The following brokers provide the most supporting condition and environment to implement carry trade strategy. Continue on to learn further.

Brokers for Carry Trade

Carry trading typically relies on the yield difference between two pairs of currencies. A carry trader buys a high-yielding currency against a low-yielding currency to capture the rate difference. Profit from the swap rate difference can be substantial if you know how and when to execute the traders.

For example, a trader buys a USD/JPY pair. If the interest rate in Japan is 0.5% and the rate in the US is 4%, then the trader may get away with a 3.5% profit, assuming there's no rate change during the trade.

When choosing a broker for carry trading, you need to focus on the trading costs and the positive swaps for certain currency pairs.  Pairs with the Japanese yen (JPY) can be a great choice because currently, as the Bank of Japan has negative interest rates. On the other hand, the US and UK have the highest interest rates among other major countries.

By that logic, popular currency pairs for carry trades at the time of this writing include AUD/JPY, NZD/JPY, USD/JPY, EUR/JPY, and GBP/JPY.

Some brokers offering favorable condition for those currency pairs are:

  • IC Markets: Spreads starting for 0 pips and 0.84 (long) swap rates for USD/JPY.
  • BDSwiss: USD/JPY has 0.368 swap rates and 0.005 minimum spread.
  • Vantage: GBP/JPY has 1.925 (long) swap rates with 1.0 pip minimum spreads.
  • FBS: USD/JPY has 6.25 (long) swap rates with 0.01 pip minimum spreads.
  • XM broker: EUR/JPY has 11.77 (long) swap rates with 2.1 pip minimum spread.
  • Tickmill: Positive swap rates of 13.72 on USD/JPY and 0.1 spread.
  • FP Markets: GBP/JPY has 0 pip minimum spreads with 16.52 (long) swap rates.

Information on this article is updated on September 11, 2023. Swap rates can change over time so it's recommended to always check each broker's swap rates on the official web page for more updated information.

 

IC Markets

IC Markets is a standout choice for carry trading enthusiasts due to its transparency when it comes to swap rates. In addition to allowing carry trades, IC Markets offers wide array of currency pairs that are favorable for carry trading. Here are the details:

Pair Positive Swap Rates  Spread
AUD/JPY 0.51 0 pips
NZD/JPY 0.4 0 pips
USD/JPY 0.84 0 pips
EUR/JPY 0.15 0 pips
GBP/JPY 0.7 0 pips

Furthermore, the low minimum deposit requirement of $200 makes it accessible for traders of varying budgets to participate in carry trading with IC Markets.

🌐 Website
www.icmarkets.com
Leverage
1:1000
💼 Regulation
💲 Min Deposit
$200
Year Established
2007

Interest rate on funds
Free education
PAMM
MAM
Segregated accounts
Managed accounts
Islamic accounts available
Compensation scheme
Swap
Low spread eur/usd
VPS
Copy trading
FasaPay
Neteller
PayPal
Skrill
Wire transfer

IC Markets is an online forex broker operating under the company of International Capital Markets Pty Ltd. Traders under the Australian jurisdiction are provided with the trading service of IC Markets AU that is headquartered in Australia and licensed by the Australian Securities and Investments Commission (ASIC).

On the other hand, non-Australian traders who open an account in this broker are registered under IC Markets SEY that is based in Seychelles, and regulated under the Seychelles Financial Services Authority (SFSA). The dual operation is a result of the relatively new rules from ASIC that prohibit their regulated broker to offer trading services outside Australia.

Classified as an ECN broker, IC Markets provide clients with MetaTrader 4, MetaTrader 5, cTrader as platform trading options. This broker also follows market trends to include Cryptocurrencies as one of its products, enriching its already wide selection of trading assets that include Currencies, Indices, Metals, Energies, Softs, Stocks, as well as Bonds.

The minimum deposit in IC Markets is in the middle range compared to other ASIC-regulated brokers, as it reaches $200 for every client. Market analysis materials are also prepared regularly for trading insights on IC Markets's official website, proving their competence to serve their traders with important contents created by market experts that work specifically for them.

