There are a lot of brokers offering swap-free or Islamic accounts. But what about brokers regulated in Australia? Where to find ASIC brokers that offer swap-free?
Among the various account types brokers offered for traders, swap-free account features a unique benefit as it's initially provided to support Muslim traders, but later attracts many other traders to relieve them from swap rates. But what is actually a swap-free account? Which broker to choose if you're keen to trade in an Australian broker?
In forex trading, swap (also known as rollover) refers to the net interest return on a currency position held overnight by a trader. A trader might be subjected to a swap if they keep their positions open after 5 p.m EST, which most brokers usually consider overnight. Swap doesn't always mean bad news. I fact, there are positive and negative rollovers, so traders can still earn interests from swap rates depending on their chosen currency pair and type of order. Despite that, not all traders fancy this feature, especially Muslim traders who avoid all kinds of interests in their transactions due to Sharia Law.
What You Should Know About Swap Free Account
As the name suggests, this trading account does not generate swaps or interests. This also explains why a swap-free account is ideal as an Islamic account. A swap-free account generates revenue only through foreign exchange. Sure, this account won't let you earn profit from a positive rollover, but it also eliminates the risk of a negative swap. In general, advantages of using a swap-free account include:
1. Great for Muslims, Beneficial for Other Traders
Due to Islamic law, Muslims are advised not to engage in a business or contract that includes charging and receiving interest. However, Muslims are allowed to engage in currency exchange as a regular business, as long as it doesn't involve interest. A swap is considered forbidden by their law since it involved interest and charging. That's why many brokers specifically create swap-free accounts for Muslim traders.
In practice, Muslims are not the only traders that can benefit from swap-free accounts. Other traders would deliberately create Islamic accounts despite having different beliefs. The reason is that they don't want to be subjected to negative swaps. Sadly, some broker only allows Muslim traders to apply for a swap-free account. They will administer a specialized verification procedure to make sure no regular traders apply for this account.
2. Time Restriction
Although the main idea of a swap-free account is to help traders avoid rollover interest, keep in mind that some brokers may have time restrictions regarding your floating positions. For example, some brokers only allow a floating position for up to 3 days, while others allow you to open your positions for up to a week. This might be a deal-breaker for long-term traders.
3. Additional Fee
Some of you might wonder how do brokers compensate for the negative rates charged to overnight positions in an Islamic account. Brokers offering swap-free accounts may charge a commission fee, in which some of them may assign you a fixed commission that isn't affected by the changes in interest rates. If this is the case, you need to make sure that this additional fee is still affordable and doesn't influence your profitability.
See Also: Forex Brokers Offering Free Commissions
ASIC Brokers With Swap Free Accounts
Now that you understand the basics of Islamic accounts, it's time to find which brokers offered swap-free trading. In Australia, there is a lot of swap-free brokers that cater to Muslim traders. These brokers have been regulated by the ASIC and are known to offer great services for their clients.
1. IC Markets
IC Market is an Australian broker that has been regulated by ASIC. The company offers an Islamic account for Muslim Traders in Australia. This account gives traders access to more than 90 instruments to trade with. IC Markets also lets clients enjoy spreads as low as 0.0 pips with no additional cost in place of swaps. This swap-free account is available on both raw spread and standard accounts regardless of the platforms (MT4, MT5, or cTrader).
This broker is known for offering trading solutions for active day traders, scalpers, as well as new traders. This is why they offer raw spreads starting from 0.0 pips. To make sure there is no slippage for their clients, IC Market makes sure to execute orders under 40ms using low latency fiber optic and Equinix NY4 server as well as low latency collocated VPS.
Despite all the complex features they provide, IC Markets is very beginner-friendly. If you are a new trader who has just started trading, this broker will equip you with a demo account where you can learn how to trade without actually losing money.
IC Markets is an online forex broker operating under the company of International Capital Markets Pty Ltd. Traders under the Australian jurisdiction are provided with the trading service of IC Markets AU that is headquartered in Australia and licensed by the Australian Securities and Investments Commission (ASIC).
