Cost of carry, spot vs forward, Islamic Account
The Standard Story is, FX markets are the most liquid markets, EURUSD is the most popular cross, etc. Everybody is hunting for a lucky streak in his margined account.
Nobody is talking about costs (=fix Revenue for the Brokers). Roll charges for spot positions vary from 2% to 4,5% pa, leaving a standard margin Trader (leverage 1:200) with annual fix costs in terms of minimum/break even yield between 400% and 900%.
I am aware most Traders think only from one trade to the other. But after one year of almost continous trades they will have earned their Brokers above roll charges.
So I wonder how is the Ratio between naive and savvy Traders, who use Forward contracts (cfd or spread bet).
Who has experience with Islamic/Sharia accounts? They are interest free, but somewhere the Broker takes his compensation. In the BID ASK?? somewhere else. How much???
Looking Forward to your contributions
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