Darwinex swaps

[CavaliereVerde]

I am paying ~10% per year in rollovers for CVL

 

[Viro Major]

10% really ? On FX ?

The most inexpensive attractive carry cost is to be found on currency futures. I calculated it this week and it was only 0.8% to long EUR/USD
Aside futures, OANDA offers the best swaps for OTC (at 1.6% for the same position, still double than futures, including micro-futures)

 

[SkyField]

I am paying ~10% per year in rollovers for CVL

Unfortunately I can occur with these numbers, a few months till a full year but the cost's are at 7,3% as of now.

 

[SkyField]

10% really ? On FX ?

The most inexpensive attractive carry cost is to be found on currency futures. I calculated it this week and it was only 0.8%
Aside futures, OANDA offers the best swaps for OTC (1.6% to long EUR/USD, still double than futures, including micro-futures)

Yes, the swaps are not very good on this broker.
There were several topics about it on the Darwinex forum and reason for the high swaps (if im not mistaken) was due to the orders going straight through, instead of matching them internally.

I see the difference between my brokers which is kinda frustrating 😆

 

[Viro Major]

The carry cost of Forex at Interactive Brokers is better than that, but not the best in the industry. However, the commissions for FX are among the lowest if you trade enough size (lots worth >=100k). In fact, I use IB has a bank account for FX conversions, when I need to fund a foreign broker or pay for a foreign item/service online. Their net rates are better than Transferwise...

It’s possible though that Darwinex will mark-up the default fees (outside of rebates on volume if they come up with that just like it exists now). The stock commissions started almost 3 times higher ($0.01 per share instead of $0.0035) than the ones with IB directly. For me, it was a disappointment, but I was expecting it (white label, after all)

 

[CavaliereVerde]

@Shivank
Are IC Markets swaps much better than Darwinex ?

 

[hefoba]

@Shivank
Are IC Markets swaps much better than Darwinex ?

Status for my Usd/chf position ( 1 lot ) open 22 Sep ( I read status in my Metatrader )
Globalprime : -44 Eur
DarwinEx : -20.5 Eur
ICMarket : -21.5 Eur
Alpari: -36 Eur
Fxtm : -30 Eur

Well let say DarwinEx is ok and Globalprime is bad...

 

[hefoba]

Status for my Usd/chf position ( 1 lot ) open 22 Sep ( I read status in my Metatrader )
Globalprime : -44 Eur
DarwinEx : -20.5 Eur
ICMarket : -21.5 Eur
Alpari: -36 Eur
Fxtm : -30 Eur

Well let say DarwinEx is ok and Globalprime is bad...

Clarification

I do not have trades with 1 lot on each accounts but weight so we can compare the swaps.
So if I had 0.5 lots then I double the swap.

 

[Viro Major]

For a lot size worth 100k € on EUR/USD, per annum, I calculate

Long position :
* Darwinex = -1.76%
* Dukascopy = -1.28%
* OANDA = -1.72%

Short position :
* Darwinex = -0.37%
* Dukascopy = +0.06%
* OANDA = -0.34%

So okay competitive...

Are you sure about 10% ? Crypto swaps were at this kind of level but FX ?!

 

[CavaliereVerde]

@Captain Currency
@TrungLN
I want to continue here our discussion on the impact of trading costs.
The more pips you trade the lower the impact of commission and spread but at some point swaps kick in.
I trade 80-100 pips , so impact of spread and commission is 1% on the value of the trade but trades last for 3-5 days and the impact of swaps is huge, more than 5% annual calculated on my average equity.
How many pips can we trade intraday without going overnight? I think max 30-35 .
If we consider that strategies that work are almost inexistent it would be excessive to add this kind of constraint.

 

[Captain Currency]

How many pips can we trade intraday without going overnight? I think max 30-35 .

Depends how volatile the pair is Cav, today a 30 - 35 pip stop-loss or take-profit should have easily seen you exit your position within 24hrs 😭

You're probably close with your estimation of 30 - 35 pips (I'd guess less though), some days the pair will go quiet post-entry and you're stuck in limbo. A plan might be to exit the position (for better or worse) before 10 pm to avoid swap.

 

[CavaliereVerde]

I am speaking on average, of course there are days when the maket move 200 pips or picking bottoms and tops with hindsight.

What I wanted to say is that if I spent 4 years to find a strategy that grows holding trades for 4 days and you spent the same to find a strategy that works trading 20 pips mine would not work closing at evening and your would not work waiting for 30 or 40 pips.

We have to care about costs but not completely change the strategy.
Excluding less convenient markets could make sense.

 

[TLN]

I trade 80-100 pips , so impact of spread and commission is 1% on the value of the trade but trades last for 3-5 days and the impact of swaps is huge, more than 5% annual calculated on my average equity.
How many pips can we trade intraday without going overnight? I think max 30-35 .

I think it's not about how many pips.
It's about the characteristic of our own strategies.
If our strategies need to open several days, we need to evaluate it, whether the edge of our strategies can compensate all the swap. (Like @Captain Currency supposes he can cover spread + com).
Therefore, no fixed value for number of pips to avoid swap.
It depends on our decision, our designed strategies.

 

[TLN]

For example:
KSX: this strategy I need to let trades overnight and frequently. I backtested with the capital 500$ and fixed 0.01lot for each trade. Let's assume I open all 365 day. For GPB/USD, swap long is arround 1pip.
So, total swap for a year ~ 365 pips ~ 36.5$. ~ 6% my capital. But, as testing result, I still got profit. So, I accept this kind of cost.
For PSX, I rarely let trades overnight. I close all trades before 23:00. I don't want swap involved in this strategy.

 

[TLN]

By the way, @CavaliereVerde and @Captain Currency.
Are you full-time traders?
If not, what is your main field/job?

 

[CavaliereVerde]

This has nothing to do with commissions or swaps...
But no I can't live from 22k earnings in 5 years...
I am a chemist, graduated in chemistry.

 

[TLN]

This has nothing to do with commissions or swaps...

Yeah, nothing to do. Except, try to build/develop a strategy to overcome them. They are a part of this trading world.

But no I can't live from 22k earnings in 5 years...
I am a chemist, graduated in chemistry.

I guess you means you won 22k in 5 yrs with trading.
Of course, it's not much. But, I'm quite impressed with your main field in chemist and your knowledge in trading.
22k $ can not live even in Ho Chi Minh city, Viet Nam in 5 yrs. But, it's enough to build a small house in VietNam like this ^^

 

[CavaliereVerde]

I'm quite impressed with your main field in chemist and your knowledge in trading.

There are a lot of chemists and engineers that try trading.
You are algo like me so it is a science, collecting and evaluating data and results.

 

[CavaliereVerde]

Many friends here are more expert than me about brokers and costs of execution.
Is ther a broker really better than Darwinex regarding swaps?
I mean half of the expense.
Assets are EURUSD GBPUSD EURCAD AUDUSD EURJPY
->https://www.darwinex.com/account/D.60117

 

[LongVision]

Many friends here are more expert than me about brokers and costs of execution.
Are ther any broker really better than Darwinex regarding swaps?
I mean half of the expense.
Assets are EURUSD GBPUSD EURCAD AUDUSD EURJPY
->https://www.darwinex.com/account/D.60117

Forex Brokers Swaps Comparison | Myfxbook

Compare and review forex broker swaps. Find the highest and lowest swap paying forex brokers.

www.myfxbook.com

axi trader/pepperstone/IC Markets has better swap than Darwinex but not half.