Are S&P 500 CFD spreads low at Trading 212 as of August 2024?
No, unfortunately, S&P 500 CFD spreads spreads at Trading 212 are high. If you are looking for a broker with lower CFD spreads, check out our article on the best lowest-spread CFD brokers.
The S&P 500 CFD spread is 1.1 at Trading 212 while the average spread is 0.7 for the same currency pair at 53 brokers reviewed by BrokerChooser.
|
S&P 500 CFD spread
|
S&P 500 CFD spread fee class
|
|
|---|---|---|
| 0.3 | Low | |
| 0.4 | Low | |
| 2.3 | High | |
| 1.5 | High | |
| 0.2 | Low | |
| 0.3 | Low | |
| 0.4 | Low | |
| 0.3 | Low | |
| 0.4 | Low | |
| 0.3 | Low | |
| 0.4 | Low | |
| 0.4 | Low | |
| 0.4 | Low | |
| 0.4 | Low | |
| 0.4 | Low | |
| 0.4 | Low | |
| 0.4 | Low | |
| 0.6 | Low | |
| 0.4 | Low | |
| 0.4 | Low | |
| 0.4 | Low | |
| 0.4 | Low | |
| 0.6 | Low | |
| 0.4 | Low | |
| 0.4 | Low | |
| 0.5 | Low | |
| 0.5 | Low | |
| 0.5 | Low | |
| 0.5 | Low | |
| 0.5 | Low | |
| 0.5 | Low | |
| 0.6 | Low | |
| 0.5 | Low | |
| 0.4 | Low | |
| 0.5 | Low | |
| 0.6 | Low | |
| 0.6 | Low | |
| 0.6 | Low | |
| 1.0 | High | |
| 0.5 | Low | |
| 0.7 | Average | |
| 0.8 | Average | |
| 0.3 | Low | |
| 0.5 | Low | |
| 1.0 | High | |
| 0.8 | Average | |
| 1.1 | High | |
| 1.7 | High | |
| 1.5 | High | |
| 1.5 | High | |
| 3.0 | High | |
| 1.0 | High |
Data updated on August 27, 2024
The Essence
- Lower spreads potentially increase your profit and reduce your losses, so lower spreads are preferable.
- However, it depends on your trading style if higher spreads could still work for you.
- If you hold your trade position for short periods of time, lower spreads could be better.
- Learn about CFD trading before getting into it, it carries significant risks.
For low-spread CFD brokers offering competitive rates on S&P 500, check out our article on the best lowest-spread CFD brokers.
When investing, your capital is at risk
S&P 500 CFD spreads and costs at Trading 212
Now, let's check the S&P 500 CFD spreads and costs in detail at Trading 212!
| 💹 | S&P 500 CFD spread | 1.1 |
| 📊 | S&P 500 CFD spread fee class | High |
| 💰 | S&P 500 CFD fee | The fees are built into the spread, 1.1 points is the average spread cost during peak trading hours. |
| 📈 | S&P 500 CFD benchmark fee | $1.4 |
The data presented in the table was collected on Oct 5, 2023.
Visit broker
When investing, your capital is at risk
OK, now you know the technical details, but what do they all mean?
What is S&P 500 CFD trading?
The S&P 500 is a stock market index that measures the performance of 500 of the largest publicly traded companies in the US. The S&P 500 is a popular index with traders because it is seen as a benchmark for the overall health of the US economy. The index is widely recognized as an indicator of the performance of large-cap stocks, and it is often used by traders and investors to gauge the direction of the stock market as a whole.
S&P 500 CFD trading involves speculating on the price movements of the S&P 500 index without actually buying or selling any stocks. Instead, you can use a broker to trade contracts for difference (CFDs), a derivative financial product that is based on the price of the index.
What is the spread?
So you are now familiar with the basics about S&P 500 CFD trading, but what is a spread and why is it important that it is low?
CFD spread refers to the difference between the buy and sell price of a CFD. The spread is the primary cost of trading CFDs, and it basically represents the broker's commission for facilitating the trade. In other words, when you open a CFD position, you pay the spread to the broker. The spread can vary depending on the underlying asset, the market conditions, and the broker's policies. A low spread means lower trading costs for you, the trader. This can help increase your potential profits and reduce losses.
Here's an example:
- Let's say you want to trade a CFD on the S&P 500 index.
- The current market price for the S&P 500 index is 4,200.00 bid and 4,201.00 ask.
- The bid price is the price at which you can sell the S&P 500 CFD, and the ask price is the price at which you can buy the S&P 500 CFD.
- The difference between the bid and ask price is the spread. In this case, 1.00 (100 basis points).
- So if you want to buy the S&P 500 CFD, you would need to pay the ask price of 4,201.00. If you want to sell the S&P 500 CFD, you would receive the bid price of 4,200.00.
It's important to note that CFDs are leveraged products, which means that you can trade with a small amount of capital, but your potential profits and losses can be magnified. Therefore, it's essential to manage your risk carefully, monitor your position regularly and use for example stop-loss orders to limit your losses.
Is a financing rate charged at Trading 212?
At Trading 212, the financing rate for S&P 500 CFDs is 2.5%, offering competitive terms for traders seeking to hold positions overnight.
The data regarding the financing rate for S&P 500 CFDs was collected on Oct 5, 2023.
What does the CFD financing rate mean?
The financing rate, also known as the overnight financing rate or the rollover rate, is a cost or credit that is charged or paid to hold a CFD position overnight. In CFD trading, a position held overnight is subject to a financing charge or credit, which reflects the cost of borrowing money to maintain the position.
When trading CFDs, the position is usually leveraged, meaning that you only need to put up a fraction of the total position value as a margin deposit. The broker provides the remaining funds as a loan to you, and charges or pays interest on the borrowed amount based on the financing rate.
The financing rate is calculated based on the interbank lending rate of the currency in which the CFD is denominated, adjusted for the broker's markup or discount. The financing rate is usually expressed as a percentage per annum, and is applied daily to the open position.
When investing, your capital is at risk
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.
Our expert team here at BrokerChooser specializes in helping you find a broker that best suits your needs. We have reviewed over a 100 brokers based on BrokerChooser's unique methodology.
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.
Further reading
- How to buy natural gas at XTB?
- Trading 212 CFD trading conditions explained
- S&P 500 CFD fees at Trading 212 explained
- Euro Stoxx 50 CFD fees at Trading 212 explained
- CFD fees at Trading 212 explained
- Apple CFD fees at Trading 212 explained
- CFD financing rates at Trading 212
- CFD risk warning at Trading 212 explained
- Stop loss orders & risk management at Trading 212 for CFDs
- Long position for CFDs at Trading 212 explained
- Maximum leverage for CFDs at Trading 212 explained
- Apple stock CFDs for $1,000 at Trading 212
- Short position for CFDs at Trading 212 explained
- Apple CFD leverage at Trading 212 explained
- Can you short at Trading 212?
- Is CFD trading tax-free at Trading 212?
- Trading 212 stock CFD trading conditions explained
- Negative balance protection for CFDs at Trading 212
- Trading 212 crypto CFD trading conditions explained
- Trading 212 commodity CFD trading conditions explained
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.
