Overview of City Index fees and charges
It's safe to say that City Index's fees are low in general. They either don't charge a brokerage fee for things other brokers do charge for, or they only charge a small amount. This means that you can use City Index even in case you trade frequently like multiple times a week or daily.
Here's a high level overview of City Index's fees
| Assets | Fee level | Fee terms |
|---|---|---|
| S&P 500 CFD | Low | The fees are built into the spread, 0.4 points is the average spread cost during peak trading hours. |
| Europe 50 CFD | Low | The fees are built into the spread, 1.9 points is the average spread cost during peak trading hours. |
| EURUSD | Low | The fees are built into the spread, 1.1 pips is the average spread cost during peak trading hours. |
| Inactivity fee | Low | £12 per month after one year of inactivity |
Disclaimer: 72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
City Index fees
City Index fees explained
We compare City Index fees with its closest competitors, CMC Markets and XTB.
City Index fees
City Index trading fees
City Index's trading fees are low which makes it suitable for you even if you trade often (i.e. multiple times a week).
Let's break down the trading fees into the different asset classes available at City Index.
Trading fees
City Index's trading fees are low.
It is super hard to compare trading fees for CFD brokers. What we did at BrokerChooser? Instead of quoting long fee tables, we compare brokers by calculating all fees of an example trade for three assets.
For the assets we chose cleverly and arbitrarily:
- Apple, a large US stock
- Vodafone, a large European stock
- EURUSD, a popular currency pair
The example in this context would mean buying a position, holding for one week, and selling it. For the volume we chose a $2,000 position for the stocks and $20,000 for the EURUSD.
This super catch-all benchmark includes spreads, commissions and financing costs for all brokers.
Here is the verdict.
| City Index | CMC Markets | XTB | |
|---|---|---|---|
| Apple benchmark fee | $22.7 | $22.9 | $10.1 |
| Vodafone benchmark fee | $27.4 | $25.4 | $10.6 |
| EURUSD benchmark fee | $14.2 | $15.3 | $15.2 |
Financing rates
City Index financing rates are average.
If you want to trade on margin and prefer to hold your positions long, financing costs can be significant.
| City Index | CMC Markets | XTB | |
|---|---|---|---|
| Apple CFD financing rate | 6.3% | 6.8% | 7.6% |
| Vodafone CFD financing rate | 4.7% | 5.9% | 6.8% |
| EURUSD financing rate | 3.2% | 3.7% | 3.5% |
| EURGBP financing rate | 2.2% | 3.0% | 2.1% |
Leverage is a double-edged sword and can dramatically amplify your profits. It can also just as dramatically amplify your losses. Trading foreign exchange/CFDs with any level of leverage may not be suitable for all investors.
Currency conversion fee
City Index will charge a Currency Conversion Fee for all trades on instruments denominated in a currency different to the currency of your account. The fee is charged as the following: 0.5% charge.
City Index fees
City Index non-trading fees
When it comes to looking at all the non-trading fees City Index is an average broker. This means that some of the non-trading fees are high, but the others are low or not charged at all.
Non-trading fees include various brokerage fees and charges at City Index that you pay not related to buying and selling assets. Among some others, typical non trading fees are withdrawal fee, deposit fee, inactivity fee and account fee.
| City Index | CMC Markets | XTB | |
|---|---|---|---|
| Withdrawal fee | $0 | $0 | $0 |
| Deposit fee | $0 | $0 | $0 |
| Inactivity fee | Yes | Yes | Yes |
| Account fee | No | No | No |
City Index fees
City Index deposit fee
Deposit fees are applied when you send money to your trading account from your bank account. Usually brokers don't charge money for that and City Index is not different: you will see the exact same amount on your brokerage account that you sent by any of the deposit methods City Index offers.
| City Index | CMC Markets | XTB | |
|---|---|---|---|
| Bank transfer | Yes | Yes | Yes |
| Credit/debit card | Yes | Yes | Yes |
| Electronic wallets | Yes | Yes | Yes |
| Deposit fee | $0 | $0 | $0 |
City Index fees
City Index withdrawal fee
Unlike some online brokers we have reviewed City Index does not charge a withdrawal fee. This means that you'll see the same amount of money on your bank account that you transferred from your brokerage account.
| City Index | CMC Markets | XTB | |
|---|---|---|---|
| Bank transfer | Yes | Yes | Yes |
| Credit/debit card | Yes | Yes | Yes |
| Electronic wallets | Yes | Yes | Yes |
| Withdrawal fee with bank transfer | $0 | $0 | $0 |
City Index fees
City Index inactivity fee
City Index does apply an inactivity fee and it is £12 per month after one year of inactivity. This means that you need to be strategic about your trading activity to avoid getting charged after a longer time of no trade. The fact that City Index charges an inactivity fee makes it less ideal for you if you are a buy and hold investor.
City Index has low inactivity fee.
| City Index | CMC Markets | XTB | |
|---|---|---|---|
| Inactivity fee | Yes | Yes | Yes |
| Inactivity fee | £12 per month after one year of inactivity | £10 monthly fee after 12 months of inactivity | €10 per month after 1 year of trading inactivity and if no deposit was made in the last 90 days |
Read more about City Index inactivity fee on their own site.
Comments