Islamic Forex Accounts: How Swap-Free and Holding Fees Work
Islamic (swap‑free) accounts are trading accounts that do not charge overnight swaps (a swap is interest charged for carrying a position overnight). They exist to comply with Sharia by eliminating riba (usury—paying or receiving interest). In this guide, we compare global brokers that remove swaps and, where applicable, replace them with a fixed holding fee (an administrative overnight fee—not interest). We also use the term CFD—“contract for difference,” which lets you trade price moves without owning the underlying asset—and explain each term as it appears.
Goal of this guide: help you choose a reliable global broker with an Islamic account by comparing swap‑free policies, any holding‑fee schedules and amounts, spreads, platforms, crypto‑CFD availability, and reputation in user reviews.
Summary table of Islamic (swap‑free) accounts
| 🏦 Broker | 🕌 Policy | 💰 Deposit | 📊 Spreads | 🖥️ Platforms | ⚖️ Licenses | ⭐ Trustpilot |
|---|---|---|---|---|---|---|
| Exness GLOBAL | No swaps; no extra fees | $10 | from ~0.3 pips | MT4, MT5, web terminal | FCA, CySEC, FSCA | ⭐ 4.8/5 |
| IC Markets GLOBAL | No swaps; fixed holding fee | $200 | Raw from 0.0 pips + commission | MT4, MT5, cTrader, TradingView | ASIC, CySEC, FSA | ⭐ 4.8/5 |
| FP Markets GLOBAL | Swaps replaced by administrative fee | $100 | Raw from 0.0 pips + commission | MT4, MT5, cTrader, TradingView | ASIC, CySEC, FSCA | ⭐ 4.9/5 |
| Pepperstone GLOBAL | 5 days without swaps; then administrative fee | $0 (recommended from $200) | Standard: ~1.0–1.2 pips | MT4, MT5, cTrader, TradingView | FCA, ASIC, DFSA | ⭐ 4.5/5 |
| AvaTrade GLOBAL | Islamic option; special terms may apply | $100 | ~0.9 pips on EUR/USD | MT4, MT5, WebTrader, AvaOptions | Central Bank of Ireland, CySEC, FSCA | ⭐ 4.7/5 |
Note: detailed review counts appear in the broker cards below.
Pip: the smallest price increment of a currency pair; the spread is the difference between ask and bid, quoted in pips.
Account types: Raw—liquidity‑provider spreads plus a per‑lot commission; Standard—a wider spread with no separate commission.
ECN: an electronic liquidity network with direct market access; typically delivers low spreads and fast execution.
Platforms: MT4/MT5—MetaTrader; cTrader—ECN terminal; TradingView—web platform with charts and broker connectivity.
CFD: a contract for difference (you trade price changes without owning the asset); always consider leverage and risk.
Trustpilot: a user‑review aggregator; look at the score, the volume and recency of reviews, and how the company responds.
How to open an Islamic (swap‑free) account
- Register a client area with your chosen broker.
- Select an account type and enable the Islamic / Swap‑Free option (or ask support to enable it for you).
- Complete KYC (“Know Your Customer”): upload your passport/ID and proof of address.
- Provide proof of faith if the broker requests it.
- Fund the account and confirm in the instrument specs that swap‑free mode is active and any holding‑fee lines are shown.
- Documents: passport/ID, proof of address; sometimes a letter from your community.
- Funding: card, e‑wallet, or bank transfer (options vary by jurisdiction).
- Specifications: check the entries for swap‑free status, holding fee, grace periods, and available instruments.
How to compare costs: holding fee vs swap
| Parameter | Notation | Example |
|---|---|---|
| Position size | L lot: 100,000 units of the base currency; mini/micro lots exist | 1.00 |
| Days held | D | 3 |
| Holding fee per night | HF fixed amount per 1 lot/instrument | $7 |
| Total on Islamic account | Costislamic | HF × D → $21 |
| Total on regular account | Costswap | Swap × D → depends on the rate |
| Comparison | Δ | HF×D − Swap×D |
Pitfalls and limitations
❗ What to consider up front
- The holding fee can be higher or lower than a classic swap—this depends on the instrument and holding horizon.
- Some brokers offer a grace period (several days with no fee), after which a fixed fee applies.
- A broker may revoke swap‑free status if they detect misuse (for example, arbitrage done solely to avoid interest).
- The instrument list on an Islamic account can differ from standard accounts—check the specifications.
- Your servicing jurisdiction affects leverage, market access, and the exact Islamic‑option terms.
Top global brokers with Islamic accounts (detailed profiles)
Exness — flexible swap‑free with no extra fees
Key points: no swaps and no additional interest on most instruments in Islamic mode, a low entry threshold, a wide market range (including crypto‑CFDs), and 24/7 support.
- Platforms: MT4, MT5, web terminal.
- Spreads: from ~0.3 pips on liquid pairs.
- Regulation: FCA, CySEC, FSCA, plus other entities.
4.8/5 ~22,000 reviews 
4.7/5 IC Markets — ECN infrastructure + holding fee
Key points: swaps are removed and replaced by a fixed holding fee; ultra‑low spreads on Raw accounts, a broad platform stack (MT4/MT5, cTrader, TradingView), and strong liquidity.
