Which CFD brokers have the lowest overnight swap fees?
Verdict
- Pepperstone is our overall pick for Hong Kong traders who hold positions overnight, but we cannot honestly name the broker with the lowest swaps: none of the brokers we track publishes swap rates in a form we can compare.
- Pepperstone's swap-free account is not open to Hong Kong residents (it covers 23 listed countries), and Capital.com's swap-free account is limited to Middle Eastern and North African countries.
- For multi-day holds, Pepperstone lists perpetual CFDs on gold, NAS100, US500 and crude oil on its international retail margin table; these charge a funding rate set a week in advance instead of a daily swap.
- XS runs a separate swap-free programme for selected non-Muslim countries with grace periods (10 days on EUR/USD); ask whether Hong Kong is included.
Overnight swap is the financing charge, or occasional credit, applied to a CFD held past the daily rollover. Rates move with interest rates, differ for long and short positions, and change by instrument, which is why no broker in our data publishes a stable table we could rank. Here is what each broker does publish, why Pepperstone remains our pick, and how to check the number yourself in two minutes.
Why we still point overnight traders to Pepperstone
Pepperstone does not offer a swap-free account to Hong Kong residents, so standard swaps apply to positions held overnight. What it offers instead is choice in how you carry a position. Perpetual CFDs on GOLD, NAS100, US500, WTI and Brent are listed on the retail margin table of Pepperstone Markets Limited, the Bahamas company (SCB, SIA-F217) that serves Hong Kong. They have no expiry, and the funding rate is set weekly in advance and applied daily at 5 pm New York time, so you know the holding cost before you trade. For short holds, Razor's published 0.1-pip EUR/USD average keeps the entry cost low. Pepperstone holds no SFC licence.
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Swap-free and holding-cost options, as published
| Broker | Swap-free for Hong Kong residents? | What is published |
|---|---|---|
| Pepperstone | No | Swap-free only for residents of 23 listed countries; perpetual CFDs with weekly-set funding |
| Capital.com | No | Swap-free only for 12 listed Middle Eastern and North African countries |
| XS | Ask | Automatic swap-free for 19 listed countries; a 'special' programme for selected non-Muslim countries with grace periods of 10 days on EUR/USD and GBP/USD and 5 on XAU/USD |
| IC Markets | Not listed as accepting Hong Kong | Swap-free with holding fees, e.g. $11 per lot on EUR/USD after the grace period |
Why 'lowest swap' rankings mislead
- Swap has two sides. A long position may pay while the short earns, or both may pay, so 'lowest' depends on your direction.
- Rates are reset frequently with central-bank rates; a ranking from last month may be wrong today.
- One weekday usually carries three nights of financing to cover the weekend.
- Swap-free accounts often replace swap with a fixed fee after a grace period, which can cost more on long holds.
How to compare swaps yourself
- Log in to each broker's platform (a demo login is enough if the broker offers one).
- In MT4 or MT5, right-click the symbol in Market Watch, choose Specification, and note swap long and swap short.
- Convert both into money per lot per night using the symbol's contract size.
- Compare for your direction and typical holding time, then add the spread and commission.
Sources
Can Hong Kong residents open a Pepperstone swap-free account?
No. Hong Kong is not among the 23 countries whose residents qualify.
Are perpetual CFDs free to hold overnight?
No. They charge a funding rate instead of a swap. Pepperstone sets it weekly in advance and applies it daily, so the cost is known before you trade.
Can I avoid swap entirely?
Close positions before the daily rollover. Day traders who are flat by then pay no overnight financing.
Does a swap-free account mean no holding cost?
Rarely. Many brokers charge an administration or holding fee after a grace period, and the fee can exceed the swap it replaces.
Trading CFDs and leveraged forex is high risk: leverage can make you lose money quickly, and most retail accounts lose. Only trade money you can afford to lose. Nothing here is investment advice, and the broker terms quoted can change, so confirm them on each broker's website first.