Any problems using Interbank FX for this?......

Looks like Interbank FX has its problems when it comes to trading but what about for carrying trades? Would they have a problem paying out daily interest (swap) on positions you buy and hold?

I am demoing a strategy on their platform where you buy 10 lots of GBP/JPY and you short 18 lots of CHF/JPY (not exactly sure why 18 lots) as a hedge because of their close correlation. The daily interest collected on 10 lots of GBP/JPY from Interbank FX would be $210.00 and you would be paying -$31.50 for the 18 lots short CHF/JPY position netting you $178.50 per day. In a month (30 days) that comes out to $5355.00. With an account of $50,000.00 and 100:1 leverage you have enough to purchase the two positions while maintaining enough margin during the times the currency does not correlate.

I am actively trading on Oanda's platform and experience very few problems with them. I would like to keep them as my only broker however with the leverage Oanda offers (max 50:1) and the daily net interest of $143.36 for the two positions ($203.40 for the long 10 lots GBP/JPY and -$60.04 for the short 18 lots of CHF/JPY), I am looking elsewhere to trade this strategy.

Would Interbank FX give me problems trading this way live? Does anyone know of a better broker for this type of strategy?

Thanks for your replies!

I posted this last week and no one replied. Is this strategy for a 10% per month return on interest alone unrealistic?

ElectricSavant used to trade a system profiting from the swaps alone. He hasn't been around for a very long time now. Anyway, here's just a something how you could do things to avoid being noticed by the brokers. Have 2 accounts at different brokers. That way they can't notice what you're doing. Just make sure that you use the brokers that give you the highest swap rates. Open the one trade at one broker and the hedge at the other.

Maybe someone else who followed Electric's thread could give you more info on how he did things.

Good Luck and Take Care
Habeeb

Here's a small discussion about it.

http://www.forexfactory.com/forexfor...highlight=swap

Just a quick note or question, Why Interbank? Look in to coesfx (sp) they do not have a dealing desk for thier standard accounts (only the mini accounts) From my research in to the different brokers and such they might be able to do this. I am new to forex and am still learning and have yet to settle on a broker, but they look good if I can get the money for a standard account together Thier website I find is a bit annoying to navigate, but some of the other forums have some good information.