Islamic account is not only beneficial for Muslims but also for all traders who want to avoid the risk of an extra trading cost from swap rate.

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Have you ever come across the term "Swap-Free Account" while you were browsing forex brokers' specifications? Even though it is often referred to as a type of trading account, swap-free is not the same as the standard or micro accounts that offer minimum lot-based trading.

 

 

What is a Swap?

In forex trading, swap (or sometimes referred to as rollover) is the interest charged for overnight trading positions. The amount is calculated from the difference in interest between two currencies of a traded pair. So if you trade EUR/USD, the swap rate is the difference between the current interest rates of the Eurozone and the US.

Swap Rate

It is essential to know that the interest rate calculation can differ based on your order, in which buy and sell can have different outcomes of swap rate. That is why the swap system in forex trading is not always seen as interest, but also a burden in the trading cost if the difference is negative. And so, we will further discuss the mechanism of swap accounts in this article.

 

The Swap-free Account

A swap-free account is also known as an Islamic account because brokers initially made this account specifically for Muslims. The main reason is that Shariah law forbids its followers to earn interest from trading, and swap can be seen as a form of usury. Therefore, many Muslims use this type of account to avoid earning swaps. If a broker wants to expand its clients' demographics, developing this swap-free account can be very beneficial.

What is Swap-Free Account

Like its name, swap-free means free of swap and could eliminate the risks of earning swaps. But while this account was initially made for Muslims, many brokers also provide this facility for Non-Muslim traders. Why is that?

Apparently, many traders are interested in trading without the complexity of the swap system. They usually want to eliminate the risks of swaps that can arise overnight. This kind of trader usually doesn't use the Carry Trade strategy that purposefully searches for swap interests. Suppose they implement the swing strategy or trading in a 4-hour chart or higher, the risk of holding a position for more than a day is indeed relatively high, and they usually don't want to add swap rates as the trading cost that they need to calculate.

For example, if a trader buys GBP/USD but the swap that applies to that position has a negative value, he will be more interested in trading the signal than the swap. In that situation, swap becomes the extra commission that he needs to pay when he is already charged with the spread and/or commission.

As traders will still have to take into account the risk of negative swaps in their risk management, it is only normal for them to avoid the swap rate and trade in a swap-free account.

See also: Negative Balance in Forex Trading Account

What you need to know is that the swap-free label is not only limited to particular types of accounts from the broker. Regular trading such as standard, mini, micro, cent, and others can also be called swap-free if the broker adds swap-free features in each of the accounts. Here are the most common rules that brokers use in their swap-free accounts:

 

1. Islamic Traders Only

In this type of account, forex brokers specifically provide swap-free features for Muslims. To make sure of the trader's identity, brokers will add extra procedures and unique verification process. Some of the brokers that provide this kind of swap-free account are JustForex, IC Markets, Exness, FXOptimax, HotForex, and XM.

Islamic Traders

 

2. The Maximum Duration of Position

Sometimes, a swap-free account does not always free from the risk of rollover. The swap-free account has an expiration date in some brokers, which varies from three to more than ten days in total. FXPrimus is one of the brokers that use this limitation. This broker will set a commission for trading positions that are opened for more than a week. FxPro is also known for this kind of policy.

 

3. The Commission

Free from swap doesn't guarantee that traders will be free from the overnight commission. In reality, some brokers charge fees, perhaps as a swap rate replacement so they don't have to cover the negative rates. One of them is Alpari, which charges a fixed fee in a swap-free account. It is not mentioned as the difference in interest rates but rather the type of pair and the number of trading lots.

Swap Free Account Commission

On the other hand, Forex.com charges a $2.50 flat rate per Mini lot or $25 per standard lot for overnight positions. One certain thing that they have in common: the amount of commission charged is fixed and doesn't follow the dynamics of interest rates.

 

4. Special Trading Conditions

This policy is most commonly found among swap-free accounts provided by forex brokers. In this policy, swap-free is not only positioned as an extra feature in regular accounts but has become a special trading account with its own specifications.

If you register in a broker that provides a swap-free account as a particular type of account, then make sure you observe and pay attention to its terms and conditions, and make sure that they are not in contrast with your trading conditions. Some of the brokers that use this policy are Tickmill, GKFX Prime, and Grand Capital.

Other than the four rules stated above, many other policies can be applied by a forex broker specifically. For example, FXTM doesn't provide swap-free for exotic pair trading, ThinkMarkets does a particular monitoring method to prevent abuses (especially by scalpers), and many more. For more details and the complete list of forex brokers offering swap-free trading, visit this page .

