Fees for trading CFDs
What are the fees for trading CFDs?
The fees for investing in CFDs are 0.25% for each trade, with a minimum of USD 0.01. This is valid for both opening and closing out a position. This fee is only applied to CFDs on equities and is charged on the total value of trade.
If you keep your positions open overnight, you'll be charged an overnight fee. This is called a holding cost. The details of how the holding cost is calculated will be displayed on the specific CFD’s screen in-app.
The holding cost depends on:
- The applicable interest rate
- The underlying asset
- The direction of your position (long or short)
It will also include an annualised 3% mark-up.
For example, if the applicable rate is 7%, it means that the raw overnight rate without Revolut’s markup is 4%. You should maintain enough cash in your CFDs account to meet any holding costs.
Why are overnight fees charged, and how are they calculated?
Trading CFDs involves leveraging your investments. Essentially, this implies that you're borrowing funds to initiate your position, surpassing the initial deposit you've provided.
To sustain your position beyond the daily cut-off time, an interest adjustment will be applied to your account, reflecting the expenses associated with funding your position overnight.
You can see what overnight fee you can expect when placing an order for a CFD, or in the Key Information Document.
General calculation
The overnight fee for one night of keeping a position open = (position size x (applicable financing rate + Revolut’s mark-up)) / days in a year.