To maximise your performance, low costs are essential. Therefore, we are constantly striving to keep the total costs, including spreads, rollover costs and financing costs, as low as possible.
- Access to our personalised customer service, in Frankfurt, Singapore and London, is free
- No account charges or inactivity fees apply
- Our competitive cost structure and variable margin gives you control over your finances
- We are committed to transparency in all our costs
- We charge for overnight funding, normally at the rate of 2.5% p.a. plus relevant interbank rate
- Long positions attract financing charges, but for short positions financial interest may be credited to your account
For more information on financing charges, click here.
We pass on 100% of dividends for UK shares, and 85% for US shares. Find out more in the Learn section.
Where futures are the reference market we only charge half of the bid offer for rollovers from one contract into the next. Therefore, the new position is only 50% of our standard spread for that market.
Funding charges in detail
Positions that are open overnight are subject to Funding Charges on a daily basis. Positions held on a Friday will attract a 3-day financing charge/credit for the weekend.
- For long positions, you borrow capital from us and so you will attract financing charges
- For short positions, you are lending capital to us, so financing charges may be paid to you
Note: these charges don’t apply for assets with an expiry date, i.e. commodity futures, as the price in the underlying takes that into account.
The charge is influenced by three elements:
- Notional value of the position: This is the total amount of the position
- Interest rate: This is normally calculated by adding a 2.5% rate to the one-week deposit rate of that currency, e.g. in the UK that would be LIBOR
- Number of nights: We take the annual rate and divide it by 360 days to calculate the nightly cost, and then multiply that by the number of nights.
We’ve simplified the equations to calculate these transactions:
- Long positions: Daily Financing Transaction = -[value of trade x Effective Financing Rate x 1/360*]
- Short positions: Daily Financing Transaction = [value of trade x Effective Financing Rate x 1/360*]
*or 365 for GBP denominated assets
Example: A Long Position
A client has a long position in 2,000 shares (equivalent) of company XYZ. At our daily financing time, the stock is valued at £20. If the current 1 week deposit rate for GBP is 1%, the calculation would be:
|- (2,000 x £20) x (1% + 3%) x 1/365 = -£4.38|
Example: A Short Position
A client has a short position in 500 shares (equivalent) of company ABC. At our daily financing time, the stock is valued at $300. If the current 1 week deposit rate for USD is 5%, the calculation would be:
|(500 x $300) x (5% - 3%) x 1/360 = +$8.33|