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Like any other broker providing the best service for retail traders, OANDA offers a swap-free account with competitive features. What are they?
OANDA is one of the most popular regulated forex brokers in the world that caters to the trading needs of a significant number of traders. OANDA offers five different account types with each of them having specific features and benefits that set them apart. The five account types are Standard account, Core account, Premium account, Premium core account, and Swap free account which will be the focus of this article.
By definition, a swap-free account is a type of account that is designed for traders that are of the Islamic faith and it has a fixed fee rather than a swap. The fee is not an interest and it is dependent on the direction of the order initiated by the trader.
The OANDA swap-free trading account is an account type for traders that do not want to pay or receive overnight swaps or interest on their executed trades. For traders to access the OANDA swap-free trading account, they will need to open a standard account after which they can request a switch to a swap-free account.
What differentiates the OANDA swap-free account from its other types of accounts? Operating a standard account means the trader is likely to be charged or credited swap or interest on any open leveraged positions that the trader maintains till the end of each trading day. These costs are referred to as overnight fees, otherwise known as swap fees. This is where the swap-free account comes in as it is ideal for traders who do not wish to be charged the swap or interest.
See Also:
Features of OANDA Swap-free Account
The swap-free account allows traders to take a position on 26 financial instruments that are quite popular including forex pairs and indices like EUR/USD, the UK 100, and Germany 40. The table below further describes the main features of the OANDA swap-free account.
| 🔢Minimum EUR/USD spread | 1.6 pips |
| 💹Maximum trade size | 10 million |
| 💸Commission | $0 |
| 💲Account base currencies available | USD |
| 📊Scalping allowed | ✅ |
| 💱Hedging allowed | ✅ |
| 🤖EAs allowed | ✅ |
Trading on a swap-free account does not incur any administration charge for the first five days that the trade remains open. However, from the sixth day, the administration charge starts getting applied for each day that the trade continues to stay open until the trade is finally closed. This takes weekends into account as well.
See Also:
The administration fee is charged per lot traded except for the Japan 225 index which is charged per 100 lots traded. The admin fee varies from one instrument to another, and the table below shows the 26 financial instruments available on the OANDA swap-free account with the corresponding minimum spread and admin fee charged.
| Financial Instrument | Minimum spread | Admin fee per lot in USD |
| GBP/USD, EUR/GBP, AUD/USD, USD/CHF, EUR/CHF, AUD/JPY | 1.7 pips | $7 |
| EUR/USD, USD/JPY | 1.6 pips | $7 |
| EUR/JPY, NZD/USD, USD/CAD | 1.8 pips | $7 |
| GBP/JPY | 2.2 pips | $7 |
| GBP/CHF | 2.3 pips | $7 |
| CHINA A50 | 12 pips | $4 |
| AUS 200, UK 100, FRANCE 40, EUROPE 50, US NAS 100 | 1.6 pips | $4 |
| US WALL ST 30 | 2.6 pips | $4 |
| HONG KONG 50 | 6.6 pips | $4 |
| GERMANY 30 | 1.7 pips | $4 |
| JAPAN 225 | 8.6 pips | $4 |
| US RUSS 2000 | 70 pips | $4 |
| SINGAPORE 30 | 3.6 pips | $4 |
| US SPX 500 | 1 pip | $4 |
For the record, the admin fee is charged daily starting on the sixth day of the trade. And for Japan 225, the fee is charged per 100 lots.
Opening a swap-free account at OANDA is quite straightforward and it does not take long to be approved so traders can start trading almost instantly. OANDA swap-free account does not require full account verification unless the gross account deposits exceed $9,000. Even though the number of instruments available is not as much as that of the other account types, the instruments are still among some of the popular instruments for trading.
Therefore, with a swap-free account, a trader can minimize trading costs while getting access to financial instruments with significant volume and liquidity. This allows them to have substantial opportunities to make profits without paying too much to execute their trades.
As earlier stated, swap-free is not the only account type offered by OANDA and traders will be given a chance to go through the features peculiar to each account type before making a choice. Nevertheless, the swap-free account offers a different kind of advantage that the other account types do not have. Thus, it might be worth checking out. For more details on OANDA broker, you can check the table below:
Traders looking for brokers with accurate precision, OANDA can be an option. That is because OANDA is a broker that provides quotes with 5-digit accuracy and active price movements that follow market developments. Order execution speed is also faster in this broker.
