REAL SWAP FREE broker for EVERYONE

ARBinstruktor

Junior member
14 1
The topic of swap free brokers rises now and then.
I think it is time to raise it again.

I am really wondering, whether there is such a unicorn out there, that offers swap free trading independent from the faith.
I personally know only one, and that is very a small rose, that does not stand very much of watering/funding.
There are some, who do it on an exceptional and secret basis.

But are there any relevant brokers out there, accepting relevant funds, with a decent regulation, offering swap free accounts?

I would not care about higher bid ask spreads, commissions or fees, but I hate this daily nibbling on my money.
 

hatemypips

Well-known member
452 30
The topic of swap free brokers rises now and then.
I think it is time to raise it again.

I am really wondering, whether there is such a unicorn out there, that offers swap free trading independent from the faith.
I personally know only one, and that is very a small rose, that does not stand very much of watering/funding.
There are some, who do it on an exceptional and secret basis.

But are there any relevant brokers out there, accepting relevant funds, with a decent regulation, offering swap free accounts?

I would not care about higher bid ask spreads, commissions or fees, but I hate this daily nibbling on my money.
Swap free means you will pay some other fixed commission instead of swaps. Somebody has to bear the costs of maintaining your position. There is no such thing as free lunch, right?
 

ARBinstruktor

Junior member
14 1
Swap free means you will pay some other fixed commission instead of swaps. Somebody has to bear the costs of maintaining your position. There is no such thing as free lunch, right?
There is always a free lunch!

Normally it is on the side of the broker, he gets the bid-ask spread, he gets the commissions, he reduces the positive interest differential (swap) by charges to his benefit, he widens the negative swap by charges to his benefit, and so on.

The actual claim should be for a

swap FAIR account,​

i.e. an account with swap rates based on pure interest diffs. Such an account would have identical swap rates on the long and the short side, only the sign would differ.

The funny point;

a swap fair account does not exist, while a swap free account does exist.

In its purest form it is an instrument for possible free lunches because not only the swap charges are lifted, but even the swaps themselves. It is just a question of the funds you have to provide as margin.

example:

USDCHF, the highest interst diff currently available in a liqud fx crosses: The diff is 2,25%pa - (-0,75%pa) = 3,00% pa.
Assume a volatility of 10%pa, then you should place at least 10% as margin with your sf broker. So you get a position with a yield of 0% and a risk of + - 100% (=+ -10%/10%). Placing additionally the opposite trade with a "normal" broker, where you can collect the interest diff, leaves you with a position yielding 30%pa (=3%/10%) and having a risk of + - 100% again.

For each broker each position is to be considered separately, but for you as trader, you can value them as a combined position:
So you have a combined position yielding 15%pa (3%/(10%+10%)) with a risk of 0%, as the positions are opposite, price plunges in one account are compensated by price gains in the other and vv. In case you are more cautios and you provide 15% as margin per account your yield falls to 10%pa, for achieving a yield of 30%pa you can only bring 5% as margin.

As long as you are able to avoid a forced close out by the broker, either by providing enough margin up front, by effective margin management (=balancing the two accounts swiftly), or by a mix of both, you are getting at least a very cheap lunch.



This is an effective financial advantage, that can be utilized for strategies, as long as it is not compensated by other costs, eg wider bid ask spreads, commissions, holding fees, limited holding periods, etc. On the other side there are mathematical and statistical means, which help to reduce the effect of such costs, as well.



So the real question should be, how is it possible that in our days in our civilzation (= City of London, as pars pro toto), someone still gets DISCRIMINATED for his/her faith???

Why is it possible, that FCA regulated brokers can decide, which client gets which account?
No lawyers out there taking up this case?
 

hatemypips

Well-known member
452 30
You can check brokers that offer swap free account they will instead charge you with some fixed commission. I think it same option like Fixed spread account, for example from Hotforex, in any case you have to pay premium.
 

ARBinstruktor

Junior member
14 1
T
You can check brokers that offer swap free account they will instead charge you with some fixed commission. I think it same option like Fixed spread account, for example from Hotforex, in any case you have to pay premium.
The problem is, lots of broker comparison sites list brokers as swap free brokers for everyone. But when asked for such an account, they do not offer it all or only for Muslims. It is really frustrating.

For keeping things not too easy. Such a broker should be FCA regulated (not only registered!!!), ie an experienced authority + insured funds up to 50.000,- GBP + an Ombudsman scheme.

What is your experience with hotforex?
Do you have an UK account (50k insurance)?
swap free?

Please inform us!

B/A-Spread and maximum holding periods allow a simple break even analysis. Depending on the inputs the result will say yes or no.
 

hatemypips

Well-known member
452 30
T


The problem is, lots of broker comparison sites list brokers as swap free brokers for everyone. But when asked for such an account, they do not offer it all or only for Muslims. It is really frustrating.

For keeping things not too easy. Such a broker should be FCA regulated (not only registered!!!), ie an experienced authority + insured funds up to 50.000,- GBP + an Ombudsman scheme.

What is your experience with hotforex?
Do you have an UK account (50k insurance)?
swap free?

Please inform us!

B/A-Spread and maximum holding periods allow a simple break even analysis. Depending on the inputs the result will say yes or no.
This broker is regulated with FCA but I use an account with their offshore branch because of more freedom of leverage. I also run swap free account with them registered on my brother.
 

ARBinstruktor

Junior member
14 1
This broker is regulated with FCA but I use an account with their offshore branch because of more freedom of leverage. I also run swap free account with them registered on my brother.
Interesting!

Are there any restrictions for the swap free account, like "the management preserves the right to close all your positions / your account without warning ....

Do you think they offer FCA accounts with the fund insurance of 86.000,- GBP?

What is your experience? Trading / Money Transfer / General Service

Thanks for the info.
 

hatemypips

Well-known member
452 30
Interesting!

Are there any restrictions for the swap free account, like "the management preserves the right to close all your positions / your account without warning ....

Do you think they offer FCA accounts with the fund insurance of 86.000,- GBP?

What is your experience? Trading / Money Transfer / General Service

Thanks for the info.
Obviously they can terminate your account if they spot arbitrage because it is an attempt to profit risk-free but I mix my arb trades with some random bets to keep low profile. And it works. Public strategies surely won't work but customised ones...
 

Similar threads


AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock