Islamic Swap Free Account

When it comes to trading online Bitcoin contracts there is the payment of swaps every day. Swap is a rollover fee charged by the online broker so as to keep an open position overnight. Traders who keep their trade open until the next day have to pay this rollover fee or what is known as swap fee. This payment is a form of interest that is paid by a trader or paid to a trader for opening a Bitcoin BTCUSD position.

Because Bitcoin is traded against USD, and USD has an interest rate of 0.75% it means that a trader trading BTC against USD will have to pay or will be paid interest according to the trade they have opened.

Buy Trade - Buying BTCUSD means a trader will buy Bitcoin and sell USD, Selling USD means a trader will have to pay interest of 0.75%. But this 0.75 interest is per year, therefore every day the trader will have to pay a small fraction of this 0.75% interest.

Sell Trade - Selling BTCUSD means a trader will sell Bitcoin and buy USD, buying USD means a trader will have to be paid interest of 0.75%. But this 0.75 interest is per year, therefore every day the trader will get paid a small fraction of this 0.75% interest.

Whereas, this amount of interest being paid by the trader or getting paid to the trader is not much, there is the issue paying and getting paid interest which is an issue in Islamic Religion.

This issue of paying and getting paid interest which is an Issue in Islamic Religion brings us to the Swap Free Islamic Trading Accounts. Islamic Religion does not allow paying and getting paid interest, for Islamic Bitcoin BTCUSD traders there is an account designed in accordance with Islamic Values; Known as Swap Free Islamic Account.

For this swap free account a trader will not pay the overnight rollover interest on BTCUSD and will also not get paid any interest, this is also known Shariah Compliant Account where there is no paying of RIBA (interest) - also referred to as Islamic Accounts.

For a Bitcoin trader to get a swap free account, a trader has to go to a broker and select the option of "Islamic Account", this option is provided under the Trading Accounts Section of the online Bitcoin trading broker website specifying the instructions of opening one of these swap free accounts.

Once a Bitcoin trader opens this Islamic Bitcoin Trading Account, then the BTCUSD rollover interest is removed. Once this no paying of interests set, if a trader is using the Bitcoin trading platform - in the MetaTrader 5 platform then the rollover fee record will be set to zero.

Islamic Forex Account - Swap Free Bitcoin Trading Account

The rollover fee is charged daily at the end of the trading day for those holding an open Bitcoin trade for which a swap fee is to be applied. As a trader if you do not want to pay this rollover swap fee you should close your trades before the end of the day, that way you will not pay the rollover fee as you are no longer holding the open Bitcoin trade positions. Because the online financial market does not open on Saturday and Sunday, the rollover fee for these 2 days will be charged on Wednesdays, meaning on Wednesday one will pay the rollover for Wednesday, Saturday and Sunday, and therefore on Wednesdays this rollover fee is paid 3 Times.

These open trade positions that pay a rollover interest fee are commonly referred to by traders as Overnight 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 few days and leave these trades overnight so as to capture more movement in the price trend.

Once a trader finds a swap free online Bitcoin trading broker and opens and Islamic Bitcoin Trading Account, the trader will have the same trading conditions as those of other Bitcoin traders, except for the paying of rollover fees. This means a trader will use the MetaTrader 5 Platform like all the other traders, the trader can trade Bitcoin as well as all currencies, all indices, all CFDs, all precious metals and all other Financial Instruments provided by the broker alongside Bitcoin BTCUSD.

However, be careful in selecting a swap free broker, some online brokers will add a commission or add some points to the spread you trade with to cover the swap (This are Swap Fee Brokers). This is not supposed to happen as the trader will still be paying for the interest even though is disguised as another charge, good online brokers do not add any commission nor do they add any charge on to the spreads for these swap free accounts.

Another thing is that some brokers will charge a rollover fee if the open position held by a trader is held for more than 5 days or more than 7 days, this should not be the case and the broker should not charge any carry over interest even if the open positions are held for more than five or seven days. For traders wanting to open this swap free Account it is good to check for any additional terms of trading for the Islamic Swap Free Account that you are going to be opening to make sure that the broker you choose is really a - no swap broker.

Swap free accounts were introduced by brokers after demand for carry over interest free accounts grew among the Islamic Bitcoin traders and currency traders who trade online. The traditional trading account entailed paying of rollover interests in what is known 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 while trading Financial Instruments such as Bitcoin and other online currencies.