It provides benefits for novice traders, as they can trade with smaller volumes using the calculation system based on currency value, unlike other brokers adopting the lot system.
Founded in 1996, OANDA was built by Dr. Michael Stumm who is a lecturer in Computer Engineering at the University of Toronto, Canada, along with his colleague, Dr. Richard Olsen of The Olsen Ltd., which is one of the leading econometric research institutes. They have a head office in San Francisco, United States.
OANDA branch offices can be found everywhere. Some of these offices are located in the United Kingdom, Singapore, Japan, and Canada. With this number of offices spread, OANDA has increasingly attracted the attention of clients worldwide.
OANDA's company is registered under several well-known jurisdictions in financial trading. They are regulated by CFTC and NFA in the US, FCA in the UK, ASIC in Australia, and many others. Traders do not need to worry anymore about security when trading in OANDA. However, these advantages make trading rules at OANDA more stringent compared to other brokers.
For example, OANDA only allows maximum leverage of 1:20, because the rules in the US and Japan do not allow leverage above that. Besides, the registration procedure is more complex due to various additional requirements that are not submitted by other forex brokers. On top of that, hedging is not allowed in one trading account as the client must open an additional account to hedge.
Nevertheless, OANDA is known for being a leading broker with many advantages offered. OANDA faces increased market risk during periods of price volatility, such as economic and political news announcements. When market spreads increase or decrease, their pricing engine widens or narrows spreads accordingly. That way, traders can get the latest conditions from price movements in the market more quickly.
Prices move very fast in the market. Especially when news releases have a large impact on market volatility. This condition is often exploited by brokers to take advantage of clients with Requotes. However, traders do not need to worry about additional costs when trading with OANDA.
The company never withdraws Requotes so traders can get maximum profit. When traders are unavailable to monitor open positions, they can set take profit orders to lock in profits and Stop Loss orders to help protect against further losses.
As an experienced and well-known online forex broker, OANDA is committed to maintain an efficient trading environment that reduces latency and provid tools to help clients manage the degree of acceptable slippage.
With a fast & reliable trading platform by OANDA, clients' trades are executed in 0.012 seconds. This suits traders who choose brokers based on execution speed.
Because of this exceptional execution service, it is not surprising that OANDA won many awards, including the winner of the world's Best Retail FX Platform at the prestigious e-FX awards. The broker is also voted number 1 for Consistency of filling trades at quoted prices, Execution speed, and Reliability of platforms.
There is no minimum deposit or minimum balance required to open an OANDA account. Deposit and withdrawal can be done easily. OANDA provides a variety of payment method facilities, including Paypal, Wire Transfer, Credit Card, and Debit. Traders can adjust it to the region where they live.
OANDA provides more than 100 trading instruments, including 71 currency pairs, 16 indices, 8 commodities (Brent Crude Oil, Copper, Corn, Natural Gas, Soybeans, Sugar, etc.), 6 Bonds, and 23 Metals.
The fxTrade and MetaTrader platform are available at OANDA. These platforms can be used for Desktop and Mobile. Another plus is they have an OANDA Technical Analysis that exists in collaboration with a technical analysis provider called Autochartist.
With these platforms, clients can monitor price movements easier and automatically recognize patterns created on charts, as well as receive alerts when the awaited patterns appear. Access to this technology can be enjoyed free of charge.
In conclusion, OANDA is an ideal broker for traders in need of fast execution backed by many years of experience. The company is also a good alternative for those looking for a well-regulated broker with flexible trading and deposit conditions.
39 Comments
Anthony
Jan 7 2023
Ahmad
Jan 7 2023
Kylian
Mar 6 2023
Anthony: Let me explain more about why Islam forbids swap. So, in Islamic finance, exchanging currencies with interest payments is not allowed because it goes against the concept of fairness and justice. Islam prohibits the earning of profit through exploitation or excessive interest rates, known as riba.
In a currency swap, two parties agree to exchange one currency for another at a specific rate and then reverse the exchange at a later time. In the conventional financial system, this often involves interest payments based on the difference in interest rates between the two currencies. However, in Islamic finance, interest-based transactions are not allowed.
Instead, transactions must be based on real economic activities, such as trade or investment, where profits are earned through productive activities. Therefore, currency swaps that involve interest payments are not allowed in Islamic finance.
