> For the complete documentation index, see [llms.txt](https://docs.carbon.inc/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.carbon.inc/tradfi/tradfi-fees-and-funding.md).

# TradFi Fees and Funding

Trading a TradFi asset on Carbon has two cost components: the cost to open and close a position (the platform fee plus the spread), and the cost to hold it overnight (the funding rate). Both are designed to track real-market economics, not on-chain skew.

### Platform fee

Carbon charges a flat platform fee on the notional value of each TradFi trade, applied only on open.

| Asset class     | Platform fee |
| --------------- | ------------ |
| **Stocks**      | 0.03%        |
| **Forex**       | 0.02%        |
| **Indices**     | 0.03%        |
| **Commodities** | 0.04%        |

The fee is shown in the trade ticket before you confirm.

### Spread

On top of the platform fee, each asset trades at the spread of its underlying real market. Because every position is hedged 1:1 in that market, the spread you trade against is the real market's spread rather than the depth of an on-chain pool: tight on liquid markets, wider on less liquid ones, exactly as in the underlying. The live spread for any market is shown in the trade ticket.

### Overnight funding rate

Holding a leveraged TradFi position is economically equivalent to borrowing capital to finance exposure to the underlying. That borrowing has a cost, charged as the **overnight funding rate**.

Two things make Carbon's TradFi funding different from crypto perp funding:

* **It is benchmark-anchored and stable.** The rate is derived from the real cost of financing the position (referenced to benchmark interest rates), not from on-chain long/short skew. It stays in a stable, single-digit-to-low-double-digit annualized range, rather than spiking to triple digits the way one-sided perp funding can.
* **It accrues continuously, including weekends.** Financing cost does not pause when the market closes. A position held from Friday to Monday accrues funding across the weekend, exactly as an institutional CFD broker would charge. Pausing it would hand traders free leverage over the weekend, which does not exist in traditional markets.

The funding rate for each market is shown in the app. Funding is applied per Carbon's funding schedule; the exact cadence and display convention are shown alongside the rate.

### Why this matters

For a trader holding a position for more than a few days, a stable benchmark-anchored funding rate is dramatically cheaper to carry than skew-driven perp funding. An equity that moves 10-15% in a year cannot generate returns that justify triple-digit annualized funding. CFD funding keeps the cost of holding real-world exposure in line with the real economics of the asset.

### How TradFi costs compare to crypto perps

|               | Crypto perp funding                       | TradFi overnight funding                 |
| ------------- | ----------------------------------------- | ---------------------------------------- |
| **Set by**    | On-chain long/short skew                  | Real financing cost, benchmark-anchored  |
| **Stability** | Can spike to triple digits when one-sided | Stable, single-digit to low-double-digit |
| **Accrues**   | Continuously                              | Continuously, including weekends         |
| **Reflects**  | Venue positioning                         | The real cost of holding the asset       |

For the crypto perp funding mechanism, see [Understanding Funding Rates](/trading/understanding-funding-rates.md).


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