Unlocking trading flexibility: the power of Octa Broker's swap-free accounts
Swap points explained
When opening a Forex trade, a trader essentially borrows one currency to buy another. However, each currency has an associated interest rate, set by the respective central bank. The difference between these two interest rates in a Forex pair is what makes a 'swap point'. In essence, a Forex swap point (also known as a 'rollover fee', 'overnight interest' or 'holding cost') is the interest rate differential between the two currencies. It is applied to positions held open overnight and is credited or debited automatically while being reflected in the final profitability of a trade.
Let's consider an example with a transaction involving two currencies with significantly different interest rates: the Australian dollar (AUD) and the Japanese yen (JPY). The Reserve Bank of Australia (RBA) has set its policy rate at 3.85%, and the Bank of Japan (BoJ) at 0.5%.
ADVERTISEMENT
Suppose you want to short (sell) AUDJPY at a 97.00 exchange rate and you initiate a full 1.0 lot position. A short one lot position means you sell 100,000 Australian dollars (AUD) against the Japanese yen (JPY). In order to sell something that you do not own, you need to borrow it first. So, you borrow 100,000 AUD and pay interest (cost). Then, you place the Japanese yen (that you bought) in a bank deposit for one day (overnight) and receive interest (income). If the interest rate on the Australian dollar loan is 3.85%, then you pay 10.55 Australian dollars per day (100,000 x 3.85% / 365). If the interest rate on the yen deposit is 0.5%, you will receive 132.9 yen per day (100,000 x 97 x 0.5% / 365), or just 1.37 Australian dollars at an exchange rate of 97.00. Thus, at the end of the day, the trader will incur a swap loss of 9.18 Australian dollars. And this will be a recurring cost every 24 hours. Not a very comfortable situation to be in, is it?
Furthermore, even if a trader decides to trade currencies with relatively similar rates of interest and buy a higher-yielding currency against a lower-yielding currency, the swap rate may still be negative as brokers often add their markup or discount to the interbank swap rates.
Why the absence of swap points at Octa Broker is so convenient
For many Forex traders, particularly those employing mid-term to long-term strategies, the accumulation of swap points can significantly eat into potential profits or exacerbate losses. This is where Octa Broker's '0% swaps' policy becomes a game-changer. Indeed, Octa Broker has been trusted by millions of traders around the world precisely for its transparent trading conditions, no hidden tricks, and honest and convenient trading without swap points.
Here are the benefits of having a 0% swap rate:
Reduced trading costs
The most obvious benefit is the elimination of recurring overnight fees. For traders who hold positions for days, weeks, or even months, these small daily charges can quickly add up to a substantial amount, impacting overall profitability. By removing swaps, Octa Broker helps traders keep more of their earnings.
ADVERTISEMENT
Flexibility in trading strategies
Traders aiming to capitalise on longer-term market trends no longer have to worry about the mounting cost of holding positions overnight. 0% swap rate frees them and allows them to focus solely on market analysis and price action without the added pressure of daily swap calculations.
Simpler profit/loss calculation
Without swap points, calculating your net profit or loss on a trade becomes much more straightforward. You only need to consider the entry price, exit price, and any commissions or spreads, removing a variable that can complicate financial planning and risk management.
No unpleasant surprises
Swap rates can fluctuate based on central bank decisions and even market liquidity. Octa Broker's swap-free offering removes this element of uncertainty, providing a more predictable trading environment.
Accessibility for all traders
For new traders, understanding and factoring in swap points can be an additional layer of complexity. Swap-free accounts simplify the learning curve, allowing them to focus on core trading principles. Furthermore, for traders whose religious beliefs prohibit earning or paying interest, swap-free accounts offer an ethical and compliant way to participate in the Forex market.
Octa Broker's commitment to offering 0% swaps on its trading instruments aligns with a trader-centric approach. This transparency is a cornerstone of how Octa builds trust with clients, empowering them with greater control over their trading costs and fostering more flexible strategy implementation. Ultimately, this contributes to a more transparent and convenient trading experience where traders can trust their broker to prioritise their success. For anyone considering holding forex positions for more than a day, the absence of swap points is a compelling advantage worth serious consideration. Along with other conditions benefiting traders, the zero-swap policy is one of the crucial tools that reliable brokers offer their clients to help them successfully navigate the markets.
___
Disclaimer: This press release does not contain or constitute investment advice or recommendations and does not consider your investment objectives, financial situation, or needs. Any actions taken based on this content are at your sole discretion and risk—Octa does not accept any liability for any resulting losses or consequences.
