Swap-Free (Islamic) Accounts: What They Are and What to Check
Short answerA swap-free (Islamic) account removes overnight swap for religious compliance, often replacing it with a fixed administration fee after a grace period. Compare measured swaps first to see what you'd actually save.
How swap-free accounts work
Instead of debiting or crediting swap each night, a swap-free account waives it — but many brokers apply a flat holding fee on some instruments (often exotics and metals) after a few days, so “swap-free” is rarely free on everything. Terms vary by broker and instrument.
What to check before switching
- Compare the normal swap you'd pay on your instruments in the swap index and the Swap Carry Calculator.
- Ask which instruments keep a holding/administration fee on the swap-free account.
- If you only hold intraday, swap-free may save nothing — swap is charged overnight, not on intraday trades.
Frequently asked questions
Are swap-free accounts really free?
Not always — many brokers replace swap with a flat holding fee on some instruments after a grace period. Check per-instrument terms.
Do I need a swap-free account for day trading?
No — swap is only charged on positions held overnight. Intraday trades incur no swap.
How do I compare swap costs?
Use the swap index and Swap Carry Calculator with measured per-broker rates.