For payment methods, IC Markets allows funding and withdrawal via wire transfer, credit card, PayPal, Skrill, Neteller, FasaPay, UnionPay, as well as Bitcoin via BitPay. The more interesting aspect from this broker is its multi-base currencies that include USD, AUD, EUR, GBP, SGD, NZD, JPY, CHF, HKD, and CAD.

As the trading technology in IC Markets is highly equipped with co-located servers and extremely low latency (especially on cTrader), the broker is widely known for its capability in hosting traders with the special needs for high-frequency trading as well as scalping.

To sum up, IC Markets is a fitting destination for active traders looking for a well-regulated broker. IC Markets is also flexible in terms of base currency and payment methods, signaling their commitment to welcome traders beyond their home country. As of late 2019, IC Markets provided their website in 18 international languages including English, Korean, Indonesian, French, Spanish, Italian, Malay, German, and Chinese.

 

BDSwiss

BDSwiss can be a great carry trading broker to consider. Not only does this broker allow carry trading, it also comes with positive spreads for some of their best carry trading pairs. Here are some examples:

Pair Positive Swap Rates  Spread
AUD/JPY 0.264 0.009
NZD/JPY 0.2 0.007
USD/JPY 0.368 0.005
EUR/JPY 0.167 0.008
GBP/JPY 0.337 0.014

The highest swap traders can get is from USD/JPY with 0.368 and a spread of 0.005. They are also equipped with educational tools for their traders. You can learn through various methods, such as live education, learning centers, and educational videos.

🌐 Website
www.bdswiss.com
Leverage
1:400
💼 Regulation
💲 Min Deposit
$100
Year Established
2012

Accepts US traders
Personal manager
Segregated accounts
VPS
Free education
Negative balance protection
Affiliate program
Education
Copy trading
Webinar
PAMM
Skrill
Wire transfer
Neteller
Wire transfer

 

Vantage

Another great choice for carry trading is Vantage. Additionally, Vantage's commitment to transparency is commendable, as evidenced by the readily accessible swap rates on its website.  Vantage's standout feature for carry trading is the provision of attractive swaps for key currency pairs such as:

Pair Positive Swap Rates  Spread
AUD/JPY 0.79 0.9
NZD/JPY 1.093 0.7
USD/JPY 1.274 0.5
EUR/JPY 1.37 0.5
GBP/JPY 1.925 1.0
Leverage
1:500
💼 Regulation
💲 Min Deposit
$200
Year Established
2009

Islamic accounts available
PAMM
MAM
Social Trading
Non-expiring demo
Negative Balance Protection
Segregated accounts
Regulatory Deposit Insurance
Trading via API
Compensation scheme
Low spread eur/usd
VPS
Personal manager
Affiliate program
Education
Copy trading
webinar
Neteller
Skrill
Fasapay

Vantage Markets was founded in 2009 in Australia. It is the brand name of the Vantage International Group which is regulated by the Cayman Islands Monetary Authority (CIMA). Before it is known as Vantage Markets as today, they used to be MXT Global in 2009 and Vantage Markets Pty LTD in 2015. The Vantage Group also operates other companies such as Vantage Global Prime, which is regulated by the Australian Securities and Investments Commission (ASIC) and the Financial Conduct Authority (FCA).

According to the broker's website, Vantage Markets adds further protection to clients by segregating client funds and holding their funds with Australia's National Australia Bank (NAB). NAB is one of the 4 largest financial institutions in Australia as well as the Top 20 safest banks in the world. Thus, clients don't need to worry about saving their funds at Vantage Markets.

With Vantage Markets, traders will experience super-fast trade execution, as well as interbank grade and RAW ECN spreads. When combined, these elements offer clients a true institutional trading experience, across a wide range of trading instruments. They also offer services designed for both beginners and professionals with access to Forex ECN trading, as well as CFD trading on Indices, Commodities, and U.S & Hong Kong Shares. Those instruments are available to trade on MetaTrader 4, MetaTrader 5, MetaTrader WebTrader, CHARTS by TradingView, Mobile Apps, either for Mac, PC, iOS, or Android. There are also social trading platforms such as MyFXbook and Zulutrade.

