Are margin rates low at City Index?
Margin trading - borrowing money from your broker to buy more assets than you could otherwise afford - is popular, but it's not available at all brokers, and margin interest rates can vary widely.
Sadly, you can't trade real stocks or ETFs on margin at City Index. If you insist on leverage, you can trade CFDs at City Index, at low financing rates; or instead, just check the best margin trading platforms.
I've thoroughly tested City Index's services to see whether margin trading is possible. Here's what you need to know:
- At City Index, you can trade stocks/ETFs with leverage in the form of CFDs only.
- City Index CFD fees are high, including low financing rates.
- Margin trading involves borrowing money from your broker to increase your exposure.
- Looking for real margin trading? Check our list of the best margin trading platforms.
Before we begin, let's see if City Index is available in your country:
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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69% of retail CFD accounts lose money
69% of retail CFD accounts lose money
Leveraged trading available for CFDs only
At City Index, you can't trade real stocks or ETFs on margin. Your only chance for leveraged trading at City Index is to trade CFDs (contracts for difference).
Unlike in the case of regular stock trading, you don't actually hold any asset when trading CFDs; you merely bet on the price movements of an underlying asset (which can be a stock, ETF, commodity, bond, etc).
Are you new to all this? Check out our introduction to the main concepts of CFD trading.
CFD financing rates
Also referred to as a swap fee or overnight rate, the financing rate is the cost you have to pay for holding a leveraged position overnight. The financing rate is one of your most important cost items in CFD trading. Your costs stemming from financing rates add up over time: the longer you hold your position, the larger your financing cost will be.
Financing rates are set at the broker's discretion but are usually closely linked to benchmark interest rates. In other words, if interest rates in general are high, financing rates will also be higher. Financing rates can also vary depending on the type of security being traded.
High CFD trading fees, low financing rates
At BrokerChooser, we regularly collect and update financing rate data along with other data sets for more than 100 brokers globally. Check out financing rates and overall CFD trading costs at City Index in the following tables and see how they compare to rates applied by some close competitors.
| Broker | CFD financing rate class | Apple CFD financing rate |
|---|---|---|
| City Index | Average | 7.1% |
| CMC Markets | High | 8.3% |
| XTB | Low | 9.2% |
| Broker | CFD fee class | S&P 500 index CFD fee |
|---|---|---|
| City Index | High | $2.9 |
| CMC Markets | High | $3.4 |
| XTB | Low | $1.4 |
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69% of retail CFD accounts lose money
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Further reading
- Diversifying your investments
- Stock trading at City Index: an expert guide and rating
- City Index penny stocks trading conditions explained
- ETF trading conditions at City Index explained
- City Index fractional shares trading conditions explained
- City Index cash interest rate
- City Index Mexican stocks trading availability
- City Index Australian stocks trading availability
- City Index Canadian stocks trading availability
- City Index Japanese stocks trading availability
- City Index French stocks trading availability
- City Index Italian stocks trading availability
- City Index Swiss stocks trading availability
- City Index Hong Kong stocks trading availability
- City Index Dutch stocks trading availability
- City Index Spanish stocks trading availability
- City Index Singapore stocks trading availability
- City Index Swedish stocks trading availability
- City Index Norwegian stocks trading availability
- City Index forex spreads explained
- Is the EUR/USD spread low at City Index?
- Is the GBP/USD spread low at City Index?
- Forex trading at City Index: Discover the key features and highlights
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.
