FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
HFM information and reviews
HFM
91%
FxPro information and reviews
FxPro
89%

OctaFX goes swap-free: here's how it will affect traders


21 June 2022

The global broker OctaFX recently announced that it went swap-free in all countries where it operates. Now traders don’t have to pay this type of fee if they leave their orders open overnight. But why did they pay it in the first place? Let’s explore swap fees and why brokers charge them. Forex trading usually implies using leverage to open larger positions which could generate more profit. Since using leverage is a way of borrowing money from a broker, traders have to pay interest when their orders are open longer than one day. Swap is a way to charge it.

Swap fees depend on the interest rate differential between the currencies in a pair, called the swap rate. Swaps are calculated based on whether the order is short or long and are usually charged at midnight. On Wednesday night, traders have to pay weekend swaps triple the usual size. They mostly use an intraday strategy to avoid paying swaps, which significantly narrows their investment experience.

A swap fee can sometimes—though quite rarely—be paid to a trader. How? The answer is in the swap rate, which sometimes can be positive, provided that the interest rate of one currency is negative.

Charged every day, swap fees tend to accumulate with time and make trading less profitable. To enhance investment opportunities for its clients, OctaFX decided to remove swaps. These fees will no longer stop traders from using mid-term and long-term strategies in the financial market. They can now hold as many orders as they want for as long as they want and not be charged any swap fees.

OctaFX is a global broker providing online trading services worldwide since 2011. It offers everything one needs to reach their investment goals, providing top-notch conditions utilised already by 7.5 million clients globally. The company is involved in a comprehensive network of charity and humanitarian initiatives, including improvement of educational infrastructure, short-notice relief projects, and supporting local communities and small to medium enterprises.

On a side note, OctaFX has also won more than 45 awards since its foundation, including the 2021 ‘Best Forex Broker Asia’ award from Global Banking & Finance Review and the 2021 ‘Best ECN Broker’ award by World Finance.

#source

Share: Tweet this or Share on Facebook


Related

XM Receives Award at Finance Magnates Africa Summit
XM Receives Award at Finance Magnates Africa Summit

From May 8th to the 10th our team in South Africa was at the first ever Finance Magnates Summit (FMAS:23). XM was there as Diamond Sponsor, and during the summit, we were honoured with the Best Customer Service in Africa award...

30 May 2023

Five Reasons for Copy Trading: Unlocking Your Financial Potential
Five Reasons for Copy Trading: Unlocking Your Financial Potential

With the social trading sector expected to grow and reach a market size of $3.77 billion by 2028, copy trading, a form of social trading, is fast becoming a popular way for traders to achieve their financial and trading goals...

29 May 2023

TRXUSD now available on OctaFX trading platform
TRXUSD now available on OctaFX trading platform

TRXUSD is a popular high-cap cryptocurrency used on the TRON blockchain platform. With the addition of TRXUSD to our platform, our clients can diversify their investments and take advantage of the potential of this cryptocurrency on the market...

24 May 2023

An Introduction to Copy Trading Platforms and How to Choose One
An Introduction to Copy Trading Platforms and How to Choose One

Investing in financial markets can be both daunting and time consuming, especially for those with limited experience in trading. However, copy trading platforms offer a simple and convenient way...

24 May 2023

Planned optimization of MetaTrader 4 platform
Planned optimization of MetaTrader 4 platform

We would like to inform you that on Saturday, May 20, 2023, from 00:30 to 22:00 EEST, the MetaTrader 4 platform will be temporarily unavailable due to the planned...

22 May 2023

T4Trade: Introduction to CFD Trading
T4Trade: Introduction to CFD Trading

Learn what CFDs are, the advantages and risks of trading CFDs as well as some useful tips to help you find success when trading online...

19 May 2023


Editors' Picks

FXCM information and reviews
FXCM
87%
MultiBank Group information and reviews
MultiBank Group
86%
RoboForex information and reviews
RoboForex
85%
Libertex information and reviews
Libertex
84%
Vantage information and reviews
Vantage
83%
FP Markets information and reviews
FP Markets
81%

© 2006-2023 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.