By registering in Vantage Markets, traders will have access to an impressive range of educational materials and research tools including MT4 SmartTrader Tools, a wide variety of promotional trading offers and rebate programs, as well as access to accounts with up to 500:1 leverage.  However, the leverage for ASIC and FCA clients is 30:1, and normally no promotion for AU and UK clients because of the compliance policy.

Vantage Markets provides research in the form of technical and fundamental analysis on its blog from in-house staff as well as guest writers. There is also an economic calendar powered by MQL5 from MetaQuotes. For clients who deposit at least $1,000, Vantage Markets offers a suite of plugins for MT4 branded as MT4 SmartTrader Tools, developed by FX Blue LLP.

As an authorized representative of Vantage Global Prime, the broker caters to retail traders under the Vantage Markets brand and offers access to the following instruments:

  • 44 currency pairs, which are the most liquid global forex market currencies.
  • 16 most liquid Indices from across the globe, including the S&P 500, DAX, FTSE, DJ30, and more.
  • 16 commodities, either soft commodities or precious metals.
  • 5 indices futures such as DJ30ft, DAX4ft, and NAS100ft.
  • 600+ US, UK, and HK shares from large companies, such as Apple, Google, Coca-Cola, and big corporations listed on the Hong Kong Stock Exchange.

Clients can open accounts in Vantage Markets and deposit funds in 8 base currencies: USD, GBP, CAD, AUD, EUR, SGD, NZD, HKD, and JPY. They also provide clients with convenient deposit and withdrawal methods through local and international bank transfers, credit/debit cards, and e-payment.

Overall, Vantage Markets is valued to be proper for retail traders with small deposits who like the max leverage thresholds. In terms of pricing, the broker's commission-based Raw ECN account is the clear choice for cost-sensitive traders as it features a lower all-in cost compared to its Standard account offering.

 

FBS

FBS can be a great choice for carry trading. Not only does this broker allow carry trading, but they also offer a diverse selection of currency pairs that are strategically suited for carry trading and are readily available across all their trading platforms.

Pair Positive Swap Rates  Spread
AUD/JPY 2.15 0.017
NZD/JPY 4.1 0.017
USD/JPY 6.25 0.01
EUR/JPY 5.4 0.016
GBP/JPY 7.6 0.017

FBS doesn't exactly offer the lowest spread in the list, but it is still considerably good. Their USD/JPY only has a 0.01 minimum spread with positive swap rates of 6.25.

Moreover, FBS provides traders with other supporting features, such as market analysis. This way, traders could access market updates to help them arrange better trading decisions.

🌐 Website
fbs.com
Leverage
1:3000
💼 Regulation
💲 Min Deposit
$5
Year Established
2009

Bonus offers
Trading contests
Free education
Affiliate program
Islamic accounts available
Compensation scheme
Negative balance protection
VPS
Education
Webinar
Low spread eur/usd
FasaPay
Neteller
Skrill
Wire transfer

Since 2009, the action of FBS Holding Inc. or known as FBS in the world of forex trading has been recognized by various international institutions. With clients reaching 14 million as of 2019, FBS has received the title of Most Transparent Forex Broker 2018, Best Investor Education 2017, Best Customer Service Broker Asia 2016, IB FX Program, and many others.

FBS is regulated by FSC Belize and CySEC Cyprus. This broker has been trusted by millions of traders and 370 thousand partners from various countries. Based on their data, FBS garners about 7,000 new traders and partner accounts every day. And, 80% of the clients stay in the FBS for a long time. No wonder the broker is growing rapidly due to the incredible growth in the number of clients.

Trading products offered by FBS range from forex, CFD, precious metal, and stock. For forex trading, CySEC-regulated FBS offers leverage up to 1:30 on Cent and Standard Accounts. Clients who want to try higher leverage than that can alternatively register an account under FBS Belize.

FBS spread begins from 0.5 pips for Pro account type and from 0.7 pips for Standard and Cent accounts. On a standard account, volume orders can be made from 0.01 to 500 lots. Therefore, this account is recommended for experienced traders.

Whereas on Cent Accounts, volume orders can be carried out with a maximum of 500 cent lots or the equivalent of 5 standard lots. Cent Accounts involve a different level of risk. FBS recommends Cent Accounts for beginner traders. All account types support the following trading instruments: 36 Forex pairs, 8 metals, 3 energies, 11 indices, 127 stocks, 5 crypto pairs.

Before plunging into the real forex market, traders can practice with FBS Demo Account which consists of two types, i.e Standard and Cent.

FBS uses the MetaTrader 4 and MetaTrader 5 platforms. They offer them on Windows and Mac as well as Android and iOS mobile. These platforms provide a trading experience at traders' fingertips, allowing traders to progress as a trader anywhere at any time.

MetaTrader platforms also have a variety of mainstay features, including the possibility to create, buy, and use expert advisors (EA) and scripts, One-click trading and embedded news, technical analysis tools, the possibility to copy deals from other traders, hedging positions, and VPS service support.

Another advantage provided by FBS is a deposit bonus of 100% for clients who fulfill certain requirements. The process of FSCing and withdrawing funds can be run easily and quickly. Based on clients' testimonies, each process usually takes no more than 3-4 hours, except on holidays.

Traders also have the opportunity to develop a side business when trading with FBS, namely as an Introducing Broker (IB) or Affiliate. The FBS partnership system provides partner commissions that are already in 3 level positions. Only by introducing new clients to FBS according to certain procedures, traders can earn extra income.

Traders will also get trading education experience at FBS. They have prepared a comprehensive forex course. The course consists of 4 levels: beginner, elementary, intermediate, and experienced. Traders can take courses that will turn them from newbies to professionals. All materials are well-structured. Besides, FBS provides various forex analyzes, webinars, forex news, and daily market analysis that can be accessed easily on their site.

Traders can access the FBS website with many language choices. Of course, this will increasingly provide comfort for traders. Available languages include English, Italian, French, Portuguese, Indonesian, Spanish, and others. Live chat support is also provided 24 hours 7 days a week.

In conclusion, FBS is a widely known broker among retail traders around the world. It continually grows to become a preferred broker because of flexible trading conditions that enable its clients to trade with various instruments, low deposit, and other trading advantages.

 

XM

Another broker for carry trading is XM Broker. Not only does XM allow carry trades, but this broker also presents an appealing proposition by providing positive swaps for key currency pairs such as:

Pair Positive Swap Rates  Spread
AUD/JPY 6.65 3.2
NZD/JPY 8.65 2.5
USD/JPY 7.52 1.7
EUR/JPY 11.77 2.1
GBP/JPY 2.9 3.2

XM broker also allows you to check on your carry trade positions through their intuitive mobile app.

🌐 Website
www.xm.com
Leverage
1:1000
💼 Regulation
💲 Min Deposit
$5
Year Established
2009

Bonuses
Personal manager
Segregated accounts
Free education
Trading by phone
Compensation scheme
Negative balance protection
VPS
Affiliate program
Copy trading
Webinar
WebMoney
Skrill
Wire transfer
Neteller
CashU
QIWI
FasaPay

XM Group is a group of regulated brokers and it is owned by Trading Point Holdings Ltd. Entities under XM Group have significant experience as financial services providers worldwide.

Trading Point of Financial Instruments Ltd was established in 2009 with headquarters in Limassol, Cyprus, Trading Point of Financial Instruments Pty Ltd was established in 2015 with headquarters in Sydney, Australia, XM Global Limited was established in 2017 with headquarters in Belize and Trading Point MENA Limited was established in 2019 with headquarters in Dubai.

XM Group is regulated by the CySEC (Cyprus Securities and Exchange Commission) - Trading Point of Financial Instruments Ltd, FSC (Financial Services Commission) – XM Global Limited, the ASIC (Australian Securities and Investments Commission) - Trading Point of Financial Instruments Pty Ltd and DFSA (Dubai Financial Services Authority) - Trading Point MENA Limited.

XM is one of the more experienced brokers in the world of online forex trading today. Since its founding, the broker has experienced a lot of changes, including the addition of the Ultra-Low Account and EN Live Edu that is instructed by 16 global experts.

