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April 22, 2016

Question:Is there swaps for CFDs(gold, index, energies) in GBE brokers MT4?

Answer:

Yes, unless you have a swap free Islamic MT4 account with GBE brokers, all your open positions held over night(the server time in GMT+2 or 3) are subject to swap charges.

Swap points are variables and changes daily or randomly depending on the liquidity providers.

So in case you are looking to earn profits by Swaps by trading, you may want to check the swaps often and know the cost of tradings.

Swap arbitrage

Arbitrage trading is one thing many brokers prohibit as they categorize the trading method as an illegal activity and arbitrage does not bring much profits to some brokers.

But in case of GBE brokers which business model is a complete STP and does not act as a Market Maker, arbitrage trading of swaps are allowed in its MT4.

GBE brokers is one of a few brokers which allows swap arbitrage.

Basically GBE brokers only prohibits latency arbitrage trading especially on CFDs.

This is because CFD trading is carried as OTC trading, and giving an unauthorized advantages to traders by latency arbitrage is simply a loss for GBE brokers.

For more information, please contact GBE brokers support desk.

The timing of Swap charges

Swap charges occur at 00:00 in server time, but not so precisely.

The process itself may take a few minutes, so you may want to see give it a bit time for swap charge or credit.

As swap charge/credit only occurs as 00:00 in server time, you will not get charged during days even you hold a positions opened 23 hours.

Index/Stock CFDs

Swap is caused by the difference of interest rates of each currency.

So basically minor currencies normally have high interest rate, and Forex Pairs with these minor currencies will have higher swap charges or credits for investors.

In case of Index and Stock CFDs, interest rate is not related to the tradings, but dividend payment is.

So generally speaking, you will be able to earn the dividend if you hold a long open position of Index or Stock CFDs, and get charged if you hold a short open position of them.

Dividend payment is in another word, bonus payment for share holders.

But still the process will be done as swap charges for these financial instruments in MT4.

Please note that GBE brokers does not offer any Stock CFDs(Shares) but Index CFDs.

Swap Free Islamic Account

GBE brokers may offer Islamic account where there is no swap charges to Muslim traders.

If you are not allowed to receive interest(extra profit) by your religion, please contact GBE brokers support team to setup a swap-free account for yourself.

You may be required a document to prove your religion.

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