Charges & Margins

Charges and margins

We are clear about our charges, so you always know what
fees you will incur when you trade with us.

We’re here 24hrs a day from 8am Friday to 10pm Friday (UK time).

Spreads, commissions and margins

You pay a spread on every non-share CFD and you pay commission on every share CFD trade. Find these charges for individual markets below, or see examples of how spreads, commission and margins can affect your positions.

Region

Commission
per side from

Min charge
(online)

Margin required

Australia 0.08% $7 From 10%
US 2 cents per share US$15 From 10%
Euro1 0.10% €10 From 10%
UK 0.10% £10 From 10%
HK 0.18% HKD50 from 10%

 

1 Euro includes: Belgium, Eire, Finland, France, Germany, Italy, Netherlands, Portugal, Spain.

With share CFDs you trade at the real market price, so we don’t attach our own spread. Instead, we take a small commission when you open the position, and again when you close it. In each instance, a minimum charge applies.

Market name

Value
per pip

Min spread

Average spread*

Margin required

Spot AUD/USD

US$10 0.6 1.33 0.5%
Spot USD/JPY Y1000 0.7 1.26 0.5%
Spot EUR/USD US$10 0.6 1.13 0.5%
Spot GBP/USD US$10 0.9 2.38 0.5%

 

*Average spread (Monday 00:00 – Friday 22:00 GMT) for the 12 weeks ending 29th May 2020. For our minimum spreads, please see our forex product details.

The spread is the difference between our Sell and Buy prices. We derive these prices based on the underlying market’s value.

Market name

Value of one contract

Best available spread

Margin per contract

Australia 200
24 hours
AUD25

1
 

0.5%

Wall Street
24 hours

US$10 1.8 0.5%
FT100
24 hours
£10 1 0.5%
US500
24 hours
US$250 0.4 0.5%

Market name

Value of one contract

Spread

Margin per contract

Spot Gold US$100 0.3 0.5%

Spot Silver

US$50 2 2.0%
Oil – US Crude US$10 2.8 1.5%
Oil – Brent Crude US$10 2.8 1.5%

 

 

The spread is the difference between our Sell and Buy prices. We derive these prices based on the underlying market’s value.

Buying Tencent Holdings: detailed
 
CFD
Underlying market/value
Tencent Holdings
Our price
561/562
Trade

Buy at 562

Trade size
1,000 shares
Margin required

Margin = Number of shares x share price (mid price) x margin rate (10%)

1,000 x 561.5 x 10% = HK$56,150

What happens next?
At the end of trading the market closes at 580. It rises again the next day, reaching 600 (the sell price)
Funding

Funding = (One-month bank bill swap rate + 2.5%) x (number of shares x share price) / 360

(0.44% + 2.5%) x (1,000 x 580) / 360 = HK$47.37

Underlying market

600/601

Close

Sell at 600

Gross profit

600 – 562 = HK$38 (Multiplied by 1,000 shares)

Gross profit = HK$38,000

Commission

Commission = Value of position x 0.18% (Minimum HK$50)

(1,000 x 562) x 0.18% = HK$1011.60

(1,000 x 600) x 0.18% = HK$1080

Total commission = HK$2091.60

Total costs

Total costs = Funding + commissions

HK$47.37 + HK$2091.60 = HK$2138.97

Net profit

HK$35861.03 profit subject to tax

What if…

If the underlying market fell to 524 instead (the sell price):

HK$524 – HK$562 = -HK$38

(-HK$38 x 1,000 shares) – (HK$47.37 + 1954.80)

Net loss = HK$40,002.17

Buying AUD/USD: detailed
 
CFD
Market
Spot FX AUD/USD
Price
0.76912 / 0.76920
Trade

Buy at 0.76920 (7,692.0 points)

Deal size

1 standard contract

Equals US$10 per point

Margin required

Margin = Number of contracts x value of one contract x current level (mid price) x margin rate (0.5%)

1 x US$10 x 7,691.6 x 0.5% = US$384.58

What happens next?
AUD/USD climbs 150 points into the next day. This position is held through 10pm London time, when funding is calculated.
Funding

Funding = size x (tom-next rate + TM’s charge for holding positions overnight which is no more than 0.0022% per day)

US$10 x -0.96 = -US$9.60 (so you would actually receive US$9.60 in this instance)

Price

0.78412 / 0.78420

Close

Sell at 0.78412 (7,841.2 points)

Gross profit

7,841.2 – 7,692.0 = 149.2 points

Each contract is worth US$10 per point (so US$10 x 149.2 points)

Gross profit = US$1,492

Costs

0.8 point TM spread (included above)

Funding adjustment = US$9.60 (a credit to your account)
Net profit

US$1,501.60

What if…

What if the market dropped 150 points instead (with a spread of 0.8 points):

