Discussion in 'Forex Brokers' started by frank99, Jun 8, 2008.
Which brokers besides Oanda do not pay/charge triple interest on Wednesday?
None spring to mind but I'm intrigued to know why you want one
If you're after a broker who doesn't pay/charge interest at all then try looking to see if they have a Muslim account, not sure how they work it out but it's worth a look.
Thanks for the reply. I had an idea, but I just found a flaw in the logic, so nevermind.
Triple interest Wednesday? What?
Is that like a radio station playing "double shot Tuesday"?
Does such a thing exist?
Its the standard settlement procedure in FX. Google 'Tomorrow Next' for details. Because of the weekend, you will pay/recieve 3 times the swap on wed.
Ah, Oanda pays on the weekend.
Thanks for the info.
I was under the impression that Islamic banks still had a procedure similar to interest, they just called it by a different name... I know several like that. But maybe others are not?
This should, in theory, be exploitable - if you have a broker with very competitive spreads and rolls. If you open a hedged trade (int negative on Oanda, int positive on the other broker) just for the rolling period for wed, you get 3 days worth of interest and pay negative swap for 30 minutes or so on Oanda (since Oanda calculates interest on a per second basis). Question would be if the interest can overcome the spread-costs and/or commissions. There probably would't be much love from Oanda either if this would be done with big size.
The interest isn't enough to overcome the spread on both sides unfortunately.
I think I read somewhere there are still a few left who don't pay/charge, don't know who though.
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