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

City Index Fees snapshot
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, 0.9 pips is the average spread cost during peak trading hours.
Inactivity fee Low £12 per month after one year of inactivity

Disclaimer: 74% 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

Online brokerages in general charge much lower brokerage fees than traditional brokerages do - this is largely due to the fact that online brokerages' businesses can be much better scaled: From a purely technical standpoint it doesn't make that much of a difference for them if they have 100 or 5000 clients.

This is not to say however that they don't have any fees at all. They make money by charging you at various events for various rates. Usually you need to keep an eye on these 3 types of fees:

  • Trading fees - these are brokerage fees that you pay when you actually do a trade. What you pay is either a commission, a spread or financing rate. Some brokers apply all of these.
    • A commission is either based on the traded volume or it is fixed.
    • A spread is the difference between the buy price and the sell price
    • Financing rate or overnight rate is charged when you hold your leveraged positions for more than one day.
  • Non-trading fees. These occur related to some operations you make in your account, i.e. depositing money to your account, withdrawing money from it or not trading for an extended amount of time.

We compare City Index fees with its closest competitors, Forex.com and CMC Markets.

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 fees benchmarked
City Index Forex.com CMC Markets
Apple benchmark fee $21.2 $21.1 $21.4
Vodafone benchmark fee $29.7 $29.7 $27.1
EURUSD benchmark fee $6.4 $5.9 $8.8

Financing rates

City Index financing rates are low.

If you want to trade on margin and prefer to hold your positions long, financing costs can be significant.

City Index yearly financing rates
City Index Forex.com CMC Markets
Apple CFD financing rate 2.6% 2.6% 3.1%
Vodafone CFD financing rate 2.5% 2.5% 3.0%
EURUSD financing rate 1.3% 1.0% 2.0%
EURGBP financing rate 1.2% 0.9% 2.0%

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.

A high level overview of how City Index stacks up in non-trading fees
City Index Forex.com CMC Markets
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 deposit methods
City Index Forex.com CMC Markets
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 withdrawal fees and options compared
City Index Forex.com CMC Markets
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 Forex.com CMC Markets
Inactivity fee Yes Yes Yes
Inactivity fee £12 per month after one year of inactivity £/$/€ 15 or JPY 1500 per month after one year of inactivity £10 monthly fee after 12 months of inactivity

Read more about City Index inactivity fee on their own site.

Author of this article

Ádám Nasli

Author of this article

Ádám worked in banking and investment, and holds a professional degree in this field. He is a motivated finance expert, having joined BrokerChooser in 2018. He's also eager to help people find the best investment provider for them, and to make the investment sector as transparent as possible. In his spare time, he loves learning new things, especially data science, algo-trading, programming and trading.

Ádám Nasli

Analyst head

Ádám worked in banking and investment, and holds a professional degree in this field. He is a motivated finance expert, having joined BrokerChooser in 2018. He's also eager to help people find the best investment provider for them, and to make the investment sector as transparent as possible. In his spare time, he loves learning new things, especially data science, algo-trading, programming and trading.

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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