Before placing a CFD trade there are several costs to consider: Spread, Holding Costs, Market Data Fees and Commission (applicable to share trading only)
The difference between the current buy price and the current sell price is referred to as the spread. This is shown as a number of points based on the last large number within the price quote
The spread on the UK 100 shown here is 1.0, calculated by subtracting 6,447.7 (buy price) from 6,446.7 (sell price).
The spread on the GBP/USD shown here is 0.9. If you subtract 1.65364 from 1.65373, that equals 0.00009 but as we base the spread on the last large number in the price quote, it equates to a spread of 0.9
Using GBP/USD as shown in example 2, if you decided you wanted to buy, you would buy at a price of 1.65373. You would then need the market to move in your favour by 0.9 points to start making a profit.
CFD share trading commissions
When trading CFD shares on our platform, a commission will be charged to your account upon execution of any order.
|Country/Market||Commission charge||Charge currency||Minimum commission charge|
|Canada||1 Cent per Share CFD||CAD||CAD 8.00|
|US||1 Cent per Share CFD||USD||USD 8.00|
|Hong Kong||0.18%||HKD||HKD 50.00|
|Singapore (SGD)||0.10%||SGD||SGD 10.00|
|Singapore (USD)||0.10%||USD||USD 10.00|
|The Netherlands||0.10%||EUR||EUR 9.00|
For non US or Canadian shares, the commission is calculated as a percentage charge of the value of the order. Commissions on US and Canadian shares are charged at 1 cent per share.
All commission charges will be converted to your account currency at the prevailing CMC Markets currency conversion rate.
The commission on a Canadian CFD share is $0.01 (one cent per share CFD) subject to a minimum commission of $8.00.
|Example 1(a): a 1,000 unit trade in Blackberry at a price of $10.00 would incur a commission of $10.00 based on the following calculation:|
|1,000 (units) x $0.01 (price) = $10.00|
The commission on this trade is more than the $8.00 minimum commission charge.
|Example 2(a): for shares on US markets, the commission is calculated as 1 US cent per share, subject to a minimum commission charge of US$8.00 So the commission for trades in Caterpillar Inc (US 1 cent minimum US$8) would be based on the following calculations:|
|800 units at a price of 80.95 would incur a commission charge of US$8.
800 (units) x $0.01 (price)
|500 units at a price of 80.95 would also incur a commission charge of US$8.
500 (units) x $0.01 (price)
This is less than the US$8 minimum so the commission will be US$8.