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Competitive pricing on 6,000+ global markets
We offer both fixed and variable spreads depending on the market you wish to trade.
Fixed spreads don't change according to market conditions such as volatility or liquidity. Fixed spreads may either be offered for a defined period of the day, or throughout trading hours.
Variable spreads may fluctuate throughout the day according to different factors such as underlying liquidity or market volatility. With variable spreads, City Index will quote you the minimum spread it could be, plus an average spread for a defined historical period of time.
Margin (Step margin)
Margin is the amount of money you need in order to open a position on a market with us. You can find out more about margin and leverage as well as the benefits of trading on margin in our Education section.
The larger the trade size, the higher the risk level associated with the trade. Therefore we may increase our margin requirements for larger size trades or any additional trades in that instrument. Below is an example of how this may work:
If you’re trading on the MetaTrader 4 platform, then different spreads and pricing may apply to markets. Please refer to the Market Information Sheet for each market in the MT4 platform.
How are trading fees calculated?
There are two main fees you’ll encounter when trading the markets: the spread and overnight financing. Each covers a different aspect of your position and is calculated differently.
The spread is the cost to open and close your trade. To calculate how much you’ll pay via the spread, simply take your position’s value per pip – the City Index platform calculates this automatically on your deal ticket – and multiply it by the current spread.
Overnight financing is the cost to maintain your overnight, which is essentially capital you have borrowed to make your trade. It’s calculated using the relevant rate benchmark for your chosen market. If you’re long, you’ll pay 2.5% more than the current benchmark, if you’re short we’ll pay you 2.5% minus the current benchmark.
To trade equities, you’ll also pay commission. Because of this, spreads are typically much tighter on equity markets.
What is the spread?
The spread is the difference between the buy and sell prices on a market. The buy price (or ask price) is always slightly higher than the market’s current level, and the sell (or bid price) slightly lower.
The spread reflects the difference between the prices buyers are willing to pay for an asset and sellers want to receive for it. When you trade CFDs, it also includes your cost to open and close your position – so instead of paying commission, you’ll pay a slightly wider spread.
Share CFDs are the only exception to this. When you trade shares with CFDs, you’ll pay commission to cover the cost of your trade, meaning spreads are typically much tighter.
What is the difference between fixed and variable spreads?
Fixed spreads don’t change, even if the conditions surrounding a market change. Variable spreads, on the other hand, may fluctuate over the course of the day – usually in response to changes to volatility or liquidity.
Some markets may have a fixed spread that changes at clearly defined periods of the day. For example, a market might have a spread of 1 point from 8:00 to 16:30, but 2 points from 16:30 to 22:00.