts an impressive 99.94% fill rate with no requotes or dealing desk intervention.
FTSE Spread GBPUSD Spread Leverage 1.0 0.0 1:30 (Retail), 1:500 (Pro) Stocks Spread FCA Regulated MT4 Integration 0.02 Yes Yes
Trade CFDs on forex, stocks, indices, commodities and cryptos with high leverage up to 1:500 on the no-commission ClassiQ account. The raw spread account options have low commissions from $4 round-turn and offer lower maximum of leverage of 1:200 or 1:400, which is still competitive.
FTSE Spread GBPUSD Spread Leverage From 0.0 From 0.0 1:500 Stocks Spread FCA Regulated MT4 Integration From 0.0 No No
Trade CFDs on forex, stocks, indices, commodities, ETFs, bonds and cryptocurrencies with variable leverage up to 1:30. The broker provides great value to traders with six free trades per day on US, UK and European stocks, tight spreads on forex and low commissions on ETFs.
FTSE Spread GBPUSD Spread Leverage 0.8 1.3 1:30 (EU), 1:500 (Global) Stocks Spread FCA Regulated MT4 Integration 0.5 Yes Yes
Trade CFDs on forex, metals, energies, shares, indices and cryptos with transparent prices. High leverage up to 1:500 is available and there are no account opening or deposit fees.
FTSE Spread GBPUSD Spread Leverage 0.7 0.0 1:500 Stocks Spread FCA Regulated MT4 Integration 0.01 No Yes
Trade over 800 CFDs on popular indices, shares, forex, cryptos and commodities. Clients get premium liquidity and superior execution with servers in leading data centres. Eightcap also offers more choice than most competitors in terms of platforms with MT4, MT5 and TradingView.
FTSE Spread GBPUSD Spread Leverage 1.2 1.0 1:30 Stocks Spread FCA Regulated MT4 Integration $4 round turn Yes No
Trade leveraged CFDs on thousands of global stocks as well as 13 global indices, 80+ forex pairs, and London gold and silver. Leverage is available in line with regulatory requirements.
FTSE Spread GBPUSD Spread Leverage 0.005% (£1 Min) Commission (.20 pts x trade value) 1:50 Stocks Spread FCA Regulated MT4 Integration From 0.003 per share, variable Yes No
Trade currencies, metals, energies, indices and cryptos with flexible leverage. 24/5 customer support is available to assist new clients while the MT4 platform comes with free tutorials and user guides.
FTSE Spread GBPUSD Spread Leverage Variable 1.0 1:500 Stocks Spread FCA Regulated MT4 Integration N/A No Yes
ThinkMarkets offers CFDs on a good range of instruments, the most extensive being stocks and ETFs with 3500+ assets, as well as indices and commodities, amongst others. Leverage is available up to 1:30 in the EU and UK, while clients of the offshore branch can access up to 1:500 leverage.
FTSE Spread GBPUSD Spread Leverage 0.7 0.4 1:500 Stocks Spread FCA Regulated MT4 Integration From 0.4 Yes Yes
You can speculate on popular financial assets covering forex, commodities, indices, metals and bonds. You can get started with $0 minimum deposit, making the broker a good pick for beginners. There’s also a comprehensive range of technical analysis tools in the MT4 and OANDA Trade platforms.
FTSE Spread GBPUSD Spread Leverage 1.0 1.4 1:301:200 Stocks Spread FCA Regulated MT4 Integration Variable Yes Yes
Speculate on rising and falling prices with leveraged CFDs spanning popular markets, including currencies, equities and commodities. Traders get very low fees and high-quality market insights to support CFD trading.
FTSE Spread GBPUSD Spread Leverage 1.5 pts 1.9 1:30 Stocks Spread FCA Regulated MT4 Integration 0.002 No Yes
Trade leveraged CFDs on over 1000 assets with low-cost spreads. You can also take advantage of the broker's integrated signals to help you determine when to enter and exit positions.
