An ordinary trading account envisages paying the standard commission called swap – a fee for keeping the position open overnight. It exists since some people want to keep their positions open for more than 24 hours.
According to the norms of Sharia law, paying or receiving any capital interest is prohibited, meaning that Muslim traders cannot pay swaps. That is why Islamic or swap-free accounts were designed. This type of trading account allows them to be fully-fledged participants of financial markets.
All deals on Islamic accounts are automatically closed at 22:00:00 GMT and immediately reopened at 22:00:01 GMT. An open position is moved to the next trading day, but no swap is charged. That’s the only feature that makes this type of account different from the real one. Traders using swap-free accounts can benefit from leverage, hedge their positions, withdraw funds, etc.
If a Muslim trader wants to open an Islamic account, he/she needs to open a real account and send a request to the customer service to make it swap-free. All the required documents, including those confirming your religion, should also be provided.
Click on the button below to open an account and feel free to contact our support service if you have any questions: [email protected].