Some brokers pay rather high rollover refunds for holding commodities overnight. However, unlike currency pairs, it seems there is not a single website that compares those swaps. Does anyone know such a website or a decent regulated broker that pays high swap?
Hi @pip2hunt
To which commodities are you refering in particular?
FOREX.com offers competitive rollover rates for currency pairs, but our commodity CFDs (contracts for difference) expire every month, so there is no rollover interest earned or paid.
Instead, the interest rate you earn or pay is factored into the daily price fluctuations similar to how it works with the corresponding commodity futures contract. That might be why you couldn’t find a website to compare commodity rolls the way you did for currency rolls.
Oil and gas. Nice to know about your expiring cfd’s but obviously I’m looking for a website that compares swap for non-expiring positions. I demo’d your broker also. The remark I still have is ‘displayed swap rates are incorrect’. Funny that when asking about swap you guys react
Are you sure the oil and gas positions you trade are non-expiring? CFDs for those products typically expire ahead of the related futures contract. That’s probably why you haven’t found a website comparing swap rates for oil and gas.
Could you please give us an example? FOREX.com updates the rollover rates on our our platforms regularly. If you believe we made an error, we would work to address it ASAP.
Note: Contracts for Difference (CFDs) are not available to US residents.
Basically, swap is the difference between interest rates of the currencies that you trade (in currency pair). Most of the times interbanking lending rates are added to this value, called libor rates
To have positive swap - the currency that you buy (hold) must have higher interest rate than the currency you borrow. My favorite pair for carry trade now is selling USDRUB, the swap on Tickmill is 673 points, i.e. 67.3 USD daily per one lot. Basically its a safe trade as Russian government confessed hot carry trade money is the only way they can keep their currency stabilized and avoid economy crash. So for 6 months or more the pair should be quite stable and perfect for long term interest earning.
Note that intraday trading even with leverage is not subject to swaps.
6.73 I guess?
67.3 USD a day per 100,000 adds up to 24.6% a year.
Don’t forget about spreads. To enter position you have to pay a lot for spreads. And spread widening can be also the issue what erodes profit, especially during opening and trade close.