Please be aware:
As of February 3rd 2019 we’re making a change to our financing fee. From that date all newly opened positions without a Multiplier are no longer being charged a financing fee. This will apply to all products in the BUX app. So even your positions in cryptocurrencies (such as bitcoin, ethereum or ripple) will not be charged a financing fee anymore if these trades have no Multiplier. We believe this is fairer if you want to trade such products for the longer term.
Unfortunately, to make the above possible, if you are trading with a Multiplier, we will be charging you on the full value of the trade; no longer only on the leveraged amount. This will apply for all products that we offer in the BUX app.
The amount you have to pay for the Financing Fee is the interest rate over the additional amount that we have to reserve when you use a Multiplier*. You will pay this amount on a daily basis after 23:00 GMT, only for the open positions where you have used a Multiplier.
To explain this in a little more detail, we would like to give you an example:
- Say, you invest £100 in stocks with a Multiplier of 5, and you think the stock price will go up. This means that your total Trade Size is £500.
- Because you put in £100 yourself, we have to reserve an additional £400 so that you can use the Multiplier.
- We only charge you for this additional amount when you keep this position overnight. In this case, you will be charged an interest rate for the £400.
- This interest rate differs per country and is dependent on the type of investment (for European products, EONIA and for US products, LIBOR)
- Additionally, we calculate an annual rate of 2,5%
If you would like to have more information about how it works, please visit our website. On demand, we are happy to send across a more detailed pricing document.
* Keep in mind that the Financing Fee in cryptocurrencies for long positions is charged based on the full value of your investment, including your invested amount.
If you have any further questions in regards to this, please feel free to contact us via email at BUX Support.