Swap-free accounts: how do they actually work?

FTC Community TeamStaff17 Sept 202612 views

Swap-free (sometimes called Islamic) accounts remove the nightly interest for traders who can't hold interest-bearing positions. Brokers usually replace the swap with a fixed administration fee instead, and the terms differ a lot between firms.

Swap-free accounts: how do they actually work? — risk-reward diagram — A risk-reward ratio of 1 to 2

If you use one:

how your broker replaces the swap
whether holding periods are limited
anything in the terms that surprised you

Swap-free accounts: how do they actually work? — candlestick anatomy diagram — The parts of a candlestick: wick, body, open and close

The swap-free accounts guide explains the structures brokers use.

Background: Swap-free (Islamic) accounts explained

Swap-free accounts remove overnight interest charges and credits. Who they are for, how brokers replace the income, and the conditions to read before switching.

What is a swap-free account?

A trading account that doesn't charge or pay overnight swap interest on positions held past the daily rollover. Brokers often charge administration fees or wider spreads instead.

Do swap-free accounts have hidden fees?

They often have fees that replace the swap, such as a fixed charge per lot per night after a grace period, wider spreads or limits on holding periods. Check the broker's terms.

Read the full guide

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