Islamic Swap Free Account

In Bitcoin, there is the payment of swaps every day: this is the interest rate of a bitcoin that bitcoin earns per day. This interest for bitcoin like the Australian Dollar is 5%, this means that every day a fraction of this five percent is paid to anyone holding this Australian Dollar.

This brings the Issue of paying and getting paid of an interest payment which is an Issue in the Islamic Religion. Islamic Religion does not allow paying & getting paid of interest, for Islamic bitcoin traders there is a trading account designed in accordance with their Values: Referred to as Swap Free.

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

For a trader to get a swap free account, a trader has to go to a bitcoin trading Islamic cryptocurrency trading broker & choose option of 'Islamic Account', This option is provided under the Accounts Section of the broker specifying instructions of opening one of these accounts.

Once a trader opens a this btcusd trading account, then the Bitcoin rollover interest is removed. Once this no paying of interests is set, if a trader is using a platform such as the MetaTrader 4 then the rollover fee record will be set to zero.

Rollover fee is charged daily at the end of the trading day for those holding bitcoin for which a swap is to be applied. As a trader if you do not want to pay this rollover 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 open bitcoin trade. Because the btcusd trading market does not open on Saturday and Sunday, the rollover for these 2 day will be charged on Wednesdays, meaning on Wednesday one will pay the rollover for Wednesday, Saturday and Sunday, & therefore on Wednesdays this rollover fee is paid 3 Times.

These positions that pay a rollover interest are commonly known by traders as Overnight Trade Positions. Day Traders rarely leave their trades opened overnight & close them all before the end of the day. Swing Traders on the other hand might leave their trades opened for a few days and leave these trades overnight so that to capture more movement in the bitcoin trading price trend.

Once a trader finds a swap free cryptocurrency broker and opens and Islamic Account, the trader will have the same trading conditions as those of other traders, except for the paying of rollover fees. This means a trader will use the MT4 Crypto Trading Platform like all the other traders, the trader can trade all currencies, all indices, all CFDs, all metals and all other Financial Instruments provided by the bitcoin trading Islamic broker.

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

Another thing is that some brokers will charge a rollover fee (swap fee) if the 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 crypto broker should not charge any carryover interest even if the open trades are held for more than five or seven days. For traders wanting to open this swapfree account with a bitcoin trading Islamic crypto broker it is good to check for any additional terms of trading for the Islamic Account that you're going to be opening to make sure that the crypto broker you choose is really a no swap broker.

Islamic Bitcoin Trading Account

Swap free trading accounts were introduced by brokers after demand for carry-over interest free accounts grew among Islamic bitcoin traders. Traditional 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 & getting paid interest.