I have an account with tradersway and was charged $24.34 swap fee today for sell 0.80 AUD/USD. But also had the same trade on my IC Markets broker account and I was paid a swap fee by IC Markets. My question is why would tradersway charge me a fee while IC Markets paid me a swap fee.
Did you actually ask them about it? It’s hard to answer a question like that because we don’t know your account type & the stipulations that come with tradersway. I’d advise you to contact them via the manner and send screenshots of your IC markets paying a swap fee & them doing the reverse.
Frankly, this is why I always use swap free account! Most of the time, it killed my profit ratio so badly.
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One possible explanation to the scenario is that those brokers are using different liquidity providers.
The swap rates are usually passed down to the broker from the bank that is their liquidity provider.
You do know that there is no such thing as a swap free account, right? The fee is just flat and included within your spread and/or commission (sometimes both).
The only difference is that with the actual swap (not free) account you can and will regularly get possitive swaps along with the negative ones. That is unless your broker is an MM and has disabled the possitive swap. Same thing can be applied when it comes to slippage.
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Another explanation, @phoneone, besides what John said above is that beginner traders and intraday traders tend not to put as much emphasis on swap rates as they do other factors such as spreads. Therefore brokers whose primary clientele is beginner traders or intraday traders may offer less competitive swap rates than brokers whose primary clientele is advanced traders or long term traders.
That’s why when choosing a broker, you should consider all factors, not just spreads or leverage, as highlighted by this earlier discussion: Unregulated brokers illegal? Whats the Risk? Help Please!
I did ask live chat support but unfortunately they didn’t seem to understand the question. So when I pressed them on it they suggested I contact the account department by email.
I’m now waiting to receive a reply.
Thanks I will check the post out
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Than what about Islamic account; I see many brokers offer this kind of trading account?
I did explain how the “Swap-free/Islamic” accounts work.
Hi, @phoneone this could happen as some brokers have positive swap rates for certain instruments. This could also depend on the type of your trade (Buy or Sell). Different Liquidity providers and banks have different swap rates. It’s possible that for the same instrument Tradersway to have negative swap and IC Markets to offer positive. It would be better to check thoroughly all the swap rates of these brokers so you could make your calculations for the future trades.
Oh now I got it mate! Thanks for your quick reply. Have a great weekend.
This is also something that I really wonder. Can swap broker fees manipulate it? because having brokers taking swap fees is very expensive. while, brokers are too cheap.
Apparently, this is a broker’s secret ?