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Lowest Swap Forex Brokers For GBP/USD

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In forex trading, there are many types of fees that traders have to pay for brokers. Besides spread, traders should also pay for the swap. It is a commission, or an overnight interest charged by the broker to extend the position for the next trading day. A swap reflects the difference in interest rates between the two trading currencies. Moreover, a swap can be positive or negative depending on the difference of the interest rates between the two currencies and your order (buy/sell).

If you are a long-term trader or aim to be one, swap fees are important. Thus, you may need to choose forex brokers with the lowest swap because it can reduce transaction costs for you. If you trade on GBP/USD, you can take a look at this list of forex brokers with the lowest swap on GBP/USD. The swap for GBP/USD is based on the differences between the United Kingdom's and United States' benchmark rates.

Mar 29 2024

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Score Broker GBP/USD Swap Min Deposit Max Leverage Regulation

Additional FAQ

In the forex market, London and New York sessions are the two busiest markets every day. These circumstances boost GBP/USD volatility, particularly during London and New York trading sessions (3-10 AM EST).

As such, the best time to trade GBP/USD is the overlap session between Europe and US trading hours, although you can technically trade the pair anytime from the market opening on Monday to the market closing on Friday (24/5).

Continue Reading at Tips on How to Trade GBP/USD

To trade GBP/USD, you need to pay attention to these aspects:

  1. The UK's consumer sentiment and any developments that may influence it.
  2. High-impact news from the UK and the US
  3. Trade in the overlap session.
  4. Correlation with EUR/USD
  5. How to perform scalping

Continue Reading at Tips on How to Trade GBP/USD

  • MPC Meeting (BoE rate decision) and the subsequent BoE Governor Speech
  • MPC Meeting Minutes publication
  • UK GDP
  • UK Unemployment Reports (Claimant Count Change)
  • UK Housing Prices (Housing Prices Index)

GBP/USD is also often influenced by geopolitical matters such as referendums and elections. The UK rarely holds referendums, but when they do, it is on highly influential topics, such as the Scottish Independence and their exit from the EU (Brexit). Aside from those, it will also be useful to note commodities prices as the US Dollar is quite sensitive towards changes in commodities prices, particularly oil and gold.

Continue Reading at Tips on How to Trade GBP/USD

When analyzing GBP/USD from the fundamental perspective, you will find that retail sales, housing, and employment reports are highly impactful. The key here is consumer spending. The UK's economic growth is partly driven by consumption, and the trade relationship with other influential countries relates closely to that particular factor. Hence, there goes the following principle:

Anything that benefits consumer spending in the UK may strengthen GBP, while anything that hurt consumer spending in the country may weaken it.

Continue Reading at Tips on How to Trade GBP/USD