Thoughts on CFD swap

I’ve looked again and this is purely because the trade your looking at is not available so the swap rate is sky high.

It’s pretty much the same for unh and lulu and quite a few others I have opened granted they work out around 41.3 given current values

Appears to be all us stocks with Japan (Nintendo) now at 39.

These are actively available.

@obrienciaran @Lenos1980

The overnight holding fee can change. This was one of the issues people were having with CFDs on T212.A couple of weeks ago, the interest rates rose.


Not bothered about them rising just curious as to people’s views on why they are so high?

Oh, that’s easy. It’s been discussed on a few threads here. Stonks have only been going up lately. Everyone and their dog is making money on long trades. Offering leverage costs T212 money. They don’t have unlimited money so need to get it from somewhere. Hence the increased spread, interest etc.

More info here:

My guess is to reduce their costs of hedging the positions i.e. people keeping positions open longer than normal, much more people going long than short (relative to ‘normal’) because massive bull market, larger net exposure for 212 to hedge … = higher cost of running CFD platform = offset by higher swap fees

Don’t you think it’s interesting that the other brokers haven’t got the same issue? Surely this would be market led or is it just because of the type of retail customer on here.

Monday had 20% of US volume on penny stocks which pretty much sums the market up right now.

They do. eToro and Plus500 both had similar issues where they had to adjust their service offering.

It also depends on how much money brokers have to float. Some may be better off financially than others.

Not sure all other brokers have the same operating model as 212 i.e. 100% hedging, profiting from spread and swap rather than a net short/long exposure