What Fees and Charges Are Associated With CFD Trading?

There are a lot of advantages with trading CFDs. Another advantage is the low fees compared with normal trading. However, don’t be caught out by the “low fee” marketing catch cry of the CFD providers. These people are in it to make money, and just like when you abuse credit cards, you too can let your trading account leak money if you aren’t aware of the fees and charges payable when trading CFDs.

Common CFD Fees and Charges

  • Basic commission on executed trades. (Usually a flat rate to a certain level and then charged at a percentage of total trade value);
  • Margin adjustments and Financing charges;
  • Rollover Charges (official interest rate + a 1 or 2% margin)
  • Interest charges when your trading account is negative;
  • Premiums when ordering Guaranteed Stop-Loss (GSL);
  • Spread (when trading securities such as forex) Administration charges (When you deposit money, or get account details sent to you)
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