Spread betting costs
As well as spreads and margins, there are some potential trading costs to consider. These depend on how long you hold positions open for, which products you trade and your approach to risk management.
Holding costs
At the end of each day (5pm New York time), positions held in your spread betting account may be subject to a holding cost, which can be positive or negative depending on the direction of your position and the applicable holding rate.
Holding rates for spread betting on indices are based on the underlying interbank rate of the index (see table) plus 0.0082% on buy positions and minus 0.0082% on sell positions.
Holding rates for spread betting on cryptocurrencies are calculated in line with our existing instruments. Overnight holding costs for Bitcoin/USD are 0.0685% on long positions, and minus 0.0137% on short positions. Overnight holding costs for all other cryptocurrencies are 0.0753% on long positions, and minus 0.0274% on short positions.
For spread betting on shares, holding rates are based on the underlying interbank rate for the currency of the relevant share (see table) plus 0.0082% on buy positions and minus 0.0082% on sell positions.
Spread bet FX holding rates are based on the tom-next (tomorrow to next day) rate in the underlying market for the currency pair.
Holding rates for spread betting on cash commodities and treasuries are based on the inferred holding costs built into the underlying futures contracts, from which the prices of our cash commodity and treasury products are derived.
Indices, forex, commodity and treasury forward contracts are not subject to holding costs.
| Currency | Interbank rate |
|---|---|
| AUD | One month bankers acceptance bill |
| CAD | One month bankers acceptance bill |
| CHF | One month Libor |
| DKK | One month Copenhagen interbank offered rate |
| EUR | One month Euribor |
| GBP | One month Libor |
| HKD | One month Hong Kong interbank offered rate |
| INR | One month deposit |
| JPY | One month Libor |
| NOK | One month Norwegian interbank offered rate |
| NZD | One month bank bill |
| SEK | One month Stockholm interbank offered rate |
| SGD | One month Singapore interbank offered rate |
| USD | One month Libor |
| ZAR | One month deposit |
Is there a dormant account inactivity charge?
A monthly inactivity charge of £10 (the amount depends on your account currency) will be deducted per dormant account where funds are available. An account shall be considered dormant if there are no open positions and there has been no other trading activity for a continuous period of one year.
The monthly inactivity charge of £10 (or its equivalent in another currency) will be deducted from a dormant account, usually within the first two (UK) working days of the month, until either:
1. The account is closed by the client or CMC Markets;
2. Trading activity recommences on the account; or
3. The balance of the account is reduced to zero.
Once the balance of a dormant account has reduced to zero, we will not deduct further monthly inactivity charges from the dormant account.
A dormant account will not incur a negative balance as a result of the deduction of the monthly inactivity charge.
If you decide to reactivate your dormant account by trading again, the inactivity charge for up to three previous months (up to a maximum of £30) where this has already been deducted will be refunded to your account.
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