- Spreads: Raw from 0.0 pips + commission; Standard ~0.6–1.0 pips.
- Regulation: ASIC, CySEC, FSA.
- Support: 24/7, multilingual.
4.8/5 ~47,000 reviews 4.6/5 FP Markets — transparent swap replacement with administrative fee
Key points: instead of a swap, a fixed administrative fee is charged per schedule; MT4/MT5/cTrader/TradingView are available, as are crypto‑CFDs.
- Account types: Standard (≈1.0 pips, no commission) and Raw (0.0 pips + commission).
- Regulation: ASIC, CySEC, FSCA, plus regional licenses.
- Education and analytics: extensive materials for traders.
4.9/5 ~9,000 reviews 4.5/5 Pepperstone — 5‑day grace period
Key points: the first 5 days of holding a position are swap‑free; after that, a fixed administrative fee applies instead of interest. Platforms: MT4/MT5, cTrader, and TradingView.
- Spreads on Standard: typically ~1.0–1.2 pips on EUR/USD.
- Regulation: FCA, ASIC, DFSA.
- Minimum deposit: none formally (recommendation from ≈$200).
4.5/5 ~3,000 reviews 4.4/5 AvaTrade — typical fixed spreads and an Islamic option
Key points: the Islamic option is available on major account types; for very long holds on certain positions, special terms may apply. Platforms: MT4/MT5, WebTrader, AvaOptions; a broad CFD lineup.
- Spreads: typically ~0.8–0.9 pips on EUR/USD.
- Regulation: Central Bank of Ireland, CySEC, FSCA, and others.
- Education: a well‑developed academy and webinars.
4.7/5 ~10,000 reviews 4.6/5 How to choose an Islamic Forex account
- Swap‑free wording: a complete removal of swaps or a fixed holding fee.
- Grace period: whether days without a holding fee exist—and how many.
- Instruments: whether the markets you need (metals, indices, crypto‑CFDs) are available specifically on the Islamic account.
- Platforms: MT4/MT5, cTrader, TradingView—verify features and any algos you rely on.
- Jurisdiction: different entities mean different leverage, asset lists, and requirements.
- Reputation: look beyond the Trustpilot score to recent reviews and how the company responds.
Matchmaking: trading style → suitable broker
Scalping/high‑frequency activity
You need minimal costs and fast infrastructure; the arithmetic of “spread + commission + holding fee” matters most.
- Raw accounts with 0.0 pips + commission; ECN platforms (cTrader) and TradingView integration.
- Candidates: IC Markets, FP Markets, Pepperstone (factor in the holding fee).
Swing trading (a few days)
Overnight holds are common; grace periods and the size of the holding fee by asset are critical.
- Look for a broker with zero swaps and a transparent fixed fee—or none at all.
- Candidates: Exness (often no extra fees), IC Markets/FP Markets (fixed fee), Pepperstone (grace days).
Long‑term/position trades
Focus on all‑in cost of carry per week or month, plus execution quality around news.
- Compare: holding fee × days held + entry/exit (spread/commission).
- Candidates: Exness (often no extra fees), FP Markets/IC Markets (fixed fee per schedule).
Regulatory checklist and client protections
- Entity license: confirm which regulator supervises the entity that will serve you (FCA/ASIC/CySEC/FSCA, etc.).
- Segregation of funds: client money is held separately from company funds.
- Negative Balance Protection (NBP): protection against going below zero for retail clients.
- Swap‑free policy: a document describing holding‑fee terms, grace periods, and any instrument restrictions.
- Customer support: availability in your language and response times.
✅ Conclusion
An Islamic account is a Sharia‑compliant way to trade: swaps (interest) are removed, and some providers apply a fixed holding fee instead. Your decision comes down to three things: the real cost of carry over your horizon, the reliability of the regulator, and the platforms/instruments you need.
For short holds, prioritize infrastructure and spreads; for swing and long‑term positions, focus on holding‑fee math and any grace periods. Reputation (including Trustpilot) and responsive support help reduce servicing risks.
Glossary: key terms (all in one place)
Riba (riba)
- Prohibited interest (usury). In trading, this shows up as interest on overnight positions (swaps).
- Islamic accounts eliminate riba: interest is neither charged nor paid.
Swap and holding fee
- Swap: interest charged for carrying a trade to the next day.
- Holding fee: a fixed overnight fee charged instead of interest; the amount is defined in the specifications.
CFD, lot, pip
- CFD: a contract for difference without owning the asset; you can trade both long and short.
- Lot: a standard trade size (typically 100,000 units of the base currency; mini/micro lots exist).
- Pip: the minimum price increment; spreads and moves are often measured in pips.
ECN, Raw/Standard
- ECN: an electronic liquidity network offering fast quotes and execution via direct market access.
- Raw: narrow “raw” spreads plus a commission; Standard: a wider spread with no separate commission.
Jurisdiction, KYC, NBP
- Jurisdiction: the legal entity and regulator that determine available markets, leverage, and terms.
- KYC: identity and address verification (Know Your Customer).
- NBP: negative balance protection for retail clients.