CFD COMMISSION & PRICING

Boston Merchant Financial CFDs offer you a cost-effective way to access the markets of your choice. In every market we cover, we offer highly competitive spreads and charges.

Spreads

The spread is the gap between the prices at which you go long or short on a particular market. If you are offered a spread on the UK 100 Index of 6016/6018, that 2-point gap separates the price above which you will profit from a rise if you go long from the one below which you will profit from a fall if you go short. Go long, and you will profit from every point that the UK 100 reaches above 6,018. Go short, and you will profit from every point that it falls below 6,016.

Dividend adjustments

The UK 100 CFD will be subject to a dividend adjustment for positions held at the close of business on the day before an ex-dividend date (usually this applies to positions held at close of business on a Tuesday). This is to reflect the fact that the UK 100 Index will (everything else being equal) open at a lower level on this date as some of the constituent members go ex-dividend. A dividend adjustment is credited to long CFD positions and debited from short CFD positions

Transaction on equity, forex and indices CFDs

Our equity prices mirror the underlying market prices of the shares themselves. Because there is no spread beyond the market bid / offer prices, we charge a small transaction on each equity CFD trade.

Financing charges

Overnight financing charges are applied on rolling positions – positions that have no set expiry and close only when you choose. As with our spreads, these charges are set to maximize your investment potential.

On equities positions, for example, overnight long rolling positions will be debited a financing charge of LIBOR + 3.5%, while short rolling positions will be credited finance of LIBOR - 3.5%. Similarly competitive rates are applied across all markets.