Who actually pays rollover interests in forex? Brokers or banks? | Forex Factory

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Who actually pays rollover interests in forex? Brokers or banks?

  • #1
  • First Post: Jun 9, 2010 1:31am Jun 9, 2010 1:31am
Most FOREX brokers(or market makers) pay/charge you rollover interests everyday.

But do they actually spend their own money to give you interests, or do they simply deliver the interests from the banks they deal with? Or is it from the market?


For example, if FXCM or Oanda decides to trade themselves, can it trade without worrying about interests because they are the ones who pay/receive interests or do they still have to pay/receive interests to/from the banks they deal with?
When I buy it, it moves down. When I sell it, it moves up.
  • #2
  • Jun 9, 2010 2:31am Jun 9, 2010 2:31am
There are 2 parties to trade- buyer and seller.

So one party pays rollover interest and another party receives roll over interest.

Looks to me it is that simple.
  • #3
  • Jun 9, 2010 2:35am Jun 9, 2010 2:35am
Quoting pujolshomerun
Most FOREX brokers(or market makers) pay/charge you rollover interests everyday.

But do they actually spend their own money to give you interests, or do they simply deliver the interests from the banks they deal with? Or is it from the market?


For example, if FXCM or Oanda decides to trade themselves, can it trade without worrying about interests because they are the ones who pay/receive interests or do they still have to pay/receive interests to/from the banks they deal with?
What if I told you, that the most reliable brokers have all-negative swaps?
  • #4
  • Last Post: Jun 9, 2010 3:26am Jun 9, 2010 3:26am
Quoting kingfisher
There are 2 parties to trade- buyer and seller.

So one party pays rollover interest and another party receives roll over interest.

Looks to me it is that simple.
but the number of buyers and sellers are NOT always same for a broker. if a big boy trades with a broker company and makes lots of interests everyday the company can lose money.
When I buy it, it moves down. When I sell it, it moves up.
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