Swap account variation appears along with the popularity of trading is on the rise. Traders appeared from various backgrounds and each broker trying to provide the best services and facilities for the needs of traders. One of them is the swap-free account.
The swap-free account or commonly called Islamic accounts are special types of accounts provided by the broker to trader adherents of Islam. This is due to the law banning the Islamic jurisprudence flowering business transactions. Brokers certainly like to employ clients from various backgrounds and start emerging Islamic accounts swap-free account. Through these accounts, muslim traders can trade without the need to pay interest.
Then, what is the difference with the swap-free account standard account?
The Meaning Swap-Free
Swaps are usually experienced traders trading position when opened up to stay past midnight. The adjustment is calculated from the bank interest rates applicable and can vary depending on the position of the trading and the traded pair. In other words, interest swaps are to be paid a trader.
Each country has a different interest rate and will continue to change. That is why there is a currency with high interest rates and there is also a currency with low interest rates. Therefore, the trader is obligated to pay interest on the currency he had sold and will receive interest of currency bought.
From here it can be inferred that the Swap-Free means free of charge of this kind.
The Swap-Free Account differences and standard account
Standard account users will be charged a fee or accept swaps if open position overnight or 24 hours based on the server time. While the Swap-Free account, the user will be exempted from swap if open position until past midnight. Traders Swap-Free account users will not earn interest when the currency he would have higher interest rates, but also do not have to pay interest if the currency he would yield lower than the currency sold.
It is associated with the Islamic law. Swaps are tantamount to usury because taken from the difference in interest rates. Therefore, it is not a little Muslim traders prefer this type of account.
On the other hand, not least also a not too fond of this type of swap-free accounts because of the opportunity to benefit from the swap will be lost. However, keep in mind that the interest rate each country will be constantly changing so traders will not necessarily benefit from the swap. Vice versa, the trader will not always losers hit by the cost of swaps.
Now, many brokers provide Islamic accounts specifically for Muslim traders only (on condition that showed identity cards). However, not a few others brokers provide swap-free accounts that can be used by all registered clients, so all traders can feel such facilities without having to open a special account.
Each broker also provides different system. Some brokers will replace the swap interest charges with the Commission remain. This means that traders will still be charged Commission trading to position trading is open later than the night away. The amount of the Commission is different on each broker in accordance with their respective provisions.
If you are a Muslim trader and want to continue to trade without usury, this type of swap-free accounts or Islamic accounts are the answer. Always pay attention to the rules and conditions of the respective broker before you open this type of account and customize with Your trading conditions.
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