In terms of trading instruments, XM is a well-known diverse class assets provider, varying from Forex, Crypto, Stock CFDs, Turbo Stocks, Commodities, Equity Indices, Precious Metals, Energies, & Shares. XM prides itself to be the ideal broker in trading execution, offering a stat of 99.35% orders to be executed in less than 1 second. Trading in XM would be also provided with a strict no requotes policy, no virtual dealer plug-in, no rejection of orders, real-time market execution, and the choice for traders to place orders online or by phone.

Spreads on all majors can reach as low as 0.6 pips in Ultra-Low Account, while spreads on other accounts usually start from 1 pip.

To protect the client's fund in the event of extreme volatility, XM presents each account type with Negative Balance Protection. Minimum deposit of $5 applies to Standard, Micro, and also Ultra-Low Accounts. Traders who open accounts in XM are enabled a condition similar to a Cent Account environment in the Micro Account, in which the Contract Size for every lot is only 1,000 units. If it is applied with the smallest lot size in the MetaTrader platform which amounts to 0.01, it means that traders can go as small as 10 units per trade.

For the deposit, XM applies zero-fee deposits in most of its available payment methods. Traders can choose to fund or withdraw their accounts via wire transfer, credit card, as well as the most favorable e-payment choices like Skrill, Neteller, and FasaPay.

To give their clients the best experiment in trading, XM has given access to both MT4 and MT5 platforms, each is available for more than 6 display formats (PC, Mac, Multiterminal, WebTrader, iPad, iPhone, Android, and Android Tablet).

All in all, there is no doubt that XM has gone global with its deep commitment to providing services in more than 30 different languages across the world. Aside from easing traders' experience with mainstream trading platforms and high-quality trading execution, XM is open to various types of traders, from small capital traders to the more experienced ones with big deposits at the ready. Traders are even provided with a Cent Trading environment should they choose to register under Micro Account.

For their global approach, XM has ensured that traders from various countries could access their service easily. This results in the provision of different domains specified for traders in certain jurisdictions. For example, traders from Indonesia could access XM via this link.

 

Tickmill

Another good broker that allows traders to utilize a carry trading strategy is Tickmill. As a broker who allows this method, they also offer positive spread on pairs that are considerably good for carry trading. These are some of them:

Pair Positive Swap Rates  Spread
AUD/JPY 6.53 0.9
NZD/JPY 11.88 1.1
USD/JPY 13.72 0.1
EUR/JPY 9.95 0.5
GBP/JPY 14.97 1

In addition to being a good carry trading brokerage, Tickmill allows traders to use EA for automated trading.

🌐 Website
tickmill.com
Leverage
1:500
💼 Regulation
💲 Min Deposit
$100
Year Established
2014

Bonuses
PAMM
Trading contests
Segregated accounts
VPS
MAM
Free education
Trading by phone
Negative balance protection
Compensation scheme
VPS
Personal manager
Affiliate program
Copy trading
Webinar
Islamic account
Low spread eur/usd
WebMoney
Skrill
Wire transfer
Neteller
QIWI
FasaPay

Tickmill is an award-winning global ECN broker, authorized and regulated by the Financial Conduct Authority (FCA) in the UK, CySEC in Cyprus, and the FSA of Seychelles. Founded in 2014, it offers its retail and institutional clients various trading services with a prime focus on forex, stock, commodities, CFDs, and metals.

For traders who prioritize the value of spreads in broker selection, Tickmill provides excellent services with low spreads, starting from 0.0 pips.

The London-based company has a mission to provide clients with the best possible trading environment, so clients can focus on trading and become successful traders. One way to reach its mission is to offer a fast-execution of 0.15s. With this facility, it's no wonder that Tickmill gets the 2019 Best Forex Execution Broker award by the CFI.co Awards. Also, Tickmill received the achievement as Best CFD Broker Asia 2019 by International Business Magazine, the Best Forex Broker Asia, and the Most Transparent Broker 2019 by Forex Awards.

After registering in Tickmill, traders can choose the most ideal asset among 60 currency pairs that they can trade. If traders aren't sure yet to open a real account, Tickmill recommends learning to trade through a demo account.