FTSE Spread GBPUSD Spread Leverage From 0.4 From 0.6 1:500 (entity dependent) Stocks Spread FCA Regulated MT4 Integration Variable Yes Yes
Trade a huge selection of CFDs with more than 12,000 assets and very high leverage up to 1:2000. Micro lot trading is also available with access to interbank liquidity providers for low fees.
FTSE Spread GBPUSD Spread Leverage N/A 2 1:2000 Stocks Spread FCA Regulated MT4 Integration 0.1 No Yes
Trade CFDs across four asset classes with leverage up to 1:1000. Beginners can also take advantage of the broker's useful technical analysis guides and CFD education, plus 24/7 in-platform support via live chat.
FTSE Spread GBPUSD Spread Leverage Variable Variable 1:1000 Stocks Spread FCA Regulated MT4 Integration Variable No No
Markets.com offers an excellent variety of CFDs covering popular asset classes. Margin rates are competitive and the educational resources compare well to rivals and will appeal to beginners.
FTSE Spread GBPUSD Spread Leverage 2 pips 1.3 pips (var) 1:30 Stocks Spread FCA Regulated MT4 Integration 4 pips Yes Yes
Trade CFDs on 100+ instruments from popular asset classes. Leverage up to 1:200 is available on precious metals, while stocks, indices and energies can access 1:20 max leverage and 1:10 for commodities. On the negative side, the depth of assets is limited vs other CFD brokers.
FTSE Spread GBPUSD Spread Leverage From 0.8 pips From 0.8 pips 1:1000 Stocks Spread FCA Regulated MT4 Integration From 0.8 pips No No
Errante customers can trade stocks, indices, commodities and cryptocurrencies with leveraged CFDs. The level of leverage available depends on regulatory oversight, with 1:30 the maximum allowed in the EU though this varies by asset.
FTSE Spread GBPUSD Spread Leverage From 1.5 pips (Standard Account) From 1.5 pips (Standard Account) 1:500 Stocks Spread FCA Regulated MT4 Integration From 1.5 pips (Standard Account) No Yes
VT Markets offers CFDs on an extensive list of assets including stocks, ETFs, indices and commodities. Traders can access leverage up to 1:500 and trade with liquidity from top-tier providers. CFDs are available on a choice of reliable platforms, including MetaTrader.
FTSE Spread GBPUSD Spread Leverage From 40 0.4 pips 1:500 Stocks Spread FCA Regulated MT4 Integration Variable No Yes
ForexChief offers a competitive range of CFDs, encompassing crypto, indices, energies and metals. A clear pricing schedule is available to clients with no hidden charges. Traders can also access very high leverage up to 1:1000.
FTSE Spread GBPUSD Spread Leverage 70 0.9 1:1000 Stocks Spread FCA Regulated MT4 Integration 50 No Yes
With CFDs on 20+ Polish and 30+ US stocks, as well as energies and seven global stock indices covering US, UK, European, Australian and Japanese markets, Just2Trade offers a superb selection of global assets.
FTSE Spread GBPUSD Spread Leverage 0.0 0.0 1:20 Stocks Spread FCA Regulated MT4 Integration Variable No Yes
Dukascopy offers highly leveraged CFDs with rates up to 1:200. A wide selection of asset classes are available, including currencies, equities, commodities, ETFs and cryptos. Spreads are also tight starting from 0.1 pips and traders get 24/7 support.
FTSE Spread GBPUSD Spread Leverage Variable 1.16 Av 1:200 Stocks Spread FCA Regulated MT4 Integration From 0.1 No Yes
FXTM's CFD list includes forex, stocks, commodities and indices. The global entity also offers crypto CFDs. Leverage depends on jurisdiction, with rates up to 1:30 from its CySEC-regulated branch and a massive 1:2000 from its global entities.
