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5 Best Forex Brokers for Carry Trade Strategy

Written by Alexandra Winters

Reviewed by Alexandra Winters

Published October 9, 2025 Updated October 13, 2025

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Carry trade is a forex strategy where traders seek to profit from interest rate differentials between currency pairs. By borrowing a low-interest currency and investing in a high-interest currency, traders can earn daily interest (swap or rollover) in addition to any exchange rate gains. For experienced forex traders, choosing the right broker is critical to maximize the benefits of carry trades. The ideal broker will offer favorable swap rates, high leverage options, robust regulation, advanced trading platforms, and transparent fees. This article reviews five of the best globally accessible forex brokers suited for carry trade strategies, focusing on their interest rate conditions, leverage, regulation, platforms, and fees.

Criteria for Choosing a Carry Trade Broker

When evaluating brokers for carry trade, consider the following key factors:

• Positive Swap Rates: Look for brokers that offer competitive overnight swap rates, so you earn positive interest on high-yield currency positions. Favorable interest rate differentials ensure carry trades remain profitable over time.
  
• High Leverage Availability: Carry trades often involve low volatility pairs, so higher leverage can amplify returns. Top brokers offer leverage up to 1:500 or more, with regional regulatory limits noted (e.g. 1:30 in EU/UK). This flexibility allows experienced traders to size positions appropriately.
  
• Strong Regulation and Reputation: Choose brokers regulated in multiple jurisdictions with solid reputations. Global brokers licensed by authorities like the UK FCA, Australia ASIC, etc., offer greater safety for client funds. Broad international regulation also often means these brokers serve clients worldwide (except in restricted countries).
  
• Robust Trading Platforms: For long-term carry trades, reliable platforms with advanced tools are essential. The best brokers support MetaTrader 4/5, cTrader, TradingView integrations, and offer features like strategy automation, analytics, and mobile apps. Stability and 24/7 uptime are crucial for positions held over many days.
  
• Transparent, Low Fees: Carry traders may hold positions for weeks or months, so tight spreads and low commissions minimize costs over time. Brokers with raw spread accounts (near-zero spreads plus a small commission) or low spread markups are ideal. Transparent fee policies (no hidden overnight markups beyond the standard swap) are equally important for planning carry returns.
  

Below we examine five top brokers that meet these criteria, making them well-suited for carry trade strategies. Each is globally accessible (outside of specific local restrictions) and offers a blend of high-interest potential, leverage, strong oversight, and advanced trading conditions.

Top 5 Forex Brokers for Carry Trade Strategies

1. Pepperstone – Transparent Swaps and Multi-Region Regulation

Pepperstone is renowned for its transparency and competitive swap rates, which is a major draw for carry traders. The broker clearly displays overnight financing fees on its platforms, allowing traders to plan carry trades with full cost awareness. Importantly, Pepperstone credits positive swaps when you hold higher-yield currencies, supporting classic carry trade positions.

From a regulatory standpoint, Pepperstone is highly reputable – founded in 2010, it’s regulated in seven jurisdictions, including the UK (FCA), Australia (ASIC), Germany (BaFin), Cyprus (CySEC), Dubai (DFSA), Kenya (CMA), among others. This broad regulation means Pepperstone serves clients globally (though U.S. clients are not accepted), giving traders confidence in its oversight and fund safety.

Pepperstone offers high leverage up to 1:200 or 1:500 for eligible clients outside strict regulators. Under its Securities Commission of Bahamas (SCB) entity, retail traders can access leverage up to 200:1, and even 400:1 through its Kenyan (CMA) entity. (By contrast, UK/EU/Australia retail leverage is capped at 30:1 by law.) This flexibility enables carry traders in permitted regions to amplify interest gains, while still managing risk appropriately.

In terms of trading platforms and tools, Pepperstone delivers one of the most comprehensive platform selections in the industry. Clients can choose MetaTrader 4 or 5 with advanced plugins (Smart Trader Tools, Autochartist), cTrader, TradingView integration, or even API trading for algorithmic strategies. Such robust platforms help long-term traders analyze trends, automate carry strategies, and monitor positions effectively. Pepperstone’s execution is fast and it features 24/7 customer support, ensuring long-duration trades are reliably maintained.

