Are Euro Stoxx 50 CFD fees low at Trading 212 as of February 2024?
Yes, Euro Stoxx 50 CFD fees are low at Trading 212 compared to other brokers reviewed.
- CFD fees consist of spread, commissions, and financing rates charged by the broker.
- The spread and commission are trade-related fees, while the financing rate is charged daily for the duration of holding the position. This means that the longer you hold the position, the higher your financing rate costs will be.
- Typically, brokers charge either a wider spread with no commission or a narrower spread plus a commission.
- It's worth noting that in CFD trading, the spread means that you start with an immediate loss when opening 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 2024!
What are CFD fees?
CFD stands for "contract for difference" and is a financial instrument that enables traders to speculate on price movements of various underlying assets like stocks, commodities, currencies, and stock indexes. For more information, you can read our comprehensive guide on what CFDs are and how they work.
How are CFD fees calculated?
When trading CFDs, the main fees you need to consider are:
- Spread: The spread is the difference between the buying and selling price of a CFD and represents the broker's fee for executing the trade. Spreads can vary depending on the broker and the specific CFD being traded.
- Commission: Commission fees may be charged by brokers in addition to the spread when trading CFDs. The commission fee can either be a fixed rate or a percentage of the trade size. Typically, brokers that offer narrower spreads may charge higher commission fees, while brokers that offer wider spreads may charge lower commission fees or no commission at all.
- Financing rate (also called an overnight rate or swap fee): CFDs are leveraged products, which means that holding a position overnight may result in an overnight financing rate (also known as swap fee). The financing rate is charged by the broker because they are essentially lending you the funds to keep the position open. This fee is closely tied to the market and can increase if interest rates rise. It's important to note that the duration of holding the position matters significantly, as the financing rate is charged daily and can accumulate quickly over time.
When trading a stock index CFD like the Euro Stoxx 50, you should be aware of dividends as well, as they 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, and your broker may provide a dividend adjustment to your trading account based 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 Trading 212, including whether spreads are low!
How much are Euro Stoxx 50 CFD fees at Trading 212?
Euro Stoxx 50 (EUSTX50) CFDs allow you to speculate on the price fluctuations of the Euro Stoxx 50 stock market index without owning any of the underlying individual stocks. Your broker will base the contract on the current market value of the Euro Stoxx 50 index, and by buying and selling the CFD contract, you can either 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
|No commission is charged
|No commission is charged
|No commission is charged
Data updated on February 16, 2024
Apart from trading fees, brokers may also charge non-trading fees such as account maintenance, deposit/withdrawal, and inactivity fees, which can increase your overall costs.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% 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 (EUSTX50) is a stock market index consisting of the 50 largest companies in the Eurozone, the countries that use the euro as their official currency. It covers various sectors and multiple stock markets, and includes companies such as BASF, BMW, Siemens, and Nordea Bank. Check the index's official website for a full list of member companies and more details.
The Euro Stoxx 50 is a market index tracking the performance of the 50 largest companies in the Eurozone, weighted by market capitalization, and is commonly used as a benchmark for large-cap European stocks. It was introduced in 1998.
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.
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