Last Update: April 5th, 2024

The 10 Best Forex Brokers by Swaps revealed. Our team has compiled a list of the top 10 Forex Brokers based on swaps, focusing on their swap conditions to help traders select the broker that suits their trading style and financial goals.

In this in-depth guide, you’ll learn:

• What Swaps are in Forex Trading?
• Who are the 10 Best Forex Brokers by Swaps?
• How Swap Rates Impact Your Forex Trades.
• What are the Types of Swaps?
• How to Choose the Best Forex Broker for Swaps.
• Strategies for Trading with Swaps.
• Conclusion on 10 Best Forex Brokers by Swaps.
• FAQs on 10 Best Forex Brokers by Swaps.

And lots more…

So, if you’re ready to go “all in” with the 10 Best Forex Brokers by Swaps…

Let’s dive right in…

🏆 10 Best Forex Brokers

	Broker	Review	Regulators	Min Deposit	Website
🥇		Read Review	ASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSA	USD 100	Visit Broker >>
🥈		Read Review	FMA, FSA	USD 50	Visit Broker >>
🥉		Read Review	FSCA, CySEC, DFSA, FSA, CMA	USD 0	Visit Broker >>
4		Read Review	SFSA, FSCA, CySec*	USD 5	Visit Broker >>
5		Read Review	FCA, CySEC, FSCA, SCB	USD 100	Visit Broker >>
6		Read Review	FCA, FINMA, FSA, ASIC	USD 0	Visit Broker >>
7		Read Review	CySEC, FCA, FSA, FSCA, Labuan FSA	USD 100	Visit Broker >>
8		Read Review	Not Regulated	0.001 BTC	Visit Broker >>
9		Read Review	ASIC, CySEC, FSCA, CMA	USD 100	Visit Broker >>
10		Read Review	CySEC,MISA, FSCA	USD 20	Visit Broker >>

10 Best Forex Brokers by Swaps (2024*)

1. ☑️Pepperstone – Overall, best transparency and competitive swap rates.
2. ☑️HFM – Offering swap-free accounts for eligible clients.
3. ☑️XM – Clear swap policies and attractive rates.
4. ☑️Tickmill – Offers competitive rates for swaps.
5. ☑️Admirals – Efficient and transparent swap options.
6. ☑️AvaTrade– Clear and trader-friendly swap fee structure.
7. ☑️Exness – Known for its clear stance on swap rates.
8. ☑️RoboForex – Provide a clear system for swap calculation.
9. ☑️FP Markets – a Strong commitment to transparency.
10. ☑️IC Markets – Gives Islamic finance trading solutions.

What Are Swaps in Forex Trading?

Forex trading involves swaps, representing the cost or reward for holding positions overnight based on interest rate differences between two currencies.

These derivatives demonstrate the market’s principle of the time value of money and can impact a trader’s account positively or negatively.

Understanding the complexities of overnight fees demonstrates how global monetary policies interact, requiring traders to plan strategies based on more than just currency values.

This complex system highlights the intricacies of the financial world and underscores the strategic insight needed in forex trading, providing a detailed perspective for market participants.

Top 10 Forex Brokers by Swaps

Pepperstone

Overview

The broker is renowned for its transparency and competitive swap rates, appealing to traders seeking cost-effective overnight positions.

Its platform clearly outlines swap fees, allowing informed decision-making. Additionally, Pepperstone offers swap-free accounts for those unable to pay or receive interest.

Swap Rates or Overnight Fees Breakdown

When trading Forex and Commodities, the daily swap charge or credit is calculated by multiplying the trade size by the Tom-next rate obtained from top global investment banks. This ensures that the rates are updated daily to align with market changes.

Indices use a consistent calculation method considering the market closing price, trade size, and a 2.5% charge. The calculation is adjusted depending on whether the position is long or short and considers the ARR or IBOR.

Stocks also follow a similar method, where the daily fee or credit is impacted by the closing market price, trade volume, and a 2.5% fee modified based on the position and referencing ARR or IBOR.

Pepperstone Islamic Account Explored

Their Swap-Free account caters to traders who cannot trade swaps due to religious beliefs. It offers an interest-free trading environment with a standard spread type and a minimum trade size of 0.01 lots.

The account requires a minimum deposit of AUD$200 and is compatible with scalping, Expert Advisors, and hedging strategies.

However, there is an administrative fee for trades over 5 days and varying rates for different instruments. Pepperstone aims to meet the needs of Muslim traders by utilizing advanced technology and strong liquidity.

