Swap (also known as Rollover) is a fee incurred when a trading position remains open overnight. This fee is calculated based on the interest rate difference between the two currencies traded.
For example, when you open a EUR/USD trading position, the swap value will depend on the interest rate difference between the Eurozone and the United States in effect at that time.
Swap free accounts are then provided to traders who follow the principles of the Islamic religion. This is because Islamic Sharia principles prohibit usurious business transactions, including swaps. After all, they are based on interest differences.
So, what brokers provide swap free accounts for Muslim traders? Here's the list:
- XM: low minimum deposit and high leverage
- FBS: minimum deposit only $1
- RoboForex: all account types can be converted to Islamic accounts
- Exness: 5 types of accounts available with leverage up to 1:2000
- Admirals: apply spreads starting from 0.1 pips on swap free accounts
- Octa: once won the best swap free account provider award
- AvaTrade: there is a special swap free account with spreads starting from 0.9 pips
- IC Markets: spread from 0 pips on a swap free account with leverage 1:1000
- Pepperstone: no commission fees on swap free accounts
- FXTM: there is a fixed spread on the swap free Micro account
For a more detailed explanation regarding swap free accounts for each broker, see the complete article below.
1. XM
- Regulation: CySEC, FSC
- Minimum Deposit: $5
- Trading Platform: MT4, XM Trading App
- Spread: Floating spread starts from 1 pips
- Leverage: 1:1000
Especially for swap free accounts XM brokers, traders can apply to change accounts after completing the registration process. So, you can choose one of the 4 types of XM accounts first: Micro, Standard, Ultra Low, and Shares. If you have completed account verification, you can apply for a swap free account.
Don't worry, the process is not difficult and can be completed on the same day. The XM team will provide documents for you to fill in. If so, wait a few minutes until the swap free account is ready.
The minimum deposit for all XM accounts is only $5 and the leverage can reach 1:1000. However, you cannot get this condition on a Shares account which is specifically for stock trading.
See also:
2. FBS
- Regulation: ASIC, CySEC, FSCA, IFSC
- Minimum Deposit: $1
- Trading Platform: MT5
- Spread: Floating spread starts from 1 pips
- Leverage: 1:30
FBS Broker is one of the most popular forex brokers in the world. Operating since 2009, this broker always gets hundreds of new clients every year. Not surprisingly, trading volume always increases every year. Apart from that, this broker is also famous for frequently winning international awards.
Swap free accounts or Islamic accounts at FBS are available on the MetaTrader 5 platform only. There are 4 account types that you can choose from: Cent, Standard, Demo Cent, and Demo Standard. The rollover feature applies to all trading instruments totaling 60 assets.
The leverage for a swap free FBS account tends to be small, but you can get leverage of up to 1:500 if you upgrade to a swap free Pro account.
See also:
3. RoboForex
- Regulation: CySEC, IFSC
- Minimum Deposit: $10
- Trading Platform: MT4
- Spread: Floating spread starts from 0 pips
- Leverage: 1:300, 1:500, 1:1000
RoboForex has 5 trading account options: Prime, ECN, R StocksTrader, ProCent, and Pro. Specifically, the R StocksTrader account is used for stock trading only and the swap free option is not available. Meanwhile, 4 other accounts can be converted into Islamic accounts and other asset options are available for trading.
The leverage that applies to each account is different. Leverage for Prime type accounts is only up to 1:300, ECN accounts 1:500, then ProCent and Pro accounts can reach 1:1000. The minimum deposit required to open any type of swap free account is quite low as it is only $10.
See also:
4. Exness
- Regulation: CySEC, ESMA, FCA, FSA Seychelles, FSCA, FSC BVI
- Minimum Deposit: $10-$200
- Trading Platforms: MT4 and MT5
- Spread: Floating spread starts from 0 pips
- Leverage: 1:2000
Exness broker is also no less popular than FBS. This more than decade-old broker offers swap free accounts with the same conditions as all available account types.
There are 5 types of accounts that Exness has: Cent, Standard, Raw Spread, Zero, and Pro. The minimum deposit for Cent and Standard accounts is $10 and the rest is $200. All accounts can be accessed either via MetaTrader 4 or 5.
Because the conditions of the Exness Islamic account are the same as other accounts, you can enjoy high leverage up to a maximum of 1:2000 for the 97 forex pairs traded.
See also:
5. Admirals
- Regulation: AFSL, CIPC, CMA, CySEC, FCA, JSC (Jordan)
- Minimum Deposit: $25
- Trading Platform:MT5
- Spread: Floating spread starts from 0.1 pips
- Leverage: 1:500
Actually, Admirals broker has 5 account types, namely Trade.MT5, Invest.MT5, Zero.MT5, Trade.MT4, and Zero.MT4. However, only Trade.MT5 type accounts allow swap free.
You must complete the Trade.MT5 account registration process first to then convert it to an Islamic account. The process is more or less the same as a request at the XM broker.
On a Trade.MT5 account you can enjoy a variety of trading instruments without commission. The spread that applies to major pairs on average starts from just 0.5 pips. To open an account, you need to deposit a minimum of $25.
