Overnight FX position roll charge

[meanreversion]

Which broker provides the most competitive overnight roll rates, i.e. the difference between the market rate for tom/next and where they roll their clients? Reason I ask is because I occasionally have trades open for a couple of months, and a little nibble is taken each night.

The most obvious way round this is to trade FX futures, but then spreads through readily available retail platforms are not that competitive.

Anyone in the same boat on this one?

 

[gabylicious]

When I was a newbie I had more troubles with rollover. Such a problem calculating them… if you are a newbie look for a broker that publish the overnight rates for each currency pair, mine does, but I think most brokers don’t so that is why I said look!!!

 

[Rhody Trader]

Which broker provides the most competitive overnight roll rates, i.e. the difference between the market rate for tom/next and where they roll their clients? Reason I ask is because I occasionally have trades open for a couple of months, and a little nibble is taken each night.

The most obvious way round this is to trade FX futures, but then spreads through readily available retail platforms are not that competitive.

The carry rate is factored into the futures contract prices, so you don't get around it by trading them over spot.

As for spreads not being competitive, are you talking SB or straight out futures because the bid/ask there comes from the exchange, not the broker, and is reasonably tight. Besides, if you're a long-term trader a pip or two shouldn't matter to you.

As for broker rates, I know Oanda publishes theirs, and so do others, but I don't know of any way to see them all compared. You'll likely have to look at the individually.

 

[lisalin]

thanks
nice post
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