Forex Brokers without Swap

Written by Miro Nikolov

Miro Nikolov

Miro Nikolov is the co-founder of TradingPedia.com and BestBrokers.com. His mission is to help people make profitable investments by giving them access to educational resources and analytics tools.

, | Updated: September 16, 2025

‹
• Jump to:
• Main Features
• What Are Swap Fees?
• What Is a Swap-Free Forex Account?
• Pros of a Swap-Free Broker
• Cons of a Swap-Free Brokers
• Who Can Benefit from Swap-Free Accounts?
• Things to Consider
• Popular Forex Brokers Offering Swap-Free Accounts
• How to Open a Swap-Free Account
• Comparing Swap-Free Accounts with Standard Accounts
• Common Misconceptions
• Final Thoughts
›

Forex trading involves several costs that can impact your overall profitability, and one of these is the swap fee. This fee applies when you hold a trading position open overnight. For Muslim traders, paying or receiving swaps is incompatible with their religious beliefs, as it can be seen as a form of interest, which is prohibited in Islam. To accommodate these traders, many forex brokers offer swap-free accounts, also known as Islamic accounts. This article will delve into what swaps are, address common misconceptions about swap-free accounts, and explore their benefits and associated costs.

1. 

   Plus500 US

   Rating: 4

   This content applies only to Plus500 US and clients from the United States. Trading futures involves the risk of loss.

2. 

   eToro

   Rating: 4.2

   61% of retail investor accounts lose money

3. 

   Fusion Markets

   Rating: 4.8

   74-89% of retail's CFD accounts lose money

4. 

   FP Markets

   Rating: 4.9

   73.85% of retail investor accounts lose money

5. 

   BlackBull Markets

   Rating: 4.8

   Trading leveraged products is risky

6. 

   Pepperstone

   Rating: 4.4

   75.5% of retail investor accounts lose money

7. 

   Vantage

   Rating: 4.5

8. 

   AvaTrade

   Rating: 4.7

   76% of retail investor accounts lose money

9. 

   XTB

   Rating: 3.5

   73% of retail investor accounts lose money

10. 

    ActivTrades

    Rating: 3.9

    71% of retail investor accounts lose money

Our team has thoroughly evaluated all brokers listed below using TradingPedia’s exclusive methodology.

Main features of the best forex brokers with swap-free accounts

What are swap fees?

A swap fee, also known as a rollover fee or overnight interest, is a charge or credit applied to a forex trading position that is held open past the end of the trading day. This fee is a fundamental part of leveraged trading and arises from the fact that you are effectively borrowing one currency to buy another when you open a position.

The core principle behind a swap fee is the interest rate differential between the two currencies in a pair. Each country’s central bank sets its own interest rate. When you buy a currency pair, you earn the interest rate of the base currency while simultaneously paying interest on the quote currency. The swap fee is the net difference between the two rates, which can be positive (a credit to your account) or negative (a charge).

Example of calculating swap fees for a GBP/USD position

Let us illustrate how this works with a real-world example using the GBP/USD pair. Imagine you decide to open a long position and buy one standard lot of GBP/USD. This means you are essentially buying £100,000 and selling the equivalent amount of US dollars. For this example, we shall assume the following hypothetical swap rates, which are provided by your broker and change daily:

• Swap for a long position (buy): -2.5 points
• Swap for a short position (sell): +1.5 points

The swap fee is calculated based on the lot size and the number of days you hold the position. For a standard lot, one point is equal to a pip, which is typically worth $10.

• Day 1 (Monday): You hold the position open overnight.
• Swap fee calculation: one standard lot x -2.5 points x $10 per point = -$25

A charge of $25 is deducted from your account.

• Day 2 (Tuesday): You hold the position for a second consecutive night and another $25 fee is deducted from your balance.
• Day 3 (Wednesday): The triple-swap rule applies in this case.
• Swap fee calculation: one standard lot x -2.5 points x $10 per point x 3 days = -$75
• Result: A charge of $75 is deducted to cover the rollover for Wednesday, Saturday and Sunday.

What is a swap-free forex account?

