A swap-free account does not apply the usual overnight interest adjustment to positions held past the daily rollover. It is offered mainly to clients whose religious beliefs prohibit paying or receiving interest, and is often called an Islamic account. Swap-free does not mean cost-free: brokers usually replace the swap with an administration fee on longer holds, and conditions apply to which instruments are covered.
Key takeaways
- Normally, positions held overnight are charged or credited a swap based on interest rate differences.
- A swap-free account removes that adjustment.
- Many brokers charge a flat administration fee after a number of days instead.
- Coverage is usually limited to certain instruments, often excluding exotic pairs and crypto.
- All other costs — spread, commission, slippage — are unchanged.
| What it changes | No overnight swap adjustment |
|---|---|
| What usually replaces it | An administration fee on longer holds |
| Who it is for | Clients who cannot pay or receive interest for religious reasons |
| Instruments covered | Usually a defined list |
| How to get one | Apply; approval is at the broker’s discretion |
| What stays the same | Spread, commission, margin, leverage |
What the swap is, and what removing it means
Every currency pair involves borrowing one currency and holding another, so a position held past the daily rollover attracts an interest adjustment. That is the swap On a swap-free account that adjustment is not applied.
The conditions brokers usually apply
| Condition | Typical practice | Question to ask |
|---|---|---|
| Administration fee | A flat charge per lot after a set number of days | From which day, and how much per lot? |
| Instrument coverage | Major pairs and metals; exotics and crypto often excluded | Which symbols are covered? |
| Holding period | Positions open for weeks may be treated differently | Is there a limit? |
| Eligibility | Documentation or a declaration may be required | What is needed to apply? |
| Abuse policy | Accounts used mainly to avoid swap costs can be reverted | What behaviour ends the status? |
The reason for the administration fee is that the broker still funds the position. Removing the swap moves the cost rather than deleting it, so compare the fee with the swap you would otherwise pay before assuming the account is cheaper. For short-term trading, neither applies: a position opened and closed the same day never reaches the rollover.
Who it is for
The account exists so that clients whose beliefs prohibit interest can trade without paying or receiving it. Brokers generally offer it on request and may ask for a declaration. Whether a particular product or account structure meets a religious requirement is a question for a qualified religious authority, not for a broker or for this guide.
| Feature | Standard | Swap-free |
|---|---|---|
| Overnight swap | Charged or credited | Not applied |
| Administration fee | None | Usually after a set number of days |
| Spread and commission | Unchanged | Unchanged |
| Leverage and margin | Unchanged | Unchanged |
| Instruments | Full range | Usually a defined list |
What to check on your own account
Open the symbol specification and look at the swap fields, as described in where to find swap rates on MT5. On a swap-free account the fields may still show values that are not applied, so the reliable test is the Swap column in the Trade tab after a position has been held overnight. Any administration fee usually appears as a separate entry in the history: see how to read your MT5 trade history.
Whatever the account type, holding cost is only one part of the picture. Position size and stop placement decide how much a trade can lose; see position sizing.
Common mistakes to avoid
Assuming swap-free means cost-free. An administration fee usually replaces the swap.
Assuming every symbol is covered. Coverage lists are usually limited.
Holding much longer because there is no swap. The market risk of a long hold is unchanged.
Losing the status. Brokers can revert accounts used mainly to avoid costs.
Risk warning. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, the products offered on this website may not be suitable for all investors because of the risk of losing all of your invested capital. You should never invest money that you cannot afford to lose, and never trade with borrowed money.
Frequently asked questions
Is a swap-free account really free of costs?
No. Spreads, commissions and slippage still apply, and brokers usually charge a flat administration fee per lot after a position has been held for a set number of days.
Which instruments are covered by a swap-free account?
Usually a defined list, most often major currency pairs and metals. Exotic pairs, some indices and cryptocurrencies are frequently excluded. Check the list that applies to your account.
How do I get a swap-free account?
You apply to the broker, which may ask for a declaration or documentation. Approval is at the broker’s discretion and can be withdrawn if the account is used mainly to avoid swap charges.
Do swap-free accounts have wider spreads?
Not necessarily. Where they differ, the difference is usually an administration fee rather than a wider spread, but the terms vary by broker, so compare the published conditions.