Is City Index really free?

City Index does not provide access to real stock trading on US markets. If you are looking for a zero-commission broker to trade on US stock exchanges, you can check our article detailing the best apps offered in this category of brokers. If you wish to stick with City Index though, then you will find the fees they charge below.

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City Index fees
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 that other brokers do, or they only charge a small amount.

Here's a high-level overview of City Index's fees

City Index Fees snapshot
Assets Fee level Fee terms
US stock fee - Not available
EURUSD fee Low The fees are built into the spread, 0.8 pips is the average spread cost during peak trading hours.
US mutual fund fees - Not available
Inactivity fee Low £12 per month after one year of inactivity

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City Index fees
City Index fees explained

Online brokerages in general charge much lower brokerage fees than traditional brokerages do - this is largely because 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 5,000 clients.

This is not to say, however, that they don't charge any fees at all. They make money by charging you various rates for various actions or events. Usually you need to keep an eye on the following three types of fees:

  • Trading fees - these are brokerage fees that you pay when you actually carry out a trade, like buying an Apple share or an ETF. What you pay is either a commission, a spread or a financing rate. Some brokers apply all of these.
    • A commission is either fixed or based on the traded volume.
    • A spread is the difference between the buy price and the sell price.
    • A financing rate or overnight rate is charged when you hold your leveraged positions for more than one day.
  • Non-trading fees. These are usually related to some operations you carry out in your account, such as depositing money, withdrawing money, or not trading for an extended period.

We compare City Index fees with its closest competitors, CMC Markets and ETX Capital.

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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. several times a week).

Let's break down trading fees according to the different asset classes available at City Index.

Trading fees

City Index's trading fees are low.

Forex fees

City Index's forex fees are low.

Forex fees of a $20,000 30:1 position (open, 1-week-hold and close)
City Index CMC Markets ETX Capital
EURUSD benchmark fee $6.1 $8.0 $9.4
EURGBP benchmark fee $7.5 $9.1 $9.6

CFD fees

City Index has average CFD trading fees.

CFD fees and commissions on a $2,000 trade
City Index CMC Markets ETX Capital
Apple CFD $10.2 $10.2 $15.2
Vodafone CFD $13.3 $12.0 $13.3
Germany $11.9 - $11.9

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City Index fees
City Index non-trading fees

Some of City Index's non-trading fees are average.

Non-trading fees include various brokerage fees and charges at City Index that are not related to buying or selling assets. This can be a withdrawal fee, deposit fee, inactivity fee or account fee.

A high-level overview of how City Index stacks up in terms of non-trading fees
City Index CMC Markets ETX Capital
Withdrawal fee $0 $0 $0
Deposit fee $0 $0 $0
Inactivity fee Yes Yes Yes
Account fee No No No

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City Index fees
City Index deposit fee

Usually, brokers don't charge anything for deposits, and City Index is no different.

City Index deposit methods
City Index CMC Markets ETX Capital
Bank transfer Yes Yes Yes
Credit/debit card Yes Yes Yes
Electronic wallets Yes Yes Yes
Deposit fee $0 $0 $0

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City Index fees
City Index withdrawal fee

City Index generally doesn't charge a withdrawal fee.

City Index withdrawal fees and options compared
City Index CMC Markets ETX Capital
Bank transfer Yes Yes Yes
Credit/debit card Yes Yes Yes
Electronic wallets Yes Yes Yes
Withdrawal fee for bank transfer $0 $0 $0

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73% of retail CFD accounts lose money

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. Keep this in mind to avoid getting charged after a longer idle period. The fact that City Index charges an inactivity fee makes it less ideal for you if you are a buy-and-hold investor.

The inactivity fee charged by City Index is low.

City Index CMC Markets ETX Capital
Inactivity fee Yes Yes Yes
Inactivity fee £12 per month after one year of inactivity £10 monthly fee after 12 months of inactivity $25 per month after at least 6 months of inactivity

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73% of retail CFD accounts lose money

Author of this article

Ádám Nasli

Author of this article

Ádám is a motivated finance expert with over two years of experience in banking and investment, and a professional degree in this field. He's eager to help people find the best investment provider for them, and to make the investment sector as transparent as possible.

Ádám Nasli

Broker Expert

Ádám is a motivated finance expert with over two years of experience in banking and investment, and a professional degree in this field. He's eager to help people find the best investment provider for them, and to make the investment sector as transparent as possible.

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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