Interest Free Brokers | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Brokers and Rebates on these brokers? 20 replies

Interest free brokers (for non-muslim) 13 replies

roll over free brokers (does NOT pay interest) 16 replies

Interest free FX Brokers info. 4 replies

Brokers offering interest free account 5 replies

Interest Free Brokers

  • #1
  • First Post: May 23, 2007 4:14pm May 23, 2007 4:14pm
Are there any hungry forex brokers out there, willing to forego charging interest on the swap? Are there, I heard there are....
Who are they?

Liz
  • #2
  • May 23, 2007 4:17pm May 23, 2007 4:17pm
Interbank FX

They offer interest free accounts for religious reasons.

Nick
  • #3
  • May 23, 2007 4:23pm May 23, 2007 4:23pm
heaven forbid we need religon to trade
  • #4
  • May 23, 2007 4:42pm May 23, 2007 4:42pm
Quoting lizmerrill
Are there any hungry forex brokers out there, willing to forego charging interest on the swap? Are there, I heard there are....
Who are they?

Liz
If you think you will be able to hold GBP/JPY or AUD/JPY etc short ... it wont happen.

This has been discussed many times. Brokers are starting to not allow this form of account even because of religious reasons. Likely because people were complaining about discrimination or a lot of said to be Muslims were short GBP/JPY.
The market is my nation. Traders, my family. Hello, brothers and sisters!
  • #5
  • May 23, 2007 4:43pm May 23, 2007 4:43pm
Try EFX, I know they don't give any.
TTFN Merlyn
  • #6
  • May 23, 2007 4:44pm May 23, 2007 4:44pm
Quoting Merlyn
Try EFX, I know they don't give any.
LOL! They don't give it ... they charge it though :
The market is my nation. Traders, my family. Hello, brothers and sisters!
  • #7
  • May 24, 2007 4:16am May 24, 2007 4:16am
TTFN Merlyn
  • #8
  • May 24, 2007 11:05am May 24, 2007 11:05am
The usury prohibition in Islam is slowly being eroded here in the Gulf. I understand why they don't want to pay it, but bear in mind they don't want to charge it either.

Unfortunately for them, the banking industry has boomed in the Gulf the last few years in conjunction with the boom in local markets and real estate. When I arrived here in 1999 it was impossible to find interest bearing savings accounts. Now all the banks have some form of it.


Globalization...making the world all the same (and a godamn shame it is).
  • #9
  • May 25, 2007 10:08am May 25, 2007 10:08am
Quoting flareup
Interbank FX

They offer interest free accounts for religious reasons.

Nick
You have to be muslim and live in the middle east. No US citizens can get this service to my knowledge.
  • #10
  • May 25, 2007 10:24am May 25, 2007 10:24am
CMS forex offers a no swap account for US citizens according to their Representative with no additional fees.
  • #11
  • May 25, 2007 11:43am May 25, 2007 11:43am
I dont think its a good idea to do the carry trade hedge, It is abuse really.
  • #12
  • May 25, 2007 11:52am May 25, 2007 11:52am
Thanks for your presumption, but I have no need for carry trades.

Long term, a negative swap occurs in the market equally long and short.... Just look at cable.... you're paying no matter what side you take.

I'd be willing to spend an extra 1/2 pip per round trip to avoid a negative swap in a position that lasts a few weeks....
  • #13
  • May 25, 2007 12:27pm May 25, 2007 12:27pm
peterM,

I fail to see why it's abuse. Could you elaborate?

The only abuse I'd see is if there's fraud involved (meaning you lied in order to get the account).

Otherwise, I suggest you clarify yourself. After all, why wouldn't you take advantage of paying a commission in lieu of swaps while making swap at the other end of the trade?

That would be the same thing as telling me that it would be abuse to take a $100,000 12-month 0% interest loan from a credit card, and pay a $75 transaction fee and then putting that money into a 5% money market account, and then paying back the loan and keeping the interest. How is that abuse?