Pepperstone Pros and Cons

HFM

Overview

HFM customizes its services to meet various trader needs, such as offering swap-free accounts for eligible clients.

Their swap rates are competitive, and the broker is dedicated to offering comprehensive information on swap charges, helping traders effectively manage trading costs.

Swap Rates or Overnight Fees Breakdown

HFM Islamic Account Explored

The broker offers a Swap-Free Islamic Account for Muslim traders, adhering to Sharia law prohibiting interest-based transactions. This account allows traders to participate in financial markets without incurring swaps or overnight positions. Available in Cent, Premium, Pro, Pro Plus, and Zero Spread levels, HFM automatically grants swap-free status to eligible accounts.

HFM Pros and Cons

XM

Overview

It stands out with clear swap policies and attractive rates, helping traders develop strategies. The broker provides swap-free Islamic accounts, appealing to many clients.

XM is committed to transparency by offering a swap calculator that helps traders accurately estimate overnight costs.

Swap Rates or Overnight Fees Breakdown

XM Islamic Account Explored

They offer Islamic accounts that comply with Sharia law, allowing traders to engage in forex trading without interest. These accounts do not charge swap or rollover fees for overnight positions, promoting Islamic finance principles. They offer similar trading conditions to standard accounts, ensuring fairness in spreads, fees, and trading instruments.

XM Pros and Cons

Tickmill

Overview

The broker offers competitive rates for swaps and is committed to transparency. Combined with their competitive spreads, Tickmill is an appealing choice for traders’ conscious of overnight fees.

They also provide swap-free accounts for clients who need them, expanding their appeal even more.

Swap Rates or Overnight Fees Breakdown

Tickmill Islamic Account Explored

Their Islamic Account offers a swap-free option that adheres to Sharia law principles, ensuring no interest is applied to overnight positions. This benefits Muslim traders, as they can switch between Classic, Pro, or VIP accounts without losing favorable trading conditions.

Islamic accounts have similar trading terms and conditions as standard accounts but with a fee for keeping specific instruments overnight for over three consecutive nights.

Handling fees for different instruments range from $0.01 to $75 per lot, with popular currency pairs having a $5 fee per lot, while less common currency pairs and commodities may have higher fees. Stocks and commodities also have handling fees, with XAUUSD (Gold) trading at $10 and NAT.GAS at $0.04.

Tickmill Pros and Cons

Admirals

Overview

It is a top brokerage firm offering traders efficient and transparent swap options.

Admirals cater to various trading requirements and offer an Islamic Forex Account with a swap-free option for traders following Islamic principles.

Swap Rates or Overnight Fees Breakdown

Admirals Islamic Account Explored

Admirals offers an Islamic Forex Account for Muslim traders, allowing them to follow Sharia principles while benefiting from regular trading terms.

This account is found on the Trade.MT5 platform removes interest charges associated with overnight positions on various instruments, including currency pairs, indices, commodities, shares, ETFs, and bonds.

It provides competitive spreads, fast execution, and advanced trading technology without swap charges. The account is accessible to retail and professional clients and has clear administration fees, including a flat fee for trades over three days.

Admirals Pros and Cons

AvaTrade

Overview

The broker is known for its clear and trader-friendly swap fee structure, aimed at helping traders reduce overnight costs.

Their educational materials offer valuable insights into how swaps work, helping traders make more informed decisions. AvaTrade’s swap-free options make it even more appealing to a wide range of people.

Swap Rates or Overnight Fees Breakdown

AvaTrade Islamic Account Explored

It provides various trading options on its online platforms, including forex, commodities, shares, bonds, ETFs, and currency options. They offer Islamic accounts for Muslim clients, allowing positions to be held for up to 5 days without overnight fees, following Sharia law principles.

These accounts cater to halal trading, including gold, silver, oil, and stock indices, and follow transparent practices, converting swap fees into daily administration fees.

AvaTrade Pros and Cons

Exness

Overview

It is renowned for its clear stance on swap rates, offering competitive market conditions. Exness’s real-time swap rate feature allows traders to view precise overnight fees, aiding financial planning.

Exness also provides swap-free accounts in specific regions, promoting an inclusive trading philosophy.

Swap Rates or Overnight Fees Breakdown

Exness Islamic Account Explored

They provide a Swap-Free option for traders seeking accounts that align with Islamic finance principles, removing swap fees on overnight positions.

Emphasizing their dedication to meeting various trading requirements, Exness promotes the absence of overnight fees for maintaining leveraged positions, a crucial aspect for traders looking for a Sharia-compliant trading setting.

