Just wondering if anyone has opinions on why the CFD swap charges are so high? Comparing to the other big CFD brokers in the market the swap charge on 100k is around 45k more than other providers.

Hi correct It’s a very crude way of multiplying the long position by the value of the cfd to give a view on the interest charge. Actually only half of the money is borrowed so the interest should in theory be closer to double maybe 86% on us stock holdings. What do you work the interest out to be? …

Are you referring to the overnight interest charges or the margin requirement?

Technically it’s a long swap charge annualised at today’s rate for clarity. Technically the value of the charge is less for professional individuals as the margin requirement is less. Therefore you borrow more but pay the same swap. Effectively borrowing more money at the same fixed rate as the ret…

Annually yes, they are not allowing you to hold trades for long periods as they will close your account down. The overall charges are stacked against you, in my opinion you would have to have a perfect strategy to make any money at the moment through cfds [image] CFD Account Closur…

Which is interesting as when I started trading the swap fee was 2% on indexes and 4% on stocks. This is also consistent with my other accounts but I would have expected all of my swaps with brokers to have gone up but it’s just this one that rises weekly. You said above that the c46% was clearly w…

Because your confusing an overnight interest charges or swap rate with an annualised interest charge. Its not 45% interest overnight [image] "Interest" costs 💬 Trading 212 chat Hi, I have an account value of around £90,000. My portfolio mostly consists of CFD stocks. I h…

Margin charges are always referred to annually.

But charged over night, so your under 1% per week 2 to 3% overnight is pretty standard, cfd trades are supposed to be short term the overnight element just stops you from being forced to sell at a loss ie gives you another shot

Who charges that rate in the market?

Can your rephrase? Do you mean which companies charge that rate or who is receiving the interest?

Thoughts on CFD swap

🤝 Help

Lenos1980 January 13, 2021, 5:55pm 8

Because your confusing an overnight interest charges or swap rate with an annualised interest charge. Its not 45% interest overnight

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Thoughts on CFD swap

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