Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Yes. Atlantic Capital Markets Ltd is authorised and regulated by the Financial Conduct Authority. Our Firm Reference number is 764562.
A CFD offers you all the beneﬁts of trading shares without having to physically own them. Simply put, it is a contract that mirrors the performance of an underlying instrument. It is traded on margin, and just like physical shares your proﬁt or loss is determined by the difference between the price you buy at and the price you sell at.
Margin trading allows you to free up your capital by placing only a small percentage of the value of trade in your account.
The initial amount you pay is known as the deposit or Margin Requirement. Dealing on margin can signiﬁcantly increase your proﬁts, but it can also signiﬁcantly increase your losses in the same way.
Margin rates vary depending on what you trade, but typically range between 5% and 50%. You can ﬁnd details of the margin requirements for each speciﬁc instrument on the trading platform.
You pay a commission when you trade and may incur ﬁnancing charges on positions held overnight.
There are no hidden costs such as administration or management fees and you deal at the market price as we do not widen the spread of the share.
Our commission rate on equities varies from 0.2% to 0.5% depending on account size. For commission rates and charges related to other instruments please contact Atlantic for further information.
Positions held overnight may incur a financing charge. This may be paid or received dependent upon the position.
Clients pay interest on the contract value of a long CFD. Interest is charged at a percentage over Sonia (SONIA:- Sterling Overnight Interbank average rate and is linked to base interest rates).
Clients holding short CFD contracts may receive interest on the cash that the sale of the underlying stock would have generated. This is similarly paid at an agreed rate under Sonia..
For example, if a client was paying a long CFD funding charge of 3% over Sonia and if Sonia was 0.25%, the client would be paying a funding rate of 3.25% per annum. If the total contract value was £10,000 the funding charge would be around £0.89 for every day the contract was maintained (£325 divided by 365).
This amount would be debited daily from your CFD account. The funding charge is only incurred if the position is held overnight. These amounts will be credited or debited on the next trading day.
There are no expiry dates on CFDs, as a result you can run a position, long or short, for as long as required.
A client can “go short”, meaning that they can sell a CFD as an opening position.
A common question is “How can a trader sell something they don’t own?” This can be done as what the client is buying is a contract between themselves and the CFD provider, based upon the price movement of a share. It does not matter who agrees to buy and who agrees to sell, as neither party physically owns the share anyway.
The important thing is how far the price of the Share or Index moves, and whether or not it moves the way you want it to. Using this facility, a trader may be able to profit from a falling market.
Yes. Although a CFD trader does not physically own the share, they can partake in Corporate Actions and receive dividends. However, as the CFD trader does not own the share itself, they are not entitled to any voting rights.
Whilst they are exempt from stamp duty, any profits on CFDs may be subject to CGT (Capital Gains Tax) but losses may also be offset against CGT.
Yes, Atlantic clients can also trade Currencies and Commodities from their CFD account.
Yes, trading can be conducted over the telephone or the online trading platform. There is no additional cost for trading over the telephone.
Applying for an account is quick and easy. The next step is complete our secure online Suitability Questionnaire.
Provided you are suitable for a CFD advisory account and we receive the correct documentation from you, your account should be up and running within a business day.
Yes, to open a joint account you will need to complete a paper based application form signed by both parties. The documentation required from each applicant is the same as that required for an individual account.