The website specifies that the swap-free feature is offered for certain instruments like XAUUSD (Gold vs US Dollar) and EURUSD (Euro vs US Dollar), showing a dedication to offering a complete trading experience without interest accumulation.

Exness Pros and Cons

RoboForex

Overview

They offer competitive swap rates determined by market conditions, showcasing the ever-changing landscape of forex trading.

It provides a clear system for swap calculation, openly sharing the formulas and rates on their website, aiding traders in strategizing their trades more efficiently.

RoboForex has a convenient system that enables traders to easily access swap rates directly from their trading platforms, seamlessly integrating this important information into the trading process.

Swap Rates or Overnight Fees Breakdown

RoboForex Islamic Account Explored

The broker offers Islamic Swap-Free accounts for Muslim clients, adhering to Sharia laws. These accounts charge fixed commissions based on the instrument and volume of open lots, ensuring compliance with religious principles.

The service is available for certain MetaTrader 4-based accounts like ProCent and Pro. Clients must ensure no open positions before changing account types.

Commission rates vary based on the instrument, with currency pairs and metals charging $4.00 to $24.00 and CFDs and stock CFDs charging $1.00 to $8.00 per lot.

RoboForex Pros and Cons

FP Markets

Overview

The Broker stands out for its competitive swap rates and transparent fee structure, creating a cost-effective trading environment paired with its ECN pricing model.

The detailed swap information on FP Markets platform reflects a strong commitment to transparency, enabling traders to manage their trading costs effectively.

Swap Rates or Overnight Fees Breakdown

FP Markets Islamic Account Explored

FP Markets caters to a diverse group of traders, including those seeking Islamic trading accounts that adhere to Sharia law.

Although exact information is unavailable now, FP Markets typically provides swap-free accounts for Muslim traders to participate in forex and CFD trading without accruing or paying interest on overnight positions.

These accounts aim to provide equivalent competitive spreads, execution speeds, and access to all trading instruments as standard accounts, ensuring that traders adhering to Islamic finance principles do not experience any disadvantages.

FP Markets Pros and Cons

IC Markets

Overview

The broker is well-known for its competitive swap rates and clear pricing structure, attracting traders who want to reduce overnight expenses.

They offer comprehensive swap rate tables for all trading instruments, ensuring traders can make well-informed trading decisions. Moreover, IC Markets provides swap-free accounts to accommodate many clients.

Swap Rates or Overnight Fees Breakdown

IC Markets Islamic Account Explored

IC Markets provides Islamic finance trading solutions with swap-free accounts, catering to traders adhering to Sharia principles. These accounts do not charge swap fees for forex, commodities, and indices trading and offer competitive spreads, generous leverage, and extensive liquidity, making them accessible to Islamic account holders.

IC Markets Pros and Cons

How Swap Rates Impact Your Forex Trades

Exchange rates in forex trading significantly influence traders’ positions and strategies. They represent the interest differential between two currencies, indicating the cost or gain of holding a position overnight.

Swap rates, on the other hand, can provide traders with an extra income stream for holding positions overnight, particularly in carry trade strategies, where traders capitalize on the interest rate difference and price fluctuations.

Unfavorable swap rates can lead to significant costs for traders, especially for long-term positions. Strategic trade execution and management are crucial to minimize negative swaps and maximize profits from price movements.

Understanding and adjusting strategies to minimize costs or maximize gains is essential when trading forex, as they impact the risk-reward balance.

What Are the Types of Swaps?

Forex trading involves two types of swaps: positive swaps and negative swaps. Positive swaps occur when a trader purchases a currency with a higher interest rate than the one they sell, earning interest when holding the position overnight.

Carry trade strategies capitalize on these swaps, encouraging traders to maintain positions for extended periods.

Conversely, negative swaps occur when the currency being purchased has a lower interest rate than the one sold. These costs, when held overnight, are deducted from the account balance.

Traders should consider negative swaps carefully, especially those with a long-term trading horizon, as they can affect overall profitability.

To minimize these swaps, traders can adjust strategies, such as closing positions before the daily cut-off time for swap charges or choosing accounts with swap-free trading conditions under specific terms.

How to Choose the Best Forex Broker for Swaps

Assessing Your Trading Style and Needs

Embark on the journey to discover the optimal forex broker for swaps by carefully evaluating your trading preferences and requirements. For example, if you trade daily without holding positions overnight, swap rates may not significantly affect your decision-making.

For individuals who engage in swing or position trading or utilize a carry trade strategy, swap rates can substantially affect profits. Traders need to consider not just the usual spread and commission expenses but also the impact of the swap cost or benefit.

