This is NOT correct. While I don't know what Interactive offers, whether you have to pay the interest (also known as swap points) depends what the underlying is for that CFD. If the CFD is based on the the futures (i.e. ES) then you don't pay any interest as that is already a leveraged product. However if the underlying is a product that is not leveraged, like S&P, then you will be paying interest because the provider/broker levers it up for you (you only cover his margin, he provides the capital for the full value of the underlying instrument) Note that when the underlying is the index like SP, while you do pay the interest rates (cost), you also benefit (if long) from any dividends that are paid out. This is because you basically own SP with a borrowed capital (cost). The opposite would be true for shorts (though interest rate still applies) So in a nutshell, figure out what the underlying instrument is for that CFD. The only (but important) drawback for CFDs is really the spread build into the product. If you swing trade that's something you can probably live with. The good thing is that you can go with smaller lots like 0.1 (and any fractions like 0.11, 0.15) of traditional lot, even if the underlying is the futures product.