Swap free (trading without swaps).

The swap, or charge for rolling over a position to the next day, has always deterred most traders from extending day trades. Not so long ago, there was the emergence of swap-free accounts, where you don’t have to pay this type of commission.

Swap free – trading in which the difference between the rates of national banks is not taken into account, and the fee for transferring positions is carried out in a fixed amount.

The main purpose of these accounts is that some Muslims, due to religious beliefs, are forced to refuse long-term trading.

This happens due to the use of a swap commission, which is prohibited by Shariah. At the same time, you should not think that the dealing center will transfer your positions for free and pay a commission for you; in fact, when using Swap free accounts, a commission is also charged, but it already has fixed size depending on the currency pair.

For example, for such popular instruments as EURGBP, EURJPY, EURUSD, the fee is around $5, although in reality for EURUSD the net swap can be only $2-3 per lot. For other currency pairs this figure reaches up to 20 US dollars.

It follows that this trading is not more profitable, it is intended exclusively for those traders who cannot work according to the standard scheme, and it will not be possible to save on accounts without swaps.

Therefore, if you do not have a particular need to use these accounts, first compare the possible size of the charged swap, and only then decide which option to use in your online trading .