BBVA Trader CFDs

Trade CFDs on stocks, indexes and currency pairs
Go to CFDs BBVA Trader CFDs Demo

Important:

CFDs are complex instruments that entail a high risk of quickly losing money due to leverage. Between 74 and 89% of retail investors lose money when trading CFDs. Make sure you understand how CFDs work and if you can afford the high risk of losing your money.

What are CFDs and how do they work?

CFDs are used to invest in an underlying asset (stocks, indexes, currencies, etc.), but without having to put up the total amount invested. Investing with CFDs requires a margin that is lower than the total equivalent amount of the direct investment in stocks or another underlying asset. This exposes investors to a leveraging effect for both gains and losses.

Once a CFD is purchased, each day's losses or gains will be settled daily in the investor's BBVA Trader account, based on that day's closing price, and on the previous day's (or the opening price of the position if purchased on that day).

These are very high-risk instruments that require the investor to monitor them constantly, as they can cause large losses due to leveraging. 

If the required margin were to decrease without being replenished, the position will be closed automatically.

Pre-contractual information CFD Trading Service

CFD contracts available at BBVA Trader CFDs

We have a wide range of CFDs available on the following underlying assets:

New underlying assets such as interest rates, raw materials and precious metals will soon be available.

See the full list of CFDs available

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Investing in CFDs: Advantages and Risks

Benefits

Leverage: it lets you take market positions without having to put up the total amount needed to purchase the underlying asset, but rather by depositing an amount as an initial margin.

Ability to open both bullish ("long") and bearish ("short") positions: it makes it easier to create different investment strategies, such as hedging the positions of shares you hold in the portfolio, diversifying your investments or trading directly with CFDs in financial markets.

Exposure to a large number of assets: it makes it possible to invest in a wide range of underlying assets of different natures and geographical scopes, such as stocks, indexes, exchange rates, etc.

No Custodial fee when investing in CFDs versus directly investing in shares or other underlying assets.

Risks

Price risk of the underlying asset. The investor assumes the risk of an unfavorable move in the underlying asset, which could result in losing even more than the amount invested (margin paid). The loss could be as high as the totality of the investor's funds in their CFD account.

Valuation risk. Since CFDs are not standard products, the investor must consider the particularities that influence the valuation of each type of CFD.

Leverage risk. CFDs are a leveraged product, meaning that the return on investment, calculated on the effective investment made, is multiplied (both positively and negatively), and so is the risk and/or the speed at which the potential loss or gain occurs. As a result, positions must be monitored constantly, since if the trend is going against expectations, the losses could exceed the amount of the original investment.

Credit Risk due to the possibility that the financial entity that is the counterparty in the CFD does not make its payments.

Liquidity risk. Since these are non-standard products, the investor must consider the characteristics of each market and the risk of not finding a counterparty for their trade. Since BBVA is not required to execute orders received from the Investor, the Investor must also be aware that there are Exceptional Circumstances that may result in BBVA being unable to provide prices or close positions in certain CFDs.

Exchange Rate Risk. The value for the investor of an investment in a CFD denominated in a currency other than the investor's base currency, or whose underlying asset is denominated in a currency other than the investor's base currency, will be affected by changes in exchange rates, and may cause losses for the investor even if the price of the underlying asset has not changed.

Risk of holding positions more than one day, the Investor must be aware that from the end of the Operating Hours of the CFD Trading Service, and until the opening of the Operating Hours of the CFD Trading Service or the Trading Hours of the Underlying Asset, as appropriate, it is not possible to open or close a position in a CFD, so holding a position for more than one day may require increasing the margin. The Investor will also have to pay a Financing Cost for each day the Position is held until it is closed.

Risk of closing positions: in those cases where the margin is insufficient at a given time to meet the required obligations, the position opened in a CFD will be closed automatically, which may result in a loss for the Investor.

Who are CFDs for?

IMPORTANT

  • CFDs are not suitable for all investors
  • This is a complex, leveraged and highly volatile product, which makes it very risky for investors
  • The resulting losses can be as high as the entirety of the funds that the customer has deposited in the BBVA Trader Cash Account.
  • Due to the leveraging effect, the rate of loss is much higher than when buying the underlying asset directly.

