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?
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.
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BROKER |
OVERNIGHT SWAPS updated 11/2020 |
PLATFORMS |
ACCOUNTS |
INFORMATION |
REGULATED BY: ASIC (AUSTRALIA) & FCA UK SEGREGATED CLIENT BANK ACCOUNTS: YES US TRADERS: NO ISLAMIC ACCOUNTS: YES FOUNDATION: 2007 HEADQUARTERS: Australia and the UK |
OVERNIGHT LONG/SHORT SWAP VALUE: ■ EURUSD SWAP VALUE: -LONG (↑): $ -0.38 -SHORT (↓): $ +0.128 ■ GBPUSD SWAP VALUE: -LONG (↑): $ -0.173 -SHORT (↓): $ +0.00 ■ USDJPY SWAP VALUE: -LONG (↑): $ +0.00 -SHORT (↓): $ -0.23 |
EXECUTION TYPE: ECN/STP ONLINE PLATFORMS □ MetaTrader-4 □ MetaTrader-4 Web SCALPING: YES FREE VPS: YES
FOREX ASSETS: 50+ Currency Pairs Full CFD Asset Index: -Indices -Cryptocurrencies -Precious Metals -Commodities |
$20 Minimum Deposit Amount
PAMM ACCOUNT: YES
WELCOME BONUS:
FUND METHODS:
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KEY FP MARKETS FEATURES
► AXI Trading Accounts |
REGULATED BY:
SEGREGATED CLIENT BANK ACCOUNTS: YES (SWISS BANKS) US TRADERS: NO ISLAMIC ACCOUNTS: YES FOUNDATION: 1999 HEADQUARTERS: Switzerland |
OVERNIGHT LONG/SHORT SWAP VALUE: ■ EURUSD SWAP VALUE: -LONG (↑): $ -0.419 -SHORT (↓): $ +0.02 ■ GBPUSD SWAP VALUE: -LONG (↑): $ -0.25 -SHORT (↓): $ -0.21 ■ USDJPY SWAP VALUE: -LONG (↑): $ -0.139 -SHORT (↓): $ -0.298
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EXECUTION TYPE: ECN ONLINE PLATFORMS □ JForex □ JavaTrader / WebTrader □ FIX/API □ Mobile Traders
FOREX ASSETS: 50+ Currency Pairs Gold and Silver on Spot |
MINIMUM ACCOUNT:
PAMM ACCOUNT: YES
WELCOME BONUS:
FUND METHODS:
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KEY DUKASCOPY FEATURES:
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» LQDFX REGULATED BY: (N/A) SEGREGATED CLIENT BANK ACCOUNTS: YES US TRADERS: NO ISLAMIC ACCOUNTS: YES FOUNDATION: 2015 HEADQUARTERS: Malta |
OVERNIGHT LONG/SHORT SWAP VALUE: ■ EURUSD SWAP VALUE: -LONG (↑): $ -0.45 -SHORT (↓): $ -0.10 ■ GBPUSD SWAP VALUE: -LONG (↑): $ -0.88 -SHORT (↓): $ +0.36 ■ USDJPY SWAP VALUE: -LONG (↑): $ +0.36 -SHORT (↓): $ -0.88 |
EXECUTION TYPE: ECN/STP ONLINE PLATFORMS □ MetaTrader4 □ Mobile Traders
FOREX ASSETS: 70+ Currency Pairs Full CFD Asset Index -12 Indices -Precious Metals -Commodities |
$20 Minimum Deposit Amount
PAMM ACCOUNT: YES
WELCOME BONUS:
Traders can withdraw the 100% welcome bonus -Volume requirements FUND METHODS:
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KEY LQDFX FEATURES
► Register an ECN Account with LQDFX |
» IRONFX REGULATED BY: FCA UK, ASIC, CySEC, MiFID SEGREGATED CLIENT BANK ACCOUNTS: YES US TRADERS: NO ISLAMIC ACCOUNTS: YES FOUNDATION: 2010 HEADQUARTERS: Cyprus |
OVERNIGHT LONG/SHORT SWAP VALUE: ■ EURUSD SWAP VALUE: -LONG (↑): $ -0.596 -SHORT (↓): $ -0.095 ■ GBPUSD SWAP VALUE: -LONG (↑): $ -0.48 -SHORT (↓): $ -0.298 ■ USDJPY SWAP VALUE: -LONG (↑): $ -0.134 -SHORT (↓): $ -0.497 |
EXECUTION TYPE: STP ONLINE PLATFORMS □ MetaTrader4 □ MetaTrader5 □ WebTrader □ Mobile Traders
FOREX ASSETS: 80+ Currency Pairs Full CFD Asset Index |
$100 Minimum Deposit
WELCOME BONUS:
FUND METHODS:
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KEY IRONFX FEATURES
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REGULATED BY: ASIC (AUSTRALIA) & CySEC (CYPRUS) SEGREGATED CLIENT BANK ACCOUNTS: YES US TRADERS: NO ISLAMIC ACCOUNTS: YES FOUNDATION: 2005 HEADQUARTERS: Australia |
OVERNIGHT LONG/SHORT SWAP VALUE: ■ EURUSD SWAP VALUE: -LONG (↑): $ -0.416 -SHORT (↓): $ +0.059 ■ GBPUSD SWAP VALUE: -LONG (↑): $ -0.26 -SHORT (↓): $ -0.104 ■ USDJPY SWAP VALUE: -LONG (↑): $ -0.056 -SHORT (↓): $ -0.25 |
EXECUTION TYPE: ECN/STP ONLINE PLATFORMS □ MetaTrader-4 □ MetaTrader-5 □ IRESS Trader SCALPING: YES FREE VPS: YES
FOREX ASSETS: 60+ Currency Pairs Full CFD Asset Index -Indices and over 2,000 shares -Cryptocurrencies -Precious Metals -Commodities |
$100 Minimum Deposit Amount
PAMM ACCOUNT: YES
WELCOME BONUS:
FUND METHODS:
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KEY FP MARKETS FEATURES
► Register an ECN Account with FP Markets |
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