How does it work
When underlying shares that are part of Index CFDs go ex-dividend, the Index CFD prices are adjusted to reflect dividends. The weighted proportion of the dividends within the Index are credited to client accounts for long positions and debited for short.
Please note that where a dividend applies to a CFD, the price of that instrument can fall by the amount of the dividend with the net effect on your open trade being equal once the dividend adjustment has been made.
Dividends are reflected on Metatrader accounts as a cash adjustment.
The special case of the GDAX
The DAX CFD (GDAXI on our MT4/MT5 accounts) reinvests the dividends, hence the reason why there are no credits / debits in case of DAX dividends. Please note that a 14% withholding tax of the underlying stocks applies. The majority of DAX dividends take place in May every year.
This means that:
- Where you are short for GDAXI, you will receive a reverse dividend credit to your account of 14% of the dividend paid.
- Conversely, where you are long for GDAXI, you will be charged a reverse dividend debit of 7% of the underlying dividend paid.
When are dividends paid
Darwinex will credit or debit your trading account the day after our liquidity providers credit or debit ours'.
Several websites offer free or paid information about ex-dividend dates. Please note that as a trader you yourself are responsible for gathering this information if you wish to be informed about when your account will be credited or debited. As an example, there is information on the web about UK100, NDX or WS30 ex-dividend dates.