If you are new to forex & CFD trading, you may have heard of swap free or Islamic trading accounts before. Given the abundance of jargon in the world of forex and CFD trading, beginners often find themselves uncertain where to begin. Today, we’ll define exactly what a swap free / islamic account is and provide some examples to aid in understanding this concept.
The Definition of a Swap Free / Islamic Account
A swap free / Islamic forex trading account is defined as an account that is not subject to daily rollover or swap charges. This also means that a swap free account does not participate in any positive rollover credits as well.
Why Are Swap Free Accounts Often Referred to as Islamic Accounts?
Shariah law is the main reason that swap free accounts are often known as Islamic accounts. Followers of Islam adhere to shariah law, which prohibits the earning of interest. This presented a problem for FX traders of the Muslim faith since it would be against their religious belief to be subject to rollover charges. The solution was to introduce the concept of a swap free account. Instead of swaps or rollover being charged to the account, traders who follow Islam will pay some type of maintenance fee or commission charge instead.
Do Forex Swap Free / Islamic Accounts Incur Other Charges?
Every forex broker handles swap free / Islamic accounts differently. In general, if a swap fee is not assessed, then a commission or account maintenance fee is charged instead. In some cases, forex brokers will offer new clients a grace period from any type daily maintenance charges as an incentive for the client to try out the broker. It’s important to highlight that the reason a forex broker must charge some type of fee is that the broker itself is still subject to swap/rollover charges and must pass some of those costs along to the trader.
How Do I Register for a Swap Free Forex Trading Account?
Each forex broker is unique in their approach to swap free accounts. This means that there is no set industry standard or policy as it relates to swap free trading. If you require guidance in finding a broker that offers swap free / Islamic trading, we are happy to assist you.
Forex Consulting Services – Guidance in Obtaining Swap Free / Muslim Forex Trading Accounts
If you are searching for a reputable forex broker that offers swap free trading accounts, our consultation team remain at your disposal. Due to our vast network of regulated and trustworthy forex brokers, we are confident we can help you find a broker that will be the perfect match for your needs.
