Forex Interest rates

Could someone tell me if all Forex brokers pay or deduct depending on which pair you are trading, interest on open positions and on any unused balance. I know Oanda has a pretty sweet deal on Interest as it is paid up to the second. My question is does Refco pay interest on my open USDCHF long position.

 

It has to. It's bank interest.

 

For a mini account trader forex interest rates don't range to high do they?

 

I typically buy $100,000 lots and the P/L's change by a few dollars after the trade is closed.

 

The amount you pay/receive depends on the which member of the pair you are long, and which one you are short.

In order to receive interest, you would have to be long USD/ short CHF because the benchmark US rate is 3.25% and Switzerland's benchmark interest rate is less than 1.00%. If you were short USD/CHF, you would be short the higher yielding currency (USD) and therefore would have to pay interest.

 

Another point, you pay or get paid on the leveraged amount.

 

And keep in mind that the interest only applies to trades open at 2PM EST.

 

For mini accounts, they are 10% of the regular lots interest - though don't expect to get paid interest if you are leveraging 400:1 or 300:1 etc. It seems anything less than 50:1, you will have to pay interest whichever pair you long or short.

My advice - use less leverage - safer and you don't get blown out of the water as quick, and earns some interest while you're at it - may not be much for a mini account, but hey 10 dimes make a nickel.

In the Oanda website, they have fxcalculators to calculate interest paid or earned down to each unit and time frame. If you are using FXCM or Refco, switch to the simple dealing rates and th interests will be reflected.

 

Not at Onada. You can open and close a trade at anytime and you will get or pay interest on that trade. And they add up the small bits to make or take the cents