Best Swap Free Forex Brokers in 2021
Below is a list of Forex brokers who offer Islamic or swap-free accounts with no rollover charges.
Besides Muslim friendly Forex brokers, there are also brokers who offer interest-free accounts to all traders.
Islamic account – can be opened for Muslims only.
Any account – can be opened for any client.
Standard account – needs further review.
Benefits of Rollover/Swap-Free Trading
For certain currency pairs depending on the market position taken rollover can either be negative (means you have to pay) or positive (means you get paid). With rollover/swap-free Forex accounts trader don’t pay anything nor they get paid for holding positions past 17:00 pm (ask your broker about the Time zone they use) when a rollover is calculated.
Forex currency trading Accounts that receive no rollover/no swap can be a good option for traders who employ long term trading strategies, starting from holding trades longer than a day and up to a month or so, and who don’t want to pay rollover fees.
Rollover/swap-free Forex accounts are perfect for carry trade and hedging strategies where traders look to profit from holding currencies that earn positive rollover (with a broker that applies rollover/swaps) and at the same time look to offset any trading risks by hedging the same currency pair with another broker which applies no rollover fees but instead charges a small commission.
What Is a Forex Islamic Account?
Under Sharia Islamic law, making money from money, such as receiving interest, is not permitted.
Wealth should be generated only through legitimate trade and investment in assets.
Basic principles of finance in Islam state that:
– giving or receiving interest is not allowed;
– money cannot be traded for money, instead, money can be used to buy goods or services, which then can be sold for a profit.
In order to meet the needs of Muslim traders, Forex brokers offer Islamic accounts with strict compliance with Shariah Law:
The interest payment on the account balance is waived. Instead, traders are charged a small daily service fee for positions held overnight. Alternatively, there could be special conditions on spreads, where traders pay one pip higher spread on all currency pairs.
Forex Islamic accounts offer a halal (permissible) investment opportunity that involves zero riba (interest). Forex is a spot currency market which makes it halal. Forex is no different from the traveller changing money on the spot when he enters a foreign country.
An approximate list of countries whose residents can apply for Swap-free trading accounts:
Afghanistan, Albania, Algeria,
Bahrein, Bangladesh, Brunei
Indonesia, Iran, Iraq
Malaysia, Maldives, Mauritania, Morocco
Saudi Arabia, Somalia, Sudan, Syria
Acceptance rules may vary from broker to broker.