What is Forex Carry Trading? -Basic Information
Carry trading refers to a trading strategy that involves borrowing at a low interest rate and buying an asset that offers a higher rate of return. In practice, Forex carry traders are borrowing in a low-interest rate currency to buy another currency that provides a higher interest rate.
- The basic risk of a carry trade involves a decline in the currency pair against the direction of the trade greater than the interest rate differential.
- Carry traders do not mind either about the trading spreads or about the trading commissions charged. They do mind a lot about the SWAP rates of each currency pair.
- Each Forex broker offers different SWAR rates for each currency pair, therefore, Forex carry traders need to research the market well and choose a safe Forex broker that offers the best SWAP rate for their cause.
What is a SWAP or Rollover Rate?
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 to cover the two missing rates of Saturday and Sunday.
COMPARE SWAP FOREX RATES (UPDATED EARLY 2024)
COMPARE ALSO: » FOREX AUTO-SYSTEMS | » FOREX BROKERS FOR TRADERS | » CURRENCY PAIRS
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BROKER |
OVERNIGHT SWAPS (at the time of the review) |
TRADING INFO |
ACCOUNTS |
FURTHER INFORMATION |
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REGULATED BY:
SEGREGATED CLIENT BANK ACCOUNTS:
US TRADERS: NO ISLAMIC ACCOUNTS:
FOUNDATION:
HEADQUARTERS:
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■ EURUSD SWAP VALUE: -LONG (↑): - $0.625 -SHORT (↓): + $0.256 ■ GBPUSD SWAP VALUE: -LONG (↑): - $0.199 -SHORT (↓): - $0.037 ■ USDJPY SWAP VALUE: -LONG (↑): + $1.246 -SHORT (↓): - $2.592 |
EXECUTION TYPE: CFD Provider ONLINE PLATFORMS □ MetaTrader4 □ MetaTrader5 □ cTrader □ Mobile Traders -Free VPS Hosting
TRADING ASSETS:
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MINIMUM ACCOUNT:
PAMM ACCOUNT: NO WELCOME BONUS: NO
FUND METHODS:
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KEY ICMARKETS FEATURES
► Review Forex Broker |
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REGULATED BY:
SEGREGATED CLIENT BANK ACCOUNTS:
US TRADERS: NO ISLAMIC ACCOUNTS: YES FOUNDATION:
HEADQUARTERS:
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■ EURUSD SWAP VALUE: -LONG (↑): - $1.20 -SHORT (↓): + $ 0.00 ■ GBPUSD SWAP VALUE: -LONG (↑): - $0.60 -SHORT (↓): - $0.20 ■ USDJPY SWAP VALUE: -LONG (↑): + $0.482 -SHORT (↓): - $2.662 |
EXECUTION TYPE: ECN/STP ONLINE PLATFORMS □ MetaTrader-4 □ MetaTrader-5 □ RStocksTrader □ WebTrader / Mobile Trader
TRADING ASSETS:
Full CFD Asset Index -Indices -Commodities & Precious Metals |
MINIMUM ACCOUNT:
PAMM/MAM ACCOUNT: ONLY MAM PROMOTIONS:
FUND METHODS:
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KEY ROBOFOREX FEATURES:
► Register an ECN Account with RoboForex |
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REGULATED BY:
SEGREGATED CLIENT BANK ACCOUNTS:
US TRADERS: NO ISLAMIC ACCOUNTS:
FOUNDATION:
HEADQUARTERS:
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■ EURUSD SWAP VALUE: -LONG (↑): - $7.597 -SHORT (↓): + $1.134 ■ GBPUSD SWAP VALUE: -LONG (↑): - $3.240 -SHORT (↓): - $1.683 ■ USDJPY SWAP VALUE: -LONG (↑): - $17.102 -SHORT (↓): + $10.102 |
EXECUTION TYPE: ECN/STP ONLINE PLATFORMS □ MetaTrader4 □ MetaTrader5 □ FXDD Web
TRADING ASSETS:
Full CFD Asset Index -13 Indices and 20 shares -Precious Metals -Commodities -Cryptocurrencies |
MINIMUM ACCOUNT:
PAMM ACCOUNT: YES PROMOTIONS:
FUND METHODS:
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KEY FEATURES
► Register an ECN Account with FXDD |
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REGULATED BY:
SEGREGATED CLIENT BANK ACCOUNTS:
US TRADERS: NO ISLAMIC ACCOUNTS:
FOUNDATION:
HEADQUARTERS: Vanuatu |
■ EURUSD SWAP VALUE: -LONG (↑): - $6.83 -SHORT (↓): + $1.55 ■ GBPUSD SWAP VALUE: -LONG (↑): - $3.82 -SHORT (↓): - $4.46 ■ USDJPY SWAP VALUE: -LONG (↑): - $17.26 -SHORT (↓): + $7.54 |
EXECUTION TYPE: ECN/STP ONLINE PLATFORMS □ MetaTrader4 □ MetaTrader5 □ WebTrader
TRADING ASSETS:
Full CFD Asset Index -Stock Market Indices -US and Japanese Stocks -Precious Metals -Commodities -Cryptocurrencies |
MINIMUM ACCOUNT:
PAMM ACCOUNT: NO PROMOTIONS:
FUND METHODS:
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KEY FEATURES
► Register an ECN Account with TitanFx |
MORE ON CARRYTRADER
| ■ COMPARE PROVIDERS | ► Brokers for Carry Traders | ||||||
| ■ CURRENCY PAIRS | ► EURUSD | ► GBPUSD | ► USDJPY | ► EURGBP | ► AUDUSD | ► NZDUSD | ► USDCAD |
| ■ GLOBAL MARKETS | » Gold |
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| ■ LEARNING RESOURCES | » Currency indices | » CBOE Indices | » Forex Fundamentals | » The History of Interest Rates |
■ Compare Forex Brokers for Carry Traders
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