Broker of the month: City Index, read our expert and client reviews here
Maring rates are high, as with all cryptocurrencies, as volatility is still high and liquidity relatively low.
|Market||Dealing hours ||One point means||Minimum bet||Minimum spread ||Guaranteed stop premium ||Retail margin required ||Professional margin required |
If you are trading cryptos it’s also worth keeping an eye on the overnight funding charges as they can be quite high.
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Our daily overnight funding rate is currently 0.0347% (12.5% per Annum) for Bitcoin and 0.0556% (20% per Annum) for all other cryptocurrency markets. At present, clients with a long position will pay this overnight funding rate, while clients with a short position will receive on the overnight funding rate. In addition, a 7.5% per-annum IG admin fee will also apply for both long and short positions.
What the above (from IG’s website) is that you’ll pay 20% of the value of your position over a year in funding charges when you trade crypto on margin.
Normal overnight funding for established markets like Index, Forex and stock CFDs and spread betting are around 2.5%. But then again, the costs for brokers to hedge cryptos are high as the market is still in it’s infancy.
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Richard started the Good Broker Guide in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously acting as multi asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2000.