On the other hand, non-Australian traders who open an account in this broker are registered under IC Markets SEY that is based in Seychelles, and regulated under the Seychelles Financial Services Authority (SFSA). The dual operation is a result of the relatively new rules from ASIC that prohibit their regulated broker to offer trading services outside Australia.
Classified as an ECN broker, IC Markets provide clients with MetaTrader 4, MetaTrader 5, cTrader as platform trading options. This broker also follows market trends to include Cryptocurrencies as one of its products, enriching its already wide selection of trading assets that include Currencies, Indices, Metals, Energies, Softs, Stocks, as well as Bonds.
The minimum deposit in IC Markets is in the middle range compared to other ASIC-regulated brokers, as it reaches $200 for every client. Market analysis materials are also prepared regularly for trading insights on IC Markets's official website, proving their competence to serve their traders with important contents created by market experts that work specifically for them.
For payment methods, IC Markets allows funding and withdrawal via wire transfer, credit card, PayPal, Skrill, Neteller, FasaPay, UnionPay, as well as Bitcoin via BitPay. The more interesting aspect from this broker is its multi-base currencies that include USD, AUD, EUR, GBP, SGD, NZD, JPY, CHF, HKD, and CAD.
As the trading technology in IC Markets is highly equipped with co-located servers and extremely low latency (especially on cTrader), the broker is widely known for its capability in hosting traders with the special needs for high-frequency trading as well as scalping.
To sum up, IC Markets is a fitting destination for active traders looking for a well-regulated broker. IC Markets is also flexible in terms of base currency and payment methods, signaling their commitment to welcome traders beyond their home country. As of late 2019, IC Markets provided their website in 18 international languages including English, Korean, Indonesian, French, Spanish, Italian, Malay, German, and Chinese.
As one of the best brokers offering swap-free accounts, Pepperstone makes sure their traders can take advantage of their cutting-edge trading technology and deep liquidity. Their swap-free account feature includes spreads as low as 1.2 pips on average, with a minimum trade size of 0.01 lots and a maximum of 100 lots. The best part is they offer a $0 commission fee for all traders. Pepperstone also allows scalping, hedging, and EAs with this account.
This ASIC-regulated broker is best known for its social trading service, where you can follow and copy trades from popular traders using third-party services while learning how to improve your own trading. They partner with social trading platforms such as Myfxbook, MetaTrader Signals, and DupliTrade. Pepperstone also makes sure to give the fastest trading executions with a 99.9% fill rate and no dealing desk intervention.
FXCM (Forex Capital Markets) is a brand name of a retail broker for trading on the financial market, especially the foreign exchange market. The broker was founded in 1999 and was originally headquartered in the United States. After a series of lawsuits from customers and case settlements by the US regulator (CFTC), FXCM moved from the US and became a UK-based broker, authorized and regulated by the Financial Conduct Authority (registration number 217689).
During 20 years of experience in the forex industry, there are about 2 million traders choosing Alpari as the broker to trade with. Alpari has a head office on the 5th Floor, 355 NEX Tower, Rue du Savoir, Cybercity, Ebene 72201, Mauritius. The company is regulated in St.Vincent and the Grenadines (the licensed number is 20389 IBC 2012), IFSC Belize (the licensed number is IFSC/60/301/TS/18).
This broker uses MetaTrader 4 and MetaTrader 5, both of which offer great flexibility, charting tools, and an easy-to-use interface. For higher volumes, the company also provides the Alpari International Direct platform which offers enhanced features for advanced investors.
The company offers an array of live trading accounts to choose from. Each one offers different opportunities and allows traders to trade in different ways. All of their accounts use USD, EUR, GBP, and NGN as the options for base currency. But, NGN accounts are only available to clients in Nigeria.
Each kind of account has a different spread. At Standard Account provides spreads from 1.2, the spread of Micro Accounts is from 1.7, and ECN Account and Pro Account have spread from 0.4. A trader can open an account in Alpari and opt to trade currencies (FX majors, FX minors, FX exotics, and FX RUB), spot metals, spot commodities, stock trading, spot indices, and crypto-currencies.
A trader can find out what the minimum spreads, pip value, swaps, and trading session times are for each instrument before start trading. If the trader is still not sure where to begin, they can found the answer in a guide provided by Alpari on their official website.
