Apart from standard trading accounts, Admirals also offers a special swap-free account for Muslim traders. Read this guide to know all about it.
In order to provide fair and transparent access to global financial markets, forex brokers typically need to charge swaps or rollover fees to maintain overnight positions. A swap is basically the difference in interest rates between two instruments that you are trading, and the amount depends on whether your position is long or short. This means traders can either pay or gain swaps based on their open positions. However, this type of interest would not satisfy Muslim traders as it is prohibited under the Sharia Law. This is why some brokers now offer swap-free accounts in their service, including Admirals.
Admirals is a trustworthy global broker that has been around since almost twenty years ago. The broker is known for providing an extensive list of incredible features like high-tech trading platforms, competitive fees, as well as educational materials. There are multiple options for trading accounts available, including a swap-free account for Muslim traders.
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Get to Know Admirals' Islamic Account
Islamic accounts are a type of account that is specifically designed to cater to the needs of Muslim traders. The main feature of this account is that it's swap-free, meaning that it allows you to trade on the usual standard terms without having overnight interests credited or debited on your account. It ensures that Muslim traders don't need to pay or earn interests on instruments that they trade on.
At Admirals, the swap-free feature is only applicable on the Trade.MT5 account type and it is exclusive for Muslim traders only. Another distinctive feature is that it uses a different fee structure than regular account types. Instead of swaps, there is a fixed administration fee for any position that's held open for more than three consecutive nights. The fee is different from overnight interest and the amount largely depends on the direction of the order.
Apart from that, nothing else is different. You can get the same trading conditions as on standard accounts.
Reasons to Open an Islamic Account
If you are unable to open regular trading accounts due to the swap system, it's a great idea to open an Islamic account instead. There are several benefits that you can get, such as:
- Exclusive for Muslim traders. Swap-free accounts are designed for traders who are unable to pay or receive swaps due to their religious beliefs. It allows you to stay true to your faith, so you can carry on your trading journey without worrying about swaps.
- No swaps charged or received. The account is completely free of swaps, so there's no need to worry about overnight interests.
- Comprehensive account features. Aside from the swap-free feature, everything else is identical to a regular forex trading account. You can access the same trading conditions as on standard accounts, including the same tight spreads, execution speed, as well as cutting-edge technology.
How Much are the Administration Fees?
It is important to understand that there is a cost in maintaining open positions. Liquidity providers charge certain fees to keep positions open and it is the broker's job to pass on such charges to clients in the form of fees. In Admirals' swap-free accounts, traders don't need to pay or earn swaps on any instrument, excluding CFDs on exotic currency pairs where a small financial fee is charged overnight.
Where to Find the Information on the Official Broker Site?
- This information is reported per May 4 2024.
- We can not ensure if this offering is still available or remain the same in future.
- The broker announcement page may or may not exist anymore, You may explore Admirals homepage and try to find "Promotion" section on the menu, footer, etc, to ensure the availability and validity of this promotion.
However, positions with a holding period of more than 3 days (1 day for exotic pairs) are automatically charged a flat administration fee. The amount of fee varies depending on the instrument used, starting from $0.01 per lot traded.
How to Open an Islamic Account in Admirals
- Head over to Admirals' official website and sign up for a Trader's Room account.
- Apply for a Trade.MT5 account and choose to open an Islamic account. You'll be asked to provide several requested ID documents as proof of your eligibility. Please note that this option won't be available if you already have a non-Islamic Admirals account.
- Once your account is ready, you can immediately add deposits and start trading free of swaps.
Conclusion
Opening an Islamic account in Admirals is quite a straightforward process. Apart from the swap and administration fee, everything else is basically the same as standard trading accounts. You'll still get the same opportunity and trade in the same environment as any other Admirals' traders.
This is undoubtedly a huge advantage for Muslim traders considering that in some brokers, the trading costs could be much higher for Islamic accounts to make up for the absence of the swap fees. Some even raise the spreads and commissions on Islamic accounts and restrict the use of certain instruments.
Admiral Markets is a forex and CFD brokerage that has been operating since 2001 to provide smart financial answers for traders around the globe. Their main services revolve around 3 key activities: Learn, Trade, and Invest. In doing so, they have many registered subsidiaries including Admiral Markets UK Ltd, Admiral Markets Pty Ltd (Australia), Admiral Markets AS Jordan Ltd, Admiral Markets Cyprus Ltd, Admirals SA (Pty) Ltd (South Africa), and Aglobe Investments Ltd (Seychelles) for the worldwide market.
23 Comments
Feb 3 2023
When it comes to opening an Islamic or swap-free trading account, it's important to consider the fees and charges associated with such accounts. While these accounts do not involve swaps, there may be other fees in place. In the case of Admiral Markets, they offer an Islamic account option called Admiral Islamic. However, I'm curious to know more about the fees involved.
