Swap Free Account

In XAUUSD, there is the payment of swap every day: - This brings the Issue of paying & getting paid of interest which is an Issue in the Islamic Religion. Islamic Religion does not allow paying and getting paid interest, for Islamic traders there is a account designed in accordance with their Values: Known as Best Islamic Broker Swap Free.

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

For a trader to get a Best Islamic Broker Swap Free account, a trader has to go to a online broker & select option of "Islamic Account", This option is provided under the Accounts Section of the broker specifying the instructions of opening one of these accounts.

Once one opens a this account, then the rollover interest is removed. Once this non paying & being paid of interest is set, if a trader is using a platform such as MetaTrader 4 then the rollover fee record will be set to zero.

The rollover fee is charged daily at the end of the trading day for which a swap is to be applied. As a trader if you do not want to pay this roll over you should close your transactions before the end of the trading day, that way you'll not pay the rollover fee as you are no longer holding the open trade. Because the market doesn't open on Saturday & Sunday, the rollover for these two day will be charged on Wednesdays, meaning on Wednesday a trader will pay the roll-over for Wednesday, Saturday and Sunday, and therefore on Wednesdays this rollover fee is paid 3 Times.

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

Once a trader finds a Best Islamic Broker Swap Free broker and opens & Islamic Account, the trader will have the same trading conditions as those of other traders, except for the paying of rollover fees. This means a trader will use the MT4 Platform Software like all the other traders, the trader can transact currencies, all indices, all CFDs, all metals & all other Financial Instruments provided by the broker.

However, be careful in selecting a Best Islamic Broker Swap Free broker, some brokers will add a commission or add some pips to the spread you trade with to cover the swap(Swap Fee Broker). This isn't supposed to happen as a trader will still be paying for the interest even though is disguised as another charge, good Brokers do not add any commission nor do they add any charge on to the spreads.

Another thing is that some online brokers will charge a rollover fee (swap fee) if the position held by a trader is held for more than 5 days or more than 7 days, this should not be the case and the broker should not charge any carry over interest even if open trade positions are held for more than 5 or 7 days. For traders wanting to open this Islamic Broker Swap Free Account it is good to check for any additional terms of trading for the Islamic Account that you're going to be opening to make sure that the broker you select is really a no swap broker.

Islamic Account

Best Islamic Broker Swap Free trading accounts were introduced by brokers after demand for carryover interest free a.k.a swap free accounts grew among the Islamic traders. The traditional account entailed paying of rollover interests in what is referred to as rollover interest. This led to introduction of Interest Free Accounts that Islamic traders could open & still keep in line with their rules on no paying & getting paid interest - Swap Free Accounts.