FCA Flags High Overnight Fees as Only 12% of CFD Firms Change Charges

The UK Financial Conduct Authority has warned that some CFD brokers may be charging retail clients excessive overnight funding fees and failing to explain these costs clearly. The regulator also questioned charges on matched or hedged positions, where clients hold open buy and sell CFDs on the same asset.

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The findings follow the FCA's November 2025 review, which identified inconsistent charges and weaknesses in how CFD providers assessed fair value under the Consumer Duty. Finance Magnates previously examined the regulator's concerns about consumer protection and the pressure on brokers to justify their pricing.

The FCA surveyed 81 firms in May 2026 to assess their response to the review. Most had made changes or planned to do so, but only 12% said they had changed their charges.

Most CFD Brokers Keep Funding Fees Unchanged

Most firms focused on explaining existing rates rather than changing them. Measures taken or planned by the 12% included reducing fees on matched positions, lowering charges for certain asset groups and introducing interest payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term on cash balances.

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The FCA said some funding fees appeared high relative to prevailing base rates and peer comparisons. Mark-ups remained largely opaque, while only a minority of firms had added annual percentage rates to help clients compare financing costs.

FCA Demands Clearer CFD Funding Fee Disclosures

Most firms continued to apply overnight fees to matched positions, often using the same funding charge spread as for ordinary long or short trades. The FCA questioned whether this offered fair value, particularly when firms encouraged matched positions through reduced or waived margin requirements Margin Requirements A margin requirement is defined as the minimum equity sum that investors must keep in their margin account preceding a trading transaction. Margin requirements may be referred to as maintenance margin, minimum maintenance, or maintenance requirement. This is a requirement for broker trading in any asset class.In terms of equities, the New York Stock Exchange (NYSE) and Financial Industry Regulatory Authority (FINRA) have a fixed margin requirement of 25% of the sum value of the securities presen A margin requirement is defined as the minimum equity sum that investors must keep in their margin account preceding a trading transaction. Margin requirements may be referred to as maintenance margin, minimum maintenance, or maintenance requirement. This is a requirement for broker trading in any asset class.In terms of equities, the New York Stock Exchange (NYSE) and Financial Industry Regulatory Authority (FINRA) have a fixed margin requirement of 25% of the sum value of the securities presen Read this Term. Clients may incur additional spreads and funding fees by keeping both trades open.

The regulator also called for clearer fee disclosures on websites and deal entry screens, including explanations of how charges are calculated. It will continue monitoring firms' pricing practices and contact individual providers where necessary.