For these reasons, they are only recommended for investors with extensive market experience and zero or low risk aversion.

See the fees of BBVA Trader CFDs

See the fees of BBVA Trader CFDs

When trading CFDs, it is important to know the potential costs associated with your trades. Below are the different costs associated with trading CFDs in BBVA Trader:

  • Costs associated with trading CFDs on stocks: Brokerage cost (i.e. sales commission) and financing costs.
  • Costs associated with trading CFDs over other assets: Spreads and financing costs.

In this section, we will explain each of these concepts in more detail.

Margins

When opening a position in CFDs, the investor has to put up a fraction of the position they are going to take in the underlying asset. This is the initial margin. This means that the investor doesn't have to put up the total amount of the underlying asset. This initial margin is calculated by applying a set percentage to the notional amount of the underlying asset. The percentage margins required in BBVA Trader CFDs are as follows:
Type of CFD Required margin
Type of CFD

Shares

Required margin

From 20%

Type of CFD

Stock market indexes

Required margin

From 5%

Type of CFD

Currencies

Required margin

From 3.33%

One of the main advantages, but also risks, of CFDs is the concept of leverage. We can see this in the following example:

To buy 1,000 shares in a company trading at €10, an investor has to pay €10,000. By contrast, by investing in CFDs, you can trade the same underlying asset by paying 20% of the position, in this case €2,000, with 5x leverage of this underlying asset.

Benefits of this trade with CFDs: If the underlying price goes up by 1%, with 5x leverage, as in the example, the amount in the margin account will go up 5%.

Risks of this trade with CFDs: By contrast, if the underlying asset drops by 1%, the margin account will see a 5% loss.

See BBVA Trader CFDs fee schedule

Spreads

The spread is the difference between the purchase and sale price of a given underlying asset. The purchase price will always be higher than the sale price. These prices will always be available in the buy screen, which allows us to check, at all times, the difference between the two prices, and therefore this cost.

The spread is one of the most important costs when trading CFDs. With the spread, the investor is incurring a cost when executing a trade.  The smaller the difference between the purchase and sale price, the less the market movement needed to make a profit, since a smaller spread translates into lower costs for the investor. By contrast, the larger the difference between the purchase and sale price, the larger the market movement needed to make a profit, since a higher spread translates into higher costs for the investor.

Keep in mind that CFDs can have other costs in addition to the spread associated with them, such as overnight financing costs or transactions fees in the case of CFDs on stocks.

Example of spreads in BBVA Trader CFDs:

Germany 40 Indexes
Germany 40 Indexes

13,312.96

Sell

13,314.76

Buy

In this case, the spread of the Germany 40 index is €1.80. If you want to open a long position, you would buy at 13,314.76; by contrast, if you want to open a short position, you would sell at 13,312.96.

Spreads of BBVA Trader CFDs on the main underlying assets:

Type of CFD Spreads
Type of CFD

Spain 35 Index

Spreads

5

Type of CFD

Mini Spain Index

Spreads

1

Type of CFD

Germany 40 Index

Spreads

1.8

Type of CFD

Germany 40 Mini Index

Spreads

0.4

Type of CFD

US 30 Index

Spreads
2.6
Type of CFD
US 100 Index
Spreads
1.8
Type of CFD
Shares
Spreads
Market spread
Type of CFD
EUR/USD
Spreads
0.0001
Type of CFD
EUR/GBP
Spreads
0.0002
Type of CFD
GBP/USD
Spreads
0.0002

Fees

Brokerage fee

In CFDs on stocks, there is a transaction fee based on the notional value of the trade whenever a CFD position is opened or closed. This fee is charged to the customer's cash account when the trade is made. There is a minimum of €6 per transaction, which means that if the applicable fee does not exceed €6, the minimum charge of €6 will be applied.

Telephone trades involving a CFD will have a surcharge of €9.95 per transaction or order executed, unless the system is not working.