US$1,508 – US$9.60

Net loss = US$1,498.40

Buying the Australia 200: detailed
 
Cash CFD
Underlying market/value
ASX 200 JUN15 Future
Our price

Australia 200 Cash

5500.5/5501.5
Trade

Buy at 5501.5

Deal size

1 standard contract

Equals A$25 per point
Margin required

Margin = Number of contracts x value of one contract x index level (mid price) x margin rate (0.5%)

1 x A$25 x 5,501 x 0.5% = A$687.63

What happens next?
The market rallies dramatically, moving up 149 points by 4.50pm, when funding is calculated. It drops back a little overnight, down 10 points from 4.50pm the previous day.
Funding

Funding = (One-month bank bill swap rate + 2.5%) x (size of position) / 360

(1.9% + 2.5%) x (5,650 x A$25) / 360 = $17.26

Underlying market
5639.5 / 5640.5
Close

Sell at 5639.5

Overall market movement & profit/loss

5639.5 – 5501.5 = 138

Each contract is worth A$25 per point (so A$25 x 138 points)

Gross profit = A$3,450

Costs

1-point TM spread (included above)

Funding cost: A$17.26

Net profit

A$3,432.74 net profit subject to tax

What if…

If the market dropped 139 points instead (with a spread of 1 point):

(-139 – 1) x (A$25) – A$17.26

Net loss = A$3,517.26

 

Buying Spot Gold: detailed
 
CFD
Market and price
Spot Gold 1248.06/1248.46
Trade

Buy at 1,248.46

Trade size

1 standard contract

Equals US$100 per point

Margin required

Margin = Number of contracts x value of one contract x level of spot gold (mid) x margin rate (0.7%)

1 x 1,248.26 x US$100 x 0.7% = US$873.78

What happens next?
Spot Gold rallies 10 points into the next day. This position is held through 10pm London time, when funding is calculated.
Funding

Funding = size x (tom-next rate + TM’s charge for holding positions overnight which is no more than 0.0022% per day)

US$100 x 0.12 = US$12

Price
1258.06 / 1258.46
Close

Sell at 1,258.06

Gross profit

1,258.06 – 1,248.46 = 9.6

Value per point = US$100

9.6 x US$100 = US$960
Costs

0.4 point TM spread (included)

Funding cost = US$12
Net profit

US$948

What if…

If the market dropped 10 points instead (with a spread of 0.4 points):

US$1,040 + US$12

Net loss = US$1,052

Funding and interest

Funding and interest charges apply to CFD trades. Find out how we apply funding and interest below, or see examples of how funding and interest can affect your positions.

If you keep a position open overnight we make an interest adjustment to your account, including our fee of 2.5%.* We debit your account if your position is long, and credit your account for a short position – if the interbank rate is greater than 2.5%.*

When trading forex, the funding cost is calculated differently. See the table below.

Long positions

Short positions

Forex positions

We charge 2.5% above the relevant interbank rate.*
 
Eg. If the relevant interbank 1-month rate is 0.5%, you would be charged 3.00% (annualised).
You receive the relevant interbank rate, minus 2.5%.*

If the interbank rate is greater than 2.5%,* we credit your account; if the interbank rate is less than 2.5%,* your account is debited.

Eg. If the relevant interbank 1-month rate is 0.5%, you would be charged 2.00% (annualised).

For forex positions, we charge funding based on the current tom-next rate.

Tom-next shows, in points, the difference between the interest paid to borrow the currency that is being notionally sold, and the interest received from holding the currency.

* 3% on mini and micro CFD contracts.

We offer futures for fixed-expiry trades on stock indices and commodities. We build the overnight funding charges into the spread, so that everything is included. This makes it easier to identify your break-even level on your trade.

Non-share markets

Stock index

Futures spread

Commodity

Futures spread

Australia 200 3 Spot gold 0.6
Wall Street 6 Spot silver 3
Germany 30 6 Light Crude oil 6

 

Log in to your account to view more indices and commodities on offer.

How is funding calculated?

Size for CFDs means number of shares.

Closing price means underlying market price when underlying market closes.

If underlying instrument currency is GBP

Size × closing price × (LIBOR +/- 2.5%) ÷ 365

Based on one-month LIBOR

If underlying instrument currency is USD

Size × closing price × (US LIBOR +/–2.5%) ÷ 360

If underlying instrument currency is EUR

Size × closing price × (EURIBOR +/–2.5%) ÷ 360

The formula uses a 365-day divisor for UK, Singapore and South African shares, and a 360-day divisor for shares in other markets.

A tom-next rather than an interbank rate is used in the calculation of funding costs for forex and spot metals.

Tom-next is the day’s market swap rate for that pair or metal.

Example tom-next rate: -1.39/-0.39.

-0.39 would be used to calculate the funding cost on a long position.

-1.39 would be used to calculate the funding cost on a short position.