Garfield
Jan 7 2023
Willie
Jan 7 2023
Garfield
Jan 7 2023
Willie
Jan 7 2023
Lalisa
Jan 31 2023
Swap-free accounts are generally chosen by Muslims and are often referred to as Islamic accounts in general. This is because Islamic sharia law prohibits interest-bearing business transactions; Swap is considered the same as usury because it is taken from the difference in interest. Therefore, not a few Muslim traders prefer this type of account. However, it is not uncommon for many traders to choose this account even though they are non-Islamic.
although for a limited number of instruments to trade using this Swap Free account. For me, this is enough for trading, and the instruments included in this trading account are also popular and widely used by traders.
By using this account for trading on Oanda, I can eliminate the swap risk that arises if I trade with overnight positions, because I also have to take into account negative swap risk in risk management. Instead of being burdened with that risk, it will be much easier for traders to be free from Swap.
Patrick
Jan 31 2023
Lalisa Indeed, I like swap-free accounts because that includes trading costs, right? At OANDA Swap or what is commonly called fees are calculated per position and can be either a fee or a credit to your account, depending on whether you are in a buy/long position or a short/sell position. and also Swap fees are charged if account positions are left open overnight later than 17.00 ET.
for me, fixed costs are costs be they swaps, spreads, and commissions. But it needs to be considered again, as a trader I also don't want to be limited. Now, the limited meaning here is that we cannot access all the instruments on OANDA and can only trade by choosing from 26 foreign exchange instruments and indices.
I prefer other accounts from OANDA because I can also choose a more varied instrument compared to this account.
Harrison
Jan 31 2023
Indeed, this account makes traders interested in trading, apart from being suitable for traders who do not want to pay or receive interest on their account, this account is also suitable for traders who often open positions overnight beyond the trading hour limit set by this broker. But there are also those who feel dissatisfied if they can only trade with 26 foreign exchange instruments and indices.
Well, as this article has explained, OANDA doesn't only have swap-free accounts. what I know is the Standard account, from my point of view, the two accounts are almost the same for the fee level. In your opinion, which of the two accounts is the right one? Please if anyone can explain which account is better of the two?
Finlay
Jan 31 2023
Harrison: Swaps are usually experienced by traders when there are trading positions that are opened staying up past midnight. The amount is calculated from the applicable bank interest rate and can change depending on the trading position and the pair being traded. In other words, a swap is an interest a trader has to pay. Swap-free means free from this kind of charge.
in Islam, Swap is said to be usury because it is taken from the difference in interest rates, therefore it is not uncommon for Muslim people to prefer this account. but there are also those who don't like it, the reason is simple they are afraid of losing profits from the swap.
The OANDA swap-free and standard accounts have several things in common, namely, they both offer commission-free trading, the lot order size is the same, namely 0.01 lot, and we can use all trading strategies on OANDA.
In my opinion, if you really don't like interest because of usury, a swap-free account is more suitable for you. but if you don't have a problem with that, I suggest choosing a standard account because there are more instrument choices than swap-free accounts as well as a complete platform for trading, compared to swap-free accounts which can only trade with the MT4 platform.
Ramos
Mar 6 2023
I'm not sure if it's true, but I've heard that some swap accounts charge higher spreads, commissions, and even triple commissions on Wednesdays. Additionally, some brokers may charge monthly administration fees for swap accounts.
It seems that the swap fees may have changed from being based on rates to being based on spreads or commissions. I've read comments suggesting that Islam prohibits swap fees, but I'm wondering if it's still forbidden if the fees have been changed to a different type. Can you clarify if this is allowed or not? Thank you!
Fernandes
Mar 6 2023
Ramos: Basically, in Islamic finance, you can't charge swap fees that involve interest payments (also called riba). However, if the fees have been changed to spread and commission, it all depends on the terms and conditions of the transaction. The transaction should be based on real economic activity and should be free from any exploitation or injustice. If the spread and commission are reasonable and justified, then it's okay. But if they're excessive or not justified, it could be haram. And the spread and commission that happen during the trading is justified and reasonable since the broker paid for your swap fees.
And about the triple Wednesday Swap, the reason for that is due to the settlement cycle for forex trades. Basically, forex trades are settled two business days after the trade is executed. But since forex trading is open 24/7, traders can hold positions open beyond the spot settlement date.
