The concept is to make money based on the interest-rate differential.

Introduction to Forex Carry Trade

Carry Trade is an effective long-term trading strategy and a strong force driving key Forex trends.

 

What is Forex Carry Trade?

Forex Carry Trade means selling a low-interest rate currency and buying the same amount of a high-interest-rate currency. The concept is to make money based on the interest-rate differential.

Popular Currencies for Carry Traders

A carry trade will go long on currencies such as the New Zeeland Dollard, the Australian dollar, or the Turkish Lira, and go short on currencies such as the Japanese yen and the Swiss Franc. The most popular currency pairs for carry trading are:

■ AUD/JPY, NZD/JPY, EUR/JPY, USD/TRY, and GBP/CHF

Carry Trade can also mean borrowing in a low-interest rate currency, converting it to a high-interest-rate currency, and buying the highest rated bonds (check the Yen Carry Trade below).

 

When Central Banks Change their Rates?

Carry trades can prove very effective when central banks increase or plan to increase the level of domestic interest rates. Central banks change the level of the domestic interest rates aiming to achieve long-term financial stability and growth.

(↑) Why Central Banks Increase Interest Rates?

  • To respond to high inflation (by reducing the money supply)
  • To deal with capital shortage (by making the rates more attractive to foreign investors)
  • To deal with political or financial turmoil that may have caused an aggressive currency devaluation

Carry Trade Forex Brokers 

COMPARE BROKERS FOR CARRY TRADERS

A Swap Rate or else an Overnight Rate or else a Rollover Rate is an interest earned or paid for holding a Forex trading position overnight. This interest is earned or paid every business day at exactly midnight. The Swap Rates are tripled at the end of each Wednesday in order to cover the two missing rates of Saturday and Sunday.

COMPARE ALSO: » FOREX AUTO-SYSTEMS | » FOREX BROKERS FOR TRADERS | » CURRENCY PAIRS

BROKER

OVERNIGHT SWAPS

PLATFORMS

ACCOUNTS

INFORMATION

» IC MARKETS


REGULATED BY:

ASIC (AUSTRALIA)

SEGREGATED CLIENT BANK ACCOUNTS:

YES

TRADERS FROM US:

NO

ISLAMIC ACCOUNTS:

YES

FOUNDATION:

2007

HEADQUARTERS:

Australia

■ EURUSD SWAP VALUE:

-LONG (↑):

$ -0.51

-SHORT (↓):

$ +0.22

ONLINE PLATFORMS

□ MetaTrader4

□ MetaTrader5

□ cTrader

□ Mobile Traders

 

-Free VPS Hosting

-PAMM Accounts

 

FOREX ASSETS:

56 Currency Pairs

Full CFD Asset Index

$200 Minimum Deposit Amount

 

WELCOME BONUS:

  • 0%

 

FUND METHODS:

  • Credit Cards
  • Bank Wire
  • MoneyBookers
  • Neteller
  • WebMoney

KEY IC MARKETS FEATURES

  • Fair Rollover Rates and Tight Spreads
  • PAMM accounts
  • Many Funding Options
  • Good Technology

 

Register an ECN Account with IC MARKETS


Review Fx Broker

» HOTFOREX


REGULATED BY:

FCA UK, CySEC, MiFID

World Finance Top 100 Company

SEGREGATED CLIENT BANK ACCOUNTS:

YES

TRADERS FROM US:

NO

ISLAMIC ACCOUNTS:

YES

FOUNDATION:

2007

HEADQUARTERS:

Cyprus

■ EURUSD SWAP VALUE:

-LONG (↑):

$ -0.54

-SHORT (↓):

$ -0.17

■ GBPUSD SWAP VALUE:

-LONG (↑):

$ -0.20

-SHORT (↓):

$ -0.46

■ USDJPY SWAP VALUE:

-LONG (↑):

$ -0.18

-SHORT (↓):

$ -0.25

 

ONLINE PLATFORMS

□ MetaTrader4

□ WebTrader

□ FIX API

□ Mobile Traders

 

-Free VPS Hosting

-PAMM Accounts

 

FOREX ASSETS:

43 Currency Pairs

Full CFD Asset Index

$50 Minimum Deposit Amount

 

WELCOME BONUS:

  • 40-100% Cash Bonus

 

FUND METHODS:

  • Credit Cards
  • Bank Wire
  • MoneyBookers
  • Neteller
  • iDeal
  • Union Pay
  • Sofort
  • Netbanx
  • TrustPay

KEY HOTFOREX FEATURES

  • CurreneX account ($500)
  • V.2 PAMM accounts
  • Many Funding Options
  • Trade Commodities on MT4
  • FIX/API Trading
  • Multilingual Customer Support

 

HotForex Trading Accounts and Promotions


Review Fx Broker

» DUKASCOPY


REGULATED BY:

FINMA (DUKASCOPY BANK), MIFID

SEGREGATED CLIENT BANK ACCOUNTS:

YES (SWISS BANKS)

TRADERS FROM US:

NO

ISLAMIC ACCOUNTS: YES

FOUNDATION:

2011

HEADQUARTERS:

Latvia (EU)

■ EURUSD SWAP VALUE:

-LONG (↑):

$ -2.90

-SHORT (↓):

$ +2.20

■ GBPUSD SWAP VALUE:

-LONG (↑):

$ -0.70

-SHORT (↓):

$ -0.50

■ USDJPY SWAP VALUE:

-LONG (↑):

$ +1.10

-SHORT (↓):

$ -2.29

 

ONLINE PLATFORMS

□ JForex

□ JavaTrader / WebTrader

□ FIX/API

□ Mobile Traders

 

 

FOREX ASSETS:

50+ Currency Pairs

Gold and Silver on Spot

$100 Minimum Deposit for Dukascopy Europe

$5,000 for Dukascopy Bank

 

WELCOME BONUS:

  • 10% Equity Bonus
  • 20% Rebate for the 1st Month (Rebate-Link on the right)

 

FUND METHODS:

  • Credit Cards
  • Bank Wire
  • Bank Guarantees

KEY DUKASCOPY FEATURES:

  • Fair SWAPS
  • SWFX Liquidity
  • JForex Automated
  • Contests and Social Trading
  • 20% Rebate {1 month} via the following Rebate Link

 

20% Rebate Link valid for the First Month of Trading

» XM


REGULATED BY:

FSA UK, CySEC, ASIC, BaFin, MiFID

SEGREGATED CLIENT BANK ACCOUNTS:

YES

TRADERS FROM US:

NO

ISLAMIC ACCOUNTS:

YES

FOUNDATION:

2008

HEADQUARTERS:

Cyprus

■ EURUSD SWAP VALUE:

-LONG (↑):

$ -0.36

-SHORT (↓):

$ -0.17

■ GBPUSD SWAP VALUE:

-LONG (↑):

$ -0.19

-SHORT (↓):

$ -0.45

■ USDJPY SWAP VALUE:

-LONG (↑):

$ -0.16

-SHORT (↓):

$ -0.25

 

ONLINE PLATFORMS

□ Web Trader

□ MirrorTrader

MetaTrader4

□ Mobile Traders

 

 

FOREX ASSETS:

60+ Currency Pairs

Full CFD Asset Index

$50 minimum deposit

 

WELCOME BONUS:

  • 40-100% Credit Bonus
  • $30 Free No-Deposit Bonus

 

FUND METHODS:

  • Credit cards
  • MoneyBookers
  • Liberty Reserve
  • Neteller
  • Wire Bank Transfer
  • More Methods

KEY XM FEATURES

  • Trade Indices and Commodities on MT4
  • Wide Asset Index
  • $30 Free (No-Deposit) Bonus
  • Many Funding Methods
  • Multilingual Customer Support

 

Visit XM Web-Site


Review Fx Broker

» IRONFX


REGULATED BY:

FCA UK, ASIC, CySEC, MiFID

SEGREGATED CLIENT BANK ACCOUNTS:

YES

TRADERS FROM US:

NO

ISLAMIC ACCOUNTS:

YES

FOUNDATION:

2010

HEADQUARTERS:

Cyprus

■ EURUSD SWAP VALUE:

-LONG (↑):

$ -0.23

-SHORT (↓):

$ -0.19

■ GBPUSD SWAP VALUE:

-LONG (↑):

$ -0.19

-SHORT (↓):

$ -0.52

■ USDJPY SWAP VALUE:

-LONG (↑):

$ -0.23

-SHORT (↓):

$ -0.25

 

ONLINE PLATFORMS

□ MetaTrader4

□ MetaTrader5

□ WebTrader

Sirix WebTrader

□ Mobile Traders

 

 

FOREX ASSETS:

80+ Currency Pairs

Full CFD Asset Index

$500 Minimum Deposit

 

WELCOME BONUS:

  • 60% Credit Bonus

 

FUND METHODS:

  • Credit Cards
  • Bank Wire
  • MoneyBookers
  • Neteller

KEY IRONFX FEATURES

  • Trade Commodities on MT4
  • Many Fund Methods
  • FIX/API Trading
  • Multilingual Customer Support

 

Visit IronFx Web-Site


Review Fx Broker

 

 

 

MORE ON CARRYTRADER

■ COMPARE PROVIDERS

Forex Brokers for Day Traders

Brokers for Carry Traders

Automated Forex Systems

Rebate Plans      
■ CURRENCY PAIRS EURUSD GBPUSD USDJPY EURGBP AUDUSD NZDUSD USDCAD
■ GLOBAL MARKETS » Gold

» Crude Oil

» Natural Gas

» Stock Market

» Soft Commodities

 

 

■ LEARNING RESOURCES » Currency indices » CBOE Indices

» Famous Investors

» Forex Fundamentals

» Foreign Exchange Reserves

» Carry Trade Information

 

 

Compare Forex Brokers for Carry Traders

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Subcategories

Foreign Exchange

The Foreign Exchange Market is the largest Financial Market in the world with daily volumes of more than 4 trillion USD. When trading Forex you need a reliable and high-regulated Forex broker and a trading strategy that works:

(i) Introduction to Forex Trading

(ii) Forex Brokers for Traders

(iii) Major Currency Pairs

(iv) Automated Forex Systems

Global Markets

Trading the Financial Markets requires a perfect understanding of how demand and supply shift from time to time. Equities tend to follow bullish cycles lasting 7-9 years, and after, bearish cycles lasting 3-4 years. Energies tend to follow annual time patterns while Precious Metals tend to follow longer time cycles:

(i) Gold Trading

(ii) Crude Oil Trading

(iii) Rebate Plans

Learning

If you are a trader, learning is a non-stop process. CarryTrader offers a wide variety of educational resources including trade tools, techniques, and strategies:

(i) Currency Indices

(ii) Famous Investors

(iii) Technical Analysis

(iv) Brokers for Carry Traders

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