Swap Free Account
Our swap free account was created for traders who can’t receive or pay swaps. The swap free account is interest free and still allows traders to take advantage of our deep liquidity and top-rated trading technology.
ForexVox trading platform allows you to have access to the financial markets 24 hours a day and gives a large variety of instruments to choose from such as forex pairs, commodities, metals and indices. While some traders prefer day trading and make sure they close their orders within a day, some prefer to stick to longer timeframes and have the position open for more than 24 hours. When you have the position open for the night, the fee, called “swap” is to be paid but this goes against Riba principles of Sharia Law.
The ForexVox team has created swap free accounts for the traders who are prohibited to receive or pay interest according to Islamic faith.
How Swap Free Works
Forex swaps depend on the interest rates of Central banks for each currency of the pair. The currency that is bought (base currency) is deposited and the currency that is sold (quoted) is loaned. The higher the rate difference between the currencies in the pair - the higher the swap is.
Depending on whether you have a long or short position, a swap can be positive or negative. Positive swap is a swap that is credited to the account for each transfer of an open position once buying a currency with a high interest rate against a currency with a low rate.
For example, selling USDMXN, a positive swap will be credited on the account since we sell USD with a low rate (0,25%) and buy MXN with a high rate (4,25%). Once the account is set to swap free, the interest, as well as the fee will not affect the account balance.
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