You make money by entering buy trades with one broker and the same amount of sell trades with another broker. You will open the trades on markets with brokers where there is a swap (ie interest rate) discrepancy. By choosing a deal on the website, or by researching your own deal via the calculator, at the end of each trading day you will earn more swap with one broker than you pay to the other, resulting in a net daily payment to you.

This is an arbitrage strategy, and so you’ll know how much you are going to earn in advance, without being exposed to directional market risk.

This is an excellent question. Here are a few factors which play a part in creating a genuine swap arbitrage window:

a) A country’s Central Bank rate recently changed, and while some brokers have updated to the new rate, others lag behind and still quote the old rate. This exact phenomenon occurred on 28 March 2019 when Turkish Central Bank rates were increased aggressively: some Brokers updated TRY swaps instantly; many others did not.

b) One of the countries in your FX pair has not only a Central Bank rate, but also other benchmark rates. Turkey for example has at least three; a Central Bank rate, an overnight lending rate, and a repo rate. Different brokers will likely be accessing different benchmark rates which therefore contributes to discrepancies in the amount of swap debited/credited by different brokers.

c) Brokers tend to “mark-up” their swap rates to varying degrees. Some apply no mark-up while others make very substantial mark-ups, sometimes depending on whether the broker routes your trades to the real market or acts as a “market-maker”. Differences in mark-up across brokers create arbitrage windows.

d)  Brokers apply swap using different calculation methods. If for example one broker calculates swap as a percentage and another as an implied price move in points, the former will calculate swap according to the first currency in the pair and the latter based on the second currency in the pair. As the price of the FX pair changes, the ratio between the first and second currency pair changes, and hence the relative amount of swap applied across the two brokers also changes, contributing to an arbitrage window.

e) Those brokers who route your trades into the real market (ie those other than “market-makers”) receive their price feed from a “Liquidity Provider” (an LP) which is typically a large financial institution (Barclays, Credit Suisse, etc). LPs frequently have their own inter-bank borrowings and other financial instruments; their overnight rates may in turn be based not solely on the central bank rates that are connected with the asset you are trading. There is likely a host of complicating factors at the level of the LPs that contribute to the divergence of swap rates (and to divergences in more commonly encountered settings such as the difference in residential mortgage rates offered by different banks).

f) Swap rates sometimes appear to be affected by market conditions, for example they can change after a large move in an asset or where volatility has increased or decreased. Swap rates in that sense are their own market and can be traded as such. The team at Dailyfx.com consider swap rates to be a “tradeable market based on market conditions” (see article here under “Calculating the Forex Rollover Rate”).

Well, whatever the underlying reasons, the truth of the matter is that the range of swap rates is very wide indeed on all markets, as you can see from the list of swap rates at myfxbook (here).

No. You might have a head start if you have traded in the past, but everything is explained in the video course and once you get familiar with it all, the whole system is not difficult. You don’t need to know how to trade, or even how markets work, in order to make money using InvestmentLeap.

You can run deals with as little as $100 USD. In fact you may want to start your very first deal with a low deposit just to get used to the initial experience of running an arbitrage deal. In the free lifetime part of the site, you can run deals up to 3% and you will not have to pay for the site. However you should be running all deals inside a VPS for maximum safety the cost of which is currently $20 USD a month (with CNS). To defray that monthly cost, you would need about £500 GBP on both terminals (250 GBP in each broker) and therefore more than £500 GBP would be needed before becoming profitable on a 3% deal run inside a VPS.

For members who have upgraded and can access the most lucrative deals, you should consider ramping up your deposits to at least around £2,000 GBP or equivalent in your home currency. Ideally, to get the best out of the system, a deposit in the region of £5,000 – £10,000 GBP would be a good amount to aim for. The more you deposit, the more you can potentially earn – but never forget the power of compounding: £2,000 compounded for two years will beat higher deposits that are not compounded. See inside the members’ area for how to compound your deals.

You will need to deposit funds into brokers that offer trading in commodities/forex. To protect customers in the unlikely event of broker insolvency, the UK operates a £85,000 compensation scheme per UK regulated broker through the FSCS. Cyprus (where most EU brokers are regulated), Malta and Gibraltar operate a 20,000 Euro compensation scheme per regulated broker through the ICF. You can be sure that your funds up to those amounts are guaranteed and protected according to the terms of the FSCS/ICF for UK and European regulated brokers. Brokers regulated in small offshore jurisdictions (Vanuatu, Seychelles, Marshall Islands etc) tend to offer less protection though some larger offshore brokers may offer customers the benefit of credit default protection under which the customer is repaid by an insurance company in the unlikely event of broker insolvency.

Yes. As far as we know, arbitraging the financial markets is 100% legal in the UK, EU, Australia and many other countries. You can find other ways of profiting online using arbitrage, for example through “surebets” or matched betting.

This depends on how much you invest, and which deals you choose. Because returns are on a percentage basis, the more money you invest, the more you will earn. The top deals will generate around 6% a month, sometimes even more.

If you have never traded before, it will take you a few hours to go through the training videos and open the trades on your first deal. Whatever your experience level, once you have opened your trades, ongoing management is very light: you only need to check your deal once every weekday which only takes 1 or 2 minutes and can even be done on the go via your smartphone.

No – and we’re not expecting automation any time soon. This is a fully manual system, so it does require management oversight albeit only a few minutes a day.

No. The team at InvestmentLeap is not authorised to give investment advice to, or to accept deposits from, the public. However, if you are UK resident, you might be able to ask a friend or family member to help you trade this system for you, under a “Friends and Family Account” which may be available to you as an informal arrangement permitted by the Financial Conduct Authority without regulation. See the FCA website for more details. If you are not UK resident, check your local rules to see if friends/family or other third parties can help trade this system for you.

Nobody can guarantee how much you will make. However, once you get started you will get a sense for how much you will earn. By following the training you can achieve excellent returns.

No. All your trades will be run inside a Virtual Private Server which will always be connected to fast internet. Your own machine can be rudimentary. A slow internet should not affect your earnings.

Daniel here. Having traded swap arbitrage for many years I realise how much expertise I’ve developed in this area. I see traders on forums post about how they think that swap arbitrage should be possible or how they think it should work – but what tends to follow is a conversation without the necessary long-term and in depth experience. I built this website to help everyone (including myself) access the best arbitrage deals in the market at any one time. By members sharing deals, I am also helped in my own arbitrage trading, because prior to this site I had to use up my own time to find the best deals and that wasn’t always possible.

People have benefitted enormously from my experience, and this is my value offer to the world. I feel compelled therefore to run a site like this one and consolidate my position as a leader in this field.