Forex Rollover Rates
We are transparent about our pricing, so you know upfront how much a trade will cost. When it comes to rollover, we use the tomorrow-next day rate and keep our admin fee low.
Our rollover rates
What you need to know
Before you start, you must understand all the costs associated with trading. Especially if you plan to keep trades open long-term. That way, you can adjust your strategy accordingly.
See Full GlossaryWhat is rollover?
Rollover is a term that describes when trades are kept open overnight.
Since there is no physical delivery of currencies when trading forex on margin, all open positions must be closed at the end of the trading day (17:00 ET). So, rollover is the process of extending a trade’s settlement date or carrying it over to the next trading day.
When you keep a trade open overnight, interest, known as a rollover rate, may apply.
Whether you earn or pay rollover depends on your position (buy or sell) and the interest rate differential between the currencies in the pair you’re trading.
How is rollover applied?
We calculate rollover using the tom-next rate (tomorrow into next day rate), to which we add a small admin fee. Tom-next rates are determined by the interest rate differential between currencies.
We don’t close and re-open trades at the end of the trading day. Instead, we automatically roll positions and simply debit or credit your account, in line with the latest interest rates.
Although the markets are closed, banks still charge interest on trades held open over the weekend. To account for this, we apply a 3-day rollover on Wednesdays and adjust our rollover rates to represent the latest market conditions.
When are rollover fees applied?
We apply rollover fees to positions held open at 17:00 ET, which marks the official end of one trading day and the start of another. This process can take up to an hour. Positions opened at 17:01 ET won't be subject to rollover fees.
Your account will be credited or debited for each applicable trade within an hour of market close. This will be reflected on your trading platform and your daily and monthly account statements.
How are rollover fees calculated?
Let’s say you want to trade EURUSD and the tom-next rates are:
- -0.25 for a buy trade (or long position)
- +0.21 for a sell trade (or short position)
The rates for the currency pair are calculated by subtracting the interest rate of the quote currency (USD) from that of the base currency (EUR) and dividing by the exchange rate.
Here we can see that the Euro interest rate is lower than that in the US.
If you held a buy trade on the pair overnight, the rate would be -0.25 - a small admin fee. For a sell trade, it would be +0.21 - a small admin fee.
More specifically, rollover is calculated as follows: Amount X (Tom-Next Rate – Admin Fee).
The amount calculated will be in points of quote currency. Every 10 points are equivalent to 1 pip. On your trading platform, rollover fees are automatically converted to the base currency of your account.