swap rates are eating my swing trade profits - how to compare brokers properly

[Mason]

been holding eurusd positions overnight for 3-5 days and the swap charges are quietly taking a big chunk. started actually adding them up and i'm losing around 15-20 dollars per lot per night. different brokers show completely different swap rates for the same pair and i can't figure out what's normal.

how do you properly compare swap rates across brokers, and is there a way to tell if a broker is padding them vs genuine interbank rates?

[carterw]

swap rates should be derived from the interest rate differential between the two currencies, adjusted for the broker's markup. for eurusd right now with current rates the raw differential is small, so any broker charging a lot per night is adding a big markup. you can calculate the fair rate yourself using published central bank rates. most brokers add 1-3% annualized markup, some add much more.

[urbanfox]

the markup difference between brokers can be enormous. i've seen some charge 5x what competitive ecn brokers charge on the same pair. for swing traders this matters more than spread. worth building a comparison spreadsheet with the actual dollar cost per lot per night across the brokers you're considering.

[harrywalker]

also check if the broker offers islamic swap-free accounts. some let retail traders use them without religious documentation these days. the fee structure is different (admin fee instead of swap) and can be cheaper for certain holding periods. worth comparing directly.

[Leo]

does the three-day swap on wednesday actually mean you pay three times as much, or is it the same total as paying it spread over three nights?

[bluedreams]

it's the same total just charged in one shot. the wednesday triple swap accounts for the weekend when markets are closed but positions are still held. you pay for saturday and sunday's financing on wednesday night. the weekly total stays the same, it's just batched. if you specifically want to avoid triple swap, close before wednesday rollover and reopen thursday - though commissions may offset the saving.

[Elliot]

check myfxbook broker comparison tool for live swap rates across brokers. saves building it yourself.

[justmatt]

or just don't hold overnight and avoid the whole issue. if your trade needs 5 days to work it's not a forex trade it's an investment.