If you’re a Muslim trader who follows the Shariah law or a trader who wants to avoid the interest charges while trading, then the swap-free account can be an ideal solution for you. In this article, we’ll explore the swap-free account in forex and provide you with all the details you need to know about this account.
Table of Contents
- What is a swap-free account?
- How does a swap-free account work?
- Advantages of a swap-free account
- Disadvantages of a swap-free account
- Who can benefit from a swap-free account?
- How to open a swap-free account?
- List of forex brokers that offer swap-free accounts
- Things to consider before opening a swap-free account
- Islamic trading accounts vs. swap-free accounts
- How to trade with a swap-free account?
- Can you convert a standard account to a swap-free account?
- Is a swap-free account more expensive than a standard account?
- Conclusion
- FAQs
What is a swap-free account?
A swap-free account, also known as an Islamic account, is a type of trading account that allows traders to avoid paying or earning overnight interest or swap charges on positions held open overnight. This type of account is designed for Muslim traders who follow the Shariah law, which prohibits the payment or receipt of interest charges.
How does a swap-free account work?
In a swap-free account, positions held open overnight do not earn or incur any interest charges. Instead, the broker charges a fixed commission, which is typically higher than the standard account’s commission. The commission is usually charged on a daily or monthly basis, depending on the broker’s policy.
Advantages of a swap-free account
The following are some of the advantages of using a swap-free account:
- Compliance with Shariah law for Muslim traders
- No interest charges on positions held overnight
- Access to all trading instruments offered by the broker
- No hidden fees or charges
- Flexibility in trading styles and strategies
Disadvantages of a swap-free account
The following are some of the disadvantages of using a swap-free account:
- Higher trading costs due to the fixed commission charged by the broker
- Not all brokers offer swap-free accounts
- Limited availability of trading instruments
- Limited leverage options
- Potential for wider spreads due to the broker’s additional costs
Who can benefit from a swap-free account?
A swap-free account can benefit the following types of traders:
- Muslim traders who follow the Shariah law
- Traders who want to avoid paying or earning overnight interest charges
- Traders who want to trade long-term without worrying about overnight charges
How to open a swap-free account?
To open a swap-free account, traders need to find a broker that offers this type of account. The process of opening a swap-free account is similar to opening a standard account, with the only difference being the selection of the swap-free option during the registration process. Traders may also need to provide additional documents to prove their eligibility for a swap-free account.
List of forex brokers that offer swap-free accounts
The following is a list of forex brokers that offer swap-free accounts:
Things to consider before opening a swap-free account
Traders should consider the following factors before opening a swap-free account:
- Trading costs, including the fixed commission charged by the broker
- Availability of trading instruments
- Leverage options
- Quality of customer service
- Regulations and safety of funds
- Trading platforms and tools
Islamic trading accounts vs. swap-free accounts
Islamic trading accounts and swap-free accounts are similar in that they allow traders to avoid paying or earning interest charges on positions held overnight. However, there are some differences between these two types of accounts. Islamic trading accounts are designed for Muslim traders who want to follow the Shariah law, which prohibits any form of interest charges. These accounts have specific rules and guidelines that traders need to follow, such as the prohibition of trading with certain financial instruments, such as stocks, indices, and commodities. On the other hand, swap-free accounts are designed for traders who want to avoid paying or earning overnight interest charges, regardless of their religious beliefs. These accounts do not have any specific rules or guidelines, and traders can trade with all the financial instruments offered by the broker.
How to trade with a swap-free account?
Trading with a swap-free account is similar to trading with a standard account, with the only difference being the absence of overnight interest charges. Traders can use any trading strategy or style, such as scalping, hedging, or swing trading, as long as they comply with the broker’s rules and regulations.
Traders should also be aware that the absence of overnight interest charges may affect the price of certain financial instruments, such as currency pairs, since the interest rate differential is a significant factor in determining the price of these instruments.
Can you convert a standard account to a swap-free account?
Most brokers allow traders to convert their standard account to a swap-free account if they meet the eligibility criteria. However, traders should be aware that this process may take some time, and they may need to close their existing positions before converting their account.
Is a swap-free account more expensive than a standard account?
Yes, a swap-free account is usually more expensive than a standard account, since the broker charges a fixed commission to compensate for the absence of overnight interest charges. Traders should compare the commission charged by different brokers before choosing a swap-free account.
Conclusion
In conclusion, a swap-free account can be an ideal solution for Muslim traders who follow the Shariah law or traders who want to avoid paying or earning overnight interest charges. However, traders should be aware of the higher trading costs associated with this type of account and should carefully consider the factors mentioned above before opening a swap-free account.