When a trader holds a position open beyond the spot settlement date, they are borrowing one currency to buy another. The swap fee is charged to compensate the lender for the interest that they would have earned if they had held the currency themselves. The triple swap on Wednesdays is charged to account for the fact that the spot settlement date falls on a weekend, so the swap fee is charged for three days instead of two.
Yugo
Mar 6 2023
Ramos: Dude, you have said that trading term such as spread and commissions that happen in swap free account can be different between standard account ans swap free account. I have seen too the article and it said to be charge $7 and the spread is start at 1.6 pips at EUR/USD currency pairs. So, basically the commission is free and changed into administration fees meanwhile at the standard account, spread based on the OANDA website is at 1.2 pips. It means the trading condition is heavier at commission.
About the pips itself, how exactly I need to paid?? is it $1,6 at the spread that start from 1.6 pips?? Sorry for my bad English
Salah
Mar 6 2023
Yugo: In forex trading, the value of a pip can differ depending on the size of your trading volume. Traders generally use three types of volume: Standard Lot, Mini Lot, and Micro Lot, which each have a different pip value.
For example,
Therefore, if you trade with one lot, a spread of 1.6 pips on the EUR/USD pair would cost you $16. However, if you trade with 0.1 lot, the cost would decrease to $1.6, and if you trade with 0.01 lot, the cost would be $0.16. Essentially, the higher the trading volume, the higher the spread's value will be.
Laned Marke
Mar 25 2023
What are the specific terms and conditions of OANDA's Swap Free Account, and how does it differ from their standard trading accounts? Additionally, what are the potential benefits and drawbacks of choosing a swap free account, and how might this impact traders' overall trading costs and profitability? Finally, how might traders with different trading styles, such as long-term investors or high-frequency traders, be affected by the limitations of a swap free account?
Soraya
Apr 23 2023
@Laned Marke: Hey there! If you're interested in OANDA's Swap Free Account, there are a few things you should know. This type of account is designed for traders who follow certain religious practices that prohibit the payment or receipt of interest. In this case, traders can avoid swap fees that are charged on positions held overnight.
With a Swap Free Account, you won't be charged interest on any positions held overnight, which can be a real plus if you're trying to avoid fees. However, the account typically has a wider spread, which can impact overall trading costs and profitability. It's also worth noting that not all instruments are available for trading with a Swap Free Account, so you'll need to check if the ones you're interested in are available.
Depending on your trading style, a Swap Free Account may or may not be the best fit for you. Long-term investors, who tend to hold positions for weeks or months, may not be as affected by swap fees as high-frequency traders who hold positions for shorter periods. Additionally, traders who rely on technical analysis and use strategies that require holding positions overnight may find a Swap Free Account to be a good option.
Aios Rab
Mar 25 2023
How does OANDA's Swap Free Account compare to similar offerings from other brokers in terms of pricing, available instruments, and additional features? Specifically, what are the key differences between OANDA's swap free account and those offered by other major forex brokers, and how might these differences impact traders' decisions when choosing a broker? Additionally, what factors should traders consider when evaluating whether a swap free account is right for them, and how might they balance the potential benefits of avoiding swap fees against the potential drawbacks of more limited trading conditions or higher spreads?
Asnawi
Apr 23 2023
@Aios Rab: Hey there! When comparing OANDA's Swap Free Account to similar offerings from other brokers, traders should consider factors such as pricing, available instruments, and additional features. Key differences between OANDA's swap free account and those offered by other major forex brokers may include the types of instruments available for trading, the level of fees or commissions charged, and the specific terms and conditions of the swap free account.
Traders should evaluate whether a swap free account is right for them by considering their trading style and needs. While a swap free account may offer benefits such as reduced trading costs, it may also come with drawbacks such as more limited trading conditions or higher spreads. Factors such as the trader's trading frequency, investment horizon, and risk tolerance should also be taken into account when deciding whether a swap free account is a good fit. Hope this answer can clarify your question!
Taeyang
Apr 30 2023
I've heard a lot about OANDA which is said to be friendly for novice traders, but I still don't know much about OANDA. Every beginner trader, in my opinion, likes trading at relatively cheap prices because they still don't have much experience in trading. but low cost is the second factor for me in recovering the trading platform, safety in trading is also an important aspect I said. because the more regulations this broker has, the more traders feel safe depositing their money.
In your opinion, is this broker worth mentioning as a safe broker? if anyone knows who can help answer yes... thanks.
