Swap Vs Swap free.

Islamic Forex accounts are also known as swap-free Forex accounts, because, within this kind of account, no swap or roll-over interest will be charged to or incurred on positions that are held overnight.

Islamic Forex accounts are designed specifically for Muslims as swaps contravene their religious beliefs and to clients who don’t wish to be charged swap fees. Islamic accounts give their owners an opportunity to hold their positions for an unlimited amount of time.

No-swap or swap free accounts are offered to those that are unable to earn or pay interest due to religious reasons. In compliance with these religious restrictions.

Swap-free accounts are also called Islamic because owners of such accounts exercise Islamic religion. Islamic or Swap-free accounts allow trading any currency pair and if a position is carried over midnight, a trader does not earn and there is nothing to withdraw from trader’s account, regardless of the open position volume.

A forex swap rate is defined as an overnight or rollover interest (that is earned or paid) for holding positions overnight in foreign exchange trading.

Islamic forex trading accounts permit clients of Islamic religion to trade on interest free accounts (SWAP free or Roll Over fee) with no extra charge or penalty for the ability to trade in accordance with Islamic religious principle.

The Swap-free trading account services are intended for traders who use trading systems that do not take into account the impact of swaps or those clients who cannot use swaps owing to their religious beliefs.

When trading using the swap free account, any currency pair can be kept open over-night and the swap free account ensures that the client is not charged any swap (interest) on the position.

In Swap free account the positions profit or loss will be determined by the exchange rate of the currency pairs being traded only, regardless of the position volume or time period.

Swap is basic term of forex trading. Every trader wants to understand this. Dictionary meanings of Swap is ‘To Change’ or ‘Rollover'.

In forex trading, Swap is termed as overnight charges/ interest paid or deducted on the open positions by the Forex broke.

Swap-Free Islamic account is trading solution for Muslim Traders forex. According to the laws of the Islamic religious convictions, any agreements by which one of the involved sides has to receive or pay a percentage to the other side are prohibited.

Islamic forex trading accounts are an interest free or swap free account type that offer exclusively to Islamic clients, who for religious reasons cannot trade on interest/swap incurring account.

Swap free accounts are for customers from Islamic countries or by customers who does not want to get paid or pay for daily swap charges.

One peculiarity is the Shariah law prohibiting Muslims from earning interest – and this is a problem because of the rollover/swap paid on positions held open overnight.
This is why brokers have come up with a solution: Islamic, or swap-free accounts. With these, no interest is paid on overnight positions, however traders are usually bound with additional account fees.