Islamic Swap Free Account

In Silver, there is the payment of swaps every day: this is the interest rate of a silver that silver earns per day. This interest for silver 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 & getting paid interest which is an Issue in Islamic Religion. Islamic Religion doesn't allow paying & getting paid an interest payment, For Islamic silver traders there is a account designed in accordance with their Values: Known as Swap Free.

For this silver trading account a trader will not pay the overnight rollover interest on any silver 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 silver trading Islamic xagusd trading broker and choose the 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 xagusd trading account, then the Silver rollover interest is removed. Once this no paying of interests is set, if a trader is using a trading platform such as MT4 then the rollover fee record will be set to zero.

The rollover fee is charged daily at the end of the trading day for those holding silver 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 silver trade. Because the xagusd trading market doesn't open on Saturday and Sunday, rollover for these 2 day will be charged on Wednesdays, meaning on Wednesday one will pay the rollover for Wednesday, Saturday & 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 trade transations opened overnight and close them all before the end of the day. Swing Traders on the other hand may leave their trade transations opened for a few days and leave these trades overnight in order to capture more movement in the xagusd trading price trend.

Once a trader finds a swap free xagusd 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 Silver 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 silver 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 silver trading Brokers do not add any commission nor do they add any charge on to the spreads.

Another thing is that some online 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 broker should not charge any carryover interest even if open trades are held for more than five or seven days. For traders wanting to open this swap free account with a silver trading Islamic silver 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 broker you choose is really a no swap broker.

Islamic Silver Trading Account

Swap free trading accounts were introduced by brokers after demand for carry over interest free trading accounts grew among Islamic silver 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.