Overnight financing charges may be applied to positions that have no set expiry. As with our low commissions and tight spreads, these charges are kept competitive to keep your trading costs low. Under normal circumstances, long positions will incur a small charge whilst short positions will be credited overnight financing. For example, on long equity positions, financing is charged at LIBOR +/- 2.5%.
Non-FX positions: Daily financing charges or credits are associated with any position which is open at our market close. This is calculated using the following formula:
F = V x i / b, where:
Your account will be debited a financing amount for each long position that you hold, and should be credited a financing amount for each short position that you hold. Please note that if a short position's calculation produces a figure below zero (i.e LIBOR is at a lower rate than that of our charge), this figure will be debited.
The financing rates used are:
FX positions: Daily financing is calculated by using one-day interest-rate differentials for the two currencies concerned. We then apply the market rate premium or discount, together with our overnight charge, which will have a minimum or maximum amount.
Many of our CFDs are commission free; however equity CFDs are subject to commission charges. These vary by market; for UK and most European equities the charge is 0.1% of the consideration, for most US equities it is 0.02% and for most Asian equities it is 0.2%. Our minimum commission rates are £10, $15, AUD5 or €10.
You can access these via the Trading Platform, the icon for which is placed immediately to the right of the Trade and Order buttons.
Yes the opening and closing action is effectively two separate trades and you will, therefore, be charged a commission for each action.
CFDs are margined products. You only need to deposit a fraction of the overall trade value to open a position. You are effectively ‘borrowing’ the remainder of the deposit and this gives rise to the need for a daily financing charge.
There is no charge for placing Standard Orders. There is, however, a one-off charge when you place Guaranteed Orders with us. These are charged at the time of placing the order and are non-refundable if you choose to cancel the order.
These are only available on certain markets and the charges vary between them. Please see the relevant Market Information sheet on the Trading Platform for full details, these can be accessed via the icons immediately to the left of the Trade and Order buttons.
CFDs, like the underlying stocks, are subject to corporate actions including dividend adjustments. Our equity and index markets may be subject to a dividend adjustment for positions held at the close of business on the day before an ex-dividend date.
This is to reflect the fact that the underlying market will (everything else being equal) open at a lower level on this date as the market goes ex-dividend. A dividend adjustment is credited to long CFD positions and debited from short CFD positions.
City Index does not charge any fees for credit card deposits. However, if you deposit funds from abroad, you may be charged a cross-border fee or currency conversion fee by your issuing bank
City Index does not charge you for withdrawing funds via BPAY credit card, debit card or EFT wire. There is a charge of AUD$25 for international wire transfers.
Where no activity has occurred on your account for a period of 12 months or more, your account will be deemed inactive. Activity is defined as placing a trade and/or applying an order on your account or maintaining an open position during this period. A monthly inactivity fee of AUD$25 (or equivalent to your cash balance if less than AUD$25) will be applied for accounts that are inactive for 12 months or more.
The AUD25 inactivity fee will be deducted on a monthly basis from your cash balance. We will not, however, take your account in to negative equity should you not have sufficient funds to cover the fee.
We would be happy to welcome you back. If you’d like to start trading with us again, please contact our Client Management team who will be able to assist with any questions you may have regarding your account or the inactivity fee.
City Index is a trading name of GAIN Capital Australia Pty Ltd.
*$100 credit off Terms & Conditions.
The material provided herein is general in nature and does not take into account your objectives, financial situation or needs. While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments. GAIN Capital recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets. It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com.au, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. GAIN Capital Australia Pty Ltd (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.