Fee-wise, Pepperstone is very competitive. It offers tight spreads (as low as ~0.0 pips on EUR/USD with a commission via Razor account) and no added cost on swaps beyond the market differential. This low-cost structure, combined with no inactivity fees and free funding options, means carry trade profits aren’t eroded by excessive charges. Overall, Pepperstone’s blend of swap transparency, high leverage availability, top-tier regulation, and advanced platforms makes it an excellent choice for carry trade practitioners.

2. XM – High Leverage and Attractive Swap Conditions

XM is a globally popular broker known for its attractive swap rates and clear policies that favor carry traders. The broker explicitly provides a swap calculator tool on its website, enabling traders to estimate overnight interest costs or earnings on positions. This transparency means you can plan a carry trade (for example, longing a high-interest currency like AUD against JPY) and know the expected daily interest credit. XM’s swap rates are generally competitive, so positive carry trades yield net gains over time.

One of XM’s standout features is its extremely high leverage options for international clients. XM offers flexible leverage up to 1:888 or even 1:1000:1 on certain account types, far above industry averages. This high leverage (available under XM’s global entities outside EU/Australia restrictions) allows experienced carry traders to significantly increase position sizes and interest returns – though prudent risk management remains vital. Notably, XM includes negative balance protection, so even with high leverage, clients cannot lose more than their account balance.

In terms of accessibility and regulation, XM is widely available and multi-regulated. It operates under top-tier regulators like CySEC (Cyprus) and ASIC (Australia) for certain regions, and under the IFSC (Belize) and other jurisdictions for its global clientele. This structure lets XM accept clients from many countries while maintaining regulatory oversight. Over 15 million clients have used XM, reflecting its broad global reach and trust in the brand.

XM’s trading environment is well-suited for long-term strategies. It provides MT4 and MT5 platforms with fast execution (99% of trades reportedly under 1 second). The broker’s pricing is competitive – spreads start around 0.8 pips on the Ultra Low account and standard accounts are commission-free. For carry traders, this means low baseline costs when opening trades. XM also offers swap-free (Islamic) accounts if needed, though those accounts typically replace swaps with fixed fees if positions are held long term. Overall, XM combines high leverage, transparent swap tools, global accessibility, and solid trading conditions, making it a strong choice for carry trade enthusiasts.

3. Tickmill – Low-Cost Trading with Competitive Swaps

Tickmill has earned a reputation for ultra-tight spreads and low commissions, paired with competitive swap rates – a perfect mix for carry traders. In fact, Tickmill is known for offering some of the tightest spreads in the industry, which reduces the cost of entering and exiting trades. On its Pro account, spreads can be as low as 0.0 pips with a small commission, ensuring that carry trade profits aren’t offset by large spread costs. Importantly, Tickmill also maintains transparent and competitive overnight rates, so traders holding positions long-term face minimal hidden costs.

Regulated in multiple jurisdictions, Tickmill combines global reach with strong oversight. It is licensed by the UK’s FCA, Cyprus CySEC, South Africa FSCA, and the Seychelles FSA among others. This means Tickmill can serve traders worldwide (except in a few restricted markets), offering both a highly regulated environment (under FCA/CySEC with strict client protections) and an offshore entity for higher leverage trading. Notably, Tickmill’s Seychelles entity allows leverage up to 1:500 or even 1:1000 on forex pairs, whereas its UK/EU entity follows the 1:30 limit (with 1:500 for professional clients). This dual structure lets experienced carry traders opt for higher leverage under the offshore arm if appropriate, while still dealing with a well-established company.

Carry trade strategy users will appreciate Tickmill’s efficient platforms and tools. The broker supports MT4/MT5 (with fast execution speeds ~0.2s) and offers useful features like one-click trading and VPS support for automated strategies. Stable execution is vital when holding positions over news or rollover, and Tickmill’s infrastructure is built for reliability. Additionally, Tickmill provides swap-free account options for those who need them, though standard accounts already have favorable swap conditions for positive carry positions.

