Islamic (swap-free) accounts: what they really cost
Verdict
- Short answer for Saudi and UAE traders: Capital.com is #1 for Islamic accounts — its help centre lists Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain, Oman, Jordan, Egypt, Lebanon, Tunisia, Algeria and Morocco as eligible for its swap-free account. Pepperstone offers its swap-free account only to residents of eligible countries — in the GCC, Kuwait, Qatar, Bahrain and Oman, not Saudi Arabia or the UAE.
- A swap-free account removes overnight interest, but most brokers replace it with an administration fee charged per lot per night after a grace period.
- Published fee-free periods in our data run from none at all (IC Markets charges oil and gas from the first night) to 40 nights (Tickmill on gold and some JPY/CHF pairs); five days is the most common, and that window is the single biggest cost difference between offers.
- Several brokers exclude exotic pairs, gold or indices from swap-free terms entirely, which matters because gold is one of the most commonly held overnight instruments in the Gulf.
- Eligibility is often restricted by country of residence rather than offered to anyone who asks.
- Some brokers publish no admin-fee schedule at all, so the true cost is not knowable before opening the account.
Swap-free accounts exist so traders who avoid riba can hold positions overnight. The religious question is settled by your own scholar; the commercial question is what the broker charges instead of swap, and that is where offers differ enormously.
Admin fee instead of swap: what each broker publishes
Most brokers replace the overnight swap with an administration fee per lot, charged once a fee-free period runs out. IC Markets, Tickmill and Pepperstone publish actual amounts (Pepperstone lists USD 100 per standard lot on FX and precious metals after 5 days); FP Markets and eToro publish the fee-free period but not the fee; FxPro and Octa say they charge nothing extra. Every row below comes from the broker's own swap-free page.
| Broker | Fee-free period | What you pay instead of swap | Conditions |
|---|---|---|---|
| Pepperstone | 5 days | An admin charge of USD 100 per standard lot on FX and precious metals (published table, effective 19 June 2023) | Residents of 23 listed countries (not Saudi Arabia or the UAE); AUD$200 minimum opening balance |
| Capital.com | Not published | Admin fee not published | Residents of 12 listed Gulf and MENA countries; switch through support |
| IC Markets | Up to 5 days; none on oil and gas; 2 days on USD/JPY and GBP/JPY | A flat fee per lot, e.g. $11 on EUR/USD and $9 on GBP/USD | Raw Spread and Standard accounts |
| Tickmill | Varies by instrument, e.g. 3 nights on EUR/CZK and 40 nights on gold and JPY/CHF pairs (Classic) | A fixed USD handling fee per lot | Classic or Raw accounts; crypto longs pay 10% a year after 5 days |
| FP Markets | 5 days on selected instruments | Admin fee (amount not published) | US$100 minimum; converted by email request |
| eToro | 7 days | A daily admin fee on CFDs that varies by instrument; none on real stocks, ETFs or crypto | $1,000 minimum deposit |
| Vantage | Not published | Admin fee on overnight positions (amount not published) | $50 minimum deposit |
| FxPro | No limit stated | No admin fee listed; swap-free on all instruments | Subject to a fair-usage review and can be revoked |
| Octa | Not applicable | No swaps on any account; no fee published | Swap-free by default |
| ActivTrades | Not published | Page states zero rollover interest and no extra rollover commission | Restrictions may apply; contact the Middle East desk first |
| XM, HFM, OANDA, Exness | Not published | Not published (HFM applies carry charges to some instruments after a set number of days) | Swap-free offered; terms not on public pages |
| CMC Markets | Not applicable | No Islamic account offered | Not applicable |
- IC Markets swap-free terms
- Tickmill Islamic account
- Pepperstone swap-free account
- eToro Islamic account
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What replaces the swap
Brokers use one of three approaches, and the difference is worth more than any spread comparison. Some charge nothing for a grace period and then a fixed administration fee per lot per night. Some widen spreads on swap-free accounts instead. A few publish no fee schedule at all, which means the cost only becomes visible on your statement.
- Grace period then a per-lot, per-night administration fee — the most common structure.
- Wider spreads in place of an explicit fee, which is harder to compare directly.
- No published schedule, in which case the cost cannot be verified in advance.
The grace period is the real variable
If you close positions the same day, swap-free status costs you nothing under any structure. The cost appears when you hold. A broker offering 40 fee-free nights on gold is materially cheaper for a gold swing trader than one charging from the sixth night, even if every other published number is identical.
Excluded instruments
Swap-free terms often do not extend to every instrument. Exotic currency pairs, metals and index CFDs are the usual exclusions. This matters most for gold, which is both widely traded in the Gulf and frequently held across several sessions — an account that excludes gold from swap-free terms may not serve the purpose you opened it for.
Eligibility
Most brokers restrict swap-free accounts to residents of specific countries rather than offering them on request, and some require the account to be converted by support rather than selected at signup. A few ask for documentation. Check both the country list and the conversion process before funding.
Which broker offers an Islamic account to Saudi Arabia and UAE residents?
Capital.com: its help centre lists Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain, Oman, Jordan, Egypt, Lebanon, Tunisia, Algeria and Morocco as eligible for its swap-free account, and switching requires closing open trades and emailing support@capital.com. Pepperstone offers its swap-free account only to residents of eligible countries — in the GCC, Kuwait, Qatar, Bahrain and Oman, not Saudi Arabia or the UAE. Capital.com does not publish an admin fee or grace period for the account, so ask for both in writing before you hold positions for several nights.
Are Islamic forex accounts really interest-free?
They remove overnight swap interest, which is the point. Most brokers replace it with an administration fee charged per lot per night after a grace period, so the account is interest-free but not usually cost-free.
What is the grace period on a swap-free account?
The number of nights you can hold a position before administration fees begin. In our data it runs from none (IC Markets on oil and gas) to 40 nights (Tickmill on gold and some JPY/CHF pairs), with five days the most common, and it is the largest practical cost difference between swap-free offers.
Can anyone open an Islamic account?
Usually not. Most brokers restrict swap-free accounts to residents of specified countries, and several require you to request conversion through support rather than selecting it at signup.
Which instruments are excluded from swap-free?
Exotic currency pairs, metals and index CFDs are commonly excluded. Check gold specifically if you trade it, since it is both widely held overnight and one of the more frequently excluded instruments.