I've been carry trading for the last 6 months and i have been quite successful and i enjoy this stress free style of trading and i'm willing to do this even though it makes me only 15% per year.
Here is the problem. Last Wednesday my broker decided that they were going to pay me 23% less swap. Yup, just like that. I'm sure they can come up with a convenient excuse and i will ask them and post it here, but this shows how vulnerable i am to their whim. I have positions open with 19 different currency pairs so this isn't just a simple reduction in swap of one currency, but they have hit me many times here. In the past I have noticed that some positions such as gbp/zar pay almost no swap even though the South /African Rand offers an interest rate of 5%+ and the GBP asks only 0.5%.
Of course, i could be missing something here, but i feel that my broker could pull the rug from under my feet relatively easily. Does anyone know of any brokers that are happy with carry traders or if there is another way that i can carry trade like this without being relatively insecure?
Here is the problem. Last Wednesday my broker decided that they were going to pay me 23% less swap. Yup, just like that. I'm sure they can come up with a convenient excuse and i will ask them and post it here, but this shows how vulnerable i am to their whim. I have positions open with 19 different currency pairs so this isn't just a simple reduction in swap of one currency, but they have hit me many times here. In the past I have noticed that some positions such as gbp/zar pay almost no swap even though the South /African Rand offers an interest rate of 5%+ and the GBP asks only 0.5%.
Of course, i could be missing something here, but i feel that my broker could pull the rug from under my feet relatively easily. Does anyone know of any brokers that are happy with carry traders or if there is another way that i can carry trade like this without being relatively insecure?