A swap-free account, widely known as an Islamic account, is a special type of trading account that does not apply any swap fees (rollover interest) on positions held open overnight. This account type was specifically designed to comply with Shariah law, which prohibits the practice of ‘Riba’, or earning and paying interest. A conventional forex account is problematic for devout Muslim traders because swap fees, whether positive or negative, are considered a form of interest, making them incongruous with the principles of Islamic finance.

By eliminating the swap fee, these accounts allow Muslim traders to participate in the forex market while adhering to their religious beliefs. The core functions of the account remain the same, as traders can buy and sell currency pairs, use leverage, and speculate on market movements without being concerned about daily interest charges or credits.

How brokers manage swap-free accounts

To compensate for the loss of revenue from swap fees, most brokers employ a different fee structure for these accounts. It is a common misconception that swap-free accounts are completely free of all overnight holding costs. In reality, brokers often implement an administrative fee or a different type of commission after a certain grace period. Here is how it typically works:

• Grace period: Brokers often provide an initial grace period, which can range from a few hours to several days, during which no fees are applied to positions held overnight. This allows traders to hold short-term positions without any extra costs.
• Administrative fees: After the grace period ends, brokers usually begin to charge a fixed administrative fee. This fee is not based on the interest rate differential but is a flat charge per day per lot. It can vary significantly between brokers and may depend on the specific currency pair being traded.

For example, a broker might offer a 5-day grace period on a swap-free account. If you hold a position open for three days, you incur no fees. However, if you hold the same position for six days, you would be charged a daily administrative fee for the sixth day and every subsequent day. This approach allows brokers to maintain a revenue stream while still providing a viable trading solution that is compliant with Shariah law.

Pros of a swap-free broker

• These accounts adhere to Islamic principles by eliminating all forms of interest (‘Riba’).
• They remove the unpredictability of daily swap rates, making long-term cost calculation easier.
• Traders never incur negative swaps, which can quickly erode profits.
• Many brokers offer an initial grace period with no fees for short-term overnight positions.
• Swap-free accounts can significantly reduce costs for long-term strategies like trend following.

Cons of swap-free brokers

• You lose the opportunity to earn positive swaps from favourable interest-rate differentials.
• To compensate, brokers often charge wider spreads, higher commissions or daily administrative fees.
• Administrative fees often kick in after a few days, which can become more expensive than traditional swaps for very long-term trades.

Who can benefit from swap-free accounts?

A swap-free account is a useful tool for a variety of traders, not just those with specific religious beliefs. These accounts are a practical choice for anyone looking to simplify their cost structure and avoid the accumulation of overnight fees.

Muslim traders can confidently participate in the forex market with a swap-free account, which is designed to comply with Shariah law by eliminating all forms of interest (‘Riba’).

Traders who hold positions for several days, weeks or even months often choose swap-free accounts. This allows them to avoid the daily accumulation of negative swap fees, which can significantly eat into profits on long-term trades.

Those who trade based on fundamental analysis often hold positions for extended periods, waiting for economic trends or news to unfold. A swap-free account provides a more predictable cost model for these types of long-term strategies.

Even traders who regularly hold positions overnight, such as those who open trades in the evening and close them the next morning, can benefit. A swap-free account ensures their trades are not immediately impacted by the overnight rollover fee, especially on Wednesday nights when the fee is tripled.

Things to consider before choosing a swap-free broker

A swap-free account can be a great option, but it is important to look beyond just the absence of overnight fees. Before you choose a broker, you need to understand the full picture of what you are getting, as there are often trade-offs involved.

1. Regulation

   You should always choose a well-regulated broker with a licence from tier-1 authorities such as ASIC, CySEC or the FCA. Unregulated or leniently regulated brokers pose a significant risk to your capital and may not offer the same level of security and transparency. Proper regulatory oversight ensures that the broker operates fairly and adheres to high industry standards.

2. Documentation requirements

   While many brokers offer swap-free accounts with a simple tick box during the sign-up process, others may require more extensive documentation. Some brokers might ask for documents to prove your religion, such as a signed letter or a notarised statement. In some rare cases, brokers may even request a letter from an Imam or other religious leader to confirm your adherence to Shariah principles. This process can be a hassle, so it is best to check the broker’s specific requirements before you start the application.

