How to open ForexChief's Swap-Free Islamic Account? What's the trading condition?

ForexChief Introduces Swap-Free Islamic Accounts

ForexChief Ltd., a renowned brokerage in the online forex market, is introducing Islamic Accounts, also known as swap-free accounts. This introduction is in response to the demand of traders whose religious beliefs prohibit the use of interest rates of global currencies in their trading. This is another testament to ForexChief’s commitment to diversity and inclusivity in forex trading.

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About Islamic Accounts

An Islamic account, primarily characterized by the absence of swaps calculated based on the credit rates of national central banks, eliminates any conflict between a trader’s religious beliefs and their trading activities. It’s important to note that this swap-free service is available only for Classic+, DirectFX, xPRIME account types, and only to Muslim clients from select countries where Islam is the state and/or predominant religion.

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Swap-Free Terms and Conditions

Notably, the swap-free feature is valid only for a limited list of trading instruments like AUDCAD, AUDCHF, AUDJPY, AUDNZD, AUDUSD, CADCHF, CADJPY, CHFJPY, and others, including Gold and Silver. For all other instruments, swaps are calculated and accrued in standard mode. Moreover, the company reserves the right to refuse swap-free service and debit the swaps if the conditions are violated.

Additionally, it’s strictly prohibited to use any trading strategies aimed directly or indirectly at making profit from differences in interest rates, often referred to as carry trade. For deals that remain open for more than two days, a fixed commission is charged, determined as the value of 1 point of the deal in USD, multiplied by the swap points of the currency pair in the deal.

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Applying for Swap-Free Islamic Accounts

Interested traders can apply for the swap-free service by signing in, creating a standard account, verifying personal data, and sending a swap-free request in the Personal Area. Once the swap-free service is enabled, traders can begin their operations.

Understanding ForexChief’s Order Execution Policy

ForexChief emphasizes the importance of understanding the Trading Operating Procedures before opening a trading account. This document specifies the rules for carrying out transactions and provides legal grounds for resolving disputes between the client and the company.

Open a Swap-Free Islamic Account

Slippage on Stop Orders

ForexChief educates traders about potential problems they might encounter while trading, such as slippage on stop orders. Slippage is when a stop order is placed at one price but executed at another, especially in the case of price gaps.

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Positive Slippage on Limit Orders

Conversely, limit orders can result in positive slippage, earning traders additional income when the broker executes the order at the “gap price”.

Speed of Order Execution

ForexChief guarantees an average order execution speed of 100ms, although delays can occur during economic news releases due to the off-exchange nature of transactions. The company encourages traders to factor this possibility into their trading plans.

Forced Closing of Positions

Forced closing of positions, or stop-out, may occur despite having a hedged position, especially when the spread significantly widens during the release of economic news. Traders should be prepared for such unpredictable circumstances.

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Trading Credits

Finally, ForexChief offers trading credits, providing traders with additional credit leverage that allows them to increase trading positions and potential profits. However, it’s important to note that as the position size increases with additional funds, so does the risk of potential financial losses. The company ensures that traders are fully aware of the risks associated with the use of trading credits.

In conclusion, ForexChief’s introduction of Islamic Accounts demonstrates its commitment to meet the diverse needs of its clients. The firm continues to prioritize the satisfaction and financial stability of its traders.

Open a Swap-Free Islamic Account

FAQs about ForexChief’s Swap-Free Islamic Account

What is a Swap-free service in ForexChief?: A Swap-free service is specially designed for traders whose religious beliefs forbid the usage of interest rates of world currencies in their trading. It is also known as an Islamic account.
What is the main peculiarity of Islamic accounts on ForexChief?: The primary peculiarity of Islamic accounts is the absence of accrual and write-off of swaps, calculated based on credit rates of national central banks.
Is the Swap-free service available for all account types and trading instruments?: No, the Swap-free service is only available for Classic+, DirectFX, and xPRIME account types. It is not available for PAMM accounts. It is also valid for a limited list of trading instruments.
Can anyone avail the Swap-free service?: No, the Swap-free service is available only for Muslim clients from a limited list of countries, where Islam is the state and/or the predominant religion.
Are there any restrictions while using the Swap-free service?: Yes, it is strictly prohibited to use any trading strategies aimed (directly or indirectly) at making a profit from the difference in interest rates (carry trade). In case of any violation of the conditions, the company reserves the right to refuse the provision of the Swap-free service.
How can I apply for the Swap-free service?: You can apply for the Swap-free service by signing in, creating a standard account, verifying your personal data, and sending a request for a swap-free in your Personal Area. You can start trading once you receive a confirmation that the swap-free service is enabled.
What happens when I place a stop order and it gets executed at a different price?: This scenario can occur due to the nature of the stop order. In case of a price gap, a stop order can be executed only in accordance with the gap price i.e., at the first available price. Therefore, you should realize the possibility of negative slippage when executing your stop order.
How does the broker handle limit orders in case of a price gap?: Limit orders can be executed at the client’s price or at the best price available. In case of a gap, the broker executes the order at the first available price, bringing additional income in the form of a positive slippage.
What could affect the speed of my order execution during the publication of economic news?: The off-exchange nature of transactions can affect the speed of order execution during the publication of economic news. Banks that sell liquidity have the “last look” condition, which allows them to hold the order in processing until the market condition gets clarified. Thus, order execution speed may reduce significantly during such times.
What are trading credits and what risks do they bring?: Trading credits are an additional credit leverage allowing a trader to increase a trading position and, potentially, the profit. However, as the position size grows with the help of additional funds, potential financial losses also increase in case of an unsuccessful quote change. If there are active trading credits on the account, forced closing of positions may occur under certain conditions. The trader must realize these risks when using trading credits.