Their guide to trading is designed to break down the terminologies and answer the most frequently asked questions by traders. A trader will be trading more quickly and with more confidence in no time.
Besides, Alpari offers PAMM (Percent Allocation Management Module) which allows a trader to choose their desirable Account Manager. This allows traders to have a chance in gaining more profit without advanced knowledge of forex trading. These managers usually have a wealth of experience in the markets, with tried-and-tested strategic trading decisions.
This program also gives opportunities for well-seasoned traders to become Strategy Managers. As Strategy Managers, they can use their trading experience and earn more from profitable trades. They have privileged access to Alpari's advanced programs and all the tools they need to cultivate a massive following of investors. The investors then will help Strategy Managers to earn more through commission fees up to 40%.
Their website also provides various Forex Trading Strategies. Because to increase the chance to profit, it's important to know as much about the markets and the trading strategies behind them as possible. Alpari believes that strategies provide traders with a roadmap for trading, reducing panicked decision-making that can occur in the heat of the moment. In other words, trading in Alpari allows traders to learn about any kind of forex trading strategy.
For educational purposes, the company provides Trading Webinars, one of the variants of technology that allows users to hold seminars, talk shows, and discussions online, without having to communicate face to face.
Alpari creates a very convenient funding and withdrawal experience for each trader. A trader can transfer with any kind of methods, such as e-payment (example: FasaPay, Local Transfer, TC Payment, etc), credit cards (Visa, Mastercard, and Maestro), E-Wallet (Neteller, Skrill, VLOAD, TC Pay Wallet, WebMoney, Perfectmoney, Bitcoin), and bank transfer. If there's been no trading activity on the trader account for at least 6 months, an inactivity fee of 5 EUR/USD/GBP will be applied.
All Back office transfers are processed during standard business hours, 03:00-19:00 GMT+2 (GMT+3 during DST), Monday-Friday. If traders still feel confused, they can contact Alpari's team by any method, such as Live Chat, Telegram, or email.
Another Australian broker offering swap-free accounts is AvaTrade. Their Islamic trading account allows you to access the CFD market 24 hours a day with a wide variety of instruments to trade such as forex, commodities, bonds, ETFs, and many more. Creating an Islamic account in AvaTrade is relatively easy; you only need to verify your account by sending relevant documents. Once you have funded your account, you can apply for an Islamic account that operates under Sharia Law. However, keep in mind that the AvaTrade Islamic account doesn't let you trade with cryptocurrency.
AvaTrade supports mobile traders through their AvaTradeGo, an app that allows you to monitor the markets anywhere, anytime. This app lets you create your own watchlists and view live prices and charts from over 1,000 instruments. This award-winning app gives you a smooth trading experience with a sophisticated dashboard and complete management tools, clear charts, as well as other unique features.
Avatrade can be called one of the most well-rounded brokers that support almost all trading styles. Not only allowing hedging, scalping, and expert advisor (EA), Avatrade also completes their service with One-cancels-the-other order (OCO) and AutoTrading in many variants of automated trading systems.
AvaTrade was founded in 2006, with the primary mission to empower people to trade with confidence. If traders are still confused about what is the best broker for supporting trader's trading, AvaTrade perchance option of traders, because it has been evaluated and honored for some of the industry's most remarkable financial and technological achievements that it provided to clients.
In 2019, the Dublin-based broker got achievement from Daytrading.com as The Best Forex Broker 2019. Besides, the company is honored as Best Forex Broker, Best Bitcoin CFD Trading Provider of the year, and Best Affiliation Programme in the European area.
Furthermore, for traders who have high mobility, AvaTrade provides many platforms that allow traders to trade using laptops and mobile phones. The availability of the free Autochartist tool in the platforms is the best support for both novice and experienced traders because it makes it easier for them to find trading opportunities without the need to glance at charts all day.
The Autochartist free signal is provided in Gold Account, Platinum Account, and AVA Select. By opening an account in AvaTrade, traders don't have to pay for getting a full Autochartist service. Autochartist itself is a market scanner tool that can detect trading signals from various technical perspectives.
