CFD spreads and commissions

CFDs (contracts for difference) are a popular form of derivative trading where you can speculate on price movements in various markets including forex, indices, commodities, shares and treasuries, without owning the underlying asset. CFDs are a leveraged product, which means you only need to lay a percentage of the full trade value (the margin requirement) in order to open a position. When trading with the margin requirement, your profits and losses are based on the full trade value and are not relative to the margin requirement. See our ‘what are CFDs?’ page for an in-depth explanation. See our ‘what are CFDs?’ page for an in-depth explanation.

The spread is the difference between the ‘buy’ and ‘sell’ price of a financial instrument. It’s also known as the bid-ask spread or buy-ask spread. The spread is one of the key costs when trading CFDs, so identifying tight spreads is a key element in cost saving. We offer consistent and competitive spreads across all our financial instruments, starting at just 0.7 points. See our range of markets page for more information on spreads.

Yes, but only when trading share CFDs. A commission charge is applicable upon entering and exiting trades, and the commission charge rate varies on the asset’s country of origin, but is usually around 0.1%.  There is also a minimum commission charge in place, so if the actual commission does not meet this threshold, the minimum commission rate is instead charged. This charge will vary by country. Please visit our ‘CFDs costs’ page for more information on charges.

When trading CFDs you are liable to pay capital gains tax (CGT) on all profits. However, unlike traditional forms of trading such as share dealing, CFDs are exempt from stamp duty, as you do not own the underlying asset. You can also use CFDs to offset any losses against profits from other CGT liable investments. CFDs are therefore often utilised as a hedging tool due to the tax benefits. However, tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK. Find out more on our ‘what are CFDs?’ page.