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01Understanding CFD Costs
The main costs associated with CFD trading may include:
| Fee Type | Description |
|---|---|
| Spread | The difference between the buy (ask) and sell (bid) price |
| Commission | Applicable to certain products such as share CFDs |
| Overnight Financing / Swap | Charged or credited when positions are held overnight |
| Rollover Charges | Applicable to futures CFDs when contracts roll to the next expiry |
| Currency Conversion | Applies where the instrument currency differs from your account base currency |
| Dividend Adjustments | Applicable to index and equity CFDs |
| Inactivity Fee | Charged after prolonged inactivity on your account |
02Spread Costs
The spread is the difference between the buy (ask) and sell (bid) price of a CFD instrument. This is the primary transaction cost for many CFD products.
The full cost of the spread is realised when you open and close a trade.
Spread sizes vary depending on:
- Market volatility
- Liquidity
- Product type
- Trading session
Indicative spreads for each instrument are published in the Product Schedule and may change according to market conditions.
03Overnight Financing / Swap Fees
If you keep a CFD position open overnight, an overnight financing adjustment may apply. These charges may also be referred to as swap fees, funding charges, holding costs, or financing fees. They reflect the cost of maintaining leveraged exposure overnight.
Depending on the product and whether you are long or short, the financing adjustment may either be debited from or credited to your account.
The longer a position is held, the greater the cumulative financing impact may become.
How Overnight Financing is Calculated
Financing is generally calculated daily and applied at the platform rollover time. Different CFD products use different methodologies.
FX CFDs
FX swap charges are derived from the wholesale tom-next market pricing for the currency pair, liquidity provider pricing, and Axi's applicable markup. Swap fees are quoted in points and converted into your account currency.
FX Swap Example
ProductGBPUSD
Position Size1 standard lot (100,000 units)
DirectionLong
Overnight Long Swap−6.50 points
Point ValueUSD $10 per point
6.50 × $10 = $65.00 debit per night
Over 5 nights: $65 × 5 = $325.00 total
$325.00 total financing charge
Index CFDs
For cash index CFDs, financing is generally calculated using: Applicable Reference Rate ± Axi Markup.
Typical reference rates may include:
- SOFR
- SONIA
- EURIBOR
- Other applicable central bank benchmark rates
Financing charges are annualised and applied daily.
Index Funding Example
ProductUS30 Cash CFD
Position Value$100,000
Financing Rate8.5% per annum
Holding Period1 night
($100,000 × 8.5%) ÷ 365
= $23.29 overnight financing charge
Commodity CFDs
Commodity CFD financing depends on whether the product is a cash CFD or a futures CFD. Cash commodities incur overnight financing similar to index CFDs.
Commodity Funding Example
ProductSpot Gold CFD
Position Value$50,000
Funding Rate7.0% per annum
($50,000 × 7.0%) ÷ 365
= $9.59 overnight charge
Equity CFDs
Equity CFDs incur overnight financing based on the underlying interbank financing rate plus or minus an applicable margin. Financing fees are annualised and charged daily.
Equity Funding Example
ProductApple CFD
Position Value$25,550
Funding Rate9% per annum
($25,550 × 9%) ÷ 365
= $6.30 overnight charge
04Triple Swap / Weekend Financing
Because financial markets are generally closed over weekends, financing for weekend holding periods is charged in advance on certain days. Positions held overnight on the applicable day may incur three days of financing.
| Product Type | Triple Swap Day |
|---|---|
| FX CFDs | Wednesday |
| Equity CFDs | Friday |
| Index CFDs | Friday |
| Commodity CFDs | Friday |
Triple Swap Example
Normal overnight swap−$12 per night
On triple swap day: −$12 × 3
= −$36 charged
05Futures CFD Rollover Charges
Futures CFDs have expiry dates. If you keep a futures CFD position open beyond the rollover date, your position may be rolled into the next contract month.
A rollover adjustment may apply to reflect:
- The price difference between contracts
- The spread cost to close and reopen the position
Futures Rollover Example
Current Oil Futures78.20
Next Month Contract79.00
79.00 − 78.20
= 0.80 difference
Your account may receive a positive or negative rollover adjustment depending on position direction.
06Commission Charges
Certain products, particularly share CFDs, may incur commissions in addition to spreads.
Share CFD Commissions
Commission structures vary by market:
- UK and European shares: percentage of trade value
- US shares: cents per share
- Minimum commission charges may apply
| Market | Indicative Commission |
|---|---|
| UK Shares | 0.10% |
| US Shares | $0.02 per share |
| European Shares | Variable by market |
07Dividend Adjustments
Equity CFDs
If you hold an equity CFD position over the ex-dividend date:
- Long positions generally receive a dividend adjustment
- Short positions are generally debited
Index CFDs
Index CFDs may also receive dividend adjustments because indices contain dividend-paying shares.
- Long cash index positions may receive credits
- Short cash index positions may receive debits
Dividend Adjustment Example
Dividend adjustment2.5 points
Position size$10 per point
2.5 × $10
= $25 adjustment
08Currency Conversion Charges
Where your account base currency differs from the product currency, the following may all be converted into your account currency using prevailing exchange rates:
- Profits and losses
- Financing charges
- Dividend adjustments
- Commissions
09Inactivity Fee
If your account remains inactive for 12 consecutive months, an inactivity fee may apply.
| Fee | Amount |
|---|---|
| Monthly inactivity fee | £10 (or equivalent) per month |
The fee continues until:
- Trading resumes, or
- The account balance reaches zero
10Important Risk Information
Risk Warning: CFDs are leveraged products and may not be suitable for all investors. Financing costs can significantly impact profitability, particularly for positions held over extended periods.
You should carefully consider the following before trading CFDs:
- Total trading costs
- Overnight financing exposure
- Market volatility
- The effect of leverage
11Further Information
Detailed contract specifications, spreads, financing rates, trading hours, rollover dates, and commissions are available in the Product Schedule.