Traders can access AvaTrade in many variants of platforms, such as AvaTradeGO, MetaTrader 4, MetaTrader 5, Automated Trading, Mac Trading, Web Trading, Mobile Trading, and AvaOptions.
In terms of regulation, AvaTrade is regarded as a superior broker because it has a lot of credible licenses. That way, even with deposits of up to ten thousand dollars, security can be guaranteed. Applying the Segregated Account system, AvaTrade is regulated by the Central Bank of Ireland (No.C53877), ASIC Australia (No.406684), JFSA Japan (No.1662), and South Africa (FSP 45984).
Can traders lose more than their deposit abruptly in the event of high volatility? AvaTrade explicitly answers no, as traders have negative balance protection.
With a minimum deposit of USD100, AvaTrade offers various leverage depending on the trading instruments; whether it is forex (starts from 30:1), indices (starts from 20:1), commodities (starts from 5:1), ETFs (starts from 5:1), or cryptocurrencies (starts from 2:1).
AvaTrade has committed to a set of values in relation to customers. Therefore, the company provides the best trading experience, offering multilingual customer service and the most sophisticated and user-friendly trading platform.
New traders can also learn forex trading in the Education tab on AvaTrade's official website. Traders will find a wide collection of articles, video tutorials, and more tools that will assist them every step of the way. It is an important requirement as the forex market might be a bit overwhelming and even scary at times, so traders need to make sure that they are fully prepared to begin trading in the real account.
There are many types of account types provided by AvaTrade. There is also an Islamic Trading Account, which is uniquely provided for Muslim Traders. Islamic account type is similar to a regular one with one key difference; it is not subject to any special fees or interests (swap-free), which sits well with the finance principles of Sharia Law.
If traders have felt confident for forex trading, traders can choose AvaTrade as an ideal choice. The minimum deposit and various platforms offered to make it a suitable destination for even beginners who would like to try forex trading for the first time.
ThinkMarkets created an Islamic account in order to comply with Sharia law for their Muslim traders. You can make a request to open this account from their official website. Other account types they have are Standard account and ThinkZero account where you can benefit from 0 pips spread for forex trading. There are two kinds of trading platforms you can use in this broker, the MetaTrader series (MT4 and MT5) and their own platform called ThinkTrader.
As a multi-asset online brokerage, ThinkMarkets present a wide range of trading assets starting from Forex to Precious Metals, Commodities, Indices, Shares, and Cryptocurrencies. The Australian-based broker is established in 2010 and has since opened additional headquarters in London and throughout Asia-Pacific, Middle East, North Africa, Europe, and South America.
Along with its history operation, ThinkMarkets has been awarded and recognized many times in various aspects. Most recently, they won the Best Value Broker in Asia at the 2020 Global Forex Awards.
Average FX spreads for traders opening an account in ThinkMarkets start from 1.2 pips for the standard account, while ThinkZero provides the best trading experience with 0.1 pips spread. Still, traders may need to consider that ThinkZero applies commission from $3.5 per side for every 1000,000 trading volumes.
As a global online brokerage, ThinkMarkets operates under various financial regulatory institutions. For example, ThinkMarkets Australia is managed by TF Global Markets (Aust) Limited and is licensed by the Australian Financial Services as well as the Australian Securities and Investment Commission (ASIC) with ABN: 69158361561. On the other hand, ThinkMarkets UK is registered under the Financial Conduct Authority (FCA) by the company name of TF Global Markets (UK) Limited (number: 09042646).
ThinkMarkets consistently try to improve their trading environments with various advanced products. Automatic trading fans are provided with free VPS Hosting, while passionate traders who'd like to experience beyond MetaQuote platforms can try ThinkMarkets' proprietary platform called ThinkTrader.
The trading platform is available on 3 different interfaces specifically designed for Desktop, Tablet, and Mobile displays. Furthermore, customized tools such as 80+ drawing tools and indicators for technical analysis accessible even through Mobile screens would certainly provide a brand new trading on-the-go experience.
As far as market updates go, trading in ThinkMarkets would be accompanied with news from FX Wire Pro that is known for its strict policy toward upholding objective journalism and delivering critical, trusted information in real-time. Information segments covered by FX Wire Pro include Economic Commentary, Technical-level Reports, Currency and Commodities, Central Bank Bulletins, Energies and metals, together with Event-driven Flashes.