FTSE Spread GBPUSD Spread Leverage 1.3 0.2 1:30 Stocks Spread FCA Regulated MT4 Integration 0.1 Yes Yes
OspreyFX offers leveraged CFDs on forex, commodities, stocks, cryptos and indices. Deep liquidity is available from 50+ providers with a competitive ECN account that will suit active trading strategies, including scalping.
FTSE Spread GBPUSD Spread Leverage 0.5 pts 0.8 pips 1:500 Stocks Spread FCA Regulated MT4 Integration 0.4 pips No Yes
Libertex's list of CFDs covers a decent range of tradeable underlying assets, but there isn't much depth with only around 250 in total. Leverage up to 1:30 for retail clients is available in accordance with CySEC regulations, and traders can choose between three excellent trading platforms. Best of all are the tight spreads available on all markets and the zero commissions on investments in stocks.
FTSE Spread GBPUSD Spread Leverage Variable Variable Up to 1:30 (Retail) Stocks Spread FCA Regulated MT4 Integration Variable No Yes
Access CFDs spanning several key markets, with tight spreads and reasonable commissions at $6 per round turn. High leverage up to 1:500 is available alongside 24/7 support, plus rapid deposits and withdrawals.
FTSE Spread GBPUSD Spread Leverage 0.77 1.3 1:500 Stocks Spread FCA Regulated MT4 Integration Variable No Yes
AdroFX offers a good suite of CFDs on stocks, cryptos, indices and commodities, with high leverage up to 1:500. CFD trading is done through the reliable MT4 platform, while a separate Allpips platform is available for copy trading.
FTSE Spread GBPUSD Spread Leverage From 9.0 From 0.5 1:500 Stocks Spread FCA Regulated MT4 Integration From 3.0 No Yes
CFD Trading Fees Explained
CFD fees consist of costs or commission charges associated with trading contracts. These costs can vary significantly, but they all pose a risk to your hard-earned profits.
Some of the most popular trading brokers, such as Pepperstone, Oanda, IG, eToro, XTB, and Degiro, all charge CFD fees to their UK investors. These charges will come in different forms and can be applied each time that you enter a trade, or as account fees or transactional charges.
Types Of CFD Trading Fees
There are various trading fees associated with trading CFDs. The types of fees include commissions, overnight charges and spreads. They may fluctuate significantly depending on the length of the position being held.
As with all costs when it comes to trading, make sure to do your research before opening a live account with any broker. Completing your due diligence will help you to prevent losing a significant percentage of profits to unexpected charges.
Some of the key CFD fees to look out for include:
Spreads are a well-recognised method that trading platforms use to generate income. The spread is the difference between the “buy” and “sell” price of a financial instrument. It may also be referred to as the “bid-ask spread” or “buy-ask spread.”
To purchase any contract, you will be required to pay the ask price, and to sell it, you must pay the bid price. As with commission fees, spreads will vary depending on the volatility of the underlying market.
Brokers will often quote the price of an asset at a larger bid price compared to its live market price, to make money from the difference paid by traders. For example, typical spreads charged by eToro include the GBP/USD forex pair from 2 pips and silver and oil from 5 pips.
CFD spreads may be offered as floating or fixed. A fixed spread is the difference between the bid and the ask prices that remain constant regardless of market conditions. On the other hand, floating spread live prices fluctuate in response to market dynamics such as demand and trading activity.
Typically, you will not be liable to pay CFD fees in the form of a commission on forex pairs or commodities investments. However, there are often commission fees when trading stocks. These costs are not set, and will vary depending on the broker and financial exchange in question.
Note that opening and closing a position is categorised as placing two separate trades, which means that you will be liable for a separate commission charge each time. For example, IG charges commission fees for investors trading global shares, as these CFDs are traded at the live market price.
In exchange for this real-time service, the broker applies a commission. Trading on the UK stock market with this broker would incur charges from 0.10% per side, with a minimum online fee of £10. Similarly, CMC Markets applies a commission charge of 0.10% to trade CFD shares on the UK market, with a minimum fee of £9.
