Swap Arbitrage

[FPAUsername]

There is a swap arbitrage strategy which works with using 2 different brokers, where one broker pay you good swap and the other is nearly swap free.
For example IC Markets and Octafx is a good combination, go short in USDMXN at IC Markets and long in USDMXN at Octafx, that way you open a hedge and you get every day swap. Here is a livestream where somebody trade that:

Now for every broker the trades does look like a normal swingtrade but the brokers also have rules which they swap arbitrage is not allowed, but they never show me a clear example what or how swap arbitrage looks for them.

Can they tell me that i do make swap arbitrage just because i want to open a short in USDMXN which stay open many days?

I want to understand what the brokers can do against this strategy or if they can not do anything, because some people tell me they use this strategy without problems but the brokers say it is not allowed, i want to find out what is true.

 

[fxoday]

Maybe it's depending on the broker, arbitrage swap or carry trade is considered a profitable strategy with taking profit from positive swap hedge to the broker no swap account, working the strategy on two brokers, maybe there are different trading server and pips movement although the same trading pair.

 

[FPAUsername]

The problem is that brokers which i ask for example ic markets and octafx they tell me it could be possible that my strategy and trades can be consider as swap arbitrage which is not allowed but they also say swing trades of course is allowed.

For every broker my trades will look like a normal swing trade just one open trade in every account, but the brokers dont give me a good answer to my question, i dont want to risk deposit 10 or 20k and then i trade this swap arbitrage or call it normal carry tradeing and then the brokers tell me i have do swap arbitrage profits will not be paid, that is very risky if they do that, because you open big lotsize and one account will always hedge the lose from the other account if a broker tell you they dont pay you profits because you have do swap arbitrage then i dont know that could be big lose, if they dont pay the regular pips profit that can be very hard if they just dont pay the swap earnings you could live with it, but i need a clear answer to all this questions what the brokers can do what is allowed and what not. the brokers dont answer it me.

i try since a week to write with them, they always let this question open if my strategy will be consider as swap arbitrage or not, they just tell me it could be, that is not fair to dont get a clear answer i can not work with a it could be answer, i have explain them very clear everything why they make such a mistery about it why they dont tell me yes you can trade it or no its not allowed.

I think no broker have the right to dont allow you go long or short at any other broker too hedge your trades, you can hedge your trade with what you want and where you want that is not the brokers bizness, so are they really able to tell me i do swap arbitrage because i hedge my trades at another broker? What will the FCA or some simular regulator say to this?

 

[Ivan1979Ita]

is it legal? as i understand brokers don't like that

 

[FPAUsername]

is it legal? as i understand brokers don't like that

did you reaad my text?

 

[FPAUsername]

Ok guys, i think the brokers can not do much against this strategy, because all trades which you open are normal trades opened under the own regular rules which the broker give you, so if you want use this strategy on your own risk carefully, the interest rate have rise last week, you can earn now around 2% more with this strategy per month without more risk then before. I have for example since 20 april a small portfolio open with 1.5 lot on 2 accounts with 5K starting balance i did not make any rebalance since then and the system make every day new wins, you can see it in my livestream how easy it works:
i also attach you a pdf file with more infos, so if you want just contact me to get my nice webtrader

 

[anacpt]

brokers block usually such accounts (read their paper with service provideing). but if your orders are not so strange then you can have a look at the no kyc brokers, find a few to devide your deposit into 2-3 parts

 

[davidmbuu]

The twitch account does have any content regarding system you are talking about. Again how will people contact you for clarifications?

 

[FPAUsername]

The twitch account does have any content regarding system you are talking about. Again how will people contact you for clarifications?

i did stop my twitch stream because nobody did show interest to buy the program.
i think the main problem is that brokers like octafx always have the right to make you problems they can say you do make swap arbitrage and then they block you, so nobody want to risk that.

 

[davidmbuu]

can this swap arbitrage be traded manually?