Size x (tom-next rate + TM’s charge for holding positions overnight)

CFD

Size means total value of lots (number of lots x value per lot)

Tom-next is the day’s market swap rate for that pair or metal

TM’s charge for holding positions overnight which is no more than 0.0022% per day

Three-day funding is charged on Wednesday 10pm UK time. For more information please visit our FX product details.

Size for CFDs means total contract value (number of contracts x value per contract).

Closing price means underlying market price when underlying market closes.

If underlying instrument currency is GBP

Size × closing price × (LIBOR +/- 2.5%) ÷ 365

Based on one-month LIBOR

If underlying instrument currency is USD

Size × closing price × (US LIBOR +/–2.5%) ÷ 360

If underlying instrument currency is EUR

Size × closing price × (EURIBOR +/–2.5%) ÷ 360

Please note: when trading a non-standard GBP-denominated index CFD, or a mini contract on any asset class, the funding rate is +/-3% rather than +/-2.5%

What is margin?

Margin trading gives you full exposure to a market using only a fraction of the capital you’d normally need.

Margin is the amount of money you need to open a position, defined by the margin rate. 

CFD are leveraged product, you don’t need to pay the full value of your exposure in order to trade. Instead, you’ll only need to put up a fraction of your total exposure to open your position.

There are two types of margin to consider:

Initial Margin

The initial margin is the minimum amount you’ll need to put up to open a position. It is sometimes called the deposit margin, or just the deposit.

Maintenance margin

The maintenance margin, also known as variation margin, is extra money that we might need to request from you if your position moves against you. Its purpose is to ensure you have enough money in your account to fund the present value of the position at all times – covering any running losses.

Margin at Today Markets

At Today Markets we offer competitive margins across our full range of markets.

We operate a tiered margining policy on all our markets, excluding digital 100s.

Smaller trade sizes generally benefit from better market liquidity and these positions attract our lowest margin rates.

Things to Remember

 

  • Ensure you have enough funds in your account to cover both margin and losses.
  • If you have more than one account, the funds in one account will not cover the margin requirement or losses in another.
  • Limit potential losses and reduce your margin requirement by using stops (tier one only).

How are margins calculated?

Share margins
 
CFD
No stop or stop

Number of shares x share price x margin percentage

E.g. 1,000 Tencent Holdings shares at a price of HK$562:

1,000 x 562 x 10% = HK$56,200 margin

Guaranteed stop

The total risk on the position:

 

Value per point x stop distance (in points) + limited risk premium

 

E.g. 1000 Tencent Holdings shares at a price of HK$562, with a stop 5000 points away and 0.3% limited risk premium.

Calculation: (HK$50 x 1,000) + (1,000 x HK$562 x 0.003) = HK$16,686

So the margin requirement is $51,686

FX margins

 

CFD

No stop or stop

Number of contracts x contract size x price x margin percentage

E.g. 2 contracts AUD/USD:

2 x A$100,000 x 0.7690 x 0.5% = $769 margin requirement
 

Guaranteed stop

The total risk on the position:

 

Number of contracts x contract size x stop distance + limited risk premium

 

E.g. 2 standard contracts GBP/USD with a guaranteed stop 20 points way and 1-point limited risk premium.

Calculation: (2 x $10 x 20) + (2 x $10 x 1) = $420 margin

So the margin requirement is $420

Commodity margins

 

CFD

No stop or stop

Number of contracts x contract size x price x margin percentage

E.g. one contract of Oil – US Crude:

1 x $10 x 3350 x 1% = $335
 

Guaranteed stop

The total risk on the position:

 

Number of contracts x contract size x stop distance + limited risk premium

 

E.g. One contract Oil – US Crude with a guaranteed stop 90 points way and 4-point limited risk premium.

Calculation: (4 x $10) + (90 x $10) = $940 margin
So the margin requirement is $940

 

Extra services and charges

For shares CFD trading there are some extra services that we charge for.

Service

Charge

Direct Market Access (DMA) There’s no charge for using DMA to trade CFDs on forex and shares, or buy and sell shares via our share dealing service, though in order to access live DMA prices for some shares you’ll need to pay a monthly exchange fee. 
Live price data feeds Obtaining live share prices from an exchange, whether that’s to trade share CFDs or buy and sell shares via a share dealing account incurs a monthly fee.
ProRealTime Charts Subscribing to real-time charts costs $40 per month. This is refunded if you place four or more trades a month. We reserve the right to charge you for the service if your qualifying trades are of an extremely low value.
Inactivity fee We charge a $18 fee on the first of every month, if no trading activity has occurred for two years or more. 
Account documentation fee We charge a US$50 fee on accounts which have not supplied a mandatory W-8 or W-9 form prior to the dividend ex-date of a qualifying trade on a US-incorporated stock. We do not apply this fee to accounts with up-to-date documentation or accounts which have not entered into qualifying trades. We will notify you if you have entered into a qualifying trade and need to complete a form.
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