In terms of fees, Tickmill is very transparent with no hidden charges or unexpected markups. The broker doesn’t impose any overnight financing beyond the published swap rates. Combined with its low spreads and no deposit/withdrawal fees policy, this transparency helps carry traders calculate exactly what they’ll earn from interest differentials. In summary, Tickmill’s low-cost trading, competitive swap rates, high leverage (offshore), and reliable execution make it a top contender for those employing carry trade strategies.

4. Exness – High Interest Clarity and Extreme Leverage

Exness stands out for its unique approach to leverage and swap transparency – a combination well-suited for advanced carry traders. The broker is renowned for a clear stance on swap rates, publishing real-time swap charges and ensuring traders know the exact overnight costs or credits of their positions. This clarity is crucial for carry trades, where daily interest accrual is a major component of profit. Exness’s trading platforms even allow viewing swap rates in real time, so you can monitor your rollover earnings each day. Additionally, Exness offers swap-free accounts in certain regions (e.g., for Islamic clients) without swap fees, although standard accounts already provide favorable swaps on positive carry positions.

Where Exness really differentiates itself is in leverage: it offers perhaps the highest leverage in the industry. Under the appropriate conditions, Exness provides unlimited leverage on forex trades – effectively no cap – for accounts with smaller equity (under ~$1000) and some trading history. Practically, this means traders can magnify positions dramatically to capitalize on interest differentials (though this obviously carries significant risk). Even for larger accounts, Exness commonly allows leverage on the order of 1:2000 or 1:1000, far exceeding typical brokers. This extreme leverage, combined with careful risk controls, can boost the yield of carry trades (for example, turning a 5% interest differential into a much higher leveraged return). Exness does automatically scale down leverage as account equity grows, as a safety measure, and it provides negative balance protection to contain risks. Such measures ensure traders benefit from high leverage while mitigating catastrophic losses, which is important for long-term strategies.

Exness is globally accessible and well-regulated in multiple regions. It holds licenses from the UK FCA (for certain services), South Africa FSCA, Kenya CMA, Seychelles FSA, and others. This mix of top-tier and mid-tier regulators lets Exness serve a broad client base across Asia, Africa, Europe (professional clients), etc., while adhering to financial standards. In fact, Exness has grown a large international customer base (the broker reports hundreds of thousands of active clients) by offering a reliable service with modern features.

On the trading technology side, Exness provides MetaTrader 4/5 and its proprietary Exness Terminal, all known for stable uptime and fast execution – critical for positions held through many market sessions. The broker’s pricing is highly competitive: depending on account type, spreads can be near zero (on Raw accounts with a small commission) or around 0.3–0.7 pips on standard accounts. Notably, Exness charges no internal fees on deposits/withdrawals, so your costs are mainly the trading spreads and swaps. Furthermore, Exness prides itself on fully disclosing all trading costs and conditions up front, aligning with the needs of carry traders who must factor in every overnight charge. Overall, Exness is ideal for experienced carry traders seeking maximum leverage and transparent swap rates, backed by a globally regulated broker with a strong technological backbone.

5. IC Markets – Deep Liquidity and Competitive Rollover Rates

IC Markets is often considered a benchmark for professional forex trading, and it brings several advantages for carry trade strategies. First, IC Markets offers institutional-grade liquidity and pricing, resulting in very tight spreads (near 0.0 pips on majors with RAW accounts) and efficient trade execution. Low spreads and low commissions ($7 round-turn per lot on RAW) mean the cost of maintaining long-term positions is minimal. More importantly for carry traders, IC Markets provides extremely competitive swap rates, aiming to pass on the true market interest differentials to clients. In fact, IC Markets Global advertises that its swap rates are among the most competitive worldwide, allowing traders to maximize overnight interest earnings or minimize rollover costs on their positions. This ensures that positive carry positions (holding higher-yield currencies) yield robust daily interest with IC Markets, rather than being eaten away by large broker fees.

