Online broker OctaFX will allow swap-free in order to increase investment opportunities for its worldwide clients in various financial markets.
Online broker OctaFX has now decided to remove swaps in all countries where it operates. Swaps are fees that traders pay for leaving their orders open overnight. Thus, clients no longer have to pay swap fees if they let their orders stay overnight.
Forex trading usually allows the use of leverage to open more prominent positions. This allows traders to double their profits when they win trades. Since leverage is borrowed money from a broker, traders have to pay interest when their orders are opened for more than one day. Brokers take advantage of swap fees to fill them.
Swap fees depend on the difference in interest rates between currencies in a pair, often called the swap rate. Swaps are calculated based on the order size and are usually charged at midnight. On Wednesday evenings, traders had to pay weekend swaps three times their usual size. In order to avoid swap payments, they mostly use an intraday strategy, which narrows their investment experience. Because they are charged daily, swap fees will quickly build up over time and make trading less profitable.
In order to solve this problem while increasing investment opportunities for its clients, OctaFX lowered this swap removal decision. Later, clients will not have to pay any fees at this time so they use medium or long-term strategies in the market. OctaFX clients can hold as many orders and for as long as they want without swap fees.
OctaFX is an international forex broker that operates worldwide. The domain belongs to a group of companies called Octa Markets Incorporated which is registered with St. Vincent and Grenadines FSA. Currently, the company focuses on Asian, South African, and Australian markets. OctaFX.com does not accept European clients as this market is specifically appointed to OctaFX.eu (regulated by CySEC).