Lowest Swap Forex Brokers For USD/JPY
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, since it can reduce transaction costs for you. If you trade on USD/JPY, you can refer to this list of forex brokers with the lowest swap on USD/JPY. The swap for USD/JPY is based on the differences between the United States' and Japan's benchmark rates.
Scroll for more details
What is swap and how to calculate it?
A swap is a commission you have to pay when you have an overnight position. The fee is calculated from the difference between the interest rates of a currency pair.
Continue Reading at Forex Broker Cheats and How to Anticipate Them
Why is swap-free a key feature in UAE brokers?
As a Muslim-majority country, UAE mainly uses the Sharia law. Consequently, regulators also need to ensure that financial activities such as forex trading that take place in the Mainland are Sharia compliant. This means, brokers must offer a swap-free account for clients in the UAE.
Continue Reading at Best Forex Brokers in United Arab Emirates (UAE)
How does oil price affect the Japanese Yen?
Japan is an energy-poor country, and largely depended on its nuclear generator and imported oil and gas. Therefore, high oil prices could be expected to hit hard on its economy. In line with this, CAD/JPY often make significant moves around the same time as oil prices. When oil prices fell, we could expect CAD/JPY to go down and vice versa.
Continue Reading at How World Oil Prices Affect Forex, Before And After US Shale Fracking
Why do some traders concern with swap?
In forex trading, a swap (or rollover) is the interest charged for keeping trading positions open overnight. It is calculated based on the interest rate differential between two currencies in a traded pair. Some traders, particularly those of the Islamic faith, cannot participate in swaps due to religious beliefs. As a result, swap-free accounts were introduced to address this concern.
Continue Reading at Introduction to Islamic Account in Forex Brokers