There are also educational features such as Webinars, Seminars, Ebooks, and Video Tutorials. All of these facilities can be used by traders to increase knowledge about trading and the financial market as a whole. If traders already have enough knowledge, they have a greater opportunity for earning profit consistently.

For traders registered in real accounts, they can choose between provides three types of accounts, including Pro Account, Classic Account, and VIP Account. Traders can open positions with a minimum order of 0.01 Lots. This applies to all types of accounts.

The company provides recommendations for traders who are still confused when choosing an account. For example, for novice traders, Tickmill encourages clients to choose a Classic Account. It offers optimal conditions with fast order execution while enabling traders to use virtually any trading strategy. Additionally, the account is trade commission-free so traders only pay the bid/ask spread. Other than the 3 main accounts above, Tickmill also provides an Islamic account (swap-free).

The downside is, trading with Tickmill will only enable traders to use MetaTrader 4 as their offered trading platform. Although not much if compared to other brokers, the Tickmill platform provides a user-friendly and highly customizable interface, accompanied by sophisticated order management tools to help traders control positions quickly and efficiently.

The convenience of trading on Tickmill is enhanced by the existence of One-Click EA integrated on MT4. Traders will get Stop Loss and Take Profit calculations automatically. On top of that, Tickmill provides a VPS hosting for automated traders that can't be bothered with technical problems such as troublesome internet connection.

They offer several third-party research solutions, including Autochartist, which is a popular pattern-recognition software that uses automated technical analysis to make forecasts and generate trading signals. Autochartist is available both in Tickmill's web portal and as a platform plugin for MetaTrader 4.

As a Tickmill client, a trader can deposit and withdraw with a variety of payment methods, including Visa, Mastercard, bank transfer, and Skrill. Tickmill accepts deposits and withdrawals in 4 currencies, which include USD, EUR, GBP, and PLN.

Overall, Tickmill is a competitive broker in spreads and provides a safe trading environment with its regulated entities in three different jurisdictions. Although their trading platform is not outstanding, the analytical tools they present to equip traders' needs are considered by retail broker standards.

 

FP Markets

FP Markets is another broker that allows carry trading strategy. The broker offers an array of currency pairs well-suited for carry trading across all its trading platforms, such as:

Pair Positive Swap Rates
 Spread
AUD/JPY 7.24 0 pips
NZD/JPY 9.70 0 pips
USD/JPY 14.76 0 pips
EUR/JPY 10.28 0 pips
GBP/JPY 16.52 0 pips

One of the most enticing aspects of FP Markets is their 0 spreads. Lower transaction costs can contribute to better risk management as you can allocate your capital more efficiently.

FP Markets also assists news carry traders with knowledge from their webinars regarding interest rates and economic calendar. Both features help traders to make better decisions about their carry trading strategy.

🌐 Website
www.fpmarkets.com
Leverage
1:500
💼 Regulation
💲 Min Deposit
$100
Year Established
2005

Free education
Personal manager
Trading by telephone
PAMM
MAM
Segregated accounts
Affiliate program
Islamic accounts available
Hedging
Negative balance protection
Low spread eur/usd
VPS
Copy trading
FasaPay
Neteller
Skrill
Wire transfer

Keeping positions open overnight won't result in the overnight/rollover fee reducing your earnings, so you don't have to worry about it. FP Markets offers the most competitive swap rates in the industry by introducing Swaps Points in the form of a live swap rates list on the MT4 and MT5 platforms. Here are some examples:

  • ACWI: -5.00 for long positions and -2.50 for short positions.
  • ADAUSD: -20.00 for long positions and -20.00 for short positions.
  • AGG: -5.00 for long positions and -2.50 for short positions.

 

Final Words

As a classic form of trading, carry trade is popular mainly because of the mechanism that doesn't depend too much on the volatility of currencies. Even beginners can learn the basics and take positions based on the calculated analysis of the carry trading strategy.

Selecting the right broker for carry trading is a pivotal decision that can significantly impact your trading success. It is essential to prioritize brokers that allow for carry trading and provide favorable trading costs and positive swaps for JPY cross pairs.

See also: