CFD Overnight Funding Fees Compared
Overnight funding — also called a swap, holding or financing charge — is a daily fee you pay to keep a leveraged CFD position open past the broker's cut-off time. It reflects the cost of the borrowed exposure that leverage provides, and it accrues every day you hold, compounding the longer you stay in. Every CFD broker in this comparison — Plus500, Capital.com, AvaTrade, Fortrade and Pepperstone — charges overnight funding on positions held overnight. Because it compounds daily, it is usually the largest cost of holding a CFD for anything but a very short trade. CFDs are high-risk leveraged products; the details below come from each broker's data, verified June 2026.
Reviewed by Yaniv Barshaf · Fees verified June 2026 · Our methodology
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Plus500: 80% of retail CFD accounts lose money.
Additional fees apply, including an Overnight Funding Fee, a Currency Conversion Fee, an Inactivity Fee, and a Guaranteed Stop Order (a wider spread is applied once used).
Plus500CY Ltd is authorized & regulated by CySEC (#250/14).
| Broker | Overnight / holding cost | Notes |
|---|---|---|
| Plus500CFD | Overnight funding fee applies to positions held overnight | Overnight funding fee applies to positions held overnight. |
| Capital.comCFD | Variable spreads on CFDs; overnight funding on held positions | Overnight funding on positions held overnight; spreads from 0.6 pips. |
| PepperstoneCFD | Very low (EUR/USD from ~0.1 pips on Razor); overnight swaps on held positions | Overnight swaps on held positions; very low Razor spreads from ~0.1 pips. |
| AvaTradeCFD | Fixed spreads on CFDs and forex; overnight financing on held positions | Overnight financing on held positions; fixed spreads from 0.9 pips. |
| FortradeCFD | Spread-only pricing on CFDs and forex; overnight holding costs on open positions | Overnight holding costs on open positions; spread-only pricing. |
Fee data verified June 2026 from each broker’s published schedule. Figures are estimates of published costs, not quotes — confirm current fees on the broker’s own site before opening an account.
What overnight funding is and why it exists
When you open a CFD you put down only a small margin deposit, and the broker effectively finances the rest of the position through leverage. Overnight funding is the daily charge for that financing: it is the cost of borrowing the exposure you did not fund yourself. Each day a leveraged position remains open past the broker's daily cut-off, the funding charge is applied, typically calculated from a benchmark interest rate plus the broker's markup, scaled to the full size of your position rather than just your margin. Because it is levied on the whole exposure, it can be substantial relative to your deposit. The charge exists for long positions where you are effectively borrowing to hold; on short positions the funding calculation can sometimes work in your favour or against you depending on rates. The key point is that overnight funding is a time-based cost — the longer you hold, the more you pay.
Why overnight funding is the biggest cost of holding a CFD
For short-term trading, the spread is the main CFD cost and overnight funding may barely apply. But the moment you hold a leveraged position across multiple days, funding becomes the dominant charge, because it accrues daily and compounds. A tight spread paid once at entry is a fixed cost; overnight funding is a recurring cost that keeps mounting for as long as the position is open. This is precisely why CFDs are structured for short-term speculation rather than long-term investing: holding a leveraged CFD for months can accumulate funding charges that dwarf the initial spread and can seriously erode or eliminate any gain. If your intention is to hold an asset for the long term, owning the real share — with no daily funding cost — is almost always cheaper than a CFD. Overnight funding is the mechanism that makes long-term CFD holding uneconomic. Capital at risk.
How the brokers compare
All five CFD brokers here — Plus500, Capital.com, Pepperstone, AvaTrade and Fortrade — apply overnight funding on positions held past their daily cut-off, so none avoids it. Where they differ is the overall cost structure around it. Capital.com and Pepperstone pair funding with very tight spreads (from around 0.6 pips and 0.1 pips on EUR/USD respectively), which lowers the entry cost for active traders; Pepperstone's Razor account adds a per-lot commission in exchange for those razor-thin spreads. AvaTrade offers fixed spreads from 0.9 pips, and Fortrade uses a simple spread-only model with wider spreads around 2 pips. Plus500 charges overnight funding alongside its variable spreads. The exact funding rate varies by instrument, direction and prevailing interest rates, so no single headline number captures it — always check the specific instrument's funding rate on the broker's platform before holding overnight, as it can change with market rates.
How to reduce or avoid overnight funding
There are a few ways to manage overnight funding, though the surest is not to hold leveraged CFDs overnight at all. Day traders who open and close within the same session before the cut-off avoid the charge entirely, which is one reason funding pushes CFD strategies toward shorter holding periods. If you do hold overnight, keep positions small relative to your capital, since funding scales with the full position size, and check the per-instrument funding rate before committing. For any genuine long-term view on an asset, the cleanest way to avoid overnight funding is to step outside CFDs altogether and buy the real underlying share or ETF through a share-dealing platform, where there is no daily financing charge and you own the asset. In short, overnight funding is unavoidable while a leveraged CFD is held overnight, so the practical levers are holding time, position size and, ultimately, whether a CFD is the right instrument for your time horizon at all. Capital at risk.
Overnight funding versus owning the real asset
The contrast with owning the underlying asset is stark and worth internalising. Buy a real share and you can hold it indefinitely with no daily funding cost, collecting full dividends and keeping shareholder rights; your only trading costs are the one-off dealing charge and any FX fee. Hold the same exposure as a leveraged CFD and you pay overnight funding every day, receive only a dividend adjustment rather than a real dividend, and own nothing. Leverage lets a CFD command more exposure from less upfront capital, but that same leverage is what generates the funding charge and amplifies losses. For short-term directional trades where speed and the ability to go short matter, a CFD can suit; for building wealth over years, the funding cost makes CFDs the expensive choice and real share ownership the sensible one. The majority of retail CFD accounts lose money, so weigh the instrument, not just the fee. Capital at risk.
Frequently Asked Questions
What is CFD overnight funding?
It is a daily charge for keeping a leveraged CFD position open past the broker's cut-off time, reflecting the cost of the borrowed exposure that leverage provides. It is calculated on the full position size and accrues every day you hold, so it compounds the longer the position stays open. Capital at risk.
Which CFD brokers charge overnight funding?
All of them in this comparison — Plus500, Capital.com, AvaTrade, Fortrade and Pepperstone — apply overnight funding on positions held past their daily cut-off. It is a standard CFD cost, so no mainstream CFD broker avoids it; they differ mainly on the spread and commission around it.
How do I avoid overnight funding fees?
The surest way is not to hold a leveraged CFD overnight: day traders who close positions within the session before the cut-off avoid the charge entirely. For a genuine long-term view, owning the real underlying share or ETF avoids daily funding altogether, since there is no financing charge on assets you own outright.
Why are CFDs expensive to hold long term?
Because overnight funding accrues daily and compounds, a leveraged CFD held for weeks or months can accumulate funding charges that dwarf the initial spread and erode any gain. This makes CFDs suited to short-term trading, whereas owning the real asset carries no daily funding cost. Capital at risk.