For traders focused on swap rates, it is important to find brokers that provide lower negative or higher positive rates. This can be advantageous when holding trades for an extended period.

Comparing Swap Rates and Other Fees

After identifying your specific requirements, the next move involves comparing swap rates and additional charges from various brokers. It requires thoroughly examining each broker’s fee structure, available on their official websites or by contacting their support teams.

Numbers alone are not the only important factor; how rates are disclosed can also reveal a broker’s trustworthiness. Traders should look for brokers that clearly show their swap rates and keep them updated to reflect market changes.

Moreover, it is crucial to evaluate how these swap rates compare to other related expenses like spreads, commissions, and possible account management fees to determine the overall cost efficiency of a broker.

Considering Broker Reputation and Customer Service

When choosing a broker, their reputation is crucial. An established broker is likelier to provide competitive swap rates and be trustworthy.

In addition, excellent customer service is crucial, especially for traders who may have inquiries about swap rates or require help comprehending how swaps will impact their trading portfolio.

For those navigating the intricacies of swap rates, a broker with strong educational resources, clear policies, and attentive customer service can be a valuable asset.

Traders must conduct thorough research on reviews, testimonials, and regulatory records to verify the broker’s credibility and customer satisfaction.

Strategies for Trading with Swaps

Crafting a strong trading strategy that considers swap rates can substantially impact trade profitability, particularly for trades held for longer durations. Understanding and incorporating swaps into strategies can help traders improve their financial results.

Leveraging Positive Swaps

Positive swaps, or carry trades, involve holding positions in currency pairs with higher interest rates. This strategy involves taking a positive position on a high-yielding currency and a negative position on a low-yielding one to capitalize on the interest rate gap.

Maintaining strategic control of these positions is crucial as they accumulate daily. However, potential risks like currency value fluctuations should be considered, and market trends and interest rate differentials should be balanced.

Minimizing Costs on Negative Swaps

To minimize negative swap costs, traders should close positions before the end of the trading day to avoid overnight fees. Choose currency pairs with lower negative swaps or explore swap-free Islamic accounts for long-term positions.

To offset negative swap trades, pair them with positive swaps to offset expenses. Day traders often use this tactic. For those wanting to maintain positions over an extended period, consider using swap-free Islamic accounts.

Swap Trading Strategies for Different Market Conditions

Market conditions influence swap rates, including central bank policies, global economic events, and market sentiment. Traders must adapt their strategies to suit these changes.

Positive swaps can be profitable during economic stability, while short-term strategies can reduce exposure to swaps during uncertain markets. Traders can focus on pairs with minimal negative swap impact or use hedging strategies to reduce swap expenses.

Conclusion

Based on our experience, finding the top forex brokers based on swap rates can be a complex process. An excellent broker carefully considers both swap rates and fee structures to help traders optimize their strategies, whether for carry trades or reducing overnight costs.

Our findings show that brokers offer Islamic accounts to meet various needs, making them more accessible. Nevertheless, there is a downside hidden in the details; increased spreads or additional charges may occasionally balance out reduced swap rates.

Therefore, analyzing these specifics is crucial to prevent unexpected setbacks in your trading results. Furthermore, in our experience, a broker’s reputation for fair practices is crucial in the pursuit of finding the top forex broker based on swaps.

Frequently Asked Questions

What is the impact of swap rates on my trading?

Swap rates have the potential to impact your profits or losses. Knowing the swap rates for the currency pairs you are trading is crucial, particularly if you intend to maintain positions for long durations.

Where can I locate forex brokers offering favorable swap rates?

Several websites provide comparisons of swap rates among various forex brokers. Seek out brokers providing competitive or favorable swaps on particular currency pairs.

Do any brokers provide swap-free accounts?

Yes, certain brokers provide Islamic (swap-free) accounts that align with religious guidelines against interest. These accounts feature different fee structures instead of overnight swaps.

Are swap charges applicable to all currency pairs?

Yes, swap fees apply to all currency pairs. Nevertheless, the magnitude and orientation of the fee (positive or negative) differ based on interest rate differentials.

Where can I locate the current swap rates for a forex broker?

Reputable brokers typically provide clear information about their swap rates on their websites. You can typically locate these rates in the contract specifications or trading conditions section.

Is it possible for swap rates to change?

Yes, swap rates vary per shifts in the interest rates established by the central banks of the currencies. Brokers usually adjust their swap rates daily.

Are swap rates relevant for short-term trading?

Swap rates have minimal influence on short-term trades, such as day trading or scalping, where positions are only held for short periods. They are crucial for longer-term trading strategies.