People with Muslim beliefs have joined the Forex trading from the beginning and they have requested for a Swap Free trading environment or a No Rollover Interest as this is against the Islamic faith. Brokers have heard their demands and most of them have introduced accounts with No Swaps.
Now the conditions between the Forex can vary significantly when it comes to the Swap Free trading. There are Brokers that offer Swap Free trading only to people with Muslim beliefs or to people that haveprovided with a certificate that they abide by the Islamic faith. Some other Brokers have introduced Swap Free trading to all traders regardless of their belief because of the high demand of traders who search for a Forex Broker with Swap free trading conditions.
Trading with a Forex Broker in a Swap free environment can be very misleading sometimes. Despite that you will not have to pay any Swaps during the night, there might be some addition or hidden fees associated or limitations with your account. For example, there might be a time limit on how long you can keep your open positions. Some Brokers have introduced a Swap Free environment however, they automatically close all open positions during the night and then they reopen them the following day. In such cases, the traders don’t pay any Swaps however, because of the closing and the re-opening of the positions they are charged with the spread twice. That spread charge sometimes can be equal or even higher to the swap fees for a specific currency pair. Other Forex Brokers may have introduced a new word for Swaps so they can claim to be Swap Free Brokers but they may charge other fees during the night for leaving the position to roll over for the following day.