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CFD fees at CapTrader explained

Your expert
Eszter Z.
Fact checked by
Gyula L.
Updated
Jan 2024
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Are CFD fees low at CapTrader as of January 2024?

Unfortunately, CFD fees are high at CapTrader compared to other brokers we have reviewed, so you might want to shop around for other options.
  • CFD fees are made up of the spread, commissions and financing rates charged by the broker.
  • Note that in CFD trading, your initial position will start by showing a loss immediately when you open a position because of the spread you pay.
  • The length of time you intend to hold your position is important in considering whether the spread or the financing rate are more significant costs for you.

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If you want to find a broker that charges less for your CFD trade, check what better options are out there: find CFD brokers with lower fees by using our Find My Broker tool!

We have also put together a list of the best CFD brokers out there: check out our top recommendations on the best CFD brokers for 2023!

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What are CFD fees?

CFDs, or contracts for difference, are financial contracts that allow you to speculate on the price movements of assets such as commodities, indexes and currencies. If you need a good overview, we put together all the key information about CFDs in our main on what CFDs are. If you plan to invest for the long term, or hold a trading position for a longer period of time, CFDs might not be the best for you and you might be better off trading the underlying asset itself rather than a CFD.

How are CFD fees calculated?

  • Spreads - The spread is the difference between the buy and sell price. As you are entering into a contract with the broker, it can decide what spread it sets, based on the volatility of the underlying asset and the liquidity of the market. Keep in mind that your initial position will be reduced by the spread once you open the trading position, so your trade will start by showing a loss and must move in a positive direction to at least make up for that cost. And then, hopefully move into profit potentially.
  • Commission - Brokers may also charge an additional commission fee for trading. This can be based on the number of contracts you entered, or the value of your trade, or have a fixed rate. Some brokers charge no commission but make their money by quoting a wider spread instead.
  • Financing rate, swap fee or overnight rate - It has different names, but means basically the same thing. When trading CFDs on leverage, you basically open your position with money borrowed from the broker, which has a cost. This is based on the size of your position, as well as prevailing market interest rates. Overnight financing fees can be either positive or negative, depending on whether you are long or short on the CFD. Contrary to the spread and the commission, which you only pay once when buying and selling, this cost is time-sensitive: the longer you hold your position, the larger this cost will be, and can add up to .

And a word about dividends. Even though you don't own the underlying assets when trading CFDs, when you trade CFDs on a stock, or stock index like Apple or the S&P 500, you may receive a dividend adjustment, which is either added to or deducted from your trading account, depending on your position. If you are long (buying) a CFD on a stock that pays dividends, you may receive a dividend payment. If you are short (selling) a CFD on a stock, you may be charged a dividend adjustment, which will be deducted from your account.

Remember: there are also certain fees, known as non-trading fees, thatyou may have to pay in addition to the ones related to actual trading. These fees depend on the the broker you are using and type of account you have. Some examples are charges for withdrawing or depositing money, converting currency, or not making any trades for a long time (inactivity fee). Here are the non-trading fees at CapTrader:

Non-trading fees at CapTrader
💳 Account fee No account fee
💸 Withdrawal fee Free in the current calendar month, every additional bank transfer in the current month costs 8 Euro.
⏸️ Inactivity fee If your portfolio is below $1,000 and no trades have been carried out during the month, then a monthly fee of $1 applies
💰 Deposit fee Free deposit

Data updated on January 25, 2024

Now let's look at the specific costs of trading CFDs at CapTrader!

How much are CFD fees at CapTrader?

Here is a breakdown of some benchmark fees at CapTrader for different CFD products, compared to the broker's closest competitors. The benchmark fees include all fees (spread, commission, financing rate), calculated for a $2,000 position, with 20:1 leverage: open, hold for 1 week, and close.

