Have your broker's overnight swap rates changed since the Fed decision?
When a central bank moves rates, brokers usually update the overnight financing (swap) they charge or pay on open positions, but they do it on their own timetables and with their own mark-ups.
After the Federal Reserve raised its rates on 16 September, it would help members compare:
- which broker you use and whether the swaps on USD pairs changed this week
- how long the change took to appear on your platform
- whether the long and short swaps moved by similar amounts
Please only share what you've seen on your own account, and leave out account numbers or personal details. Brokers can reply, but posts can't be removed because they are critical. Our broker profiles show each broker's regulators.
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Some background on what to expect, to help members judge whether their broker's changes look normal.
A swap reflects the difference between the interest rates of the two currencies in a pair, plus the broker's markup. After the Fed raised its target range by a quarter point to 3.75%–4.00% (report), the rate on the US dollar side of every USD pair went up. In principle that means:
- holding long USD (for example, long USD/JPY) should earn more or cost less
- holding short USD (for example, long EUR/USD) should cost more or earn less
The size of the change per night is small: a quarter point a year on a standard lot of $100,000 is about $250 a year, or under $1 a night. Brokers may round, adjust weekly, or change their markup at the same time, which can make the change larger or smaller than that.
If you compare, please include the swap unit shown in your platform and the date. Background: spread, commission and swap.
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