FX Financing Rates

FX financing is typically the interest charged or earned for holding positions overnight. We strive to keep your trading costs low by sourcing institutional financing rates and pass them to you at a competitive price.

  • You can earn or pay when financing is applied to your position
  • Financing is only applied to open trades at 5pm ET
  • Other brokers may calculate financing continuously, raising your trading costs
To learn more, please visit our FX financing FAQ.

What is FX Financing?

When trading a currency, you are borrowing one currency to purchase another. The FX financing rate is typically the interest charged or earned for holding positions overnight. The fee is calculated based on the difference between the two interest rates of the traded currencies.

Have questions? We've got answers.

FX financing rates are based on the interest rate differential of the two currencies and the spot price. However, FX financing rates can be impacted by market conditions, especially at the end of a quarter or year. We periodically review our financing rates and adjust them to fit with current market and industry conditions.

At City Index, financing is processed daily at 5:00pm ET, at which time any open positions will be rolled and a debit or credit applied to your account. We do not charge financing on intraday trades.

Financing is not applied to intraday trades. No interest is paid or received if you open and close a position within the same trading day after 5pm ET and before 5pm ET the following day. Other brokers may apply financing on a continuous, second-by-second basis. This policy may ultimately end up raising your total trading costs, especially if the broker's financing is not competitive.