Contracts for Difference
All clients (excluding residents of the US, Canada, Hong Kong, Israel and Australia) enjoy electronic access to CFDs, OTC products that let you trade the difference between the current and future price of a share, an index or a currency-pair.
contracts for difference
In addition to the potential tax benefits, trading CFDs offers the following benefits:
- Transparent, Low Commissions and Financing Rates – The starting commission rate is only 0.05% on all share CFDs, with lower rates available for active traders. Overnight financing rates start at only 1.5%, also with lower rates available for larger balances. We challenge you to find a better offering.
- Trade CFDs Alongside the Underlying Shares – Our Universal account lets you view and trade multiple asset types from the same screen. View the CFD ticker on one line and the underlying share ticker on the next. Trader Workstation, our desktop trading platform, supports stocks, options, futures, forex, CFDs, metals, bonds and funds all from the same account statement and same trading window.
- Margin Efficiency – CFD margin requirements are generally more favorable than stock margin requirements, and under no circumstances will they be worse. This is true for both Reg T and Portfolio Margin accounts.
- Efficient CFD Reference Pricing – The CFD price reflects the exchange-quoted price for the underlying share. Efficient Smart Routing technology is used to determine your CFD reference price. With other brokers, you run the risk of not getting the best possible price. Our clients have the ability to add quotes to the exchange book in the same way they would trading stocks.
Index CFDs present an opportunity to gain broad market exposure more easily than with many other instruments. Index CFDs also offer these important benefits:
- Flexible Exposure to Global Markets – IB Index CFDs can be traded in lots as small as 1X the index level. Unlike the related futures, Index CFDs do not expire, saving rollover related costs and risks.
- Low Commissions and Financing Rates – Depending on the index, commission rates are only 0.005% – 0.01%. Overnight financing rates are just benchmark +/-1.5%.
- Transparent Quotes – The Index CFD quotes accurately represent the spreads and price movements of the related future*, and there are no requotes. What you see is what you get.
- Margin Efficiency – Index CFDs are margined at the same low rates as the related future, adjusted for contract size.
- Direct Access to Interbank Quotes – No hidden price spreading, no markup, no kickbacks. Just the combination of real time prices from 14 of the world’s largest FX dealing banks plus a transparent, low commission that avoids the conflict of interest of FX platforms which deal for their own account.
- ECN-Like Market Structure – Our order book allows you to set orders away from or between the markets, and trade with other clients as well as with the liquidity-providing banks.
- Automatic Overnight Position Rolls – For positions held overnight, a straightforward interest credit or charge based on the difference in the benchmark rates for the two currencies and a low spread.
- FX Trader – Trade IB Forex CFDs in FXTrader, which includes real-time streaming quotes, up and down indicators, trading volumes, pending trades, executions, positions, and average price plus P&L.
- CFD Trading is not suitable for all investors. Due to the leveraged nature of CFDs, trading these products may expose clients to losses which may exceed their initial investment.
- Your CFD agreement is with Interactive Brokers (U.K.) Limited, which is authorized and regulated by the Financial Conduct Authority (“FCA”), register number 208159.