what's the deal with swap fees?

Discussion in 'Forex Brokers' started by apluvr, Dec 1, 2004.

  1. apluvr

    apluvr

    Using SNC Investments demo right now; really nice program, but get charged wierd swap fees every day; sometimes $3.75, sometimes $15.00, sometimes $45.00, all for the same amount of the same currency! What's going on here. Do all brokers charge these swap fees?
     
  2. mcintyd1

    mcintyd1

    The swap fees in this case are for the difference in interest rates between the two currencies when the currency pair is held overnight. You either "earn" or "pay" the interest difference depending on which currency has higher interest and on whether your position is long or short.