Capital.com Cuts Overnight Fees on Key CFDs

Capital.com has announced it will no longer charge overnight funding fees on non-leveraged contracts for difference (CFDs) trades for stocks and cryptocurrencies. This strategic move comes as the company observes a shift in retail trader behavior towards longer-term investment strategies, particularly in stock and cryptocurrency markets.

Zero Overnight Fees

The new policy eliminates specific fees for traders who maintain positions beyond a single trading day, which can benefit those who prefer to engage in extended holding periods. This change reflects Capital.com’s commitment to adapting its offerings to meet evolving trader preferences and providing more cost-effective trading solutions.

Dana Massey, Chief Product Officer at Capital.com, explained the rationale behind this decision: “Our data shows that retail traders are moving beyond day trading to experiment with different trading styles, including taking longer-term positions in popular stocks and cryptocurrencies. To support them in this journey, we have taken the decision to remove funding adjustments for non-leveraged CFD trades on shares and cryptocurrencies.”

According to company data, 89% of all non-leveraged overnight positions in Q2 2024 were in stocks and cryptocurrencies, compared to just 28% in commodities. The platform’s data further reveals that traders holding overnight stock positions typically maintain them for up to seven days, while cryptocurrency traders average four days. In contrast, positions in indices and commodities are usually closed after just three days. This trend demonstrates a growing investor preference for holding positions over longer intervals, particularly in the thriving sectors of stocks and cryptocurrencies.

The new policy on overnight fees is effective immediately and applies exclusively to 1:1 leverage CFD trades on shares and cryptocurrency markets. Trades using other leverage ratios or on different markets remain unaffected by this change.

In addition to removing overnight fees, Capital.com continues to adapt its offerings to meet the changing demands of retail traders. Recently, the company has been active in introducing new product updates and expanding its team. For instance, they appointed a new Global Head of Programmatic from Amazon Ads and a new Head of Risk for the MENA region from Revolut. These strategic hires illustrate Capital.com’s commitment to enhancing its operational capabilities and improving customer service.

Moreover, Capital.com has partnered with a leading charting platform to offer traders access to more advanced charts and analytical tools. This partnership aims to give users better insights and enhance their trading experience.