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Swap Free Accounts vs normal accounts – why both are charged same?

352 viewsGeneral (Misc)Swap free account trading

What (do you say) about Swap Free accounts, if they claim that they don’t charge any overnight interest or leverage based commission then why do they increase spread while buying or selling as compared to a normal account, aren’t they charging interest fees or commission in the form of increased spread?

Bismillahi Ta’ala

Walaikum Assalam Warahmatullah

A clear response can only be given once we have all the information on the particular financial product. Swap Free account in general wants to establish that their administration fee is in lieu of a genuine service being provided which will be fixed.

Depending of particular product we will review whether this fulfills the Shariah Compliancy of the product. In absence of that transparency it will be negligence of establish a blanket statement.

Wallahu A’lam

And Allah Ta’āla Knows Best
Mufti Faisal al-Mahmudi

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