Name
Details
Rating
Regulation: CySEC, FCA, DFSA, FSCA, FSA, CMA
Founded: 2008
Founders: Petr Valov, Igor Lychagov
Year Founded : 2008
Deposit Methods: VISA, MasterCard, Neteller, Skrill, WM, PM, Crypto (MORE)
Leverage: 1:30 | 1:500
Regulation: CySEC, FCA, DFSA, FSCA, FSA.
Min. Deposit: 5 US$
Min. Withdraw : 5 US$
HQ: Sydney, Australia
Platforms: MT4, MT5, ctrader, web trading
Found in: January 30, 2007
Deposit Methods: Bank Wire (BankTransfer), VISA, MasterCard, Neteller, Skrill, WM, PM, Crypto
Year Founded : 2010
Cryptocurrencies:
YesDeposit Methods: Local Deposit, Bank Wire (BankTransfer), VISA, MasterCard, Neteller, Skrill, WM, PM, Crypto, USDT
Year Founded : 2010
Cryptocurrencies: (5+) Bitcoin, Litecoin, Ethereum
Deposit Methods: Local Deposit, Bank Wire (BankTransfer), VISA, MasterCard, Neteller, Skrill, WM, PM, Crypto, USDT (MORE)
Year Founded : 2009
Cryptocurrencies:
Yes (30+)Deposit Methods: Bank Wire (BankTransfer/SWIFT), VISA, MasterCard, Alipay, Bitcoin, Bitcoin Cash, Boleto, Ether/Ethereum, Litecoin, Local Bank Deposits, M-Pesa, Mobile Money, Monero, PerfectMoney, Ripple, WebMoney
Year Founded : 2009
Cryptocurrencies:
Yes (50+)Deposit Methods: Local Deposit, Bank Wire (BankTransfer), VISA, MasterCard, Neteller, Skrill, WM, PM, Crypto, USDT
Year Founded : 2009
Cryptocurrencies:
Yes (30+)Deposit Methods: Bank Wire (BankTransfer/SWIFT), VISA, MasterCard, Alipay, Bitcoin, Bitcoin Cash, Boleto, Ether/Ethereum, Litecoin, Local Bank Deposits, Mobile Money, PerfectMoney, WebMoney, USDT
Year Founded : 2011
Cryptocurrencies: (25+) Bitcoin, Litecoin, Ethereum
Deposit Methods: Bank Deposit, VISA, awepay, Bitcoin, FasaPay, Local Bank Deposits, Local Bank Transfers, Neteller, paytm, Skrill, UnionPay, USDT
Leverage: 1:20 | 1:500
Regulation: CySEC, FCA, DFSA, FSCA, FSA.
Min. Deposit: 50 US$
Min. Withdraw : 50 US$
HQ: Australia, Cyprus, and the UK.
Platforms: MT4, cTrader, web trading
EAs/Robots: ✅ Yes | News Trading: ✅ Yes | Scalping: ✅ Yes
Cryptocurrencies: 20+) Bitcoin, Litecoin, Ethereum
Deposit Methods: Local Deposit, Bank Wire (BankTransfer), VISA, MasterCard, Neteller, Skrill, Crypto. USDT
Leverage: 1:20 | 1:500
Regulation: CySEC, FCA, DFSA, FSCA, FSA.
Min. Deposit: 100 US$
Min. Withdraw : 100 US$
HQ: Cyprus, the UK, Australia, and the United States.
Platforms: MT4, cTrader, web trading
EAs/Robots: ✅ Yes | News Trading: ✅ Yes | Scalping: ✅ Yes
Cryptocurrencies: 20+) Bitcoin, Litecoin, Ethereum
Deposit Methods: Local Deposit, Bank Wire (BankTransfer), VISA, MasterCard, Neteller, Skrill, Crypto. USDT
Leverage: 1:20 | 1:500
Regulation: CySEC, FCA, DFSA, FSCA, FSA.
Min. Deposit: 50 US$
Min. Withdraw : 50 US$
HQ: Australia, Cyprus, and the UK.
Platforms: MT4, cTrader, web trading
EAs/Robots: ✅ Yes | News Trading: ✅ Yes | Scalping: ✅ Yes
Cryptocurrencies: 20+) Bitcoin, Litecoin, Ethereum
Deposit Methods: Local Deposit, Bank Wire (BankTransfer), VISA, MasterCard, Neteller, Skrill, Crypto. USDT
Year Founded : 2010
Cryptocurrencies:
YesDeposit Methods: Local Deposit, Bank Wire (BankTransfer), VISA, MasterCard, Neteller, Skrill, WM, PM, Crypto, USDT
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Forex trading is a popular financial activity that involves buying and selling currencies to profit from the fluctuations in exchange rates. As with any financial activity, it is essential to choose a reputable and regulated broker to ensure the safety of your funds and a fair trading environment. In this article, we will discuss some of the top regulated forex broker houses.
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