Raghnaid
Apr 30 2023
@Taeyang: OK, friends, I want to help explain a little about the security of our account at OANDA. In my opinion, OANDA is one of the forex brokers that has been in this field for a long time because it started operating in 1997. wow, that's quite a long time in my opinion, because most forex brokers just started around the 2000s. Now for OANDA's own regulator, the good news is that it is regulated by 8 top-level international regulators, namely:
Chaplhin
Apr 30 2023
@Taeyang: hello guys, I also want to help answer, is the OANDA broker safe for trading activities? My answer is that it's not too safe either. because apart from being regulated by more than 7 international regulators, there is something this broker lacks, namely negative balance protection. OANDA Global Markets Ltd does not offer negative balance protection, so traders may lose more than they invested.
but the positive side of this broker is that trader funds will be kept separately. So, if you want to consider this account as your trading broker, that's fine, but you can learn more to avoid doubts.
Whalen
Apr 30 2023
@Chaplhin: OANDA is generally considered a safe and reliable forex broker. It is regulated by several financial authorities, including the National Futures Association (NFA) in the United States, the Financial Conduct Authority (FCA) in the United Kingdom, and the Australian Securities and Investments Commission (ASIC).
Having multiple regulatory bodies oversee its operations provides an additional layer of protection for clients' funds and helps ensure the broker operates transparently and in compliance with industry standards.
However, like with any financial service, there is always some level of risk involved, and traders should always thoroughly research a broker before investing their funds. Additionally, it's important to implement risk management strategies and never invest more money than you can afford to lose.
Tristan
Apr 30 2023
In my opinion, OANDA can be said to be a broker that is not complicated at all (easy) in terms of depositing and withdrawing funds. and yeah what's fun here is the freedom to deposit funds. many brokers require their customers to start a deposit by limiting the minimum deposit. But the good news is, you are free here to make a deposit, regardless of the value, if you want to deposit, you can start from the lowest figure.
However, as far as I know, the deposit fee is free at OANDA, but if you withdraw funds via the bank transfer method, there is a fee. bank transfer withdrawals are charged 20 USD per transaction and take 2-4 working days. It should also be noted that banks may charge a processing fee, especially in the case of international bank transfers.
Queen
Apr 30 2023
@Tristan: if I prefer the deposit and withdrawal method at OANDA, it's Skrill/Neteller. when compared to other withdrawal methods, Skrill/Neteller is the fastest method in my opinion for both funding and withdrawing funds.
Deposits with Skrill and Neteller are free and take up to 1 business day – However, Skrill/Neteller may charge a service fee. Withdrawals to Skrill and Neteller take up to 1 business day and are also free, although conversion fees may apply and Skrill/Neteller may charge additional service fees.
For other funding methods, the process of funds is quite long, around 1-3 days for the credit card method and 2-4 working days for the bank transfer method.
Tae Ill
Apr 30 2023
Beginner traders will find a relatively friendly user experience with a structured education section available for traders of different experience levels. Considering OANDA's history as an FX data service, it is not surprising that the market analysis offered is both detailed and excellent.
In addition, the Swap-free Account is commission-free, and since no interest is paid or received, the spreads are slightly wider than the Standard Account. The only supported base currency for this account is USD, but other than that it is the same as a Standard Account. A Swap-Free Account is opened by first opening a Standard Account and then requesting a change from OANDA customer service.
Eleanor
Apr 30 2023
I actually like trading at this OANDA broker, because the customer support at this broker is quite agile and responsive, especially when compared to the complex trading software available from other brokers. In addition, the educational features are very supportive, especially for beginners who are just starting to trade. OANDA offers proper client education, in addition to excellent research.
But unfortunately, US traders who cannot use all the offered trading instruments, only offer trading with currency pairs and forex. This is a limitation for American traders who like other instruments.
and as many traders know, it is precisely in this era that cryptocurrency and CFD trading are increasingly popular among traders. Even if you can get access, it's good for the image of this broker. I really don't like this.
Apollo
Apr 30 2023
@Eleanor: So you missed this hot news from OANDA Broker? Well, American traders will have access to cryptocurrency trading instruments at the end of October 2022. The broker has announced the opening of a new cryptocurrency trading on the US market. It aims to provide investors with easy access to crypto alongside their existing forex portfolio in a secure environment.
