In the often opaque world of retail forex, traders are aware of swap fees—overnight charges applied to positions held past market rollover. However, a disturbing and lesser-known malpractice is emerging: broker-inserted swap fees on closed trades. This deceptive tactic involves charging swaps even when trades are closed before the swap cutoff time, often without any prior warning. The result? A slow bleed of your capital through hidden, unjustified costs.

What Are Swap Fees Normally?

A swap fee, or rollover interest, is charged when a position is held past 5pm New York time. This fee reflects interest rate differentials between two currencies and may be either a credit or debit depending on your trade direction.

Under normal conditions:

• Trades closed before the rollover should not be charged a swap
• Swaps are clearly documented and forecastable
• Brokers must apply them consistently and transparently

The Scam: Swap Fees on Closed Trades

Here’s how rogue brokers exploit the system:

1. Charging Swaps on Intraday Positions
Even if you close a trade hours before the daily rollover time, the broker may still charge a swap. These fees show up in your transaction history post-close, with vague labelling such as “adjustment” or “overnight cost.”

2. Applying Retroactive Fees
Some brokers backdate the swap fee after your trade is closed. A fee appears in your account the next day, even though the trade was not active during rollover.

3. Hiding Charges in the Trading Platform
Rather than clearly itemising the swap on the trade ticket or history, the fee may appear separately or be included in a balance adjustment. Most traders don’t notice unless they cross-check the figures manually.

4. Using Custom MT4/MT5 Plugins
Unregulated brokers may deploy custom server plugins to override standard MetaTrader behaviour. These plugins allow swaps to be inserted at will—even outside official market hours or after trade closure.

Why This Is So Dangerous

This scam slowly drains your account through small, frequent charges that are difficult to detect. Over time, it can distort your performance metrics, destroy your risk-to-reward ratios, and lead to misinformed strategy adjustments.

Key impacts include:

• Inaccurate trade accounting
• Reduced profit margins
• Confusion during audits or backtesting
• Lack of trust in trade reports

Real Example: Hidden Swap Fee on a Day Trade

A trader opens and closes a GBP/JPY position within the London session, well before the 5pm NY rollover. The trade shows a £120 profit. The next day, they notice a -£14 “adjustment” in their account history. Upon contacting the broker, they’re told it was a “swap adjustment” due to “market recalibration”—despite the trade not qualifying for rollover. The broker refuses to remove the fee.

How to Protect Yourself

1. Monitor Swap Activity Closely
Regularly audit your trading history. Look for unexpected charges on trades closed before rollover time and ask for itemised breakdowns.

2. Request Full Trade Logs and Server Time Stamps
Ask your broker for the precise open/close times and associated swap times. Reputable brokers will provide this data upon request.

3. Compare with a Demo Account or ECN Broker
Run the same trades on a demo or at a trustworthy ECN broker. If swaps appear differently, you may have grounds for complaint.

4. Report Suspicious Behaviour
If you suspect foul play, document everything and report the broker to their regulator or to a financial ombudsman. Use screenshots, trade IDs, and time logs as evidence.

5. Avoid Brokers That Lack Transparency
Steer clear of brokers who:

• Use vague language around fees
• Don’t publish swap rates publicly
• Refuse to provide full trade logs

If a broker can’t explain their fee structure clearly, don’t trust them with your money.

Regulatory Watchdogs Are Taking Note

Financial regulators globally have issued advisories about hidden fee practices. While this specific manipulation is harder to prove, traders are encouraged to lodge complaints. Regulators can force brokers to submit full server logs during investigations—something retail clients cannot usually access alone.

Conclusion: Don’t Let Hidden Swap Fees Drain Your Profits

The insertion of swap fees on closed trades is a covert but deeply damaging practice. It violates trader trust and undermines the fairness of the trading environment. Protecting yourself means being alert, questioning irregularities, and refusing to accept vague justifications for improper charges.

To gain the skills to audit your trades and fight back against hidden broker costs, enrol in our industry-led Trading Courses and take control of your trading with confidence and clarity.