Carry Trade Interest Differential Consistent among brokers?

Discussion in 'Trading' started by virtualmoney, Sep 9, 2007.

  1. What brokers follow closest to central bank interest
    rates differential? Which are the ones are better for
    carry trades (w.r.t /JPY)?

    How often do the swap points change?

    Anyone here uses pairs/spread trade strategy
    between baskets of FX pairs?
  2. Any other brokers offering interest free overnight position
    besides Marketiva to hedge against my carry trades in
    other accts?:p
  3. You will find that many/most FX brokers do not even publish their overnight swap rates, and there is a reason for that. In many/most cases, their overnight swap rates are atrocious.

    I can't say I'm speaking about the dealing desk brokers, because if you're willing to pay a 3 pip spread on eur/usd, you deserve to be ripped off on overnight swaps.

    The "almost ECNs" such as EFX/MBT, Dukascopy, and a couple others are typically the worst, as they have to make concessions with the banks in order for the banks to allow mini-lots on 1 pip spreads. By concessions, I mean charging interest on short yen carry positions. How does -3.2% sound on NZD/JPY long? It's true.

    The two retail outfits with the best rates that I've come across are IB and Oanda. Though IB takes the win for their ECN environment.

    I trade via Currenex through a prime broker, where the rates are based upon the tom. next rate.
  4. Thanks for the info.

    I have an acct with IB and I
    checked IB website but couldn't find
    the swap rates for Yen pairs.../JPY

    Anyone have FXCM acct,how is their
    swap rates for YEN pairs?
  5. If there are no interest/swap free FX brokers,
    can anyone recommend one which offers the
    lowest short Swap rate for major carry trade pairs....

    e.g, GBP/JPY, GBP/CHF, NZD/JPY, AUD/JPY,... etc