Are S&P 500 CFD fees low at Tickmill as of January 2024?
Not quite. S&P 500 CFD fees are average at Tickmill compared to other brokers we have reviewed.
- CFD fees are made up of spreads, commissions and financing rates.
- Depending on how long you want to hold your position, you should consider if spreads or financing rates are more important costs for you.
- Keep in mind that your initial position will be reduced by the spread once you enter a trade.
If you want to find a broker that charges less for your CFD trade, check what better options are out there: find CFD brokers with lower fees by using our Find My Broker tool!
We have also put together a list of the best CFD brokers out there, check out our top recommendations on the best CFD brokers for 2024!
72% of retail CFD accounts lose money
What are CFD fees?
CFDs (contracts for difference) are basically a type of financial contract that let's you bet on whether the price of things like commodities, indexes, or currencies will go up or down. If you need a refresher, we've got all the important info about CFDs right here.
How are CFD fees calculated?
- Spreads - The spread is the difference between the buy and sell price. When you make a contract with a broker, they get to choose how much of a spread they charge you, based on what it costs them and what the market is like at the moment. Just remember that the spread is going eat into your initial position once you start trading, so your trade needs to do well enough to cover that cost. Check if the S&P 500 CFD spreads are low at Tickmill!
- Financing rate, swap fee or overnight rate - There are a few different names for it, but they all mean pretty much the same thing. When you trade CFDs, you're essentially borrowing money from your broker to open your position, and there's a cost associated with that. As interest rates have gone up in recent years, this part of the fees associated with CFDs has gotten higher too. Unlike the spread and commission, this cost changes over time: the longer you hold onto your position, the more this cost is going to go up.
- Commission - Brokers might charge an extra commission fee on top of everything else, which could be based on the number of contracts, or it might be a set rate. Alternatively, brokers might offer a wider spread and not charge any commission.
And just a quick note about dividends. It might not make a huge difference in the grand scheme of things, but it's good to know. Even though you don't actually own the underlying assets when you're trading CFDs, if you're trading CFDs on a stock or a stock index like the S&P 500, you might get a dividend adjustment. Depending on your position, this could either be added to or taken away from your trading account. If you're buying a CFD on a stock that pays dividends, you might get some money from those dividends. But if you're selling a CFD on a stock, you might end up owing money for that dividend adjustment.
Let's look into the specific costs of trading an S&P 500 CFD at Tickmill!
How much are S&P 500 CFD fees at Tickmill?
S&P 500 CFDs are contracts that let you speculate which way the S&P 500 stock market index is going without actually owning any of the stocks or assets. Basically, the deal you make with your broker is based on the value of the S&P 500 index, which is a measurement of how well 500 big companies listed on US stock exchanges are doing. You can either buy or sell these S&P 500 CFDs to make some money when the index's value goes up or down.
S&P 500 CFD spread
S&P 500 index CFD fee
S&P 500 CFD commission
|No commission is charged
|No commission is charged
|No commission is charged
S&P 500 CFD financing rate
Data updated on January 24, 2024
Remember that there are some fees that aren't directly related to any one trade you make, but still add up to your overall costs. These are called non-trading fees and they usually include things like deposit and withdrawal fees, and an inactivity fee.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% 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.
Looking for a CFD broker?
If you are looking for the brokers that offer the best CFD trading conditions, check our top recommendations of the best CFD brokers in the world.
If you have any feedback or questions, feel free to contact us via email!
Check out this short video for a behind-the-scenes peek into how our experts personally test and evaluate brokers.
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