I’m looking at switching to a carry trade strategy where I’ll be holding positions overnight consistently, sometimes for weeks. The problem is I’m not sure which broker will actually be cheapest for this style because overnight fees like swaps seem really hard to compare across platforms.
HFM’s swap rates are listed on their site, but I don’t have a good way to estimate what that will cost me monthly if I’m holding 2-3 positions at a time. And I’m wondering if GlobeGain rebates even apply to swap costs, or if they only offset spread and commission costs.
I’m also curious whether HFM’s swap rates are actually competitive compared to other brokers who claim to have cheaper overnight fees.
How do you actually calculate what your total swaps will cost per month? And does that factor change which broker makes sense for longer-term positions?
Swap cost equals lot size times rate times holding days.
Check time zones for weekends. Swaps charged differently across brokers.
Swap calculation is simple: (lot size) x (pip value) x (swap rate for direction) x (number of days held).
For EUR/USD at HFM: if you hold 1 lot long overnight, you might get paid 0.05 pips daily if the interest rate differential is positive. Hold 20 days, that’s plus 1 pip in your favor.
If you hold short the same pair, you pay 0.35 pips daily. Hold 20 days, that’s minus 7 pips against you.
GlobeGain rebates don’t apply to swaps directly. They only offset spreads and commissions. So your swap costs are whatever HFM charges, period.
Comparing across brokers: get their swap schedules and calculate your specific positions over your planned holding period. A broker cheaper on spreads might have expensive swaps. HFM specifically is mid-range on swaps, not the cheapest but not worst.
For carry trades, look at ICMarkets or Axiory if swaps are your main concern. But also consider execution quality since you’ll hold longer.
I started doing carry trades last year and spent way too long figuring out swaps.
Basically, HFM charges you daily interest based on the currency pair and direction. You can see the exact rates in their account. If you hold a position for 20 days, multiply the daily rate by 20 and that’s what you pay.
The GlobeGain rebate helps with spreads when you enter and exit, but the swaps themselves are what HFM charges, and there’s no rebate on those.
What I found is that if I’m holding positions for weeks, the swap costs matter way more than the entry spread. So I actually switched part of my capital to a different broker with better swap rates on the pairs I trade. It was worth the effort.
I’ve been running a carry trade strategy for almost three years now, and swap costs absolutely matter more than people realize.
My process: I track exactly which pairs I hold long and short, how many lots, and for how many days. Then I calculate weekly what I’m paying in swaps.
At HFM, my monthly swap costs on average positions are around $200-250 depending on which pairs are positive yield and which are negative. That’s real money that comes out every month.
Comparison: I tested FxPro and ICMarkets. FxPro’s swaps were about 15% cheaper on average. ICMarkets was even cheaper but their execution wasn’t as clean.
The GlobeGain rebate gets me back about $30-40 per month on spreads and commissions combined, but swaps are untouched.
If carry trading is your main strategy, I’d rank brokers by swap rates first, spreads second. Get the specific rates from each broker and model three months of your planned positions. That’ll show real costs. HFM isn’t the worst but there are better options for this specific style.