When we trade on any financial market, traders will have to pay certain fees! When trading forex, traders will often have to pay fees such as spread fees, commission fees, and overnight fees (Swap).
Swap ICMarkets are considered by many traders to be one of the exchanges with the lowest costs and overnight fees in the market. Join Learn Forex Trading to learn more details about overnight fees at ICMarkets as well as ICMarkets swap rates through the article below!
Find out what you need to know about Swap ICMarkets
It is known that overnight fees are also known as Swap. This is the amount the trader will have to pay or receive for holding the position overnight. The overnight fee is the interest rate difference between two currencies when trading forex.
What is ICMarkets Swap?
Also known as an overnight fee on ICMarkets. It means forex overnight interest is defined as the overnight interest added, or deducted, to keep a position open overnight. ICMets swaps are determined by the overnight interest rate difference between the two currency pairs involved and whether the position is long or short.
ICMarkets Swap has among the most competitive swap fees in the world. This maximizes traders’ overnight swap income or reduces swap costs across ICMarkets’ range of products.
>>>See more: Instruct with an ICMarkets open account swiftly
ICMarkets Swap rates for currency pairs
We can see that ICMarkets Global always strives to serve traders in the best way. It’s easy to see that ICMarkets spread and swap fees are the most competitive in the market.
Some ICMarkets Swap rates for currency pairs:
ICMarkets swap calculation is detailed and simple
Swap has two directions: the buying direction (Buy order) and the selling direction (Sell order). Of course, the overnight fee is not always a “fee” but it can be a “bonus” as well. Let’s learn how to calculate overnight costs at ICMarkets.
Overnight fee on ICMarkets for long positions
When you buy a currency pair on ICMarkets. Swap is calculated by subtracting the deposit rate of the base currency (the first currency in the pair) from the borrowing rate of the quote currency (the second currency in the pair).
So, if the interest rate for depositing the base currency is higher than the interest rate for borrowing the quote currency. Then the Swap fee will be positive. On the contrary, if the interest rate for depositing the base currency is lower than the interest rate for borrowing the quote currency, the Swap fee on ICMarkets will be negative.
We have the ICMarkets Swap formula for Buy orders as follows: Swap Buy X/Y = deposit interest rate X – loan interest rate Y
Overnight fees on ICMarkets for short positions
When you sell a currency pair on ICMarkets. Swap is calculated by subtracting the interest rate on depositing the quoted currency (the second currency in the pair) from the interest rate on borrowing the base currency (the first currency in the pair).
As shared in the above content. If the deposit interest rate of the base currency is higher than the borrowing interest rate of the quote currency. This leads to negative Swap fees. Conversely, if the deposit interest rate of the base currency is lower than the borrowing interest rate of the quote currency. As a result, the Swap fee will be positive.
We get the ICMarkets Swap formula for Sell orders as follows: Swap Sell X/Y = deposit interest rate Y – loan interest rate X
Illustration of how to calculate ICMarkets Swap for EUR/USD pair
To make it easier to understand, if the interest rate of EUR with a deposit interest rate is 1.75% and the loan interest rate is 2%.
The USD interest rate with a deposit interest rate is 0% and the loan interest rate is 0.5%
So we can calculate the overnight fee of EURUSD on ICMarkets with 2 specific dimensions:
Swap ICMarkets Buy EURUSD = 1.75 – 0.5 = + 1.25%
Swap ICMarkets Sell EURUSD = 0 – 2% = – 2%
So we have introduced to traders in detail how to calculate Swaps on ICMarkets. However, in reality, not many traders use this calculation method. The reason is that ICMarkets has pre-calculations on the trading platforms and provides a calculator tool for this. Let’s follow along and don’t look away, this will save you a lot of time later.
Instructions on how to view swaps on ICMarkets
To see Swap on ICMarkets we can use the following methods:
ICMarkets swap on MT5 platform
For more details about ICMarkets swap costs on MT5. Traders can follow these instructions:
Open ICMarkets MT5 software on your computer. Right-click on any instrument found in the “Markets Watch” section. Next, left-click on the “Specification” option from the drop-down menu.
A new window will open as shown below. There the swap fees for long positions and short positions for the selected currency pair are displayed.
ICMarkets swap via calculator tool
To calculate overnight fees at ICMarkets most smartly and simply. Traders just need to use the overnight fee calculator tool that ICMarkets has provided. This overnight fee calculator is called the “Forex Calculator” of ICMarkets.
You can search on the ICMarkets website as shown.
So it can be seen that the way to calculate overnight fees at ICMarkets is very fast and simple. You don’t need to waste time calculating. Because of this, there is a computer tool from ICMarkets that supports a very smart way to calculate ICMarkets swap. This will help traders shorten the time to trade much more effectively!
Let me tell you a secret: Overnight fees at ICMarkets are very low and the most competitive in the world. Thereby attracting and attracting many traders to participate in trading. Becoming an ICMarkets IB and participating in the ICMarkets Affiliate program is very attractive. These two programs can bring you a high and stable income.
Conclude
Thus, it can be seen that swap ICMarkets is an indispensable element in analyzing and managing transactions. Learn Forex Trading understands that updating information about overnight fees on ICMarkets is very necessary. Traders will understand how ICMarkets swap works and how it affects trading. This will help build a solid foundation for success in the changing financial market.
>>>See more: ICMarkets: A leading trading platform for the financial markets
FAQ
How do ICMarkets overnight fees impact the profits of my trading account?
If the trader is holding an overnight trading position on ICMarkets. Swap fees will affect your profits. If overnight fees are high, it can reduce your profits. Equally, if overnight fees are low, your profits will be more optimal.
How can traders calculate overnight fees on ICMarkets?
To calculate ICMarkets Swap fees quickly and simply. Traders can use the exchange’s overnight fee calculator (Forex Calculator) or can calculate it manually using the overnight fee calculation formula provided by the broker.
How to avoid unnecessary Swap fees on ICMarkets?
Traders can avoid unnecessary overnight fees on ICMarkets by holding trading positions for a shorter period or closing positions before the market closes. Besides, traders can also look for better fees and trading conditions from other currency pairs.
