The prices offered by different brokers, including Capital.com, may vary due to several factors:
Independently set prices: each broker sets its own contract for difference (CFD) prices using various sources and pricing methodologies. They take into account market data, liquidity providers, and their own risk-management strategies, which can lead to price differences.
Currency and market type: it's important to compare prices of the same markets in the same currency and market type (spot, futures, options, etc.). Capital.com mainly offers instruments with spot prices.
Bid/ask and mid prices: Brokers often display bid (sell) and ask (buy) prices, as well as a mid price (average between the two). Understanding these price components is crucial for evaluating the spread and overall cost of trading.
Commission and spreads: different brokers may have varying commission structures and spreads, which can impact the overall price of trading.
Price delay: some third-party websites may have price delays, meaning the prices displayed are not fully live. In contrast, Capital.com aims to provide real-time prices.
Nature of asset: prices can differ based on the nature of the asset being traded. Different assets have different market conditions, liquidity, and demand-supply dynamics, affecting their prices.
Market conditions: market conditions, such as volatility, economic events, and geopolitical factors, can influence price movements. As a result, prices may fluctuate differently across brokers.
As a broker, Capital.com prides itself on offering competitive spreads and zero commissions.* However, it's essential to consider these price differences and other factors when making trading decisions. Always ensure you have a comprehensive understanding of the pricing structure and associated costs before trading with any broker.
*Our fee for executing your trade is the spread, the difference between the buy and sell price. Find full fee information on our charges and fees page.