Quoting peterM
I dont think its a good idea to do the carry trade hedge, It is abuse really.
  • #14
  • Edited 6:57pm May 27, 2007 6:43pm | Edited 6:57pm
Well.. Because the interest free side has to be paid by someone... the extra commission would not cover the interest costs. It would not be so bad I guess if you did some trades on the interest free account as well, so the broker was making something. Essentially someone else is paying for your rollover. Requesting a swap free account then just opening a long term short on a pair with a big rate differential like NZD/JPY is just abuse to me.. Many brokers will ask you to stop it if you try it. Its different for gbp/usd as the rate differential is small.

I dont see it as being similar to "stoozing" which is the interest free credit card loan you mentioned... That is actually becoming increasingly difficult at least over here due to the balance transfer fee. Also, in this instance the CC company are hoping to gain you will stay with them after the interest free period is over. Fair enough if you dont agree.. they are only my thoughts..
  • #15
  • May 27, 2007 9:39pm May 27, 2007 9:39pm
P,

I still don't see why this is abuse...you didn't make a very strong case...

Of course someone has to pay the swap...and in this particular case, it's the broker. In the case of the interest-free broker, the broker merely holds your position...at what point does the broker have to "pay"? Where it becomes a problem is if the position you're holding actually makes a profit. That's what the interest-free broker is taking the risk on...that your position doesn't make a profit, and in all honesty, I could care less if takes on a loss.

Like I said, you just didn't make a very strong case as to why you think it's abuse...please explain further.

As far as the balance transfer fees...when you say "over here", are you assuming another country other than the US? Most credit card companies offer a balance transfer fee of 3% with a max charge of $75...unless you don't have a lot of credit, $75 is actually a very small price. Think...on a $100,000 credit card loan for 12 months, that's 0.075% commission cost paid...that's REALLY cheap money. Hell, even on a $10K loan, it's still only 0.75% which is still hella-cheap. And again, in this particular case, while the bank is "hoping" that you'd hold the money enough to get some interest from it, it's a risk the bank voluntarily has taken on.

Quoting peterM
Well.. Because the interest free side has to be paid by someone... the extra commission would not cover the interest costs. It would not be so bad I guess if you did some trades on the interest free account as well, so the broker was making something. Essentially someone else is paying for your rollover. Requesting a swap free account then just opening a long term short on a pair with a big rate differential like NZD/JPY is just abuse to me.. Many brokers will ask you to stop it if you try it. Its different for gbp/usd as the rate differential is small.

I dont see it as being similar to "stoozing" which is the interest free credit card loan you mentioned... That is actually becoming increasingly difficult at least over here due to the balance transfer fee. Also, in this instance the CC company are hoping to gain you will stay with them after the interest free period is over. Fair enough if you dont agree.. they are only my thoughts..
  • #16
  • Jun 1, 2007 10:21pm Jun 1, 2007 10:21pm
Quoting peterM
I dont think its a good idea to do the carry trade hedge, It is abuse really.
Hey PeterM, if it makes you feel any better, the carry trade hedge is actually what all the Major Banks & financial institutions do.... And the best part is they use your Money to do it!!!.. And with regards to the O% balance tranfers on the credit cards, there are some folk making $5 - 10k a year just doing that..
  • #17
  • Jun 2, 2007 1:06am Jun 2, 2007 1:06am
I'm not sure the banks do a carry trade hedge, really...obviously if they use your money, they have to pay you interest...and it's not like anyone gives them leverage.

Quoting Pipbull
Hey PeterM, if it makes you feel any better, the carry trade hedge is actually what all the Major Banks & financial institutions do.... And the best part is they use your Money to do it!!!.. And with regards to the O% balance tranfers on the credit cards, there are some folk making $5 - 10k a year just doing that..
  • #18
  • Last Post: Jun 4, 2007 4:49pm Jun 4, 2007 4:49pm
I get 5.7% PA on my savings in the bank.. So I cannot see how they could viably use that for a carry trade. Yeah, you can still make money stoozing.. but it is getting increasingly difficult with all the balance transfer fees.. It will probably continue to get harder too.. Like it has where I live. I bought a car in 2005 with the money I had earnt from stoozing.
0 traders viewing now