Platforms · Software · Providers · Markets
Survey points to limited repricing
The UK Financial Conduct Authority has warned that some CFD firms may be imposing excessive overnight financing costs on retail clients, without explaining those charges well enough. It also questioned financing applied when a client holds buy and sell CFDs on the same asset.
The warning follows the regulator's November 2025 review, which found variation in firms' charges and weaknesses in their fair-value assessments under the Consumer Duty. In May 2026, the FCA asked 81 firms how they had responded. While most had made changes or intended to act, just 12% said they had altered their charges.
Matched trades draw scrutiny
Most firms concentrated on making their existing rates easier to understand, rather than changing them. Among the steps taken or planned by the 12% were lower costs for matched positions, reduced rates for selected asset groups and interest on cash balances.
The FCA said some financing charges appeared high compared with prevailing base rates and those of peers. Mark-ups were often difficult to see, and only a minority had started displaying annual percentage rates for comparison.
Most firms continued to apply overnight costs to matched positions, often at the same funding spread as a standard long or short trade. The FCA challenged whether that represented fair value, particularly where firms offered reduced or waived margin to encourage matched positions, which can leave clients paying spreads and funding on both trades. It called for websites and order-entry screens to explain how fees are calculated. Finance Magnates reported that the regulator will keep monitoring pricing and may contact individual providers.
| Measure | Figure |
|---|---|
| FCA review | November 2025 |
| Firms surveyed | 81 firms, May 2026 |
| Firms reporting changed charges | 12% |
What this changes for operators
The issue touches pricing configuration, position matching and the client-facing quote. Trading and risk teams should check how their systems identify opposing CFDs on the same asset, and whether margin relief changes the funding treatment. Does the matched-position logic apply consistently across the pricing engine and the order-entry screen?
Operations teams should also compare the charge shown before a trade with the amount applied overnight, and ensure staff can explain the rate and any mark-up. The FCA has not set out a calculation formula or named firms it will contact. Providers should check what their disclosures show about matched positions and ask whether their records support their fair-value assessment.