Many brokers or exchanges apply CFD fees known as overnight charges for holding a long-term position. These contracts are considered to be an investment, meaning you are essentially being loaned the funds required to open your position, outside the initial deposit you’ve paid.
To keep your position open after 22:00 GMT, an interest adjustment will usually be made to your account to reflect the cost of keeping your position open overnight. This will be visible as a percentage in your account profit and loss statement.
The interest rate for CFD trades is normally calculated at a margin of around 2-3% above the overnight charges of the London Interbank rate. Formulas to calculate these costs will vary between asset classes and brokers. Fees are calculated according to market conditions, and can change on a daily basis.
The best brokers will provide an overnight fee calculator for CFD trades, so you can understand the exact interest financing charges applicable to your position. eToro, Plus500, IG, XTB, and CMC Markets are all examples of transparent brokers when it comes to CFD overnight holding costs.
Always double-check the specific CFD overnight financing charges before you open an overnight position. Remember that open positions held past 22.00 GMT on Fridays may be charged three days’ worth of overnight fees to cover the weekend.
Exchange Rate Fees
Depending on your trading account’s base currency, funding currency, and conversion settings, there may be a need for currency conversion. For example, as a UK investor, you may want to open a CFD trade in the EU stocks and shares market. If you hold an account with a GBP base currency, the broker may convert any realised profit, losses, funding, dividend adjustments or commissions from EUR back to GBP. These exchange costs are often quite minimal, typically around 0.5%.
CMC Markets provides the opportunity for UK traders to trade CFDs on US stocks without any applicable currency conversion charges. Degiro charges a one-off exchange connectivity fee for UK investors to set up trading opportunities outside of UK markets. The fee is levied upon those trading on worldwide exchanges including within Europe or the US. This fee is £2.50 (or 0.25% of your account value) per connected exchange, per calendar year.
When trading CFDs, UK traders may be required to pay capital gains tax on profits. Unlike other forms of trading, CFDs are exempt from stamp duty costs, as you do not own the underlying asset. You can also use CFDs to offset any losses against profits from other CGT liable investments.
CFDs are therefore often utilised as a hedging tool due to their tax benefits. However, tax treatment depends on individual circumstances, so always ensure to check your taxes with a registered professional.
One of the best ways to improve your profit potential with CFD trading is to utilise margin. However, as with all money lending, this comes with an interest payment requirement. CFD margin rates will be charged by the broker, as a payment back for the borrowing of funds.
Typically, this fee is charged as a percentage of the money borrowed. Amounts may vary significantly between exchanges. For example, margin rate fees at Interactive Brokers are 3.2% for GBP accounts with an account balance of less than £80,000.
There are a few other minimal charges to be aware of with CFD fees. Dormant account fees may be applied if you leave a profile inactive for some time. These charges are typically applied after 3-12 months of inactivity. The broker will take a set deduction from your live trading account.
Additional software such as advanced charting packages may also come at a price. These are usually optional, depending on the broker. Although these features come at a cost, it is worth considering the improvements they could make to your overall trading experience.
Here’s an example of investing in UK shares that includes common CFD trading fees:
You want to invest in CFDs in BP PLC shares, and you have £5000 to trade with. The current price of a share is £40.20, but you believe the share price will increase to £41.10. In this case, the bid-offer spread is £41.10 minus £40.20 = £0.90 per share.
This trade will be liable for a commission fee of 0.10% to open and close the position. If you plan to execute as a long-term position, an overnight financing fee will be applied: the broker has set this at the interbank rate plus a 2% margin fee.
With your £5000 investment, you can purchase 124 contracts at £40.20 per share, making a total investment amount of £4984. The share price of BP PLC does increase to £41.10 in 11 days. Those 124 contracts now have a value of £5096 (£41.10 x 124), meaning a total profit of £112.