As you explained, cryptocurrency trading is very popular among traders these days and OANDA has established itself as a trading provider with access to cryptocurrency trading for US customers.
From opening a Paxos account to fundraising and trading, everything is managed via the app, giving investors seamless access to leading cryptocurrencies such as Bitcoin, Ethereum and PAX Gold against the US Dollar via a single, intuitive platform.
While US traders don't have access to CFD products, OANDA broker has proven its credibility by adding access to US (United States) cryptocurrency products. It's a great step for this broker to be able to trade. Perhaps over time, OANDA will also have access to CFD instruments. no one knows about it.
Saito
Apr 30 2023
@Apollo: Yes, I've heard the news too. I think at the moment OANDA is also a good broker for Cryptocurrency trading. the launch of this offer represents an opportunity for merchants to gain cryptocurrency exposure in a smart way with a trusted brand.
Cryptocurrencies were born out of a counterculture – the desire to trade currencies that were not regulated by any central bank and were not influenced by national currencies and major economic events. However, the interest of traders to trade cryptocurrencies is actually higher every year. That's why OANDA is ready to increase the demand for crypto trading by bringing cryptocurrencies accessible to all traders, including US traders.
Oh yes, don't forget that OANDA has years of experience and an unrivaled record in offering trading on forex and other derivative instruments around the world. OANDA's crypto partner, Paxos, is a leading provider of regulated blockchain infrastructure.
The functionality provided by the OANDA app goes beyond basic 'buy & sell', as traders can set limit and stop order parameters in their account and take profit and stop loss on positions.
Alibaba
Apr 30 2023
I actually like trading at this OANDA broker, because the customer support at this broker is quite agile and responsive, especially when compared to the complicated trading software available from other brokers. In addition, the educational features are very supportive, especially for beginners who are just starting to trade. OANDA offers proper client education, in addition to excellent research.
As a market moving broker, OANDA offers trading on four instruments: Forex, indices, commodities and precious metals. Although only 38 Forex pairs are available and only the MT4 trading platform is supported, this broker offers three account types. Available accounts are Demo Account, Standard Account, Core Account and Swap Free Account for Muslim clients.
The demo account offered here also has no time limit, so it's safe and comfortable for beginners who want to learn to trade with this broker.
Caramel
Apr 30 2023
OANDA offers support for MT4 and its own award-winning platform, which is beneficial for novice traders, and although OANDA only offers trading on two live accounts, the trading fees are lower than other similar brokers.
This might be a silly question, but I thought I should do it. Why does OANDA charge an inactivity fee? I'd rather have a button to close my account than an inactivity fee.
Even other brokers have the privilege of offering no inactivity fees, so traders can rest assured that their money is safe once they stop trading there. And without these inactivity fees, I feel like my broker is truly in charge of my account and funds.
Yasmine
Apr 30 2023
@Caramel: I disagree with your reasons and statements about inactivity fees. The main reason why OANDA and some brokers charge an inactivity fee is because of the broker's server. The more accounts added to their servers, the more power is required. And the server must be qualified because it will also affect transactions. And the more accounts opened, the more expensive to maintain. In Forex Trading, many accounts will be inactive.
And I believe that every broker will have more inactive than active accounts because most traders, especially beginners, will quit Forex if they fail or lose all their money. Brokers cannot withdraw your funds without terms and conditions, especially segregated accounts. So they will be charged an inactivity fee and that was agreed upon because you agreed to the terms and conditions when you signed up.
Yerren Green
Jun 28 2023
Among currency pairs, USD/JPY and EUR/USD are widely known. However, I'm curious about their trading popularity. In general, which currency pair is more commonly traded: USD/JPY or EUR/USD? And what are the factors that contribute to the varying levels of trading activity in these currency pairs? Additionally, how does the liquidity and volatility of USD/JPY compare to EUR/USD? Because I see the spread in OANDA, the EUR/USD and USD/JPY is same with the level 1.7 pips. Understanding the relative popularity and characteristics of these pairs can help me make informed trading decisions. Thank you
Debbie
Jun 29 2023
@Yerren Green: When it comes to currency trading, EUR/USD is more popular than USD/JPY. Why? Well, it's because the Eurozone and the United States are big players in the global economy. So, people trade the Euro against the US Dollar a lot, which is what EUR/USD represents.