Could you provide details about the fees associated with the Admiral Islamic account? Specifically, I'm interested in understanding if the fees for this account are higher compared to their regular accounts. Are there additional fees such as administration fees and financial fees that apply to all Admiral accounts? It would also be great to know the starting point of these fees and if they are advantageous for traders.
Jun 11 2023
@Heru: Hey there! When it comes to the Admiral Islamic account offered by Admiral Markets, you won't have to worry about those pesky swap fees. Instead, they've got this thing called administration fees in place. These fees are there to keep things in line with the whole interest-free concept in Islamic trading.
So, here's the deal. The administration fees in the Admiral Islamic account are based on a fixed percentage that's applied to any open positions you hold overnight. The exact fees might vary depending on what you're trading and what the market conditions are like at the time.
But hey, remember that there are other regular trading costs to keep in mind too. Things like spreads, commissions, and any possible deposit or withdrawal fees. These expenses are pretty much similar to what you'd find in any other trading account.
Feb 8 2023
I honestly think it's either having a swap-free account or not. Fees will still be billed provisionally but in a different form. Swap Rate Fees are calculated by Swap that occured in that day, meanwhile, Swap Free Accounts change Swap Rates to Fees or Other Fees that don't had rate in its fees. With this way, brokers may avoid losing money just to paid trader swap fee.
Talking about the fees, Standard account do have some swap rate but it doesn't have additional fees, meanwhile Islamic account doesn't need to pay swap but need to pay additional fees. And based in that terms, I want to ask, IF WE COMPARE the fees with Admirals Islamic Account and Standard Account, which one is the highest?
Feb 10 2023
Riyadh: I have never traded on swap-free or Islamic accounts. However, from what I've heard, many traders complain about the fees that occur on swap-free and Islamic accounts (I'm about to write about Islamic accounts). They complain about administration fees that seem higher than normal, sometimes with wider spreads, higher fees, and even more fees.
In other words, standard accounts are slightly lower than Islamic accounts when calculated using the live counting method.
Why are Islamic account fees so high? It's understandable because the swap rate itself is inevitable. The broker pays all Muslim traders to keep their trades overnight. And after payment, the broker charges more fees to balance their money.
Feb 15 2023
"Instead of swaps, there is a fixed administration fee for any position that`s held open for more than three consecutive nights."
What we can conclude from the above sentence is that swap or rollover fees may be charged as an extra charge if the trade is opened for his 3 nights in a row. Why would a broker charge us for this kind of swap? As I know, the swap fees itself sometimes can be very high fees too and sometimes it is hard to gain profit from the swap.
Feb 15 2023
This is because the swap rate calculates Wednesday's triple times. As stated in the first paragraph of the article, brokers must request swaps to maintain overnight positions.
In fact, the condition for opening trading on the forex spot market is two days before the actual settlement date. Deals closed on Thursday have a value of Monday. Transactions made on Friday will be applied on Tuesday. On Wednesdays, the rollover amounts are tripled to balance out the upcoming weekend (due to trading breaks on weekends, rollovers are not calculated during this period).
and in the swap-free account, Wednesday will be the day that they charge 3 times fee too
Feb 15 2023
i agree with the author. Admiral's Islamic account is very easy to activate. Some brokers may take many steps to open an Islamic account. Also, Islamic accounts have a slightly different trading tool, which makes it harder to adapt as a trader.
On the other hand, Admiral Islamic accounts offer the same trading conditions as regular accounts! The only difference is the administrative or other fees. It's very straightforward. You don't have to adjust immediately with your new account. You can normally trade without worrying about swaps. I think the Admiral Market's Islamic Account will be perfect choice for Muslim Trader.
Mar 19 2023
If you are a Muslim trader, you have the option to choose a swap-free account that is exclusive to you. This type of account may be the best choice for you as it allows you to remain true to your faith while being charged an administration fee instead of swap fees. However, if you are a non-Muslim trader, you may still have to deal with swap fees when holding positions overnight due to the interest rate differences between the currencies you are trading. Although both account types have additional fees, they differ in form, with one being an administration fee and the other being a swap fee.
If that so, me, as the non-Muslim trader, how can I deal with the swap fees? Especially when I trade overnight. I mean if I use swing trading style or something like that to press the fees.
Mar 19 2023
As a non-Muslim trader, you can avoid swap fees by finding a broker that offers swap-free accounts for non-Muslims or by closing your positions before the end of the trading day. When trading overnight, it can be difficult to avoid these fees with a swing trading style. This style usually requires holding the position for a long period of time and may incur swap fees.
