As I am an amateur Forex trader, I was searching for differences between Forex accounts in Forex brokerage. Some brokers such as Exness.com or Fxdd.com has not Islamic account or swap free but some others such as Fxglory.com or Alpari.com has got these type of accounts. What are the benefits of a swap free account in compare with a no swap free account?
Google can’t help you?
Swap is the overnight interest rate paid or deducted on the open positions by the Forex broker.
Islamic account doesn’t get swap.
Many brokers are offering islamic account, but are you Muslim?
It is haram to earn money with swap for people who preach Islam. It’s because carry trades when someone hasn’t to do something to get that money. I’m a muslim and I trade on a swap-free account. It isn’t against Sharia.
Many brokers offer such accounts nowadays.
I think you are incorrect on there about Exness, as they do have such facility. However, if you want the best setting as far Islamic Account goes than try Octafx, they have whole Islamic Account (not just swap free), so it will be pretty good for you. Also, I don’t think any broker mind offering swap free account but the problem is they have difficult process to go through and that’s with verification of proving that we are Muslims which is not easy.
Islamic account is a special account [I]designed for the clients following Muslim faith[/I]. When any trader places a trade overnight, he is charged a certain amount termed as swap charge. This charge is a kind of interest payment which is forbidden in Muslim law . To solve this problem ,many broker offers [B][I]Islamic account which is commission free as well as swap-free[/I][/B]. But spread is bit higher in these accounts compared to other accounts.
I guess its not limited to muslims only or is it?? What i am presuming is that it is for those who wishes to avail swap free trading, correct me if i am wrong!!
When trading on such pairs as USDRUB or USDZAR you don’t pay high swaps to move open position to the next day (and pay some other kind of commission). For example I have swap free account on Hotforex and instead they charge weekly fee based on the amount of swap you got in trading.
Islamic confession prohibits any kind of interest (charged or paid) that’s why brokers invented swap-free account.
You are certainly right, it’s not limited to Muslims, I believe majority of the traders wish never to pay any swap at all and why will they want? If we always have to deal with negative swap then why have it? There are very few brokers who actually allow that to happen but still there are many brokers whom won’t care who uses swap free account since they allow it for all and Octafx broker is one of them which allow everyone.
I trade with islamic account and have no commission, but not everyone is allowed to pay no spreads… I’ve sent documents that prove that I’m Muslim to my broker and then they allowed me to trade on a swap-free account .
Swap free accounts are made only for Islamic clients as it is against Sharia Law to trade swap (it is considered as an interest). In order to get this kind of account, the client needs to prove his religion. I am not sure how they do that, it depends on the broker’s requirements. Also not all of the instruments are available for the Swap free accounts. The brokers who offer these types of accounts usually recommend to their clients to not hold an overnight position for too long otherwise there will be sort of a penalty fee ( I am not sure how they charge it but I guess this measure is to prevent any embezzlements). So if you are not a Muslim, you cannot open such account.
Which documents did you send to your broker?
I believe only Passport will do that. I never like it all broker forcing people into using account that have swap issues. I mean, is it not fine to let people decide for themselves? I like broker that let trades do what they wish because it’s completely fair. As I mentioned earlier that I can do that with OctaFX and I don’t need extra documents to make it happen but there are plenty of brokers that I see causing such issues which I hate!
Where are you from? Are you Muslim or you just don’t like trading with swaps?
Scan of my passport. I don’t see any problem, I got my swap-free account very quickly
Moreover, i think that such things have to be regulated (not as someone who promotes Octafx above :D) as if everybody were allowed to trade on swap-free accounts, there would be some additional commissions. But these accounts were made for Muslims specifically for us to be able to trade on Forex. So, it’s rightly, I think… We don’t get any other commissions and it’s good
I like using swap free account that’s all. Lol, I am not sure what’s your problem is exactly. I mean, I don’t get it why will you anyone forced into swap? It’s definitely created for Muslims, but again why restricts anyone? Anyway, it’s your thinking and let it be that way. As per OctaFX, I again don’t get it. I just mentioned they allow all so what’s wrong in that? How else do I say something like that? I will love to hear from you further over it.
Oh man, you got me wrong, it was not a claim, just a question. Calm down
Swap free trading excludes carry traders, for example, they have peculiarities that other accounts don’t. I was just interested in your motives. I have heard and understood you, thanks
Did you express your beliefs or real broker experience? Or just mention OctaFX wherever its possible ?
Again now sure what you mean, i mentioned it due to my friends experience and also bit of common sense. Passport is the only thing that could help you with verification for Swap free account.
I am not sure about Islamic Account, but if we are talking about swap free then try out Freshforex, they have it… I am using that only while I didn’t require any extra documents; it was just routine verification which is usually required.
I guess something is wrong here, cuz swap-free account is only for Muslim people, extra verification in this case is essential. Allowing for anybody trading with swap free account means the broker doesn’t care confessions at all and simply offer this account as a part of marketing…