Are you looking for a broker to start making money by using a carry trading strategy? Then, you are in the right spot.
When done correctly the carry trade can offer great results that can lead to large returns.
With that said, you will need a broker that is suited to making the carry trade and in this post we look at the very best brokers you can use if you want to start making carry trades.
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Use our side-by-side comparison table to compare Forex broker accounts, spreads and fees.
Best Carry Trade Forex Brokers
Forex.com (for US)
|Forex.com||Regulation||Min Deposit||Platform||Open an Account|
|NFA, CFTC + Others||$100||MT4, MT5, Web and mobile platforms|
- Low FX fees.
- Numerous trading pairs.
- A wide range of research tools.
- Offers MT4 and other trading platforms.
- Limited product portfolio.
- High stock CFD fees.
Forex.com has established itself as one of the best brokers in the world.
This is our number one recommendation for traders in the US as they have strong regulation including being regulated with the CFTC.
With Forex.com you get access to spreads as low as 0.2, the ability to trade on over 80 currency pairs and a wide range of trading platforms.
The MT5 platform on Forex.com comes with 20 free, easy to install EAs and custom indicators. When opening an account with forex.com you also get access to the full suite of downloadable, web, and mobile apps.
|OctaFX||Regulation||Min Deposit||Platform||Open an Account|
|CySec||$5||MT4, MT5 and cTrader|
- Small minimum deposit.
- STP style broker.
- A demo account is offered.
- Wide range of platforms.
- Lacking in tier one regulation.
- Some countries not accepted.
OctaFX is a STP style broker that has opened more than 1.5 million trading accounts.
OctaFX covers 100 countries and they have won 28 different industry. Along with their MT5 platform you also get access to MT4 and cTrader platforms.
OctaFX offer a large range of free education and market analysis and you also gain access to their copy trading platform. This allows you to copy other professional traders and make money from their winning trades.
|Regulation||Min Deposit||Platform||Open an Account|
|ASIC, FCA + Others||$200||MT4, MT5 and cTrader|
- It is regulated by ASIC and FCA.
- Offers various trading platforms.
- Low FX, equity, and indices fees.
- Excellent customer service.
- Free deposit and withdrawal.
- No investor protection for non-EU traders.
- No fundamental data analysis.
Pepperstone is an Australian based broker and is widely regarded as one of the best Forex brokers in the world.
With Pepperstone you have the ability to trade on Forex, gold, indices, equities, and more. One of the biggest benefits to Pepperstone is the availability of not just MT5, but also other different trading platforms. You can choose any of the MT4, MT5, and cTrader that come on desktop, mobile and web trading.
Pepperstone offer very comprehensive education and analysis that ranges from market news, analysis, an economic calendar, guides, webinars, and more.
Another large benefit to Pepperstone is their small trading costs. Pepperstone offer very small spreads and charge low commissions per round trade.
|FXCM||Regulation||Min Deposit||Platform||Open an Account|
|FCA, ASIC + others.||$300||Trading Station, MT4 and NinjaTrader|
- Very good education available.
- Easy to quickly open an account.
- Multiple account types available.
- Low spreads.
- Not as many markets as others.
- Higher minimum deposit.
FXCM is a leading global broker that has been offering it's services since 1999.
FXCM has a huge range of trading services that include foreign exchange (FX) trading, CFD trading and spread betting. With FXCM you have access to multiple trading platforms, tools and premium resources to help you gain an edge over the markets.
One of the reasons so many choose to trade with FXCM is because of their extensive range of markets you can trade. You get access to everything from Forex, shares, cryptocurrencies, commodities and indices.
|IC Markets||Regulation||Min Deposit||Platform||Open an Account|
|ASIC, CySec.||$200||MT4, MT5 and cTrader|
- No withdrawal or deposit fees.
- Low trading costs.
- High leverage.
- No protection EU traders.
- Live chat at times can be slow.
IC Markets is also an Australian based broker that is regulated by ASIC.
This broker has been around a long time and is now one of the biggest brokers in the world.
IC markets has a huge offering that caters to all types of traders. You have the ability to use any indicators or EA's you like as well as use strategies like scalping.
You can use many different platforms such as MT4, MT5 and cTrader that are available on both desktop and mobile devices.
What is a Carry Trade?
As a carry trader you are looking to make a profit from the difference in two currencies interest rates.
Whilst this may sound complicated, the basics are quite straightforward. When looking to make a carry trade you are trying to make profit by borrowing in a currency with a low interest rate and invest with a currency that has a high interest rate. This way you profit the difference.
When using leverage you can quickly make a lot of money with the carry trade strategy depending on how long you hold the trade. You also need to take into account that the trade cannot go too far against your opening position and thus offsetting your carry trade profits.
Carry Trade Pros and Cons
Just like any other strategy the carry trade has it's pros and cons that you need to be aware of.
- A strategy that you can use for medium to longer time frame trading.
- Can use to implement with other trading strategies.
- Can offset risk.
- Is very flexible and can be used with multiple currencies.
- Interest rates are changing all the time and can make a trade no longer profitable.
- Prices can move against you and offset your carry trade profits.
- Not suitable for Islamic traders.
What is a Carry Trade?
As a carry trader you are looking to make a profit from the difference in two currencies interest rates. Whilst this may sound complicated, the basics are quite straightforward. When looking to make a carry trade you are trying to make profit by borrowing in a currency with a low interest rate and invest with a currency that has a high interest rate. This way you profit the difference.
What are the carry Trade Pros and Cons?
Just like any other strategy the carry trade has it's pros and cons that you need to be aware of. Pros A strategy that you can use for medium to longer time frame trading. Can use to implement with other trading strategies. Can offset risk. Is very flexible and can be used with multiple currencies. Cons Interest rates are changing all the time and can make a trade no longer profitable. Prices can move against you and offset your carry trade profits. Not suitable for Islamic traders.