Islamic Swap Free Account

In Bitcoin Crypto, there is payment of swap fees every day: this is the interest rate of a bitcoin that bitcoin earns per day. This interest for bitcoin like the Australian Dollar is 5 %, this means that every day a fraction of this five percent is paid to anyone holding this Australian Dollar.

This brings the Issue of paying and getting paid of an interest payment which's an Issue in the Islamic Religion. Islamic Religion does not allow paying and getting paid of interest, for Islamic bitcoin cryptocurrency traders there a trading account designed in compliance with their Values: Referred to as Swap Free.

For this btcusd cryptocurrency account a trader will not pay the overnight rollover interest on any bitcoin trade and will also net get paid any interest, this also is known as Shariah Compliant where there is no paying of RIBA (interest) - also known as Islamic Accounts.

For a bitcoin trader to get a swap free account, a bitcoin trader has to go to a Islamic broker and choose option of 'Islamic Trade Account', This option is provided under the Accounts Section of the broker specifying the instructions of registering one of these accounts.

Once a trader opens a this btcusd cryptocurrency account, then Bitcoin rollover interest is removed. Once this non paying and being paid of interests is set, if a trader is using a platform like the MT4 then the roll over fee record will be reset to zero.

Rollover fee is charged daily at the end of the trading day for those holding bitcoin for which a swap is to be applied. As a trader if you do not want to pay this roll over you should close-out your trade positions before the end of the day, that way you'll not pay the roll over fee as you are no longer holding open bitcoin trade. Because the bitcoin cryptocurrency market does not open on Saturday & Sunday, the swap interest for these 2 days will be deducted on Wednesdays, meaning on Wednesday one will pay the rollover interest for Wednesday, Saturday and Sunday, and hence on Wednesdays this swap fee interest is paid 3 Times.

These positions that pay a swap interest are commonly referred to and known by traders as Overnight Trade Positions. Day Traders rarely leave their trades opened overnight and close all of them before the end of the day. Swing Traders on the other hand might leave their trades opened for a couple of days and leave these trade positions overnight so that to capture more movement in the bitcoin price trend.

Once a trader finds a swap free cryptocurrency broker and opens and Islamic Trade Account, the online trader will have the same conditions as those of other traders, except for the paying of swap fee. This means a btc usd trader will use the MetaTrader 4 Software Platform like all the other traders, the online trader can trade all currencies, all indices, all CFDs, all metals and all the other Financial Instruments provided by the bitcoin trading Islamic broker.

However, be careful in selecting a swap free online broker, some brokers will add a commission or add a-few pips to the spread you trade with to cover the swap(Swap Fee Online Broker). This is not supposed to happen as a bitcoin trader will still be paying for the interest even though it's disguised as another type of payment, good bitcoin trading Brokers do not add any commission nor do they add any charge on to the spread.

Another thing is that some brokers will charge traders rollover interest also known as (swap fee) if the position opened by a btc/usd trader is opened for more than 5 days or for some more than 7 days, this should not be the case and the broker should not charge any carry-over interest even if the open trade transactions are held for more than 5 or 7 days. For traders wanting to open this swapfree account with a bitcoin trading Islamic broker it is good to check for any additional terms & conditions of trading for the Islamic Account that you're going to be opening to ensure that the broker you choose is really a no swap broker.

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Islamic Bitcoin Account

Swap free accounts were introduced by brokers after demand for carry-over interest free accounts grew among Islamic bitcoin traders. Traditional account entailed paying of rollover interests in what is referred to as rollover interest. This led to the introduction of Interest Free Accounts that Islamic traders could open and still keep in line with their rules on no paying & getting paid interest.

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Islamic Swap Free Account