Regulation and reputation are strong points for IC Markets. Originating in Australia, it’s regulated by ASIC, and through its global entities it’s also regulated by the Seychelles FSA and The Bahamas SCB, among others. While IC Markets does not serve U.S. traders, it accepts clients from most other regions via its offshore subsidiaries. Notably, the Seychelles and Bahamas entities offer up to 1:500 leverage for forex trading, aligning with what experienced carry traders may need for boosting returns. (In contrast, under ASIC or EU regulation, leverage is 30:1 for retail.) With a reasonable $200 minimum deposit, IC Markets gives access to this high-leverage, low-cost environment to traders globally. The broker’s long-standing reputation for trustworthiness and scale is evidenced by its trading volumes – it’s reported as one of the largest forex brokers globally, handling over $1 trillion in monthly trading volume at times. This scale and liquidity help ensure smooth rollover and execution even in volatile periods.

IC Markets provides a suite of advanced trading platforms ideal for long-term and algorithmic strategies. Clients can choose MetaTrader 4/5 or cTrader, and all support features like one-click trading, strategy automation (Expert Advisors), and mobile apps. IC Markets also offers tools like VPS hosting and copy trading integrations, which some carry traders might use to mirror strategies or run their own automated carry trade systems continuously. Execution speed is excellent (averaging ~35 milliseconds) and the broker’s servers (NY4 Equinix) and deep liquidity pools minimize slippage – all important for maintaining positions over time with minimal cost.

Fee transparency at IC Markets is clear-cut. There are no hidden markups on swaps; the overnight rate is purely derived from interbank rate differentials. For those who cannot receive interest (due to religious reasons), IC Markets also provides swap-free Islamic accounts, ensuring no interest is paid or earned. The combination of raw spreads, low commissions, and fair swap rates means carry trade profits can accumulate unimpeded. In summary, IC Markets offers top-tier trading conditions (0.0 spreads, fast execution), up to 500:1 leverage, strong global regulation, and very competitive rollover rates, making it a favored broker for experienced traders deploying carry trade strategies.

Conclusion

Selecting the right broker is a crucial step for implementing a successful carry trade strategy. The brokers reviewed above all excel in areas that matter for carry trading: they offer favorable interest rate differentials (so you earn positive swaps on high-yield currency positions), provide high leverage options for amplifying returns (while noting regulatory restrictions), and maintain strong global regulatory status for safety. Equally, they each support robust trading platforms and tools that help manage long-term positions, and they uphold transparent, low-cost fee structures so that spreads and commissions won’t eat into your interest gains.

Experienced forex traders will find that Pepperstone, XM, Tickmill, Exness, and IC Markets each provide a balance of opportunity and security for carry trades. Pepperstone and IC Markets deliver top-tier transparency and low costs; XM and Exness push the envelope on leverage and accessible positive swaps; Tickmill combines ultra-tight spreads with swap competitiveness. Ultimately, the “best” broker can depend on your specific needs (such as your location, account size, or platform preference). It’s wise to compare the features – as summarized in the table above – and even test a broker’s demo to see real-time swap charges and platform performance.

By choosing a globally accessible, well-regulated broker with favorable interest rate differentials and trading conditions, you’ll be well-positioned to capitalize on the carry trade strategy. Remember that while carry trades can provide a steady interest income, they are not without risk – currency fluctuations can offset interest gains, and high leverage can amplify losses. A strong broker will equip you with risk management tools (like stop-loss orders, negative balance protection, and solid educational resources on carry trading) to help navigate these challenges. With the right broker partner, carry trading can be a rewarding long-term strategy for the seasoned forex trader looking to profit not just from price moves but also from the power of interest rate differentials.

About Author

Alexandra Winters

Alexandra Winters is a highly accomplished finance specialist with a proven track record of success in the industry. Born and raised in the United States, Alexandra's passion for finance and trading led her to pursue a Bachelor's degree in Finance and Economics from the prestigious Wharton School of the University of Pennsylvania.

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