What is a forex swap rate and how is it calculated?
How this answer was verified
- Cross-checked against broker-published fact sheets, regulator licensing databases, and ESMA product intervention notices.
- Reviewed by the FX-Brokers EU editorial desks (Markets, Platforms, Regulation). Desk structure disclosed at /about/editorial-desks.
- Refreshed quarterly. The most recent verification date is shown above. Read our methodology.
Related
Standard vs Raw Spread account — which should I choose?
Choose a Raw Spread account if you trade more than 5 standard lots per month or use automated strategies. Choose a Standard account if you trade occasionally or prefer a single all-inclusive cost number. Raw accounts cost less per trade above that volume threshold; Standard accounts are simpler below it.
What is the cheapest forex broker in Europe?
The cheapest forex broker in Europe for EUR/USD is Exness, with raw spreads from 0.0 pips and ultra-competitive commission on the Pro account. Exness also offers instant withdrawals 24/7 — unique in the industry. Pepperstone matches on raw pricing via the Razor account. Both are CySEC regulated.
What is an overnight fee in forex trading?
The overnight fee (swap or rollover) is the interest charge or credit applied when a forex position is held past the daily 5pm New York rollover. It reflects the interest-rate differential between the two currencies in the pair. Triple swap is typically charged on Wednesdays to cover the weekend.
What is the spread in forex trading?
The spread is the difference between the bid price (sell) and the ask price (buy) of a currency pair. It is the broker primary cost on commission-free accounts. EUR/USD typically has a 0.6-1.0 pip spread on Standard accounts, falling to 0.0-0.2 pips on Raw/ECN accounts where commission applies separately.
Why do forex spreads widen during news events?
Spreads widen during major news (NFP, ECB, CPI, FOMC) because liquidity providers withdraw quotes to avoid being picked off by faster traders. The bid-ask gap widens to reflect uncertainty and to cover the risk of holding inventory through a price gap. Spreads typically normalise within minutes.
How long does a forex broker withdrawal take?
Forex broker withdrawals typically take 1-5 business days. E-wallet withdrawals (Skrill, Neteller, PayPal) process fastest at 1-24 hours. Bank transfers take 2-5 business days. Card withdrawals take 3-7 business days. Exness offers instant withdrawals for most methods, which is an industry outlier.