SGT Markets offers a Shariah-compliant trading account for observant Muslims in which no interest can be paid or earned. Islamic tenets prohibit the payment or receipt of interest and this is why SGT Markets has made the opening of a Shariah-compliant, swap-free account easy for observant Muslims.
SGT Markets Islamic accounts are different from regular Forex and CFD accounts because overnight interest (also referred to as swap or rollover) is never credited to or debited from Islamic accounts. Overnight interest originates from the difference between the interest rates of the currencies or assets being traded.
When traders buy one currency and sell another, a swap rate is created because the interest rates of the underlying currencies are not identical. This transaction results in an imbalance that is usually credited to a trader’s trading account or debited from a trader’s trading account when positions are held after the close of each trading day.
By executing a single document, observant Muslims may request a Shariah-compliant SGT Markets Islamic account in which all interest credits and debits are waived. Requests from traders who live in traditionally Muslim countries are typically approved quickly while additional documentation may be required in other cases.