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Islamic Forex Trading Accounts also known as: 'swap free accounts', 'no Riba account', 'interest free accounts', 'no rollover rate accounts'; They are all accounts that were created to accommodate the needs of Islamic clients that observe the 'Sharia' law which basically states that people should give and not expect anything in return and as such they do not pay or receive interest within the Economic industry.
Since not each and every trading platform supports swap free accounts (such as MetaTrader), you should look at our list of forex brokers that offer/support Islamic accounts, Click here.
There are various solutions that Forex companies use to solve the problem of not paying interest for position left open overnight, among those are: charging a flat fee, charging a higher spread for those positions or charging a higher spread for all positions altogether (for example, 1 pip above the normal spread), some broker place limitations on the period that those position can be left open.
Our advice is that first, after finishing reading this article, look at the list of brokers that offer Islamic Accounts. Second, register to one of them. Third, before you open the account or when you talk to a representative request that your account should follow the Islamic Account guidelines and demand an explanations on all fees (hidden or not) involved.
Some traders take advantage of this 'special arrangement', because as you might already know, one can make profit just from the interest rate difference between some currency pairs (leaving a position open for long periods of time). In our case, if you don't pay a fee for open positions � the result will be that the broker himself will lose money �the Forex Company are the ones that are left to pay the SWAPs charged by the banks/market makers they work with. Therefore, we suggest establishing a good work relationship with your broker and reaching a workable agreement acceptable on both sides.
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