Islamic Swap Free Trading Account

In Stock Indices, there's payment of swap fees each day: this is the interest rate of a indices that indices earns per day. This interest for indices 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 & getting paid an interest payment which is an Issue in the Islamic Religion. Islamic Religion does not allow paying & getting paid of interest, for Islamic traders there a account designed in accordance with their Values: Referred to as Swap Free.

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

For a stock indices trader to get a swap free trading account, a stock index trader has to navigate to a indices trading Islamic trading broker & choose option of 'Islamic Trade Account', This option is provided under the Accounts Section of the online broker specifying the instructions of opening one of these trading accounts.

Once a trader opens a this stock trading account, then Index roll-over fee is removed. Once this non paying & being paid of interests is set, if a trader is using a platform such as and like MT4 then the roll over fee record will be set to zero.

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

These positions which pay a rollover fee are commonly referred to by traders as Overnight Trades. Day Traders rarely leave their trade positions opened overnight and close them all before the close of the trading day. Swing Traders on the other hand may leave their trade positions opened for a couple of days and leave these trades overnight so that to capture more movement in the stock price trend.

Once a trader finds a swap free stock trading broker and opens & Islamic Trade Account, the online trader will have the same trading conditions as those of other traders, except for the paying of rollover interest. This means a stock indices trader will use the Meta Trader 4 Software like all the other traders, the online trader can trade all currencies, all stock indices, all CFDs, all metals & all the other Financial Instruments offered by the trading Islamic online broker.

However, be careful in selecting a swap free broker, some online brokers will add a commission or add a-few pips to the spread you trade with to cover the swap(Swap Fee Broker). This is not supposed to happen as a stock index trader will still be paying for the interest even though it is disguised as another type of charge, good indices 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 a rollover fee also known as swap fee, if the position opened by a indices trader is opened for more than 5 - 7 days, this should not be the case & the broker should not charge any carry-over interest even if the open trades are held open for more than five or seven days. For traders wanting to open this swapfree account with a indices trading Islamic broker 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 online broker you select is really a no swap broker.

Swap Free Trade Account - Islamic Account - Swap Free Accounts Without Interest

Islamic Trade Account

Swap free accounts were introduced by brokers after demand for carry-over interest free accounts grew among Islamic traders. The 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 and getting paid interest.

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Trade Stock Indices

Islamic Swap Free Trading Account