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jp3
New Contributor
Posts: 2
Registered: ‎28-03-2017
Accepted Solution

Rollover costs in Forex

Hi, I'm writing to learn what the cost would be for holding a forex trade overnight.

 

What would it cost to hold 1 £1 lot on USD/JPY overnight?

 

Thank you.

 

 

Moderator
Posts: 33
Registered: ‎08-12-2016

Re: Rollover costs in Forex

Hi @jp3,

 

We use the TomNext rate for our overnight fees on FX. This fee is made up of the underlying TomNext swap rate we obtain from our Bank feeds that price our FX markets, as well as a 0.8% IG admin fee.

 

If you hold a FX position open on your account at 10PM UK time you will be subject to this charge. Please note that as FX settles in the underlying market on a T+2 basis (2 days from the date of transaction), if you hold a FX position on a Wednesday at 10PM UK time you will be charged 3 days as it is deemed the weekend due to the underlying settlement.

 

The calculation for this is as follows: Bet size X TomNext rate =  Fee charged.

(Please note you will not always pay, as this is an interest differential there are times you will be receiving).

 

For USD/JPY, the TomNext rate is currently -1.17 / 0.48

 

This means that if you hold a short position you will pay 1.17 points and if long you'll receive 0.48.

 

Any more queries regarding FX funding please let us know!

 

Thanks,

 

MichaelC

jp3
New Contributor
Posts: 2
Registered: ‎28-03-2017

Re: Rollover costs in Forex

That's great, thank you.

 

Are the TomNext rates listed anywhere?

Moderator
Posts: 33
Registered: ‎08-12-2016

Re: Rollover costs in Forex

Hi @jp3,

 

I'm glad my explanation has answered your query! And no, at present we do not publish these online, but we can give the figures to you via Phone, Email or Live Chat. We are looking into adding these to the platform in the future.

 

Thanks,

 

MichaelC

New Contributor
Posts: 2
Registered: ‎01-05-2017

Re: Rollover costs in Forex

Hi MichaelC,

 

Sorry for interrupting.

 

I have a question. I am holding an open SELL USDJPY position and I was charged daily rollover and 3 days rollover on Wednesday. No question on that because I am aware of the rates. My issue is I was charged today (01/05/2017) for 6 days rollover rates. Why is that so?

 

Greatly appreciate your kind thoughts on that. Thank you in advance.

 

Warmest regards.

-Amran Mohamed*

Tri
Occasional Contributor
Posts: 24
Registered: ‎11-12-2016

Re: Rollover costs in Forex

The frustrating thing is that we never know in advance what the likely charge will be. We only find out once the charge has been applied. Is it that difficult to make your system a bit more transparent?
Community Manager
Posts: 245
Registered: ‎08-04-2016

Re: Rollover costs in Forex

Hi @Amran, thanks for the post.

 

If you are trading a JPY currency pair at the moment, you will be affected by the forthcoming public holidays in Japan.  Tomorrow (Wednesday 3 May) it is Constitution Day, Thursday is Greenery Day, and Friday is Children's Day.  As you are charged FX overnight interest on a T+2 basis, your 6 day charge (applied on Sunday night) covers Tuesday, and then the holidays and weekend: Wednesday, Thursday, Friday, Saturday, Sunday.

 

Japan has 15 public holidays each year so I would recommend double checking when these occur if you are interested in trading the JPY, so as not to be caught out!  A useful website to check is fxstreet which details all the public holidays as well as data releases.  You can access the economic calendar here.

 

Hope this helps - any more questions please ask!

 

Thanks,

Hannah

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Community Manager
Posts: 245
Registered: ‎08-04-2016

Re: Rollover costs in Forex

Hi @Tri,

 

I appreciate that the tom-next rates we use each evening are not published online for clients to see.  We receive these each evening, add our charge and then apply this to relevant client accounts.  I've actually raised this before with our FX desk to request the rates to be available for clients to see either on the platform or the website, and I understand it is a work in progress, as it is due to be published on the new web trading platform.  As this is still being rolled out and completed, the current ETA is within the next 6 months or so.

 

Appreciate your patience with this, and don't hesitate to check rates with the helpdesk if you would like more information.

 

Thanks,

Hannah

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New Contributor
Posts: 2
Registered: ‎01-05-2017

Re: Rollover costs in Forex

Thank you for the clarifications Hannah. Greatly appreciate it.

Warmest regards.
- Amran Mohamed.