CoinWire reports:
Capital.com announced today (Monday) that it will no longer charge overnight financing fees on contracts for difference (CFDs) for stocks and cryptocurrencies. This change exempts traders holding positions overnight from certain costs incurred after a trading day, potentially benefiting traders favoring longer-term strategies.
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Capital.com Cancels Overnight Fees for Non-leveraged Stock and Crypto CFDs
This decision comes as Capital.com observes a shift among retail traders towards longer holding periods, particularly in the stock and cryptocurrency markets. According to the company’s data, in the second quarter of 2024, 89% of non-leveraged overnight positions were in stocks and cryptocurrencies, whereas commodities accounted for only 28%.
Dana Massey, Chief Product Officer at Capital.com, stated, “Our data indicates retail traders are moving beyond day trading, experimenting with different trading styles including holding longer positions in popular stocks and cryptocurrencies. To support this journey, we have decided to eliminate funding adjustments for non-leveraged CFD trading in stocks and cryptocurrencies.”
Data from the platform shows that traders holding overnight stock positions typically maintain them for 7 days, while cryptocurrency traders average 4 days before closing. In contrast, positions in indices and commodities are typically closed after 3 days.
Massey added, “With overnight funding at 0% for popular markets like stocks and cryptocurrencies, our traders can confidently explore longer-term investment strategies without the concern of additional costs.”
The new policy is effective immediately and applies only to overnight financing for 1:1 leveraged CFD trades in stocks and cryptocurrencies. Trading with other leverage ratios or in different markets remains unaffected.
With client trading volumes surpassing $1 trillion in 2023, Capital.com continues to adapt its offerings to meet the evolving needs of retail traders. Recent changes include a July collaboration with TradingView, a popular charting platform aimed at providing traders with more advanced charting access.
Personnel Changes at Capital.com
Recently, Capital.com has been active in the job market, alongside launching new product updates. Last week, Patricia Lyn Dixon announced on LinkedIn her recent appointment as Global Programming Director at Capital.com. She joins from an Amazon advertising company where she served as a programming solutions consultant for over two years.
Earlier this month, the broker also welcomed Tarek Mahassen as the new Risk Director for the Middle East and North Africa region. His appointment follows a two-year tenure at Revolut, where his last role was Senior Operational Risk Manager. Prior to that, Mahassen held responsibilities in business risk management at a prominent fintech firm in London.
Another significant development in June was the appointment of Campbell MacPherson as CEO overseeing Capital.com’s operations in Australia. Before joining Capital.com, MacPherson served as Regional Sales Director at FactSet, leading initiatives to expand the company’s business footprint across various asset classes in the Pacific region.
