US forex broker for mid-long term positions? IB interest is killing me

J

jjj

Hi, I'm using IB for forex for 1 week-3 year positions, but the way they calculate interest is ridiculous. I've just lived with this because I don't trust fxcm or oanda (called their customer service once and they seem like they cater to small customers only). What are my other options?
 
jjj said:
Hi, I'm using IB for forex for 1 week-3 year positions, but the way they calculate interest is ridiculous. I've just lived with this because I don't trust fxcm or oanda (called their customer service once and they seem like they cater to small customers only). What are my other options?
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what is your 3 year position?
 
You are better off trading currency futures with IB than spot forex if holding overnight, I haven't checked but guess aud futures are quite liquid at least 3 months ahead.
 
luisHK said:
You are better off trading currency futures with IB than spot forex if holding overnight, I haven't checked but guess aud futures are quite liquid at least 3 months ahead.
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Not if he's trading something that is a non-major. Also chart the spread between the futures and spot sometime.
 
The future should represent the keenest implied interest rates available, ie it should work out to cost a little bit like IB's rates excluding their cut (on both sides) - if this were not the case then the future would be arbitrage-able. I'd doubt even for very long term holdings the friction involved in rolling would scrub out the advantage but it obviously takes more managing.
 
i960 said:
Yes. What pair?
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short eur/nzd. however, I usually only trade the major crosses 99% of the time. my problem with IB is that the interest rates are fine, it's just that I don't get ANY interest back for the currency that I'm long on (it's 0% for every currency except like 1 or 2)
 
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