Islamic Swap Free Trading Account

In 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 of 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 & 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 Trading 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 Indices rollover interest is removed. Once this non paying & being paid of interests is set, if a trader is using a platform such as MetaTrader 4 then the rollover 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 your trade positions before the end of the day, that way you will not pay the rollover fee as you're no longer holding open trade position. Because the stock trading market doesn't open on Saturday and Sunday, rollover for these two day will be charged on Wednesdays, meaning on Wednesday one will pay the rollover fee for Wednesday, Saturday and Sunday, and hence on Wednesdays this rollover fee is paid Three Times.

These positions that pay a rollover interest are commonly referred to by traders as Overnight Trade Positions. Day Traders rarely leave their trades opened overnight and close them all before the end of the day. Swing Traders on the other hand may leave their trades 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 & opens & Islamic Trading Account, the trader will have the same conditions as those of other traders, except for the paying of rollover fees. This means a stock indices trader will use the Meta Trader 4 Software like all the other traders, the trader can trade all currencies, all stock indices, all CFDs, all metals & all 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 some 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 is disguised as another 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 a.k.a swap fee, if the position opened by a indices trader is held for more than 5 to 7 days, this should not be the case & the broker should not charge any carry-over interest even if the open trade positions are held 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 Trading Account - Islamic Account - Swap Free Accounts Without Interest

Islamic Trading 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