However, if you have enough experience, you can try to hedge your position or trade commodities at a lower swap rate to offset the cost of swap fees like major pairs. Each approach you choose has its pros and cons, so it's important to weigh them carefully before making a decision.
Mar 19 2023
If you are trying to avoid swap fees with a swing trader, it is not possible because the method of this trading style allows positions to be held for a few days. It is best to try to include swap fees in your trading fees and target higher pips if possible. As far as I know, based on my experience, swing trading if profitable you can get hundreds of pips higher while trading point you can only get few points. So keep the risk/reward ratio and money management in mind. Manage your swing trades prudently and manage your risk. As the reference, you can read in this article : Managing Risk In Forex Trading
Mar 19 2023
Hey, I'm a bit confused about how to calculate swap fees. I know there are different points for long swap and short swap, but I'm not sure how they're applied. For example, if I'm trading EUR/USD and the long swap is 5 and the short swap is -3.5, how much will I need to pay in fees? Also, is the point value of the swap based on pips, and if I open a position with 0.01 lot, will that affect my trading? I would really appreciate some clarification on this. Thank you!
Mar 19 2023
I will help you, when calculating swap fees you need to consider the difference between the interest rates of the two currencies you are trading, as well as the size of your position. If the interest rate on the currency you are buying is higher than the currency you are selling, you will earn a positive swap, and if it is lower, you will pay a negative swap.
To calculate the swap fee for a specific EUR/USD example, you would need to check the current interest rates for the Euro and the US Dollar, then apply buy and sell swaps to your position size . For example, if you are trading 0.01 lots of EUR/USD and the long swap fee is 5 and the short swap fee is -3.5. And the current EUR/USD is at 1.1815
You would pay 5.9075 USD per day to hold the long position overnight (0, 01 100,000 1.1815 0.005) and get 4.12925 USD per day for holding a short position overnight (0.01 100,000 1.1815 -0.0035). (if the swap is negative, it means you can get the profit). The point value of the swap is not based on the number of pips, but on the interest rate differential.
Apr 7 2023
Is there a way to avoid swap fees other than trading for a day? I also heard that swaps or rollovers may not always bring you a fee, but sometimes you will get a profit. And from the point of view of the long swap and the short swap, for example -3.5 and 5, what exactly is the USD amount I pay or receive in the swap?
And by the way, have I also heard of swaps? Is it possible to do this because I heard it's hard to learn too! I hope I can get a straight answer on this, thanks!
Apr 8 2023
If you don't wanna pay swap fees, you could wait and trade only when the swap is in your favor, or you could hedge your positions to lower your exposure to the interest rate difference. The numbers like -3.5 and 5 for long and short swaps just show the difference in interest rates between two currencies. So, if the long swap is negative, you gotta pay that amount for holding the position overnight, but if the short swap is positive, you'll receive that amount instead. The exact amount of USD you'll pay or receive depends on how much you're trading and the current exchange rate.
Swap trading is a strategy where you take advantage of the difference in interest rates between two currencies. It can be profitable, but you gotta really understand it and be careful. You can learn about swap trading by reading books, articles, taking courses, or practicing on a demo trading account. But just like any other trading, you gotta be aware of the risks and have a solid plan.
Apr 7 2023
I'm curious, if we trade with Admirals, we'll be given either Australia trading conditions or offshore trading conditions, correct? Let's say we choose the Australia (ASIC) trading term, which requires a higher deposit and offers lower leverage. We're aware of the ASIC trading terms.
However, I'm wondering if the Admiral Islamic account follows the same rules as the ASIC or if there are separate regulations for the Islamic account. Which regulatory body governs the Admiral Islamic account? I'm looking for more information on this, thanks in advance!
Apr 9 2023
Regarding the Admiral Islamic account, it is designed for traders who adhere to Islamic finance principles, which prohibit the payment or receipt of interest (riba). As the article said, the account follows Sharia law, which requires transactions to be conducted in an ethical and transparent manner. In this type of account, swap fees are replaced with an administration fee, which is the only fee charged to keep a position open overnight. The Admiral Islamic account follows the same trading conditions as the ASIC account, but with the added benefit of being compliant with Islamic finance principles.
And as I know, The Admiral Islamic account is regulated by the Cyprus Securities and Exchange Commission (CySEC), which is the regulatory body for Admiral Markets in the European Union. SO, if you trade with Islamic account in the Admiral, you will follow the CySEC rules but with Sharia Law offcourse!
