As inflation has still remained above the key target levels worldwide in 2023Q2, central banks have continued to raise the benchmark interest rates. The U.S. has seen a raise to 5.25%, while Canada and the Eurozone have increased to 4.75% and 4%, respectively. On the other hand, Japan and Switzerland have retained their relatively loose interest rate policies. Japan is still at an extremely low rate of negative 0.1%, while Switzerland has minorly raised the rate to 1.75%.

The differences in the tightness of the interest rate policies have resulted in interest rate differences amongst various currencies. As a result, by holding relatively high interest rate currencies and/or shorting relatively low interest rate currencies overnight, you will be able to generate a positive overnight interest rate income.

Z.com Forex provides ultra competitive spreads to clients. With the use of leverage, clients may increase potential returns while keeping trading costs to the minimum. You may not only earn profits from trading FX, but also interest rates. Using the USD/JPY pair, for example, the daily interest rate return for each lot is HKD11.32, and the required margin is only as low as HKD3,908.