Low Financing Charges

0% financing on short index & equity positions with Spread Co

When you hold a spread bet or CFD trade overnight you have to pay a financing fee, referred to as ‘Overnight Financing’. This is the interest that you have to pay, or that would be credited to you, based on the type and value of your position, as you are effectively borrowing or lending all the funds to conduct the trade or bet.

At Spread Co we aim to keep the cost of holding a position low. For example, 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.

See the examples below on how to calculate financing: 

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:



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

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:



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

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%.

No finance charges when you go short

Many companies will charge you overnight financing when you hold a short index or equity position. They’ll calculate the cost using LIBOR less a percentage, which actually means you end up paying interest on a short position.
 
Spread Co won’t charge you any overnight financing fees when you go short with a spread bet or CFD on an index or equity position.
 
We also don’t charge financing on any futures contracts, as the cost of carry is built into the quoted price.
  
For all other products, we try to keep our finance charges as competitive as possible.

 
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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.