Islamic Swap Free Account

In trading online Gold contracts there is the payment of swap fees every day. Swap is a rollover fee charged by the online broker so as to keep an open trade position overnight. Traders who keep their trade open until the next day have to pay this rollover fee or what is referred to as swap fee. This payment is a form of interest that is paid by a trader or paid to a trader for opening the XAUUSD position.

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

Buy Trade - Buying Gold means a gold trader will buy XAUUSD & sell USD, Selling USD means one will have to pay interest of 0.75%. But this 0.75 interest is a year, henceforth every day the Gold trader will have to pay a small fraction of this 0.75% interest.

Sell Trade - Selling XAUUSD means a gold trader will sell Gold and buy USD, buying USD means one will have to either be paid or will pay an interest of 0.75%. But this 0.75 interest is a year, henceforth every day the gold 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 by the trader is not much, there's the issue paying & 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 Accounts. Islamic Religion doesn't allow paying and getting paid interest, for Islamic XAUUSD Gold metal traders there is a trading account designed in compliance with their Values: Referred to as Swap Free Trade Account.

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

For a xauusd trader to get a swap free account, a xauusd trader has to navigate to a broker and choose option of 'Islamic Account", this option is provided under the Trade Accounts Section of the online Gold trading broker specifying the steps of opening and registering one of these swap free trading accounts.

Once a trader opens this Islamic XAUUSD Account, then the XAUUSD roll over fee is removed. Once this no paying of interests set, if a trader is using the Gold trading platform - the MetaTrader 4 then the roll over fee record will be reset to zero.

Islamic Swap Free Gold Trading Account - XAUUSD Swap Free Account - How to Open Gold Trading Swap Free Account

Islamic FX Account

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

These open position positions that pay a roll-over interest are commonly referred to by traders as Overnight Positions. Day Traders rarely leave their trade transactions opened overnight and close them all before the close of the day. Swing Traders on the other hand may leave their trades opened for a couple of days and leave these trade transactions overnight so that to capture more movement in the price trend.

Once a trader finds a swap free online XAUUSD trading broker & opens and Islamic Gold Trade Account, the online trader will have the same trading conditions as those of the other traders, except for the paying of roll-over interest. This means a xauusd trader will use the MT4 Software Platform like all the other traders, the Gold trader can trade Gold as well as all currencies, all stock indices, all CFDs, all metals & all the other Trading Instruments provided by the broker alongside XAUUSD.

However, be careful in selecting a swap free online broker, some brokers will add a commission or add some pips to the spread you trade with to cover the swap(This are Swap Fee Online Brokers). This is not supposed to happen as the online trader will still be charged for the interest even though it's disguised as a different type of payment, good brokers do not add any commission nor do they add any charge on to the spreads.

Another thing is that some brokers will charge roll over fee if the open position held by a xauusd trader is opened for more than 5 days or more than seven days, this should not be the case & the broker should not charge any carry-over interest even if the open positions are held open for more than five or seven days. For traders who want to open this swap free Trade Account it's good to check for any additional terms of trading for the Islamic Account that you are going to be opening to ensure that the online 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 XAUUSD traders and forex traders who trade online. The traditional trading account entailed paying of rollover interests in what is referred to as roll over interest. This led to introduction of Interest Free Trading Accounts that Islamic traders could open and still keep in line with their rules on no paying & getting paid interest while trading the Financial Instruments like XAUUSD & other currencies.

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Islamic Swap Free Account