Are Euro Stoxx 50 CFD fees low at Interactive Brokers as of November 2023?
Good news! Euro Stoxx 50 CFD fees are low at Interactive Brokers, compared to all the brokers we have reviewed.
- CFD fees include the spread, commissions and financing rates charged by the broker.
- While the spread and the commission are tied to the number of trades you make, the financing rate is linked to the holding time of your position: the longer the position is open, the higher this cost will be.
- Brokers generally charge either no commission and a wider spread, or a commission plus a narrower spread.
- Note that in CFD trading, due to the spread your initial position will start by showing a loss immediately when you open a position.
If you want to see what other CFD brokers might work for you, see our top recommendations on the best CFD brokers for 2023!
What are CFD fees?
CFD is short for “contracts for difference”. They are a type of financial product that allows traders to speculate on the price movements of a wide range of underlying assets, such as stocks, commodities, currencies and stock indexes. For more details, read our main article about what CFDs are and how they work.
How are CFD fees calculated?
The main trading fees you have to take into account when dealing with CFDs are the following:
- Spread: The spread is the difference between the buying and selling price of a CFD. It's essentially the fee that a broker charges for executing the trade. Spreads can vary depending on the broker and the CFD being traded.
- Financing rate (also called an overnight rate or swap fee): Same thing, different names. CFDs are typically leveraged products: if you hold a CFD position overnight, you may be charged an overnight financing rate. This is because in such cases the broker is essentially loaning you the funds to hold the position. Financing rates are closely linked to the market, so if interest rates are high in general, financing rates will also be high. Also, your holding time matters a lot here: as this fee is charged daily, holding positions open for a longer period may rack up your costs significantly!
- Commission: Some brokers may charge a commission for trading CFDs, in addition to the spread. This commission can be a fixed fee or a percentage of the trade size. In general, brokers with narrower spreads may charge higher commission fees, while brokers with wider spreads may charge lower commission fees or no commission at all.
One further item that is not a fee specifically, but you should be aware of , as it may show up on your balance if you trade a stock index CFD like the Euro Stoxx 50, is dividends. When trading such a stock index CFD, dividends can impact the value of the CFD contract. If a stock in the index pays a dividend, the CFD value may decrease by the same amount. Your broker may provide a dividend adjustment, which can be added to or deducted from your trading account depending on your position (long or short) on the CFD.
Let's move on now and see the specific costs of trading a Euro Stoxx 50 CFD at Interactive Brokers, including if spreads are low!
How much are Euro Stoxx 50 CFD fees at Interactive Brokers?
Euro Stoxx 50 (EUSTX50) CFDs are contracts through which you can speculate on the price movements of the Euro Stoxx 50 stock market index. Via CFDs, you can do this without owning any of the underlying individual stocks covered in the stock index.
The contract you enter into with your broker is based on the current market value of the Euro Stoxx 50 index. By buying and selling a CFD contract for EUSTX50, you can potentially profit (or lose money), based on changes in the index's value.
Euro Stoxx 50 CFD spread
Euro Stoxx 50 index CFD fee
Euro Stoxx 50 CFD financing rate
Euro Stoxx 50 CFD commission
|0.01% of trade value with €1 min||No commission is charged||CFD is not available|
Data updated on November 15, 2023
The broker may also have non-trading fees, which are charges not directly related to trading. Typical examples are an account maintenance fee, deposit/withdrawal fees, and inactivity fees. These fees would add to your overall costs.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60.0% 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.
What is the Euro Stoxx 50?
The Euro Stoxx 50 (ticker symbol: EUSTX50) is a stock market index that tracks the performance of the 50 largest companies in the Eurozone, which is the group of countries that use the euro as their official currency. It includes companies from various sectors and several different stock markets, such as BASF, BMW, Siemens and Nordea Bank. For a full list of member companies and more details, check the index's official website.
The index is a weighted average of the market capitalization of the 50 companies, with the larger companies having a greater impact on the index's performance. The Euro Stoxx 50 is often used as a benchmark for investors looking to gain exposure to large-cap European stocks. It was first introduced in 1998.
Looking for a CFD broker?
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