Question on Rollover

Discussion in 'Forex' started by fx_trader1234, Feb 15, 2008.

  1. Can you guys please help me with this one? I noticed that my Forex Broker GFT pays the same rollover ( half-pip ) on crosses with positive rollover ( e.g. AUD/USD , USD/JPY etc).

    My study shows that rollover should be different for difference ccy pair ( shd be around 1 pip for NZD/USD according to dbfx demo account i had ).

    When I called my broker, they told me since i have small account I am not getting premium rollover rates. Does this makes sense ?

    Whats your experience with rollover rates with your broker?


    PS: I am new to forex trading.
  2. Rollovers and carry-trade on bucketshops (retail Forex brokers) are fake, since your money isn't actually invested in buying/selling other currencies.

    They just take the other part of your trade, hoping you lose money, and most do.
  3. thanks crgarcia.

    is this true for all forex brokers? i was demoing DBFX had theirs rollover seems realistic ( at least in demo ) . anymore information is really helpful.
  4. To be 100% sure please ask dbFX directly.

    Rollover/carry trade varies from broker to broker.
    Some don't pay full carry trade unless you have a large account.
    Others don't pay carry trade at all.
    A few brokers charge full commission (spread), on each day you hold trades overnight.
  5. Even in the case of bucketshops, you buy and sell currencies only now with the broker as counterparty to your trade. I think you are wildly misinformed about the forex market considering your other posts as well.


    Premium rollover rates sound shady to me. There are enough brokers out there that offer transparant rollover / spread policies. Check them out.
  6. FX Solutions is very transparent with their FX Calculator.

    10,000 @ 100:1 the premium to sell is
    -10.54, Premium earned buying is 4.79. This is taken out every night at 5pm.

    When I asked why the spread is so large the guy said they are in business to make money, which I have to respect. They are providing a service, allowing small investors to participate in a large market. Plus maybe they figure since they are one of the only platforms that allow Simultaneous long & short positions they can get away with it. Some people think hedging in this manner is a waste of time, they say traders do this because they are scared to take a loss. I have found with this a never have to take a loss but then I only trade the dailies and weeklies with this account.

    Oanda's spreads seem much more fare:
    buy 10,000 @ 50:1 hold it 48 hours earn 4.68

    sell 10,000 @ 50:1 hold it for 48 hours lose 5.51

    Just opened another account with Think or swim just because I like the platform not sure what how they work it.
  7. Thanks very much to all of you. It was very helpful. I am opening account with dbFX as well. Will let you know.