Glossary
Swap-free (Islamic) account
Definition
A brokerage account that does not charge or pay overnight swap interest, making it usable by Muslims under shariah.
On standard forex and CFD accounts, holding a position past the daily rollover triggers a swap fee calculated from the interest rate differential between the two currencies — riba.
A true swap-free account removes this charge entirely. Some brokers replace it with a flat administration fee that is genuinely a service charge, which most scholars accept. Others quietly recalculate the same interest under a different name, which is impermissible.