See also:
6. Octa
- Regulation: CySEC, FSA SVG
- Minimum Deposit: $25
- Trading Platforms: MT4 and MT5
- Spread: Floating spread starts from 0 pips
- Leverage: 1:500
In 2020, Octa broker won the "Best Islamic FX Account" according to World Finance. Almost like Exness, Octa applies the same swap free account conditions as the account type it has. There are 2 types of Octa accounts: Octa MT4 and Octa MT5.
The minimum deposit for both accounts is $25. The spread that applies to floating major pairs starts from 0 pips. You can trade 35 forex pairs and dozens of other assets with a maximum leverage of up to 1:500.
See also:
7. AvaTrade
- Regulation: ASIC, CySEC, FSCA, FSC BVI, FRSA, JFSA
- Minimum Deposit: $100
- Trading Platforms: MT4, MT5, AvaTradeGO, AvaSocial, WebTrader
- Spread: Floating spread starts from 0.9 pips
- Leverage: 1:30
Next, there is AvaTrade broker which also offers Islamic accounts for Muslim traders. To register for an Islamic AvaTrade account, You can directly register the account, complete the verification documents, deposit, and submit the swap free account approval file.
Spreads for major pairs traded on AvaTrade start from 0.9 pips, low enough for traders who want to save money. However, the minimum deposit required is very high, reaching $100. This is certainly an additional consideration for Muslim traders with limited capital.
See also:
8. IC Markets
- Regulation:ASIC, CySEC, FSA Seychelles
- Minimum Deposit: $200
- Trading Platforms: MT4, MT 5, cTrader
- Spread: Floating spread starts from 0 pips
- Leverage: 1:1000
IC Markets is a forex broker that was first founded in Sydney, Australia, in 2007. Over the years IC Markets has served millions of clients from all over the world, including clients from Muslim-majority countries.
IC Markets swap free accounts are available in both Raw Spread and Standard accounts. Spreads for IC Markets Islamic accounts start from 0 pips and leverage reaches 1:1000. This account can be accessed on the MetaTrader 4, MetaTrader 5, and cTrader platforms.
See also:
9. Pepperstone
- Regulation:ASIC, BaFIN, CySEC, DFSA, FCA
- Minimum Deposit: AUD$200
- Trading Platforms: MT4, MT5, cTrader, TradingView
- Spread: Floating spread starts from 1 pips
- Leverage: 1:30
Next, there is the Pepperston broker which has been operating since 2010. This STP (Straight Through Processing) type broker provides swap free accounts to facilitate Muslim traders who want to avoid usury.
The minimum deposit required to open an account is quite high, namely up to AUD$200. The leverage allowed is also relatively low. However, Pepperstone applies zero commission on swap free accounts for every transaction you make.
See also:
10. FXTM
- Regulation: CySEC, FCA
- Minimum Deposit: $10-$500
- Trading Platforms: MT4 and MT5
- Spread: Floating and fixed
- Leverage: 1:2000
FXTM Broker offers swap free options on all three trading accounts: Micro, Advantage, and Advantage Plus. However, the minimum deposit required to open an Advantage and Advantage Plus account may be too high, namely up to $500. Meanwhile, the minimum deposit for a Micro account is only $10.
The type of spread that applies to Micro accounts is also fixed at 1.5 pips. This is different from the other two accounts which apply floating spreads starting from 0 and 1.5 pips. However, all three accounts both allow leverage of up to 1:2000. No commission applies to Micro and Advantage Plus accounts.
See also:
Which is Most Suitable for Me?
To consider which broker is most suitable for you, here is a comparison table of brokers based on their costs.
| Broker🏢 | Minimum deposit💸 | Spread🔢 | Leverage⚖ |
| XM | $5 | From 1 pips | 1:1000 |
| FBS | $1 | From 1 pips | 1:30 |
| RoboForex | $10 | From 0 pips | 1:300 (Prime Account) 1:500 (ECN Account) 1:1000 (Pro and ProCent Account) |
| Exness | $10 (Cent and Standard Account) $200 (Raw Spread, Zero, and Pro Account) |
From 0 pips | 1:2000 |
| Admirals | $25 | From 0.1 pips | 1:500 |
| Octa | $25 | From 0 pips | 1:500 |
| AvaTrade | $100 | From 0 pips | 1:30 |
| IC Markets | $200 | From 0.9 pips | 1:1000 |
| Pepperstone | AUD$200 | From 1 pips | 1:30 |
| FXTM |
$10 (Micro Account) |
Fixed 1.5 pips (Micro Account) Floating from 0 and 1.5 pips (Advantage and Advantage Plus Account) |
1:2000 |
Based on the explanation above, XM, FBS, RoboForex, and Exness are the best choices for traders looking for a swap free account to comply with Islamic sharia principles. These four brokers offer the best trading conditions in terms of costs, such as minimum deposits and spreads.
The four brokers are also superior because the swap free account conditions are the same as the regular accounts available. The swap free broker account Octa is the same, but the fees required to open an account are much higher.
If you are a scalper or micro trader with limited capital, XM and Exness are the choices because the leverage reaches thousands. FXTM can also be considered for the same reason, as long as you choose a Micro account with a minimum deposit of $10.