Forex was forbidden in many eastern countries not so long ago. Getting money without working is against the Sharia law. Due to this fact carry-trades which allow people to earn money just using swaps are forbidden as well. Swap-free accounts solve this problem. They make Forex trading available to people who live in countries where the main religion is Islam.
So, what is swap and why is it forbidden?
Swap is a kind of commission for transferring of opened positions over the night. It’s a difference between currency rates. Its value can be positive or negative and can be credited to or debited from the account of a trader. So, in case the swap is positive, a trader shouldn’t do anything to get ‘swap money’. Islamic religion taboos this type of making money.
Peculiarities of swap-free Islamic accounts.
These accounts fit Sharia law completely. The main point is that no rolling fee is charged for transferring day-trading deals to the next day.
I order to open swap-free accounts JustForex traders need to provide the documents confirming their religion. If you already have an account (Classic, ECN or NDD), you can also move it into the swap-free group by contacting the support.
Moreover, Islamic accounts give a chance to get rid of constant controlling the commission size. This makes trading more comfortable and simple. It should be noted, that depending on the broker, a fixed commission for transferring orders may still take place. Anyway, traders can calculate the total size of commissions and plan results of their work in advance.
Unlike many other companies, JustForex has no additional commissions. Enjoy just comfortable trading!