City Index charges and information

When you buy a CFD the underlying shares are purchased in the market by the CFD provider. You put up the margin and the provider lends you the balance. So as well as paying commission you are also charged interest (see below), but bare in mind you are not liable for stamp duty. Conversely, you will earn interest if you sell stock short.

Minimum deposit for opening an account £250
Commission on all trades 0.2% minimum £15
Financing charge on Long trades Libor + 2.25% of the consideration
Interest on Short trades Libor - 2.25% of the consideration

Charges for automatic Guaranteed Stop-loss (equity minimum 3% away from price, FTSE-100 40 points):

Equity: 0.2% of consideration Index: variable (i.e. FTSE-100 charge is 2 points)

Read the CFD traders diary here.