3. Spreads and commissions

   Swap-free accounts are not truly free of all costs. Brokers are businesses and need to generate revenue, so they often compensate for the lack of swap fees in other ways. Be sure to check for wider spreads, as some brokers may increase the spread on swap-free accounts compared with their standard accounts. This means you pay more for every trade you make, which can prove more expensive than paying swaps, especially for high-volume traders.

4. Market range

   Another important factor is the range of instruments available. Some brokers may offer a limited selection of markets for their swap-free accounts. For example, they might only provide major forex pairs and a few commodities while excluding exotic pairs, indices or cryptocurrencies. This is because some instruments have very high interest-rate differentials, making it less profitable for the broker to offer them swap-free.

5. Hidden charges and other limitations

   Always read the fine print of the account terms. Many brokers apply an administrative fee as an alternative to swaps. Others charge inactivity fees on dormant accounts or impose additional commissions on deposits and withdrawals with specific payment methods, typically bank transfers.

Popular forex brokers offering swap-free accounts

Here are some popular Forex brokers that are highly regulated and that also offer swap-free accounts.

Pepperstone is a well-regarded broker that is regulated in multiple jurisdictions, including ASIC in Australia, the FCA in the UK and CySEC in Cyprus, which gives traders a high degree of confidence. It offers a broad range of over 1,300 financial markets, including a wide selection of more than 90 forex pairs, commodities, indices and cryptocurrencies. Its swap-free option is available on both the Standard and Razor account types, allowing traders to choose between a commission-free model with slightly wider spreads or a commission-based model with raw spreads from 0.0 pips.

Fusion Markets is regulated by the Australian Securities and Investments Commission (ASIC) and the Vanuatu Financial Services Commission (VFSC). With a market range that includes over 250 instruments, traders can access forex, commodities, cryptocurrencies and US shares. Its swap-free account supports trading more than 50 popular markets and carries an instrument-specific administrative fee after a seven-day grace period. Spreads are wider for this account type, starting from 1.4 pips for major pairs such as EUR/USD.

FP Markets is a global broker with licences from authorities such as ASIC in Australia and CySEC in Cyprus. It provides a comprehensive range of over 10,000 trading instruments, including forex, metals, indices, commodities and digital currencies. Eligible clients must first register a standard MT4 or MT5 account and then apply to upgrade to swap-free status. They may have to submit documents as proof of faith in some cases. Islamic accounts require an initial balance of $100.

How to open a swap-free account

Opening a swap-free account is straightforward; simply follow the steps outlined below.

• Sign up with a broker that offers swap-free accounts.
• Verify your account by completing the KYC process.
• From the dashboard, go to the Account tab and select a swap-free or Islamic account.
• Provide additional documents as proof of faith if required.

Comparing swap-free accounts with standard accounts

Here’s a brief comparison of both account types to clarify exactly what you need.

Common misconceptions about swap-free accounts

It is easy to misunderstand how swap-free accounts work. Here are some of the most common misconceptions.

1. Misconception #1: swap-free means no fees

   This is a frequent misunderstanding. While these accounts eliminate the overnight swap fee, brokers usually have other ways to generate revenue. They may implement a wider spread, charge a higher commission, or apply a fixed administrative fee after a specific grace period. It is crucial to check a broker’s terms to understand the total cost of trading there.

2. Misconception #2: you can still earn positive swaps

   In swap-free accounts no interest is credited or debited at all. Consequently, you also forgo the possibility of receiving positive swaps that would otherwise arise from favourable interest-rate differentials.

3. Misconception #3: swap-free accounts are available on all assets

   Not all trading instruments are offered on a swap-free basis. Brokers may restrict these accounts to major forex pairs, excluding exotic pairs, indices or cryptocurrencies, as these assets can have a high interest-rate differential that makes it less profitable for the broker to offer them without a swap fee.

Final thoughts

Forex brokers with swap-free accounts open up opportunities for Muslim traders and long-term position holders alike. Eliminating rollover fees can positively impact your profitability. However, beware of alternative fees that some brokers charge. Choose a broker that is regulated and operates with transparency.