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Swap Free/Islamic accounts are forex trading accounts designed specifically for Muslims. This is because swaps conflict with their religious beliefs. As such, only Muslim clients are authorized to have a Swap Free/Islamic account.
Should a client fail to provide sufficient proof of religion, Orbex will proceed with the opening of a regular Swap Account, meaning standard swap fees will apply.
Any client who misuses this advantage by holding floating positions for a long period of time, thereby profiting from the swap-free facility, must close their floating positions immediately, bearing in mind that these fees are handled by Orbex and not by the client.
Furthermore, hedging a spot currency by its corresponding Future contract is forbidden. This is because it also constitutes an attempt to take advantage of and profit from the swap-free facility. One direction of this kind of hedge must, therefore, be immediately closed.
Moreover, certain instruments will be charged Storage Fees on a daily basis as explained below:
| Instrument | Storage fees per lot | Charged on |
|---|---|---|
| All FX pairs | 5 USD or Equivalent | After Day 10 |
| **USDTRY | 70 USD or Equivalent | From Day 1 |
| **EURTRY | 70 USD or Equivalent | From Day 1 |
| **USDZAR | 25 USD or Equivalent | From Day 1 |
| **USDMXN | 25 USD or Equivalent | From Day 1 |
| XAUUSD / XAGUSD | 5 USD or Equivalent | After Day 10 |
If the client fails to take action to avoid such practices, Orbex will, unfortunately, be required to close or take any necessary action on these accounts without prior written notice.
**Carry Pairs positions (TRY, MXN, ZAR) will be charged from day 1 as mentioned above.
After day 10, three days of storage will be applied every week on Fridays.