Capital.com just went commission-free on 2,280 stocks and ETFs

Capital.com, best known as a CFD broker, has launched commission-free trading in about 2,280 real stocks and ETFs for clients in the European Economic Area, Finance Magnates reported on 28 September. Clients can buy and own shares rather than trade contracts for difference on their price. The move puts Capital.com in direct competition with investing apps such as Trade Republic, eToro and Revolut, and with traditional share dealing services. Days later, IG Group shares fell 22 percent after a weak quarter in its CFD business. The two events tell the same story: CFD brokers are racing to build revenue that does not depend on clients losing money.

Why a CFD broker wants to sell real shares

CFD brokers have grown by offering leveraged trading on price movements without clients owning the underlying asset. That model can be very profitable, but it has two weaknesses. Regulators in Europe and elsewhere have restricted leverage and marketing for retail CFDs. And brokers that internalise client trades depend on clients losing, which makes revenue volatile, as IG showed when its revenue retention dropped from about 80 percent to 70 percent.

Real share and ETF investing solves both problems. It is less restricted, appeals to long-term investors and younger clients who want to own assets, and generates revenue from activity, foreign exchange fees, interest on cash and premium services rather than from client losses. For a broker with an existing client base and platform, adding share dealing is a natural extension.

It also widens the customer base. Many people who would never trade leveraged CFDs are comfortable buying shares or ETFs for the long term. Offering both lets a broker serve clients across the risk spectrum and keep them as their interests change.

Client retention improves as well. Investors who hold shares and ETFs for the long term tend to keep accounts open for years, unlike active traders who may leave after a bad run. That longer relationship gives a broker more time to earn from interest, currency conversion and additional services.

How commission-free actually makes money

Commission-free does not mean free to provide. Brokers that offer zero commissions typically earn through currency conversion fees when clients buy shares in another currency, interest on uninvested cash, securities lending, subscription tiers and payment for order flow where permitted. In Europe, rules on payment for order flow are tightening, which means brokers rely more on foreign exchange fees and interest income.

That matters for clients. A broker can advertise zero commission while charging meaningful currency conversion fees, especially on US shares bought with euros. Clients comparing offers should look at the full cost of a trade, including spreads and conversion, not just the commission line.

For Capital.com, the economics depend on scale. With about 2,280 instruments available, it can attract clients who want a broad choice, and every euro of cash they hold on the platform earns interest. The broker will be betting that clients who arrive for commission-free shares will also use its other products.

Interest income is especially valuable while rates are high. A broker that holds client cash can earn a meaningful return on it and pass only part of that back to clients. With the ECB deposit rate at 2.5 percent, idle balances across thousands of accounts add up to significant revenue.

• Offer: commission-free trading in real stocks and ETFs
• Range: about 2,280 instruments
• Market: clients in the European Economic Area
• Reported: 28 September 2026
• Typical revenue sources: FX conversion, interest on cash, premium services

The race among CFD brokers

Capital.com is not alone. IG has expanded share dealing and investment products. CMC Markets offers investing alongside CFDs and is launching prop trading. Plus500 has added futures and share dealing in some markets. Each broker is trying to shift its revenue mix away from pure CFD market making.

The competition is intense because investing apps got there first. Trade Republic, for example, now offers current accounts paying 3 percent interest in Greece, combining banking with investing. Revolut and eToro have large investing user bases. CFD brokers entering the space need to offer something distinctive, whether a wider product range, better tools or integration with their existing trading platforms.

The market reaction to IG's results makes the strategy more urgent. Investors are now valuing brokers on how much of their revenue depends on client outcomes. Every euro of revenue from investing products, interest and subscriptions makes a broker look safer, as we discussed in our analysis of IG's fall.

Technology will be a differentiator. CFD brokers already run sophisticated trading platforms with charting and analysis tools. Offering those same tools to share investors, combined with the ability to switch between investing and trading in one app, is one way they can stand out against simpler investing apps.

What it means for Asian clients and brokers

The launch covers the European Economic Area, so Asian clients are not directly affected yet. But the strategy is global. Capital.com and similar brokers serve many clients in Asia through other entities, and if the investing model succeeds in Europe, it is likely to be extended to other regions where regulation allows.

For Asian brokers, the lesson is the same as in Europe. Relying solely on CFDs leaves a firm exposed to regulatory change and volatile retention. Adding real-asset investing, especially access to US shares that many Asian investors want, can attract new clients and stabilise revenue.

Funding methods matter too. Asian investors increasingly expect to deposit through local instant payment systems. Brokers that combine commission-free US shares with fast local funding are more likely to win clients than those requiring international wire transfers.

CFD brokers are racing to build revenue that does not depend on clients losing money.

Regulation is pushing in the same direction

European regulators have spent years tightening rules on retail CFDs, from leverage limits to mandatory risk warnings showing the share of clients who lose money. Those rules reduced the profitability of CFD-only models and encouraged brokers to diversify. Share and ETF investing faces lighter restrictions because it carries less risk for retail clients.

At the same time, Europe is encouraging retail investment in capital markets as part of its broader push to channel household savings into productive assets. Brokers that offer low-cost access to shares and ETFs align with that policy goal, which can help their relationships with regulators and their marketing.

The combined effect is a steady push away from leveraged speculation toward long-term investing. Brokers that adapt their product mix accordingly are better positioned for the regulatory environment of the next decade, which we discussed in our look at licensing strategy across CySEC, FCA and ASIC.

For CFD brokers, the policy shift creates an opportunity as well as pressure. Firms that already hold European licences and run large trading platforms can move quickly into investing products, using their existing compliance and technology. Smaller CFD-only firms without that infrastructure may struggle to follow.

What clients should check

Clients considering commission-free share dealing at any broker should check currency conversion fees, custody arrangements, whether shares are held in their name, investor protection schemes and how the broker earns money. A transparent broker will explain these clearly. Zero commission is attractive, but it is only one part of the cost.

Investor protection is another key point. In the EEA, client securities held by a broker are typically segregated and may be covered by national compensation schemes up to certain limits. Clients should confirm which scheme applies and how their assets are held before moving significant sums. The investing push is only beginning, and the brokers that execute it well will look very different by the end of 2027.

Capital.com's move is part of a quiet transformation of the CFD industry. The firms that built their businesses on leveraged trading are becoming investing platforms, banks and prop providers, because investors and regulators are pushing them in that direction. For clients, that means more choice and lower costs. For the brokers, it means competing in markets where others have a head start, and the winners will be those that combine trading expertise with genuine value for long-term investors.