Islamic & Swap-Free Forex Accounts
Swap-free accounts let Muslim traders hold positions overnight without rollover interest, in line with Sharia principles.
What 'swap-free' means
Normally, holding a position past the daily cut-off incurs swap (overnight interest). A swap-free (Islamic) account replaces that with no swap, usually in exchange for a flat admin fee or a slightly wider spread.
Who it is for
It is designed for traders who, for religious reasons, avoid interest (riba). Any trader can often open one, but the cost trade-off should still be checked.
Watch the catch
Some brokers waive swap for a few days then charge it, or apply a higher spread instead. Read the terms: the 'free' part should be genuinely free for your holding period.
Related glossary terms
New to the jargon here? These plain-English definitions will help.