Capital.com Removes Overnight Funding for Non-Leveraged Stock and Crypto CFDs

Leading retail broker Capital.com announces the elimination of overnight funding for non-leveraged CFDs on stocks and cryptocurrencies.

Key Insights

  • Capital.com eliminates overnight funding for non-leveraged stock and crypto CFDs
  • Decision driven by trend towards longer-term trading in these markets
  • Change aims to support traders exploring investment-style strategies

LONDON (MarketsXplora) – Capital.com, a leading retail forex and CFD broker, announced on Monday it will eliminate overnight funding charges for non-leveraged (1:1 leverage) CFD trades on shares and cryptocurrencies, a move aimed at supporting longer-term trading strategies.

The decision comes in response to a growing trend among retail traders towards extended holding periods, particularly in stock and cryptocurrency markets. Capital.com’s data reveals that in Q2 2024, 89% of all non-leveraged overnight positions were in stocks and cryptocurrencies, compared to just 28% in commodities.

“Our data shows that retail traders are moving beyond day-trading to experiment with different trading styles, including taking longer-term positions in popular stocks and cryptocurrencies,” Dana Massey, Chief Product Officer at Capital.com, told MarketsXplora.

The company’s analysis indicates that traders with overnight positions in stocks typically hold them for up to 7 days, while cryptocurrency traders average 4 days. In contrast, positions in indices and commodities are usually closed after just 3 days.

“We want to give our traders the flexibility to keep their trades open for longer,” Massey added. “With 0% overnight funding on popular markets like shares and cryptocurrencies, our traders have peace of mind to explore longer-term, investment-style strategies without worrying about the additional cost burden.”

The change, effective immediately, only affects overnight funding on 1:1 leverage CFD trades on shares and cryptocurrency markets. Trades using other leverage ratios or on other markets remain unaffected.

Capital.com operates licensed subsidiaries in the UK, Australia, Cyprus, and the UAE. The company and its sister brand Currency.com are controlled by British tech entrepreneur Victor Prokopenya.

It’s worth noting that crypto trading is not available to retail clients in the UK through Capital.com’s platform.

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