Apr 8 2023
It turns out that opening an Islamic or swap-free account isn't completely free. Instead of receiving swaps, you'll be charged fees, although I'm not sure if the Admiral Islamic account fees are higher than normal. Additionally, there are other fees like administration fees and financial fees that apply to Admiral accounts. However, what's amazing is that the fees start from just $0.01 per lot traded, which is very low and advantageous for traders. As this type of account is exclusively for Muslim traders, it's worth considering trading with Admiral because from what I've heard, swap-free fees are usually high, but I haven't seen that with Admiral. Highly recommended!
Jun 14 2023
I'm interested in opening an account with Admiral Markets, but I'm not sure where to start. Can you walk me through the account opening process step-by-step? What documents and information do I need to provide? What type of account should I choose, and what are the differences between them? What are the deposit and withdrawal options available, and are there any fees associated with them? How long does it typically take for my account to be approved and activated? Additionally, I have some concerns about the security and safety of my personal and financial information. What measures does Admiral Markets have in place to ensure the privacy and protection of its clients' data? Overall, what advice do you have for someone who is new to trading and considering opening an account with Admiral Markets?
Jun 15 2023
First of all, dude, opening an account with Admiral Markets is pretty straightforward. Just follow the instructions provided in the article. Based on my experience, this article really provides clear and precise steps to guide you through the process. So, you can refer to that for the exact steps required to open an account.
Regarding fees for withdrawals and deposits, Admiral Markets generally doesn't charge any fees themselves. However, it's important to note that there may be fees imposed by banks or other financial institutions involved in the payment process. So, those fees would be your responsibility.
When it comes to security and privacy, you can rest assured that Admiral Markets takes the protection of their clients' personal and financial information seriously. They employ advanced security measures, including encryption technology, to ensure data is safeguarded and kept confidential.
As for choosing the type of account to open, it really depends on your preference. Admiral Markets offers various options like trade accounts, zero accounts, and invest accounts. The good news is that the minimum deposit requirement for these accounts is usually low, giving you flexibility in your choice. If I were to suggest, starting with a Trade account in either MT4 or MT5 could be a perfect kickstart for your trading journey.
Jun 16 2023
If you said about Admiral accepting all traders around the world, it is yes but for the noted it is not regulated in many country. Admirals get regulated by ASIC 28381 (Australia), CySEC 201/13 (Cyprus) , FCA (UK) 595450, FSA (Estonia) 10932555, FSA (Seychelles) 8426894-1, FSCA (South Africa) FSP51311, IIROC 29.04.2022 and Jordan Securities Commission 57026. It also have some headquarters around the world But, if you mean the operate are the headquarter itself, Admiral doesn't operate in all country. So, if you want to claim something about the trading problem, you need to visit the Admiral's headquarters in other countries, include : Argentina, Australia, Bulgaria, China, Croatia, Czech Republic, Germany, Hungary, India, Indonesia, Italy, Jordan, Latvia, Lithuania, Poland, Romania, Russian Federation, Serbia, Slovakia, Slovenia, South Africa, Spain and United Kingdom. More details about Admirals : Admirals Review
Jun 17 2023
Hey, I recently learned about Islamic trading accounts that are perfect for Muslim traders who want to stick to their religious beliefs. I'm curious, what's the deal with swaps and why do some Muslims prefer to avoid them? It's intriguing how these swap-free accounts provide a solution for traders who don't want to deal with swaps due to their faith. Could you shed some light on the reasons behind this preference? I'm eager to understand how these special accounts cater to the needs of Muslim traders and allow them to trade comfortably while staying true to their religious values.
Jun 18 2023
@Harry: Hey there! Islamic trading accounts are a perfect fit for Muslim traders who want to stick to their religious beliefs while participating in the financial markets. One important aspect of these accounts is the avoidance of swaps, which are interest charges or payments.
Muslims prefer to avoid swaps due to their religious values and the prohibition of Riba (interest) in Islamic finance. They believe that earning or paying interest goes against principles of economic justice and fairness. Instead, they seek investment opportunities that comply with Islamic finance principles, which emphasize risk-sharing and avoiding unjust gains.
Swap-free accounts, also known as Islamic or Sharia-compliant accounts, cater to the needs of Muslim traders by eliminating interest charges on positions held overnight. Instead, brokers may charge a fixed administration fee or adjust spreads slightly to cover costs.
By offering these accounts, brokers create an inclusive trading environment for Muslim traders, allowing them to trade comfortably while staying true to their religious values.
Jun 17 2023
Hey, I recently learned about Islamic trading accounts that are perfect for Muslim traders who want to stick to their religious beliefs. I'm curious, what's the deal with swaps and why do some Muslims prefer to avoid them? It's intriguing how these swap-free accounts provide a solution for traders who don't want to deal with swaps due to their faith. Could you shed some light on the reasons behind this preference? I'm eager to understand how these special accounts cater to the needs of Muslim traders and allow them to trade comfortably while staying true to their religious values.