Commodities Commission & Financing
Commission
We do not charge any commission on trading Commodities. The price you see is the price you
get1. We make our money from the spread, which is the difference between the Buy price and the Sell price. We endeavour at all times to keep this spread as narrow as we can.
Financing
All rolling Commodities markets are subject to overnight financing. If you are long Commodities (ie you have a position on which you will profit if the market concerned goes up) then as you have only put up a fraction of the actual value of the trade then you have 'effectively borrowed' the balance. For this we charge a financing charge of 2% above the overnight borrowing rate for the currency concerned.
If you had gone short on Commodities (ie you have a position on which you will profit if the market concerned goes down) then you have effectively deposited the entire value of the trade with us and will receive financing which is the overnight lending rate minus 2% (subject to a minimum of 0%).
1Tax laws can change and will vary in jurisdictions outside the UK
