What is the Exchange-Traded Fund (ETF) CFD financing cost?

At FXCM, the financing cost for your CFD trade is referred to as rollover. This is the interest paid for holding a position past 5 PM EST and is based on the size of the position.

The formula for financing cost is as follows:

[Last Close Price * [(Relevant Benchmark Rate/100) + FXCM's Markup]/Number of Days] * Trade Size * 0.1

Days in a year - 360 for US and EU ETF CFDs and 365 for UK ETF CFDs.

Note that the financing markup for long positions on CFDs is +5.25% and for short positions is 2.75%.

Financing costs are rounded to five decimals.

To account for holding a position into the weekend, there is a 3X rollover on Fridays. Additionally there is no rollover on holidays, but an extra days’ worth of rollover before the holiday.

To avoid rollover, you can close your position before Daily Market Close or 5PM EST and the charge would not apply. 

Upcoming dividends may also impact overnight holding costs, for more information regarding ETF dividends please click here.