The schedule of trading fees for BBVA Trader CFDs is as follows: 

Type of CFD Execution Fees
Type of CFD

Shares

Execution Fees

0.06% min 6 EUR

Type of CFD

Stock Indexes

Execution Fees

Free of charge

Type of CFD

Currencies

Execution Fees

Free of charge

Financing Cost

Maintaining a customer's position overnight entails a financing cost that may be positive or negative, depending on whether the position is long or short and on the benchmark interest rate. The conditions for maintaining overnight positions are as follows:
Type of CFD Long Position Short position
Type of CFD

Shares

Long Position
2.5% + benchmark interest rate*
Short position

2.5% - benchmark interest rate*

Type of CFD

Stock Indexes

Long Position
2.5% + benchmark interest rate*
Short position

2.5% - benchmark interest rate*

Type of CFD

Currencies

Long Position
1% - benchmark interest rate 1*,** + benchmark interest rate 2*,**
Short position

1%
+ benchmark interest rate 1*,**
- benchmark interest rate 2*,**

* The table below shows the list of the benchmark interest rates applicable to each CFD.

** Exchange rate 1 and exchange rate 2 are included in the calculation basis for the currencies, and both exchange rates represent the benchmark rates for the respective currencies. Example: For a long position in EUR/USD, currency 1 represents the Euribor 1M and currency 2 represents the SOFR.

Example of financing costs for a long position in a EUR/USD CFD with a notional value of 10,000 EUR with a one-day maintenance period

Daily financing cost = (Fixed rate - Euribor 1M + SOFR) x Notional EUR/365 = (1% - (-0.54%) + 0.15%) x 10,000 / 365 = 1.69% x EUR 10,000 / 365 = EUR 0.46.

List of benchmark interest rates:

Currency Benchmark interest rate
Currency

AUD

Benchmark interest rate

BBSW 1M

Currency

CAD

Benchmark interest rate

CDOR 1 M

Currency

CHF

Benchmark interest rate

SARON

Currency

CZK

Benchmark interest rate

PRIBOR 1M

Currency
DKK
Benchmark interest rate
CIBOR-1M
Currency

EUR

Benchmark interest rate
EURIBOR 1M
Currency
GBP
Benchmark interest rate
SONIA
Currency
HKD
Benchmark interest rate
HKD ON Index Swap
Currency
HUF
Benchmark interest rate
BUBOR 1M
Currency
JPY
Benchmark interest rate
TONIA
Currency
NOK
Benchmark interest rate
NIBOR 1M
Currency
NZD
Benchmark interest rate
NZD-BKBM 1M (AVG)
Currency
PLN
Benchmark interest rate
WIBOR 1M
Currency
SEK
Benchmark interest rate
STIBOR 1 M
Currency
SGD
Benchmark interest rate
SGD ON Deposit
Currency
USD
Benchmark interest rate
SOFR
Currency
ZAR
Benchmark interest rate
JIBAR 1M

Markets comment

Access live the real-time broadcasts on the pre-opening and opening of the stock markets in Europe, as well as the closing of the trading day.

* Please see important information on the Legal Notice included at the end of each video.

Market news

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Trading ideas

We provide various trading analysis tools and ideas to help you make your own investment decisions. At BBVA Trader CFDs, you can periodically find trading ideas on stocks, indexes and currencies.

Interactive chart

Trade from the chart with a single click. You can place your buy or sell order and modify or cancel pending orders directly from the graph tool.

More than 70 customizable technical analysis indicators

More than 50 charting tools.

See the fees of BBVA Trader CFDs

Webinars

Platform training

Platform training


  • How do I enter an order in BBVA Trader CFDs?
  • How do I add instruments to my list or watchlist in BBVA Trader CFDs?
  • How do I enter an order from the chart in BBVA Trader CFDs?
  • How do I link "stop loss" and "take profit" orders to a main order in BBVA Trader CFDs?
  • How do I put a dynamic stop order in BBVA Trader CFDs?
  • How do I create my own desktop at BBVA Trader CFDs?
  • How do I use the charts in BBVA Trader CFDs?
  • How do I monitor my margin in BBVA Trader CFDs?
  • How do I use the BBVA Trader CFDs transaction log?
  • BBVA Trader CFDs: additional services
Important notice

Please see the information of interest in the following attachment: Disclaimer.

Product training

See the fees of BBVA Trader CFDs

Basic concepts of CFDs

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