Hashtag: #Octa
The issuer is solely responsible for the content of this announcement.
Octa
Octa is an international CFD broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services used by clients from 180 countries who have opened more than 52 million trading accounts. To help its clients reach their investment goals, Octa offers free educational webinars, articles, and analytical tools.
The company is involved in a comprehensive network of charitable and humanitarian initiatives, including improving educational infrastructure and funding short-notice relief projects to support local communities.
In Southeast Asia, Octa received the 'Best Trading Platform Malaysia 2024' and the 'Most Reliable Broker Asia 2023' awards from Brands and Business Magazine and International Global Forex Awards, respectively.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
What's On
5 hours ago
- What's On
4 of the best dishes to try in Dubai this week: July 28 to 31
Since it opened in 2009, Zuma has been a staple for anyone who knows their way around contemporary Japanese food in Dubai. It nails that balance between stylish and relaxed, making it perfect for everything from business lunches to late‑night drinks. Sushi lovers and robata grill fans keep coming back for consistently strong dishes, while the signature cocktails and wine list add the right kick. Its loyal crowd spans locals and visitors alike, thanks to the solid food and top‑tier service. One signature dish you can't skip is the Miso‑Marinated Black Cod wrapped in hoba leaf – a three‑day marination process that results in richly glazed, silky‑soft fish. Location: Podium Level, Gate Village, Building 3, Trade Centre, DIFC Times: Mon–Wed 12 pm–3:30 pm & 6 pm–12 am; Thu–Fri 12 pm–3:30 pm & 6 pm–1 am; Sat 1:30 pm–4 pm & 6 pm–1 am; Sun 12 pm–4 pm & 6 pm–12 am. Cost: Miso-Marinated Black Cod Dhs195–248 Contact: (0)4 425 5660 | @zumadubai Cala Vista A Mediterranean-modern restaurant with panoramic views of Burj Al Arab and the Arabian Gulf. There's a stunning terrace and a cosy, well-designed indoor space that feels just as easy to love. The setting takes cues from the Amalfi Coast – think olive trees, lemon accents, and a laid-back energy that works from day to night. And when the food lands, the same attention to detail carries through. If you love burrata, order the Burrata Pomodori – authentic, perfectly creamy, and almost addictive. Location: Jumeirah Mina Al Salam, Jumeira St, Al Sufouh 1, Dubai Times: Daily, 12:30pm to 11:30pm Cost: Burrata Pomodori Dhs95 (125g) / Dhs165 (300g) Contact: 800 323232 | @calavistadubai Rang Mahal Set on the fourth floor of JW Marriott Marquis in Business Bay, Rang Mahal is one of Dubai's go‑to spots for refined Indian food done right. The space impresses – dramatic columns, moody lighting, and striking hand-painted artworks, but it's the food that holds your attention. The menu spans North and South Indian classics. If you go, ask for a corner table by the glass – it overlooks the Dubai Canal and catches the sunset just right – and order the chicken tikka, smoky and perfect straight from the tandoor, rich in marination and char. Location: JW Marriott Marquis Dubai, Business Bay Times: Daily, 6pm to 12am Cost: Chicken Tikka Dhs95–115 Contact: (0)4 414 3000 | @rangmahaldubai Iliana Iliana nails authentic Greek food in a stunning Mediterranean setting – seaside elegance meets relaxed fine dining. It's ideal for anything from a laidback lunch to a long dinner, all set against views over Jumeirah Marsa Al Arab. The menu features all the classic favourites. If there's one dish to try, go for the Mykonian truffle linguine – made simply with Arseniko cheese, ground black pepper and just a hint of truffle. Location: Jumeirah Marsa Al Arab hotel, Umm Suqeim 3, Dubai Times: Daily, lunch 12:00–17:00 | dinner 18:30–00:00 Cost: Mykonian Truffle Linguine Dhs250 Contact: 800 323 232 | @ilianadubai
Al Etihad
a day ago
- Al Etihad
Abdulla Al Hamed explores avenues of cooperation with global media, entertainment leaders in Osaka
27 July 2025 17:37 OSAKA (WAM)Abdulla bin Mohammed bin Butti Al Hamed, Chairman of the NMO and Chairman of the Board of Directors of the UAE Media Council, held a series of bilateral meetings in the Japanese city of Osaka with top global media and entertainment industry leaders. These meetings were part of efforts to strengthen strategic partnerships for the development of the film and creative content discussions focused on exploring opportunities for collaboration with international companies in areas such as film production, visual storytelling technologies, and the development of modern media Al Hamed emphasised that the current wave of technological transformation compels media institutions to be proactive in adopting artificial intelligence tools and data added, 'Our vision in the United Arab Emirates is centred on building a flexible and innovative media ecosystem that can anticipate audience needs and produce content that reflects our national ambitions and deep-rooted identity.'He noted that these meetings represent a new step in the UAE's media strategy, which aims to open up to international expertise and form impactful alliances that enhance the country's presence on the global media map. He also highlighted that the meetings served as an opportunity to introduce international partners to the upcoming 'BRIDGE' Summit in Abu Dhabi this December, which seeks to promote global partnerships and expand dialogue around the future of global Al Hamed met with Courtney LeMarco, Chairman of the Political Action Committee for the Entertainment Industry in Washington State, and Founder and CEO of LeMarco Global, a firm specialising in brand management and media content development in collaboration with major global corporations such as Amazon and Disney. He is also the executive producer of the Emmy-nominated documentary series 'Hoarders,' and a visiting lecturer at the University of Washington. He also met with Taiki Sakurai, CEO of Salamander Pictures Co., Ltd., a company known for its innovative approach to filmmaking that combines traditional cinematic techniques with the latest technologies and high-quality visual production.
