Decision guide

Islamic account vs standard 'swap-free' promotion — what's the difference?

Most major brokers advertise 'swap-free' or 'Islamic' accounts. The marketing language is identical — the structure underneath is not. Choosing the wrong one means paying interest under a different label.

Permissible

Genuine Islamic account

A permanent shariah-supervised account with no overnight interest under any name.

  • Audited by a named shariah board
  • No swap, no admin fee tied to the interest rate differential
  • Available on all instruments the broker covers, not just majors
  • No time limit — works the same on day 1 and day 365
Impermissible

Standard 'swap-free' promotion

A marketing offer that removes the visible swap but reintroduces it as a daily 'administration fee'.

  • Free swaps for the first 1–7 days, then a daily fee kicks in
  • Administration fee is calculated from the interest rate differential — riba relabelled
  • Often restricted to a subset of instruments (majors only)
  • Account agreement still references interest-based credit terms

Our recommendation

Only use accounts marketed and structured as a permanent Islamic account, with explicit shariah board oversight and no time-limited promo terms. If the broker can't show you the shariah certification, treat the 'swap-free' label as marketing, not compliance.

Apply this in practice

Open a swap-free Islamic account with our partner broker — structured the way this comparison recommends.

Underlying rulings

Key terms