For payment methods, ThinkMarkets offer the gateway via bank transfer, credit card (Visa and MasterCard), Skrill, Neteller, POLi internet banking, BPay, and Bitcoin wallet.
All in all, it is safe to say that for a company that started business since 2010, ThinkMarkets is an accomplished broker in terms of legal standing and innovation in trading technology. As an additional safety assurance for traders, this broker underlines its commitment to provide a $1 million insurance protection program which is made possible by ThinkMarkets' insurance policy with Lloyd’s of London that protects clients' funds for up to $1 million in the unlikely event of insolvency.
5. Vantage FX
Vantage FX is another Australian broker offering a swap-free account for traders who are unable to receive or pay swaps due to religious beliefs. Their Islamic account provides Standard STP and Swap-Free RAW ECN accounts. Traders can gain access to more than 300 tradeable assets that include forex, gold, oil, and many more. This ASIC broker is best known for its Raw ECN account that gives traders the most cost-effective trading solution, only $3.00 commissions per standard lot, per side.
Oanda is an ASIC broker offering swap-free trading account not only for Muslim traders but also for all traders who do not wish to risk paying for overnight swaps on their trades. You can contact OANDA if you wish to switch from a standard account to a swap-free account. This broker provides access to more than 26 popular instruments with a minimum spread as low as 1.6 pips and a maximum trade size of 10 million. Although OANDA's swap-free account charges a $0 commission fee, keep in mind that there is an admin fee of $7 per lot.
OANDA also provides its clients with the best trading tools. Through their MetaTrader premium tools, traders can access over 15 indicators and nine Expert Advisors in a single download. They also equip their clients with technical analysis powered by AutoChartist to scan and analyze the intraday markets using automatic chart pattern recognition.
Traders looking for brokers with accurate precision, OANDA can be an option. That is because OANDA is a broker that provides quotes with 5-digit accuracy and active price movements that follow market developments. Order execution speed is also faster in this broker.
It provides benefits for novice traders, as they can trade with smaller volumes using the calculation system based on currency value, unlike other brokers adopting the lot system.
Founded in 1996, OANDA was built by Dr. Michael Stumm who is a lecturer in Computer Engineering at the University of Toronto, Canada, along with his colleague, Dr. Richard Olsen of The Olsen Ltd., which is one of the leading econometric research institutes. They have a head office in San Francisco, United States.
OANDA branch offices can be found everywhere. Some of these offices are located in the United Kingdom, Singapore, Japan, and Canada. With this number of offices spread, OANDA has increasingly attracted the attention of clients worldwide.
OANDA's company is registered under several well-known jurisdictions in financial trading. They are regulated by CFTC and NFA in the US, FCA in the UK, ASIC in Australia, and many others. Traders do not need to worry anymore about security when trading in OANDA. However, these advantages make trading rules at OANDA more stringent compared to other brokers.
For example, OANDA only allows maximum leverage of 1:50, because the rules in the US and Japan do not allow leverage above that. Besides, the registration procedure is more complex due to various additional requirements that are not submitted by other forex brokers. On top of that, hedging is not allowed in one trading account as the client must open an additional account to hedge.
Nevertheless, OANDA is known for being a leading broker with many advantages offered. OANDA faces increased market risk during periods of price volatility, such as economic and political news announcements. When market spreads increase or decrease, their pricing engine widens or narrows spreads accordingly. That way, traders can get the latest conditions from price movements in the market more quickly.
Prices move very fast in the market. Especially when news releases have a large impact on market volatility. This condition is often exploited by brokers to take advantage of clients with Requotes. However, traders do not need to worry about additional costs when trading with OANDA.
The company never withdraws Requotes so traders can get maximum profit. When traders are unavailable to monitor open positions, they can set take profit orders to lock in profits and Stop Loss orders to help protect against further losses.
As an experienced and well-known online forex broker, OANDA is committed to maintain an efficient trading environment that reduces latency and provid tools to help clients manage the degree of acceptable slippage.
