When targeting long-term gains or riding out a loss with a share or index CFD, the financing rate your broker charges can be more important than the commission on your trade.
IG Markets offers one of the lowest financing rates available, at 2.5%* for share CFDs and indices CFDs.
A financing rate as little as 1% more than ours can cost you hundreds of dollars on a trade. In some cases it will be like paying your commission twice over.
Here is an illustration of how much extra a trade could cost you with another broker.
Low Cost CFD Example
| Broker | Rate above IG Markets* | Funding cost | Days | Extra funding cost |
|---|---|---|---|---|
| IG Markets | 0% | $157.19 $471.58 |
15 45 |
$0 $0 |
| Broker 1 | 1% | $220.07 $660.21 |
15 45 |
$62.88 $188.63 |
| Broker 2 | 4% | $408.70 $1226.10 |
15 45 |
$251.51 $754.52 |
| Broker 3 | 6% | $534.45 $1603.36 |
15 45 |
$377.26 $1131.78 |
In this example, the position is long on 15,000 shares for a Singaporean stock, held at an average level of $10.20 over 15 and 45 days. Savings would apply for a short position, too.
For more information on our low rates and fair dealing, please see our No Hidden Charges and Competitive Rates pages.
For more information on financing and how the above example works, please see our guide, How Financing Works.
*2.5% plus the standard interbank rate e.g. monthly SIBOR.
24/02/09