Hi
Some months ago (in fact Feb), IG (or IG Australia) increased significantly what they charge for swap. Here is the copy:
For reference, it is listed here: https://www.ig.com/au/cfd-trading/charges-and-margins under "Funding and interest"
At a subsequent client event, I asked why this was the case, and the excuse given was that they assessed the market, and felt like they wanted to bring their rates in line with competitors.
I personally don't look much into other brokers so I couldn't judge this. Recently, I have been looking into other brokers (because of of the ASIC regulating margins bs), and from what I can see at least, some brokers don't even charge anything above swap, for example - I can't find any reference to any additional fees here:
https://www.fxpro.com/commissions-swap-charges
Can someone with more knowledge than me please tell me what is "the norm" amongst brokers for this?
I do a lot of volume (for a small time retail client anyway), so I wanted to email my broker and try and negotiate a more favourite funding rate (for reference, I did 420 standard lots last month), but I want to know whether this is out of line or whether I am right to do so.
Also for reference why I am doing this, I've been assessing my last trading run (about last 75 calendar days), and on overall profit of $26k AUD, I paid $4.3k in funding costs alone which is 16% of my entire profit, and it seems like way too high. Prior to this increase in funding costs, I was paying very little in funding costs and in fact often making money overall in swap rather than losing - so at least for my trading style, this has had a big impact on my profitability.
Some months ago (in fact Feb), IG (or IG Australia) increased significantly what they charge for swap. Here is the copy:
QuoteDislikedWe are adjusting the funding fee that we charge for holding forex positions overnight, from 0.00082% to 0.0022% per night. This fee is added to the tom-next rate. Please note that these changes only apply to standard forex contracts.
For reference, it is listed here: https://www.ig.com/au/cfd-trading/charges-and-margins under "Funding and interest"
At a subsequent client event, I asked why this was the case, and the excuse given was that they assessed the market, and felt like they wanted to bring their rates in line with competitors.
I personally don't look much into other brokers so I couldn't judge this. Recently, I have been looking into other brokers (because of of the ASIC regulating margins bs), and from what I can see at least, some brokers don't even charge anything above swap, for example - I can't find any reference to any additional fees here:
https://www.fxpro.com/commissions-swap-charges
Can someone with more knowledge than me please tell me what is "the norm" amongst brokers for this?
I do a lot of volume (for a small time retail client anyway), so I wanted to email my broker and try and negotiate a more favourite funding rate (for reference, I did 420 standard lots last month), but I want to know whether this is out of line or whether I am right to do so.
Also for reference why I am doing this, I've been assessing my last trading run (about last 75 calendar days), and on overall profit of $26k AUD, I paid $4.3k in funding costs alone which is 16% of my entire profit, and it seems like way too high. Prior to this increase in funding costs, I was paying very little in funding costs and in fact often making money overall in swap rather than losing - so at least for my trading style, this has had a big impact on my profitability.