How to view and calculate the overnight fee on Capital.com

TutorialsApril 8, 2022

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Traders often want to find out the swap fees before opening a trading account at a broker. Capital.com is known for being a commission-free broker, low spreads, and competitive overnight fees. The following article knows about an overnight fee on Capital.com.

What is the overnight fee?

The overnight fee is an interest a trader must pay for holding a leveraged CFD position overnight. When trading CFDs, if a user opens a buy order using leverage, they need a small amount of capital to deposit and the remaining money to open a loan order from the broker. The broker charges interest on this loan called the rollover fee.

Swap fees vary depending on the risk level of each particular asset and the amount of leverage at the time the trader opens the position. If the trader does not close the order before the market completes, they must pay this rollover fee. Typically, market closing hours are 21:00 or 22:00 UTC and vary in summer or wintertime. Different asset classes also have other trading hours.

Some highlights of overnight fees on Capital.com

Capital.com is a broker that allows clients to trade CFDs on over 3,000 different asset classes, including indices, commodities, cryptocurrencies, stocks, and currency pairs. Capital.com has web and mobile platforms that are pretty user-friendly. This broker is known for its transparent quotes, no hidden fees, a system of trading tools, and a free trading tutorial platform through Investmate. In particular, Capital.com applies low overnight prices, high execution speed, and low spreads.

Most other CFD brokers apply an overnight fee for all orders opened on the same account. In that case, Capital.com only has an overnight fee on the leverage provided for each asset class, each transaction individually. It is an advantage that makes Capital.com highly appreciated by traders, especially long-term investors in stocks and cryptocurrencies.

* See more: The complete guide Capital.com from a to z

Capital.com’s overnight fees vary from instrument to instrument. Traders can find specific swaps in Capital.com’s market dashboards.

From July 16, 2021, Capital.com discounts on an overnight fee on popular CFD trading tools to help bring back the market-leading competitive swap rates and the inherently low spread.

CFD Trading InstrumentLong position, Yearly, %A short position, Yearly, %
Gold-0.54-0.29
Silver-0.64-0.26
US100-0.94-0.81
UK100-0.89-0.82
DE30-0.49-1.26
EURUSD-0.940.06
GBPUSD-0.51-0.36
USDJPY-0.29-0.65

View the overnight fee on Capital.com

To view the swap rates for specific assets on Capital.com, do the following:

On the mobile app, click search and select an asset you want to see transaction fees on Capital.com, scroll down to find [Overnight Fee].

Capital.com has an overnight fee on the leverage provided with each asset, each transaction. How to view an overnight fee on Capital.com

On the computer, select a specific asset, click the [Market Info] tab in the left corner of the screen, scroll down to see the swap time and the swap rate for buy and sell orders.

Capital.com has an overnight fee on the leverage provided with each asset, each transaction. How to view an overnight fee on Capital.com

How to calculate the overnight fee on Capital.com?

Overnight fees on Capital.com vary with buy and sell orders. If opening a leveraged buy order, the trader must pay the rollover fee. Conversely, the trader can sometimes get a rollover to the account if a sell order is used.

How overnight fees are calculated on Capital.com is also different for each asset class. However, on Capital.com, there is detailed information about each asset class’s overnight fees, so traders do not need to remember this exact calculation formula.

The overnight fee for stocks and indices in Capital.com are the same:

  • Trade size x Closing price x (3% +/- LIBOR) / 100% / 365 (or 360)
  • Trade size is the number of shares.
  • The closing price is the asset’s value at the close (usually at 22:00 UTC).
  • LIBOR is the one-month interbank rate.
  • 3% is Capital.com’s profit calculated to cover the risk of holding a client’s position overnight.
  • 365 or 360 depending on the currency: the formula for shares traded in GBP uses 365; 360 is used for other currencies.

The overnight fee for Forex CFDs are as follows:

  • Trade Size x (0.7% +/- Tom next%)
  • Tom-next is the interest rate differential of two currencies.

Swaps for commodity CFDs are based on the underlying contract’s holding costs before and in the future for that commodity.

The cryptocurrency market’s overnight fees depend on the volatility rate of cryptocurrencies and can be reviewed and changed daily. Trading hours also vary.

Conclusion

The overnight fee is an essential fee that can affect trading performance. Capital.com only applies the overnight fee to leveraged trades, and each market selects leverage individually. Thus, Capital.com users can easily buy US stocks or cryptocurrencies for long-term holding without worrying about overnight fees by not using leverage with these markets.

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