Capital.com, the high-growth retail trading platform whose client trading volumes surpassed $1trillion in 2023, has announced it will remove overnight funding for non-leveraged (1:1 leverage) CFD trades on shares and cryptocurrencies (crypto trading is not available to retail clients in the UK). The decision to do away with overnight adjustments for key markets underpins Capital.com’s commitment to help traders reduce their cost as they explore longer-term, investment-style strategies.

This move is driven by a growing trend among retail traders toward longer-term trading, specifically across stocks and cryptocurrency markets. According to data from Capital.com, 89% of all non-leveraged overnight positions in Q2 2024 were in stocks and cryptocurrencies, compared to just 28% in commodities. 

“Our data shows that retail traders are moving beyond day-trading to experiment with different trading styles, including taking longer-term positions in popular stocks and cryptocurrencies. To support them in this journey, we have taken the decision to remove funding adjustments for non-leveraged CFD trades on shares and cryptocurrencies. This reflects our ongoing commitment to provide a trading environment that is cost-effective and responsive to our clients’ diverse trading needs,” said Dana Massey, Chief Product Officer, Capital.com.

The data reveals that traders holding overnight positions in stocks and cryptocurrencies usually keep them open for longer periods compared to traders across other markets. 

On average, traders with overnight positions in stocks hold them open for up to 7 days, while cryptocurrency traders do so for an average of 4 days. In contrast, traders in indices and commodities typically close their positions after just 3 days.

“We want to give our traders  the flexibility to keep their trades open for longer.  With 0% overnight funding on popular markets like shares and cryptocurrencies,  our traders have peace of mind to explore longer-term, investment style strategies without worrying about the additional cost burden,” added Dana.

Effective immediately, Capital.com traders will have the flexibility to keep their trades open for longer without incurring additional costs. This change only affects overnight funding on 1:1 leverage CFD trades on shares and cryptocurrency markets. Trades using other leverage ratios, or on other markets, are not affected. Overnight funding refers to dealing costs inherent in holding a position overnight.