Why are there administrative charges on swap-free accounts?

This article explains why administrative charges are applied to Blueberry swap-free accounts.

What is a Swap-Free account?

A swap-free account, also known as an Islamic account, is designed for clients who adhere to Islamic principles prohibiting the payment or receipt of interest (Riba). It eliminates the opportunities to trade on conventional floating overnight swap charges on positions and charges fixed daily admin fees instead.

 

Why are there admin charges on swap-free accounts?

Admin charges are imposed to cover the financing and administrative costs for overnight positions from brokers. 

These charges cover the operational and administrative expenses associated with facilitating and maintaining swap-free accounts, ensuring that the broker remains financially viable while respecting the principles of Islamic finance.

 

Why are admin fees higher on certain days?

Admin fees may be adjusted on specific days to account for increased operational expenses related to the provision of swap-free accounts on those days.

Also, to account for holding costs over the two weekend days, the admin fees would be tripled on Wednesday for Forex & Metals and Friday for Indices, Commodities and Cryptos.

 

Can I avoid admin charges on my swap-free account?

You could avoid admin charges by avoiding holding positions overnight.

For positions held overnight, admin charges are a standard part of maintaining a swap-free account. Unfortunately, they cannot be avoided. However, our team can help you and give you more information if needed.

 

Are there any other differences between a standard account and a swap-free account?

The primary difference is the absence of overnight swap charges in swap-free accounts. Otherwise, trading conditions and features remain consistent with standard accounts.

 

Can I switch between a standard account and a swap-free account?

Yes, you can request a switch between account types. Please contact our support team and they will guide you through the necessary steps.

 

Where can I find more details on swap-free accounts and admin charges?

For detailed information on swap-free accounts and associated admin charges, please take a look at the Swap-Free Account Administrative Fees.