Account types
What is a forex Islamic account?
An Islamic, or swap-free, account does not charge or pay overnight interest (swap) on positions held past the daily rollover. Brokers offer it for traders who follow Islamic finance principles, but the cost of holding positions is usually charged another way.
Guide · 6 min read Updated 3 Nov 2026 Reviewed by the research desk
How swap-free accounts work
On a standard account, a position open at the daily rollover (usually 5 pm New York time) is charged or credited a swap based on the interest-rate difference between the two currencies. On a swap-free account that interest is removed.
Because the broker still pays to finance the position, most swap-free accounts replace the swap with something else. The three common approaches are below.
Approach
How it works
What to check
Fixed admin fee
A flat charge per lot per night, often after a grace period
The fee per instrument and when it starts
Wider spreads
The cost is built into a higher spread on every trade
Compare spreads with the standard account
Holding limit
No fee, but positions may be closed after a set number of days
How many days, and on which instruments
Who can open one
Some brokers offer swap-free trading to any client; others ask you to request it and may ask for a statement of religious need. Availability also depends on the legal entity you are onboarded with, so check the terms for your country.
What to check before you open one
✓Which instruments are covered. Exotic pairs, indices, commodities and crypto are often excluded or charged differently.
✓Whether an admin fee replaces the swap, its size and when it starts.
✓Whether spreads or commissions differ from the standard account.
✓Any limit on how long positions can stay open.
✓What the broker can do if it believes the account is being misused, such as converting it back to a standard account.
Common mistakes
✕Assuming "swap-free" means "free". The cost of holding a position overnight usually still exists in another form.
✕Not reading the instrument list. A strategy built on gold or indices may not qualify.
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Written by the Forex Awards research desk
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