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 may 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%, therefore in total you will pay 1% when broker markup is added.
What this means is that now for this strategy instead of 7%-0.5% = 6.5% yield on your open trade positions, you will get 6%-1%= 5% yield on your position. Some Forex brokers may even implement a higher markup, therefore is you want to use this method look for a broker with low markup. The best Forex rollover rates of various currencies can be obtained online from various index tables found online and also from economic calendars online.