A few things contribute to the popularity of EUR/USD. First, both regions have strong economies and trade a ton with each other. Second, many different types of traders, like big institutions and regular folks like you and me, trade EUR/USD. More traders mean more action and excitement.
Now, let's talk about liquidity and volatility. Both EUR/USD and USD/JPY are considered liquid, which means they have a lot of buyers and sellers. As for volatility, it's all about how much the prices move. This can depend on things like news, economic events, and politics. Sometimes EUR/USD may be more volatile, and other times USD/JPY might take the lead. It can change based on what's happening in the world.
Oh, and about the spread. The spread is the difference between the buying and selling prices. The level you mentioned, 1.7 pips, is what you may see with some brokers for both EUR/USD and USD/JPY. But keep in mind that spreads can vary, so it's good to check with your specific broker.
Knowing which currency pair is popular and understanding their liquidity, volatility, and spread can help you make smarter trading choices. So, consider these things along with your own trading strategy and how much risk you're comfortable with. Happy trading!
Liam Melker
Sep 17 2023
So if I'm not a Muslim, I can't get a Swap-free account, right? This means that the swap rate is really an unavoidable fee. So, to help Muslim traders avoid Riba, brokers will charge other fees to cover the exchange rate loss? And the interesting part is the positive interest that can bring you profit.
So even though we are not Muslim traders, we can still aim for that positive rate? The question is does anyone know how to calculate the swap rate? Since it can give you a positive rate that can make a profit with it, I think many traders will use it as an advantage.
And what makes me wonder is the overnight fee can be very high. And what causes the swap rate to rise or fall?
Marsmello
Sep 18 2023
Well, when it comes to your point, swap rates are indeed inevitable. These rates are tied to the reference interest rate of the country associated with the currency. Each currency has its own distinct interest rate.
Now, the swap rate is the fixed portion of a swap determined by the specific market and parties involved. In an interest rate swap, it's a fixed rate exchanged with a benchmark rate like LIBOR or the federal funds rate, with a plus or minus differential. It also denotes the exchange rate linked to the fixed portion of a currency swap. Swap rates are pertinent to various types of swaps.
In an interest rate swap, it's the swap of a floating rate for a fixed rate, while in a currency swap, it signifies the exchange of interest payments in one currency for payments in another. In both transactions, the fixed element is referred to as the swap rate.
Now, for the calculation, a straightforward method is employed:
For the latest rates, one can refer to the Oanda website for details.
Barbara
Sep 19 2023
Swap-free accounts are typically reserved for Muslim traders, aligning with Islamic financial principles that prohibit interest charges. The swap rate, incurred after holding a position past 5:00 PM EST, reflects the interest rate differential between traded currencies.
While non-Muslim traders can't access swap-free accounts, they can still leverage swap rates for profit. Positive rates occur when buying a higher-interest currency, while negative rates result from selling such a currency. Calculated based on various factors, swap rates vary across currency pairs, brokers, and market conditions, influencing overnight trading costs. Traders should consider these costs in their strategies.
Connor
Nov 21 2023
OANDA's got this swap-free trading account vibe going on. It's like the chill spot for traders who don't want to deal with overnight swaps or interest on their trades. All you gotta do is start with a regular account and then hit them up for the swap-free upgrade.
Now, here's the real talk – what about the pros, the experts in the trading game? Do these seasoned traders, especially the ones into the long-haul strategies like swing and positional trading, dig the whole swap-free scene? I'm curious, you know?
Oh, and here's a little nugget I picked up – word on the street is that the value of those swap fees can play it cool or get a bit wild, depending on the currency pairs you're rolling with. Anyone got the lowdown on whether that's legit?
Jozy
Nov 24 2023
Hey, for the first point, OANDA's swap-free trading account is indeed a haven for those steering clear of overnight swaps and interest. To get on board, just follow the article above.
Now, regarding professional traders, especially those rocking the long-haul strategies like swing and positional trading, it's a bit of a mixed bag. Some pros appreciate the simplicity and ease of the swap-free setup, while others might not find it as crucial to their strategy. It really depends on the trader's preferences and approach.
As for the swap fees rumor, it holds some truth. The value of swap fees can indeed fluctuate based on the currency pairs you're dealing with. It's a factor to consider, and being aware of these variations can be part of navigating the trading landscape smoothly. Additional information, you can read this information to learn more about swap fees's value! Click here! Hope that clarifies things!