How are the overnight fees on CFD stocks calculated?

The daily fee is calculated based on the size of the trade, as follows:

At the time of publishing, about 98% of stock CFDs available at etoro are classed as easy-to-borrow. The remaining 2% fall under the 'hard-to-borrow' category. The classification of these stocks is subject to change.

The overnight fee and the size of the trade-in units are listed in the Open Trade window before you confirm you wish to open the trade.

Borrow costs may vary over time due to market and interest rate conditions. Learn more here.

Benchmark rates may vary by currency and over time. Learn more here.

Examples

Leveraged buy position

Let's take a buy position of 10 units in AAPL as an example. At the time of writing, the benchmark interest rate is 5%, and the ask (buy) price of AAPL is $191.00.

(6.4% + 5%) / 365 * $191.00 = $0.05965 per unit

x 10 units = $0.60 daily for this trade

Short position (easy-to-borrow stock)

Now let's see an example of a short position in AAPL. At the time of writing, AAPL has an annual borrow cost of 0.25%, and so it is classed as an easy-to-borrow stock.

This means that there is no overnight fee.

Short position (hard-to-borrow stock)

Now let’s see an example of a short position of 10 units in a stock that currently has a bid (sell) price of $175.00 and an annual borrow cost of 11%. The high borrow cost means that it is classed as a hard-to-borrow stock.

11% / 365 * $175.00 = US $ 0.0527 per unit

x 10 units = US $0.53 daily for this trade

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