Islamic trading accounts, also known as swap-free, are created for Muslim customers to be able to trade in financial markets. Swap-free accounts are based on religious beliefs that Islamic clients should not receive or pay interest in the financial industry, for instance, for keeping the trading positions open overnight.
Swap-free accounts enable clients to maintain open positions for an undetermined period without any interest fees. Such accounts automatically close all deals at 22:00:00 GMT and immediately reopen them at 22:00:01 GMT. Traders of financial markets with this type of trading account will not receive any swaps and will not pay interest on positions that remain open overnight. Instead of these payments, clients would be charged with administration fees on their positions. The absence of swaps is the only thing that differs such an account from a usual one. Owners of swap-free accounts can use leverage, hedge their positions, replenish accounts, and withdraw funds.
It is easy to open a swap-free Islamic account with Prime Trades. You need to open a real account, send a request to our customer service to create a swap-free account, and provide the necessary documents.