Forex Trading by Using Interest Ratesby Siam Luu
For individual investors, trading off of interest rates to be profitable is difficult. Most individual investors do not have the lots of money to switch around and even if they did, swapping from one bank to another around the world is often difficult. Furthermore, there is the opportunity cost associated with leaving money alone in a savings account in a foreign country (not to mention the risks of default). Therefore, leave the carry trade to the large financial institutions, they are the ones that have better access profiting off of carry trades.