Swap-Free Forex Trading | Islamic Accounts

Islamic Accounts

Hello, today I want to explain swap free trading to my beloved Forex enthusiasts. The trading method is also known as Islamic and there is a good reason for calling it this way. The profit of swapping operation is against Islam according to majority of Muslims. That’s where the name comes from. In fact some of brokers may ask you to prove your religious beliefs to open an account. However, there are many brokers who let every client to benefit from this method of trading. Here I prepared an infographic for you.

islamic forex account - swap-free forex account

What is swap-free trading? Why do people ask for interest free accounts? Which Forex brokers offer swap free accounts? Can non-muslims open Islamic accountsSharia compliant Forex tradingHalal Forex accounts… You can find adequate information to all of these in this blog post.

Islamic Forex trading come into question since the beginning of Forex. People who are sensitive with their religion asked Forex brokers for swap free accounts or trading without Rollover interest. In this part of the article, I feel that I need to explain ‘What is Rollover Rate?’.

Rollover Rate

In Forex trading, Rollover Rate is the net amount of interest return from currency position taken by Forex trader. Rollover means the trading operation isn’t settled and the position extended to other day. We can dive into details by giving an example. Assume that a trader took long position with 1,000,000 EUR/USD with the rate of 1.15. The daily interest rate of EUR is 0.0054% and daily interest rate of USD 0.0081%. Thus, the interest of EUR is €54 and the USD cost is $93.15 . If we convert €54 to USD, we get $62.1. So with this position, the trader lost $62.1 – $93.15 = – $31.05 . Also we can calculate the cost by dividing it with 1.000.000 and 0.00003105 or 0.3105 pips.

In Foreign Exchange, traders get either paying or earning interests. This is valid for the everyday of the week. But, since the trading operations are closed at weekend, the interest of these two days should be added to another day. That’s why you pay three days of interest on Wednesdays. This daily interest called swap.

Swap free trading can be very tricky. Although you won’t pay any money during the night, the broker may charge you with hidden fees or/and some limitations to your account. Some brokers close all the open positions at night and re-open at morning, so that you pay spreads twice. To learn everything about swap free trading, continue reading!

Forex Brokers with Swap Free Accounts

The number of brokers with swap free accounts are enormous. There are countless of them. Fore example XM Forex is one of them. However because of the cautions I made above, you have to be careful. Also for you it’s probably one of the feature you have to consider. So if you want to get a comprehensive idea about the broker, please click on ‘read the review’ button. Otherwise, you may be convinced to trade with the broker. In this case, you just need to click ‘open an account’ button.

1 ic market
More details +
Is IC Markets a Scam or Legit? You can find accounts types, spreads, leverage, fees, withdrawal methods, regulation and much more in this ICMarket broker review!
7.9
Good
I reviewed IC Markets based on the following criteria.
TRUST
8.5
COMMISSIONS AND FEES
7.5
CUSTOMER SERVICE
7
PLATFORM & TOOLS
8
PRODUCT PORTFOLIO
8.5
PROS:
  • Strong regulation
  • Low ECN Spreads
  • Segeregates client funds
  • Supports copy trading platforms
CONS:
  • Not avaliable fixed spreads
2 pepperstone forex broker
More details +
Is Pepperstone reliable? Check out my full review where I take a look at the spreads, platforms, leverage, minimum deposit and more!
8
Great
I reviewed Pepperstone based on the following criteria.
TRUST
8
COMMISSIONS AND FEES
8
CUSTOMER SERVICE
8.5
PLATFORM & TOOLS
7.5
PRODUCT PORTFOLIO
8
PROS:
  • Regulated by FCA and ASIC
  • Tight Spreads
  • Trading at Cryptocurrencies
  • Deep Liquidity
  • Award-winning Customer Service
CONS:
  • No Stock CFDs
  • Commodity Trade Pricing
3 fxtm forex broker review
More details +
Is FXTM a reliable broker? What is the minimum deposit for FXTM? Account types, spreads, minimum deposit, licenses… What is cent account and its advantages in FXTM?
8.7
Excellent
I reviewed FXTM based on the following criteria.
TRUST
9
COMMISSIONS AND FEES
9
CUSTOMER SERVICE
9
PLATFORM & TOOLS
8
PRODUCT PORTFOLIO
8.5
PROS:
  • Strong regulations (FCA,, CYSEC)
  • Account type variety
  • Negative Balance Protection
CONS:
  • Low max order size of 30 standard lots per trade
4 Fxpro
More details +
Is FxPro a trusted broker? What is the minimum deposit of Fxpro? You can find information and comments on FXPro minimum deposit, account types, bonuses and more!
9
Great
I reviewed FxPro based on the following criteria.
TRUST
9.5
COMMISSIONS AND FEES
9
CUSTOMER SERVICE
9
PLATFORM & TOOLS
9
PRODUCT PORTFOLIO
8.5
PROS:
  • Strong regulation with 5 different regulator include FCA
  • Negative Balance Protection
  • Tight spreads
  • Multiple trading platforms offered
  • 50+ awards
CONS:
  • Minimum deposit is 100$
5 xm-review
More details +
Is XM Forex reliable? You will find out informations about no deposit bonus, account types, payment methods and more!
8.9
Great
I reviewed XM Forex based on the following criteria.
TRUST
9
COMMISSIONS AND FEES
9
CUSTOMER SERVICE
8.5
PLATFORM & TOOLS
8.5
PRODUCT PORTFOLIO
9.5
PROS:
  • Strong regulations (ASIC, CYSEC, IFSC)
  • Tight spreads
  • 400+ trading instruments
  • Bonuses and promotions
  • Fast execution speed
CONS:
  • Single-stock CFDs only available on MT5
6 hotforex review
More details +
Is Hotforex reliable broker or scam? What are account types, spreads, minimum deposit and leverage? You should read this HotForex Review!
8.5
Great
I reviewed Hotforex based on the following criteria.
TRUST
8.5
COMMISSIONS AND FEES
9
CUSTOMER SERVICE
8
PLATFORM & TOOLS
8
PRODUCT PORTFOLIO
9
PROS:
  • Regulated by CySec and FCA
  • Competetive spreads and fixed spread option
  • Account types for Auto&Copy trading systems

Conclusion

Foreign exchange operations are one of the most controversial topics in the Jurisprudence of Islam also known as ‘Fiqh’. But if you follow Islam and sensitive about the topic, you can try these accounts. Some of the accounts claim that they are 100% Sharia compliant. But it’s up to you whether you make further questioning or not.

Also i want to say some final words for non-Islamic clients. You should consider that, just like Islamic clients, you won’t earn from swap returns. So you have to research carefully and contact with the customer service of brokers for details. You have to be sure that they won’t charge you additionally. Otherwise, you may end up in a disadvantageous position.

Valentin Cote

Valentin Cote

I am Valentin Cote, the author and owner of this personal blog. I compare and review forex brokers in my website. I am in the trading industry since 2009 and still learning. I also write useful articles for newbies about forex and investment. I love playing online games and Forex :)

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Hello to everyone. Forexbrokerslab is my personal blog where I compare reliable forex brokers. I’ve been in forex trading since 2009 and I’m still learning. I have traded with the most popular forex brokers, including the most unknown ones in any regulation and many different account types. So I think I have enough knowledge to compare brokers. You can learn about forex brokers by reviewing my blog.

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