Low Financing Charges

We offer 0% financing on short index and equity positions

Some companies will charge you to hold a short index or equity position. At Spread Co we won’t. When you go short with a spread bet or CFD on an index or equity position overnight, you won’t pay a penny more with Spread Co.

Financing costs for futures contracts are already built into the quoted price, and for all other products, we try to keep our charges as competitive as possible.

 

 

What are Financing Charges?

When you open a spread bet or CFD trade you’re effectively borrowing all the funds to make the trade or bet. When you hold a position overnight, you have to pay a financing fee. This appears as ‘Overnight Financing’ on your account.

The fee is effectively interest on the amount borrowed and is based on the type and value of your position.

 

 

How we calculate overnight financing

Our financing charge for long index and equity positions, conducted in GBP, is LIBOR +2%, a competitively low rate.

If you conducted the trade or bet in USD or EUR, then US LIBOR or EURIBOR is used, respectively.

 

Spread bets

For long index or equity positions held overnight we make an adjustment to your account.

This is at a rate of 2% plus the interbank rate for the currency of the trade. The formula for calculating the finance charge is:

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Note: Days in the financial year is 365 for UK100 and UK equities, and 360 for all others.

 

CFDs

For long index or equity positions held overnight we make an adjustment to your account.

This is at a rate of 2% plus the interbank rate for the currency of the trade. The formula for calculating the finance charge is:

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Note: Days in the financial year is 365 for UK100 and UK equities, and 360 for all others.

 

Forex and spot metals

Finance charges for Forex and spot metal trades held overnight are based on tom-next (tomorrow to next day) rates for the currencies concerned, or the currency the metal is traded in, as opposed to using an interbank rate.
  
Tom-next rates vary and different rates are used for long and short positions. For example the rate for shorts could be -1.11% while the rate for longs might be -0.11%.

 
 

 

Why not open a demo account?

Try spread betting without any commitment. A demo account lets you practise trading on a selection of markets, and experience our easy to use trading platforms.

 
 
© 2017 Spread Co Limited. All Rights Reserved.

Spread Co Limited is a limited liability company registered in England and Wales with its registered office at 22 Bruton Street, London W1J 6QE. Company No. 05614477. Spread Co Limited is authorised and regulated by the Financial Conduct Authority. Register No. 446677.

Spread betting and CFD trading are leveraged products and can result in losses that exceed your deposits. Ensure you understand the risks.

Losses can exceed deposits. Click here to learn more.