Carry Trading

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

updated 11/2020

PLATFORMS

ACCOUNTS

INFORMATION

 

» AXI TRADING

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:

  • (N/A)

FUND METHODS:

  • Credit Cards
  • Bank Wire
  • Skrill
  • Neteller
  • BPay

 

KEY FP MARKETS FEATURES

  • Tight Spreads
  • Free VPS
  • PAMM accounts
  • Free Autochartist
  • Good Technology

 

► AXI Trading Accounts

► Review AXI

» DUKASCOPY GROUP

REGULATED BY:

  • FCMC (Dukascopy Europe)
  • FINMA (Dukascopy Bank)

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

  • REGULAR SWAP RATES

EXECUTION TYPE:

ECN

ONLINE PLATFORMS

□ JForex

□ JavaTrader / WebTrader

□ FIX/API

□ Mobile Traders

 

FOREX ASSETS:

50+ Currency Pairs

Gold and Silver on Spot

MINIMUM ACCOUNT:

  • $100 for Dukascopy Europe
  • $5,000 for Dukascopy Bank

 

PAMM ACCOUNT: YES

 

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:

  • Very tight trading spreads
  • SWFX Liquidity
  • JForex Automated
  • Contests and Social Trading

 

► Open an Account with Dukascopy

» 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:

  • 100%

Traders can withdraw the 100% welcome bonus

-Volume requirements

FUND METHODS:

  • Credit Cards
  • Bank Wire
  • Skrill
  • Neteller
  • FasaPay
  • UnionPay
  • UPaid Card

 

KEY LQDFX FEATURES

  • Tight Spreads
  • 100% Welcome Bonus
  • PAMM Accounts

 

► Register an ECN Account with LQDFX

► Review Fx Broker

» 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:

  • (N/A)

 

FUND METHODS:

  • Credit Cards
  • Bank Wire
  • MoneyBookers
  • Neteller
  • and more

 

KEY IRONFX FEATURES

  • Many Funding Methods
  • Multilingual Customer Support
  • CFDs on Futures

 

► Visit IronFx Web-Site

► Review Fx Broker

» FP Markets

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:

  • (N/A)

FUND METHODS:

  • Credit Cards
  • Bank Wire
  • Skrill
  • Neteller
  • FasaPay

KEY FP MARKETS FEATURES

  • Premium Rollover Rates and Tight Spreads
  • Free VPS
  • PAMM accounts
  • MT4, MT5, and the professional IRESS platform
  • Good Technology

 

► Register an ECN Account with FP Markets

► Review Fx Broker

 

MORE ON CARRYTRADER

■ COMPARE PROVIDERS

► Forex Brokers for Day Traders

 ► Brokers for Carry Traders

► Automated Forex Systems

        
■ 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

Currency Indices

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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