Key CFD fees at CapTrader in 2024
S&P 500 index CFD fee
$6.8 $3.6 $3.7
Euro Stoxx 50 index CFD fee
$6.5 $3.7 $3.8
Apple CFD fee
$6.8 $11.6 -
Vodafone CFD fee
$13.7 $24.5 -
EURUSD spread
0.2 0.8 1.6
GBPUSD spread
0.4 1.2 1.9
S&P 500 CFD commission
0.01% of trade value with $2 min No commission is charged No commission is charged
Euro Stoxx 50 CFD commission
0.02% of trade value with €2 min No commission is charged No commission is charged

Data updated on January 25, 2024

Which CFD market could you trade with CapTrader?

You might want to consider which CFD product to trade, considering the different costs associated with the different products tracking the US market and the EU market. We used costs charged when trading CFDs related to the S&P 500 index and the Euro Stoxx 50 index to check which product is most cost-effective at this broker.

Remember, the Euro Stoxx 50 index is a blue-chip index designed to represent the 50 largest companies in the eurozone, while the S&P 500 index tracks the stock performance of 500 of the largest companies listed on stock exchanges in the US.

Unfortunately, the cost of trading an S&P 500 CFD is high at this broker, so you might wish to spare some trading cost and see how other assets are traded at this broker and at what cost. Read more about different S&P 500 CFD fees in detail!

Let's now look at the European markets!

Well, the cost of trading a Euro Stoxx 50 CFD is average, so you might wish to spare some trading cost and see how other assets are traded at this broker and at what cost. Read more about different Euro Stoxx 50 CFD fees in detail!

Example of CFD trading

So far, we've told you about the different costs you might come across when trading CFDs. But how do they work in an actual trade? Let's take a closer look!

Let's say you want to trade by speculating on the price movement of Apple stock, which we will say for the purpose of this example is trading at $150 per share. You decide to buy a CFD on Apple stock with a position size of 100 shares. Your CFD broker offers leverage of 10:1, which means you only need to put up 10% of the total trade value as margin, and the broker will lend you the remaining 90%.

Here's how the trade would work:

  1. Position size: 100 shares x $150 per share = $15,000
  2. Margin requirement: 10% x $15,000 = $1,500
  3. Leverage: 10:1
  4. Your out-of-pocket cost: $1,500 (margin)
  5. Your broker lends you: $13,500 (90% of the trade value)

If Apple's stock price goes up by $5, you will earn a profit of $500 (100 shares x $5 per share). If Apple's stock price goes down by $5, you will suffer a loss of $500.

Now, let's look at the costs involved in this CFD trade:

  1. Spread: The spread is the difference between the buy and sell price of the CFD, and it represents the broker's commission. Let's say the spread on Apple CFDs is 0.05% of the trade value. In this case, the spread would be 0.05% x $15,000 = $7.50.
  2. Overnight financing: If you hold the CFD position overnight, you will have to pay an overnight financing charge. This charge varies depending on the broker and the underlying asset, but it typically ranges from 0.1% to 0.5% per day. Let's say the overnight financing charge on Apple CFDs is 0.1% per day. If you hold the position for one week, the financing charge would be 0.1% x 7 days x $13,500 = $94.50.

So, in summary, the costs involved in this CFD trade are:

  1. Spread: $7.50
  2. Overnight financing (if held for one week): $94.50

This means that if the price went up by $5 per share, your overall net profit would be $500 (stock price gains)-$7.50 (spread cost)-$94.50 (overnight financing cost)=$398.

Meanwhile, if the stock fell $5 per share, your overall net loss would be $500 (stock price loss)+$7.50 (spread cost)+$94.50 (overnight financing cost)=$602.

It's important to note that CFD trading involves significant risks, including the risk of losing your entire investment. It's essential to understand the risks and costs involved before making any trades.

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Author of this article

Eszter Zalán
Eszter Zalán

Eszter is a former Editor and Financial Journalist for BrokerChooser. She wrote and edited BrokerChooser's content from 2021 onwards, bringing her more than a decade-long experience in journalism to the team. She has covered world affairs and several financial crises, and dove deep into SEO and coding to make BrokerChooser's content more accessible to users.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.

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