With a fast & reliable trading platform by OANDA, clients' trades are executed in 0.012 seconds. This suits traders who choose brokers based on execution speed.
Because of this exceptional execution service, it is not surprising that OANDA won many awards, including the winner of the world's Best Retail FX Platform at the prestigious e-FX awards. The broker is also voted number 1 for Consistency of filling trades at quoted prices, Execution speed, and Reliability of platforms.
There is no minimum deposit or minimum balance required to open an OANDA account. Deposit and withdrawal can be done easily. OANDA provides a variety of payment method facilities, including Paypal, Wire Transfer, Credit Card, and Debit. Traders can adjust it to the region where they live.
OANDA provides more than 100 trading instruments, including 71 currency pairs, 16 indices, 8 commodities (Brent Crude Oil, Copper, Corn, Natural Gas, Soybeans, Sugar, etc.), 6 Bonds, and 23 Metals.
The fxTrade and MetaTrader platform are available at OANDA. These platforms can be used for Desktop and Mobile. Another plus is they have an OANDA Technical Analysis that exists in collaboration with a technical analysis provider called Autochartist.
With these platforms, clients can monitor price movements easier and automatically recognize patterns created on charts, as well as receive alerts when the awaited patterns appear. Access to this technology can be enjoyed free of charge.
In conclusion, OANDA is an ideal broker for traders in need of fast execution backed by many years of experience. The company is also a good alternative for those looking for a well-regulated broker with flexible trading and deposit conditions.
There are a lot of Australian brokers offering swap-free accounts. Most of them were created for Muslim traders who can't engage in a business or contract that includes charging and receiving interest. If you're a non-Muslim trader, OANDA may be your best choice as they allow all traders to try their swap-free account. But if you can prove your status as a Muslim trader, there are more broker choices at your disposal. The comparison table below may provide you a deeper insight into 3 of the abovementioned brokers:
|Feature||Go to IC Markets||Go to Pepperstone|
rated by 22094 users
rated by 1367 users
|Office(s)||Australia, Hong Kong and Viet Nam||Australia, UK, Kenya, The Bahamas, Cyprus, Dubai and Germany|
|Regulation|| ASIC ACN 123 289 109 |
Securities Commission of The Bahamas, SIA-F214
The Financial Commission, 25.11.2021
|ASIC, 414530 |
Capital Markets Authority of Kenya, 128
DFSA (Dubai), F004356
|Minimum Position||0.01 lot||0.01 lot|
|Payment||Bitcoin, BPAY, Credit/debit cards, FasaPay, Neteller, PayPal, Skrill, UnionPay and Wire transfer||Credit/debit cards, PayPal, UnionPay and Wire transfer|
|Official Website||Visit IC Markets||Visit Pepperstone|
|Forex Demo Account|
|US traders are welcome|
|Requires sending documents via postal mail|
|Overnight interest rates (swaps)|
|Trading by telephone|
|Interest rate on funds|
Trading Platforms and Complements
|Trading via API|
|One-Cancels-Other (OCO) orders|
|Gold & silver|
|Website Languages||Chinese, English, Japanese, Russian||Chinese, English, Russian|
|Traders Reviews|| |
Millard DonnellyMay 26 2022
I am honestly interested in IC Markets because of a lot of things, including:
- low spreads
- CFD trading
- multiple deposit and withdrawal methods
I also understand that IC Market has plenty of trading platforms ranging from MT4, MT5, and cTrader. Does any of their platform available for customization? If yes, does it utilize MLQ4 programming language or C# programming language?
Arletta BoltonMay 26 2022
Do IC Markets accept deposits and withdrawals from credit cards? I have actually visited their websites and I have already checked their payment methods and I have realized that they have a lot. I've seen that they offer bank transfers as well, but I am not sure if they can accept payment through credit card as it is the most convenient for me now.
AlannahMay 9 2022
I've just opened a live account with this broker. Very happy so far, tight spreads and great service. I am trading a standard account.
Love Cinninati LoveMay 9 2022
I've been with Pepperstone for one year. They've had their ups and downs but currently they are the best broker I use.
|Open Real Account||Open IC Markets Real Account||Open Pepperstone Real Account|