Feature FXTM ThinkMarkets

Rating

General Rating 3.73/5
4.09/5
Trustpilot 3.7/5

rated by 675 users
4.3/5

rated by 79 users

General Information

Office(s) Belize, Cyprus, Mauritius, South Africa and United Kingdom Australia, Japan, South Africa and United Kingdom
Regulation CySEC 185/12
FCA (UK), 777911
FSC (Mauritius), C113012295
FSCA (South Africa), 46614
ASIC 424700
FCA (UK), 629628
FSA (Japan), 19/02/2021
FSCA (South Africa), FSP No 49835
Established 2011 2010
Minimum Deposit $10 $1
Maximum Leverage 1:2000 1:30
Spread Variable Variable
Commissions $2 $3.50
Minimum Position 0.01 lot 0.01 lot
Payment Bitcoin, Credit/debit cards, DIXIPAY, FasaPay, Neteller, Perfect Money, QIWI, Skrill, UnionPay, WebMoney, Wire transfer and Yandex.Money Bitcoin, BPAY, Credit/debit cards, Ethereum, Neteller, PayPal, Skrill and Tether (USDT)
Official Website Visit FXTM Visit ThinkMarkets

Account Variations

Segregated Account
Islamic Account
PAMM Account
Managed Account
LAMM Account
MAM Account
Forex Demo Account

Trading Requirements

Hedging
US traders are welcome
Requires sending documents via postal mail
Overnight interest rates (swaps)
Trading by telephone

Trading Features

Trading contests
Automated trading
Interest rate on funds
Bonus offers
Free education
Personal manager
Affiliate program

Trading Platforms and Complements

Mobile trading
Browser-based platform
Trading via API
One-click trading
Trailing stop
Pending orders
One-Cancels-Other (OCO) orders

Instruments Traded

Forex
CFD
Indexes
Spread betting
Gold & silver
Cryptocurrencies
Stocks
Binary options
Oil
Metals
Energies
Futures
ETF
Soft commodities
Options
Agriculture
Bonds

Customer Support

Website Languages Arabic, Chinese, Czech, English, French, Hindi, Indonesian, Italian, Korean, Malay, Persian, Polish, Russian, Spanish, Thai, Turkish, Urdu, Vietnamese Arabic, Chinese, Czech, English, German, Greek, Indonesian, Italian, Malay, Polish, Portuguese, Spanish, Thai, Vietnamese
Email Support
Call Support
Chat Support

Reviews

General Review Read FXTM Review Read ThinkMarkets Review
User Reviews

WAHYUDI

Jul 27 2020

I registered with fxtm with the name wahyudi

then fxtm agreed to verify my KTP with the name wahyudi

then I deposited with perfectmoney with the name wahyudi

then I traded, and I after there was a slight profit

I want to withdraw

 

BUT!!! when I want to withdraw, fxtm refuses to verify my perfectmoney named wahyudi, they deliberately refuse to verify my perfectmoney, so my money can't be withdrawn, fxtm refuses with a variety of unreasonable reasons.

be careful trading with fxtm, this broker is Fraud! Fxtm never intends to pay.


Dianne

Jul 27 2020

Pro

  • Deposit and withdraw quickly, can be with a bank transfer through an intermediary site, good in this case

Cons

  • Why does it feel like the spread is high? Even it is not in a state of volatility
  • the profit is also not in accordance with the pips even though there is no swap, I'm confused


Rayner Lkea

Jul 27 2020

Very disappointed when trading on fxtm, the candlestick chart is not the same as the default mt4 chart.

Because of that, I got hit by an MC. It's not about the money, it's about trust. Please improve your service immediately. I only trade a small amount yet still cheated. Can't imagine if I deposit a big amount of money. My... my... 


Sicilia RZ

Jul 27 2020

Hi admin, I am new to forex and try to open a demo account on FXTM.

I find it very useful, they provide a forex video tutorial for a newbie like me. thank you FXTM.


Jay

Jul 27 2020

I trade with 2 brokers, one of them is FXTM. I have been trading on FXTM for 1 year, a little of my experience on the FXTM ECN account:

  • open close free position (there are no rules for minutes / pips)
  • fast execution
  • depo instant withdrawal
  • fast response from CS / ASM FXTM every time there are obstacles in trading.

