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Swap-free Forex account: An Alternative for Muslim Traders
Today,
there are various ways people can invest their money and earn more
profits from it. One of these options is Foreign Exchange or Forex
trading, which generally deals with buying or selling different
currencies. In this kind of trading, people usually buy a certain amount
of one currency and pay it with another currency. One of the financial
options that can be done in Forex trading is the forward transaction,
where two parties agree to exchange currencies at a certain time in the
future with a fixed exchange rate that they agree upon. The forward
transaction may also be done as a swap, in which both parties exchange
currencies for a period of time and reverse it at the end of the
period.To get more news about WikiFX, you can visit wikifx.com official website.
In
Swap, however, there is an amount of interest that needs to be paid.
This is against Islamic teaching, in which someone is not allowed to pay
or receive interests to or from other people. Meanwhile, Forex trading
is open for everyone regardless of beliefs and background. Today, some
Forex broker websites have introduced a new regulation to fulfill Muslim
traders needs in relation to Islamic financial laws. This new
regulation comes in the form of free-swap Forex account or also known as
Sharia Forex account, in which its users are able to use Forex service
features without having to deal with swaps or interests.
Common Features
Depending
on the provider, Swap Free Forex account may have different features.
However, as it was stated above, this type of account generally does not
let its users have to pay for interests which can happen in a certain
forward transaction. There might be many Forex brokers that offer this
account, but those who want to use it need to know the features of a
good swap-free account. Related to its main purpose, there are some
brokers that free users from interests, yet they widen the spread or
move the interests to other kinds of fee. This is just the same with
normal accounts and is not the sign of a good one. Another benefit of
this account is that currency exchange can be held as long as users
wish.
How to apply
Again, this differs between one provider
and another, but inquiring for a swap-free Forex account is not
complicated. First, users just create a normal account and then validate
the account through each providers method. After this step, they
request for the particular kind of account to the service provider and
they will get a free swap status on their account.
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