Gulf Today
a day ago
- Gulf Today
US reaches deal with Japan, tariff cut
The United States, riding a tariff wave launched by President Donald Trump, has concluded a trade agreement with Japan, the fourth largest economy in the world, in Washington on Tuesday. According to the agreement, the US will impose 15 per cent tariff on all goods imported from Japan. This is a much lower rate than the 25 per cent that Trump had threatened Japan with from August 1. Even as the deadline hovered over the talks, the two sides managed to arrive at an agreement much before the dreaded date. Trump had declared on his Truth Social, his personal portal, 'This Deal will create Hundreds and Thousands of Jobs – There has never been anything like it. This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the Country of Japan.' Japanese Prime Minister Shigeru Ishiba said, 'Since February, we have been negotiating with our national interests at stake. Both sides have engaged in all-out, close-to-the-edge negotiations over automobiles and other products. I believe this outcome reflects those efforts.' The trade agreement reflects interesting details. Though it appears that the United States has gained hugely going by the headline figures – Japan will have to invest $550 billion in the United States, open its agricultural sector to American rice – the impact on the Japanese GDP would be a mere 0.55 per cent. Even if the tariff rate had remained at the apparently punitive 25 per cent, the impact on Japanese GDP would have been 0.85 per cent. The US was running a trade deficit of $69.4 billion. And Japan will channel the investments in the US from state-backed institutions like Japan Bank for International Cooperation (JBIC) or through guaranteed loans. The Japanese investments are to be made in semi-conductors, pharmaceuticals, steel, shipbuilding, critical minerals, aviation, energy, automobiles, AI and quantum technology. The sensitive area for Japan is the import of rice. Japan consumes seven million tonnes of rice every year. It maintains a tariff-free quota of 770,000 tonnes. And it will increase the ratio of US rice imports within this range. It is said that there is room for rice imports outside the free tariff quota, with the proviso of 341 yen ($.2.33) per kilogramme of rice. Prime Minister Ishiba referring to the opening of rice imports from the US, said, 'You can think of it as increasing the proportion of rice procured from the United States, under the minimum access arrangement, but this agreement does not include any provisions that would sacrifice agriculture.' Both sides have bargained hard, and each side has claimed victory. The Japanese believe that that they have succeeded in bringing down the reciprocal tariff rate from 25 per cent to 15 per cent, a clear 10 per cent reduction. The US believes that it has managed to force Japan to necessarily invest in the US – according to the deal $550 billion – and that 90 per cent of the profits made from the investments will remain in the United States, and that it has succeeded in prising open the protected agricultural market, especially with regard to rice. It is expected that the US-Japan trade deal will serve as a template for the trade agreements with the European Union (EU) and China. The expectation is that the US will settle for a 15 per cent tariff with these two as well. The US is willing to be reasonably generous with big trade partners like Japan, EU, and China. But with smaller countries and economies like the Philippines and Indonesia it is playing tough. In the deal with the Philippines and Indonesia, the US has brought down the tariff regime from 20 per cent to 19 per cent. The trade balance of the US with these two countries is much lower, $17.9 billion with Indonesia and $4.9 billion with the Philippines.
