Save Cost with Capital.com | Removal of Overnight Charges for Non-Leveraged CFDs

In a strategic move aimed at reducing trading costs for investors exploring longer-term strategies, Capital.com, a leading retail FX and CFDs broker, has abolished overnight funding fees for non-leveraged (1:1 leverage) CFD trades on shares and cryptocurrencies. Effective immediately, this decision underscores Capital.com's commitment to accommodating evolving trader preferences, though cryptocurrency trading remains restricted for UK retail clients.

The decision reflects a growing trend among retail traders favouring extended holding periods, particularly in stocks and cryptocurrencies. Capital.com's data for Q2 2024 indicates a significant 89% of non-leveraged overnight positions in these markets, contrasting sharply with just 28% in commodities. This shift highlights the diversification in trading strategies among retail investors, moving beyond traditional day-trading practices.

Dana Massey, Chief Product Officer at Capital.com, emphasized the firm's commitment to providing a cost-effective trading environment aligned with client needs. Massey noted that traders tend to maintain overnight positions in stocks and cryptocurrencies longer than in other markets, with average holding periods of seven days and four days, respectively. In contrast, positions in indices and commodities are typically closed within three days.

The adjustment specifically impacts overnight funding fees for 1:1 leverage CFD trades on shares and cryptocurrencies, excluding trades with different leverage ratios or in alternative markets. Overnight funding refers to the costs incurred for holding positions overnight. By eliminating these fees in key markets, Capital.com aims to enhance trading conditions and support traders exploring longer-term investment strategies.