So far there is no problem with FXTM in terms of trading, deposit & withdrawal :)


Geoffrey

Jul 24 2020

I just traded on fxtm but it was very disappointing.

I took the GBP position, early in the morning the price dropped dramatically to 1.20209.

I check my account on another broker, it hits the take profit. Which made me feel weird because on fxtm the price is up to 1.14677, so my account was negative. When I calculated, my account balance supposed to still strong, but in reality, my account is in minus. 


Jeanice Goi

Jul 24 2020

Hi, just want to share about MT4 trading on fxtm, it's been around 7 months and during that time, I've never experienced freeze on its mt4. Nice job. And for my account manager, thanks for the support


Mary

Jul 24 2020

Withdrawal in fxtm via fasapay is very fast! Like cooking an instant noodles XD

For those who don't like to wait, withdrawal in fxtm is very recommended


Hardy Tn

Jul 24 2020

I think this broker deserves a value of 8, especially for its customer service and WD DEPO services. Success for FXTM


Adriana Nella

Jul 24 2020

FXTM is not the only broker I use, but I could say that this is the best. When NFP released, my account at another broker is crashed, it couldn't be executed. There was a completely dead, just can't log in. like how to trade news :)

but on the contrary, my FXTM ECN platform is still running normally even in a hectic market condition. FXTM ECN account is very reliable for scalping.


Halim K

Jul 24 2020

Just a little experience, for those who like Scalping, ECN accounts on fxtm is recommended. It has a fairly low spread and execute on MT4 very fast. This is what I like. 


Pretchavvan Sajmanoo

Jul 24 2020

A little testimonial for FXTM. Yesterday, I withdraw on cent account, in 10 Minutes, the fund already landed on my Fasapay account.


Geekie Boii

Jul 24 2020

Thanks God, cent accounts at FXTM are gradually growing. I'm using FXTM Cent accounts including Nano (can open 0.01 positions and maximum OP to 300 open positions) is not bad for those who use EA


John M

Jul 24 2020

Excellent support. 2 thumbs up for the FXTM account manager, fast response either by telephone or by email.


Charlie Chiaky

Jul 24 2020

I traded on FXTM for 6 months with an Ecn Zero account with a leverage of 1: 1000.

My experience using Ecn Zero: fast execution, stable server, spreads starting from 0.5

I rarely encounter requotes and slippage on FXTM. Overall, FXTM is good for me.


Rommel Djay

Jul 24 2020

I have accounts at 4 brokers, one of them at FXTM. At FXTM, I use an ECN account because I can use any technique there. I am satisfied with the very fast execution and spread on FXTM ECN is relatively small. FXTM is recommended in terms of support, MT4 platform, and spreads


Linda Silverstein

Jul 24 2020

FXTM broker is quite good in my opinion, specifically for customer support and my account manager who has been very helpful to me when there are problems with my account. thanks FXTM


Gerdino Jacqueille

Jul 24 2020

It turns out that FXTM has many types of accounts: ECN, Standard, ECN Zero, Strategy, Pro Account, etc. There are many trading and investment instruments such as forex, precious metals, Stock CFDs, ETF CFDs and Commodity CFDs. Its trading features are easy and very helpful, for example, free of swaps and without commissions and without any hospitalization fees or fees except for very small spreads.

A few months ago I traded with a capital of USD 400, and within 1 month I reached a profit of up to USD 16,000. Again, I also really experience FXTM, this international broker based in Cyprus is very responsible and takes into account the interests of its clients and traders.

Yesterday morning, I was shocked that gold fell and the account had lost USD 1,368.80 due to Error Quotes. But in the afternoon, I got an email from the FXTM Compliance Dept. and a number of illicit loss (forbidden and undesirable losses) that I suffered turned out to get compensation in the form of compensation a refund of USD 1,368.80.

This is very impressive, and this is the first time I've experienced it. Thanks FXTM. Proficiat for new offices in the UK. GBU.


Sigit W

Jul 24 2020

In real trading, I often experience Slippage, and there is always a widening of the spread, for example in GBP / USD the spread often widens to 60-70. And I have experienced it myself. I hope this will be useful info for other traders. Regards.


Jaxon

Sep 20 2020

After a couple years trading with other brokers it has is refreshing to be dealing with an honest, professional team. Their support team is very friendly and responsive. I would recommend ThinkMarkets to any trader.


Addison

Sep 20 2020

I lost hope after they closed all my profiting trades and when I check the trading history, there's no trades showing up it like I didn't open any trades. When I talked to live support they said I had trades opened but they were all closed because of margin call. That's really wierd and suspicious.


