Broker Markup on Interest - Best Forex Rollover Rates
One factor to consider when looking for the best forex rollover rates is your forex broker markup on interest. For example if AUD is yielding 7% your broker might put a markup of something like 1%, therefore the broker will only pay you 6% minus his markup. Also if the swap for a currency like JPY is -0.5 it means you are supposed to pay 0.5% on JPY, your forex broker may also put a markup of something like 0.5%, henceforth in total you'll pay 1 % when broker markup is added.
What this means is that now for this trading strategy instead of 7%-0.5% = 6.5 % yield on your open trades, you will get 6%-1%= 5 % yield on your trade. Some Forex brokers may even implement a higher markup, therefore is you as the trader want to use this method look for a broker with low mark-up. The best Forex rollover rates of various currencies can be obtained online from various index tables found online and also from economic calendars online.
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