Swap free Forex accounts are set up specifically for Islamic Forex trading. These accounts specifically apply to Forex accounts that must be free of swaps and interest earnings. All of these accounts comply with Shariah laws and do not accumulate interest or swap fees. The swap free Forex accounts are free from Riba, which is unearned interest. There are also no roll over charges. Anyone can apply for a swap free Forex account as long as they do not abuse the privilege. If brokers feel you are taking advantage of the swap free account they have the right to cancel the account.
When setting up a new swap free Forex account you will need to tell the broker that you want to set up an account that complies with Islamic Shariah Laws. All major brokers will be able to accommodate this request. They charge a flat fee on all trades and avoid trades that cannot be completed on the spot. Since trades cannot be made toward a future date, this will comply with the Shariah laws.
Swap Free Forex accounts are usually managed by brokers who will suggest trades to you. If you don’t have time to actively manage your account you can request weekly or monthly updates be given to you. Your broker can assist you in learning the basics and explain the best options for your account. If you wish to control the account by yourself you can discuss this with your broker. Most will still offer advice if you ask for it. Don’t be afraid to ask for help when you need it.
Swap Free Forex accounts will allow many people who have previously been excluded from the world of Forex trading to participate in this fast growing market. Although it was not allowed previously due to religious restrictions in the Muslin world, it has gained in popularity since accounts were developed to allow participation that complies with Shariah law.
There are many ways to find out which swap free Forex account is right for you. Some brokerages have a minimum investment amount that you must meet. There are others that let you start off small and grow your account from there. Do your research and see which account offers the features you are looking for. If you are not sure what you want to start with you may want to ask advice from a trusted friend who has some experience in the world of Forex trading.
If Forex trading is an interest of yours but you are not ready to make real trades you might want to try a website that offers virtual trading. You won’t make money but your mistakes will not cost you anything either. This is a good way to get your feet wet in the Forex market. You can see what trades consistently make profits and which trades you will want to avoid in the future. Get started and see if this is something you want to continue or if it was just a passing fancy.