Traders often want to find out swap fees before opening a trading account with a broker. Capital.com is known to be a commission-free broker, low spreads and competitive overnight commissions. The following article knows a nightly rate on Capital.com.
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What is the overnight rate?
The overnight fee is an interest that a trader must pay to hold 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 level of risk 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 is completed, he must pay this rollover fee. Typically, market closing times are 21:00 or 22:00 UTC and vary in summer or winter. Different asset classes also have other trading hours.
Some highlights of nightly rates 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 quite 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 charge an overnight fee for all orders opened on the same account. In that case, Capital.com only has an overnight fee on 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. Overnight Capital.com fees vary from instrument to instrument. Traders can find specific swaps in Capital.com’s market dashboards.
As of July 16, 2021, Capital.com discounts on an overnight commission on popular CFD trading instruments to help bring back market-leading competitive swap rates and inherently low spreads.
| CFD Trading Instrument | Long Position, Annual, % | A short position, Annual, % |
| gold | -0.54am | -0.29am |
| silver | -0.64 | -0.26am |
| US100 | -0.94am | -0.81 |
| United Kingdom100 | -0.89 | -0.82 |
| DE30 | -0.49am | -1.26 |
| EURUSD | -0.94am | 06.06 am |
| GBPUSD | -0.51 | -0.36am |
| USDJPY | -0.29am | -0.65am |
View overnight rate on Capital.com
To view swap rates for specific assets on Capital.com, do the following:
In the mobile app, click Search and select a resource on which you want to view transaction fees on Capital.com, scroll down to find [Overnight Commission].
On your computer, select a specific asset, click the [Market Information] tab in the left corner of the screen, scroll down to see the swap time and swap rate for buy and sell orders.
How to calculate the overnight rate on Capital.com?
Overnight commissions on Capital.com vary with buy and sell orders. If you open a leveraged buy order, the trader must pay the rollover fee. In contrast, the trader can sometimes get a rollover on the account if a sell order is used. The way overnight fees are calculated on Capital.com is also different for each asset class. However, on Capital.com, there is detailed information about the overnight fees of each asset class, 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)
- The size of the trade is the number of shares.
- The closing price is the value of the asset at closing (usually at 22:00 UTC).
- LIBOR is the one-month interbank rate.
- 3% is the profit of Capital.com calculated to cover the risk of holding a client’s position overnight.
- 365 or 360 depending on currency: the formula for shares traded in GBP uses 365; 360 is used for other currencies.
The overnight fee for Forex CFDs is as follows:
- Commercial size x (0.7% +/- Tom next%)
- Tom-next is the interest rate differential of two currencies.
Swaps for commodity CFDs are based on the costs of holding the underlying contract before and in the future for that commodity.
The overnight fees of the cryptocurrency market 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, users Capital.com can easily buy US stocks or cryptocurrencies for long-term holding without worrying about overnight fees by not using leverage with these markets.
