Discussion in 'Forex Brokers' started by Ericqa, Jun 25, 2010.
Can you advise me a MT4 broker that no charge overnight fee , thank you
Noone can. The problem is that the "overnight fee" is not a fee of the broker, it is the PRICE OF THE MONEY YOU BORROW TO MAKE THE TRADE. In fact - it is basically the price for holding your contract.
Your question basically asks:
"Is there a broker giving me a free credit (while he has to pay money)"?
I 'm new for Forex and don't understand why need to pay money if hold a deal overnight ? , I know Forex rule that need to close and open a new deal if hold contract to a new day , a new day may have a difference interest rate , But why need to close and open a deal again ? , why this rule does not happen on Stock market ? , sell stock and buy it again on every coming day .
I think this rule proposal is just to increase a liquidity of currency only , they need people to buy and sell on everyday to get commission on spread and easy to control a currency direction by big institute ,
However I had searched into Google , found that many of Brokers do not charge roll over / swap fee to traders , some broker charge only if you hold a deal over a week , so why have 2-3 standards of Broker ? , Then Does this rule make by individual Forex broker or Forex official organization ?
Get the book "Currency trading for dummies" and start learning the fundamentals what you actually do there.
::why this rule does not happen on Stock market ?
It happens on stock market. When you buy credit on stock - guess what, you pay interest rate on the credit.
When you hold a Forex position overnight, you take a credit and puchase currency from it.
Buy 1 contaract USDYEN (see whether I get this right) takes the credit in USD to purchase 100.000 USD worth of YEN (I think - not doing forex actively at the moment). You get the interest rate for the YEN you own, you pay the interest rate for the USD you took a credit in.
::found that many of Brokers do not charge roll over / swap fee
Really? Which? All reputable forex brokers I know of will charge you roll over fee.
:r Forex official organization ?
Ah - you are totally clueless? WHICH FOREX ORGAINZATION? There is none. Forex is totally unregulated.
You should really get a good book and read up on the basics.
Google... "Islamic Forex Accounts"
There are a few dealers that have swap free accounts for non religious reasons also...but you will need to search deep for them...
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