CFD Broker that only charges for earnings
CFD Broker that only charges for earnings
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Thorolus · External communityPost link
External question — Quantitative Finance Stack Exchange
Author: Thorolus
Original post: https://quant.stackexchange.com/questions/37771
License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/
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I've created a small piece of software that allows me to invest into CFDs and gain some small profits. However, most brokers I've found require high opening/closing fees that are in most cases a way larger than my earnings (It does rely on small movements and only holds it for a few minutes). Is anyone of you in aware of a broker that has very small opening / closing fees or, even better, that only charges for my profits?
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rbm · External communityPost link
External answer — Quantitative Finance Stack Exchange
Author: rbm
Original post: https://quant.stackexchange.com/a/37775
License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
that only charges for my profits
- do you understand how CFDs work?
For the sake of simplicity, there are four aspects to CFD trading:
(1) bid/offer spread - differs on whether you're doing OTC contract, or have DMA access
(2) margin requirements - usually tiered and each tier has % of required margin
(3) overnight funding
(4) commissions - there are CFDs with no commissions (e.g. cash indices, futures); and there are CFDs where commissions are calculated as % (e.g. equity CFDs).
So, to dissect your question:
invest into CFDs
- CFD is a contract, you need to be specific - what is the underlying asset?
high opening/closing fees
- depends on asset class, see above
only holds it for a few minutes
- you're trying to scalp the market. Some brokers may not like that.
only charges for my profits
- no, that's not how CFD operate.
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Quoted from Forex.com.bd-Editorial External question — Quantitative Finance Stack Exchange Author: Thorolus Source score (net votes, not local likes): 0 Original post: https://quant.stackexchange.com/questions/37771 License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I've created a small piece of software that allows me to invest into CFDs and gain some small profits. However, most brokers I've found require high opening/closing fees that are in most cases a way larger than my earnings (It does rely on small movements and only holds it for a few minutes). Is anyone of you in aware of a broker that has very small opening / closing fees or, even better, that only charges for my profits?
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