Swap-Free or Islamic Accounts
Forex trading has opened up opportunities to all people regardless of race and creed. As Muslims have joined the trade, companies involved in currency trading notably brokers saw it fit to offer services that would benefit them as well. Just like any regular trader, they have the right to manage their own accounts or open a managed Islamic account in trading currencies and other financial instruments including the sukuk or securities that offers fixed return on investments. And that"s how the Islamic forex trading accounts came to be.Islamic accounts are also called swap free forex trading accounts.
They are sometimes referred to as Shariah forex accounts to signify that they are in accordance with the Islamic religious law. This type of account is especially intended to Muslims as swaps go against their religious beliefs.With an Islamic account, no swaps or roll over charges will be applied to trading positions overnight. In other words, an Islamic forex trading account is free from interest or swap charges and features zero up-front commissions without additional charges per trade.
Swap-free accounts are also called Islamic because owners of such accounts exercise Islamic religion. According to the rules of the Mohammedan religion any business transactions, in which one of the parties must pay or get the interest from another party, are prohibited.
Islamic or swap-free accounts support deals with any currency pair and if position is transferred through the midnight a trader does not get and there is nothing withdrawn from traders account regardless the volume of opened position. Islamic accounts were created especially for Muslims, because crediting swaps and interests is against their religion.
Accounts which are not influenced by swap allow their owners to hold positions as long as it is necessary. In this case the result of trading depends only on the currency rates change during the certain period of time.
Due to this peculiarity swap-free accounts became popular both in Islamic countries and worldwide. Many Forex brokers provide swap-free service for free.