What are the overnight financing costs on gold CFDs?
Verdict
- Pepperstone, our pick for UK gold traders, charges overnight financing on spot gold CFDs and spread bets still open after 10 pm UK time, worked out on the full value of the position.
- The rate is interest-based and differs for longs and shorts; the current figures sit in the platform's contract details, not on Pepperstone's UK web pages.
- Pepperstone's swap-free account isn't available to UK residents, so there's no financing-free gold account for UK clients at Pepperstone.
- Close before 10 pm UK time and you pay only the spread: 0.12 average on Razor plus commission, or 0.19 on Standard.
Gold is a market people often hold for weeks, so the nightly charge can end up costing more than the spread. Here's how Pepperstone applies it, a worked example on a £15,000 position, and the options for keeping holding costs down.
How Pepperstone charges gold financing
Pepperstone's UK costs page says overnight fees apply to positions held past 10 pm UK time, on spot gold as on other markets, and on both CFDs and spread bets. The amount is calculated on the full position, not on the margin, and is debited for each night (a short can sometimes receive a small credit, depending on rates). Pepperstone Limited is FCA-regulated (684312). Gold traders who mostly trade within the day avoid the charge completely, and for them Pepperstone's published spreads (0.08 minimum and 0.12 average on Razor) are the lowest we could verify.
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Worked example: a £15,000 gold position
This uses an assumed all-in rate of 5.5% a year for a long position. It is an illustration, not a Pepperstone rate; check the long and short rates in your platform.
| Nights held | Financing | As a share of £750 margin (1:20) |
|---|---|---|
| 1 | £2.26 | 0.3% |
| 7 | £15.82 | 2.1% |
| 30 | £67.81 | 9.0% |
| 90 | £203.42 | 27.1% |
Why there's no swap-free route for UK clients
Pepperstone offers a swap-free account only to residents of 23 listed countries, and the UK isn't on the list. Even where it applies, it isn't free of holding costs: Pepperstone's page says an admin charge per standard lot is deducted once a trade has been held for five days. So a UK gold trader at Pepperstone pays normal overnight financing on any position held past the cut-off.
The perpetual alternative, for Professionals only
Pepperstone's GOLD-PERP perpetual CFD has no expiry, trades 24/7 and uses a funding rate set weekly in advance and applied daily at 5 pm New York time. In the UK it's available to Professional clients only. Pro status also lifts gold leverage to 1:500 but removes negative balance protection, and you need two of Pepperstone's three qualifying tests.
Ways to keep gold holding costs down
- Close day trades before 10 pm UK time.
- Hold a smaller position for longer views: financing scales with exposure, not margin.
- Compare the long and short rates before choosing direction on a multi-week trade.
- Recheck the rate regularly; it moves with interest rates.
Sources
Do gold spread bets pay overnight financing too?
Yes. At Pepperstone, spread bets held past 10 pm UK time pay overnight fees, like CFDs.
Can a UK resident open a swap-free gold account at Pepperstone?
No. The swap-free account is for residents of 23 listed countries, and the UK isn't one of them.
Is financing charged on my margin or my whole position?
On the whole position. At 1:20, that is twenty times the margin you posted.
Gold CFDs and spread bets are leveraged and carry a high risk of rapid losses. Our financing example uses an assumed rate, not a broker quote. This is not investment advice; check live rates and terms with the firm.