The CFD trading fees will now be charged. These include:
- Commission – To open the position, you will be liable to pay £5 (0.10% x £5000). This will be applicable again when closing the position. Total: £10
- Overnight Charges – Interest rate fees plus the brokerage margin must be paid to hold positions open overnight. Let’s say this total was 2.7%. As the position was held for 11 days, a total of £4.05 must be paid. This is calculated as ((124 x £40.20) x (0.027/365)). As the position was live for 11 days until the price was hit, this is multiplied by 11.
In this example, your total profit after fees (but before taxes, payment for additional services or account charges) would be £97.95 (£112 – £5 – £4.05 – £5).
How To Compare CFD Fees
Spend some time comparing CFD trading fees at different brokers. Be cautious of those promoting “no commission” or “no fees” as there are often hidden charges applied elsewhere. Those brokers with the lowest CFD fees may not always provide the level of service required to succeed.
Some of the key factors to consider when comparing brokerages include:
- Length Of Trade – Does your trading strategy require long-term positions to be held open? As you will be trading on leverage, overnight charges may be a significant cost factor.
- Markets – Depending on the markets you are interested in trading, the types of fee will vary. For example, if you are planning to trade the UK stocks and share market, CFD commission-based fees are important to look out for. On the other hand, forex or commodities investments will usually require a comparison of spread costs.
- Platform And Tools – Access to third-party tools or advanced software may come at a cost. The best brokers will provide free demo account features, so you can get a feel for additional tools before committing to a payment.
Outside of CFD costs, other factors that should also be assessed when comparing brokers include access to responsive customer service, educational content, demo account services and mobile app compatibility.
Not all brokers will be completely transparent when it comes to CFD trading charges. It might be worth studying the terms and conditions page or contacting their customer support team if you cannot find information on any fee mentioned in the section above.
CFD Fees Vs Share Trading Fees
One of the major differences between trading CFDs and share trading is the fee structure. Kelvin Wong, a market analyst for CMC Markets points out that “A long position on a CFD requires a smaller amount of capital to initiate versus a similar position on a traditional share.”
This is because when trading a CFD, you are simply speculating on a market’s price without taking ownership of the underlying asset. During this transaction, you are only required to pay a fraction of the upfront value of your trade, known as the margin. This means you can hold a position of equivalent size in the stock market for less money.
When you buy a physical share you are paying for the full cost of the asset upfront. This additional cost will usually result in your fees being higher too.
Bottom Line On CFD Trading Fees
It is not surprising that many traders get confused by the charges they incur when trading CFDs. Fee structures can vary from broker to broker and from market to market.
Traders should always seek to minimise their CFD fees in order to build a greater profit margin over time. As CFDs are leveraged products, remember that trading is inherently risky and you could make a loss greater than your initial deposit.
Use our list of brokers with the lowest CFD fees to start trading.
Do All Brokers Charge CFD Account Opening Fees?
The majority of CFD brokers do not charge new account registration fees for UK investors. Minimum deposit requirements or initial funding amounts may apply, however.
What CFD Fees Do I Need To Pay To Trade?
Charges and fees will vary between brokers and markets. The main costs to consider before opening a position include spreads/commissions, account fees, platform/tool fees, overnight charges, taxes and exchange rate fees.
Will I Need To Pay Taxes When Trading CFDs?
UK traders may be required to pay capital gains tax on profits. However, CFDs are exempt from stamp duty costs as investors do not own the underlying asset. Contact a tax advisor if you have any questions or concerns.
Are Inactivity CFD Fees Charged By All Brokers?
Inactivity fees are relatively common for CFD trading accounts, although these often apply once a profile has been dormant for a predefined period. For example, CMC Markets applies rolling dormant account fees of £10 per month if there has been no activity for 12 months. This is similar to IG charging £12 fees per month after 24 months of dormancy.
Where Can I Find A Broker’s CFD Fee Structure?
The best brokers will provide a transparent fee structure on their website or platform interface. This will include a breakdown of trading and non-trading charges. Trading fee calculators can also be a useful tool to estimate the potential net profit of a position. It’s worth contacting the broker’s customer service team if fee information is missing or unclear.