Karen

Sep 20 2020

So many questions about this broker. After a few good trades the broker encouraged me to increase my account balance. He then reccomended some trades in silver tipped by their expert in commodities. I questioned the trade size but was assured it was safe. Then the trade was stopped. I wonder whether this breaches the code for treatment of retail clients.


Gabriel

Sep 19 2020

I read online reviews that think markets customer service is poor. But when I tried to connect with them, I connected within 1 minute. The representative assisted with every questions I had.


Carter

Sep 18 2020

ThinkMarkets is one of the best brokers going around, they are a hidden gem given they aren't well known. They have consistently good spreads and execution, currently doing a lot of indices thru them, DAX (GER30) being my bread and butter. I've moved on from another broker who offers tighter spreads but very very poor fills. I didn't have time to be complaining after every poor fill or chasing them up to process my withdrawal request so I shopped around. ThinkMarkets has been a breath of fresh air and great for me. They get my vote of approval.


Wyatt

Sep 16 2020

Excellent suport and human quality and service to client. Hoping really a fluently proccess of fundings and other optimizations related to customer services.


Bella

Sep 16 2020

I am familiar with many trading companies and what they offer and was happy to see ThinkMarkets and on TV a few days ago before the Presidents speech, I felt excited to see a trading company advertised on TV and was ready to dive right in but couldn't only because I found out that they dont have negative balance protection for South African. I'm so sad I hope that this can change in the near future, I would love to be a customer.


Hannah

Sep 14 2020

very good broker.
Fast withdrawals and good execution.
cant complain,,,platform always up in news etc.
beyond me anyone can complain. They are super.


Zoey

Sep 13 2020

Great broker.
Good spreads and great customer service.
My relationship manager is very helpful.


Riley

Sep 12 2020

Super quick withdrawals which is a pleasant change from my other brokers that hold up my withdrawals for all sorts uncomprehendable reasons.


Salman

Sep 11 2020

I have an issue with my account and trading platform. Then after contacted their support, not waiting for a long time, my problem is solved. Such a good work.


Gigi M

Sep 11 2020

They have been very good to me. I started trading with ThinkMarkets because they were the only broker who offered cryptocurrencies trading but now I am also trading FX and Metals. Very convenient to have everything in one place.


S. Peter

Sep 11 2020

I have been trading with Think Markets.
The account opening process with Think was pretty straightforward and depositing funds was easy. I tested withdrawing some funds so that I could trust their processes and these were returned to me within 24 hours which boosted my confidence in Think.
Customer Service is great but there was a little confusion re Cyrpto Currencies at the end of last year hence i'm not at this stage going to give 4 stars but they seem to have now wrinkled out any product offering issues.
Trading reliability is good with pretty accurate order fills and reliable systems.
Product range could be greater but there is enough to keep me busy at this stage.


Reneer S

Sep 11 2020

Fast withdrawals and good execution. Platform always up in news etc. They are super.


Maynakas

Sep 11 2020

I was encouraged to share my opinion as the last reviewer has some issue with withdrawal as well so I feel not alone with the issue.
If you want to practice on small amount and not expected to win this shop is right for you, but if you go big and profitable find another one. This is not for profitable players.


Lily Allen

Sep 13 2020

Opened an account to trade stock CFDs, i thought they must have had a promotion on as they do not charge any commissions what so ever for trading stocks. I did contact one of their reps and they confirmed that commission free on stocks was here to stay. It's great, i can trade as little or as much as i want without getting hit with commission tickets and go long or short. For the past month I've been day trading US stocks, the volatility has been great and i can be in and out of trades all the time. They do need to increase the number of stocks they do as it is limited to the big names only. I've also started hedging via their US indexes, still trying to find the perfect strategy!


qazwsxedc46

Sep 13 2020

When it comes to spreads, they are no 1. They have an amazing suppor too. I have no issues with them until now.


Camilla H

Sep 11 2020

I have a mini account for testing trading strategies, for about 2 years everything went very well. Recently I faced a problem with some orders opened at unrealistic prices, followed by huge slippages for S/L. I completed a request for investigation, promptly and fairly they confirmed that the trades were erroneously opened due to AUDUSD spike and they refunded me. I stopped trading just because it wasn't suited, I mostly placed buy stop orders that were risky at spikes.


Barton

Sep 11 2020

I heard that if you start to complain to this broker, you'll know that they are actually certified from countries in Bermuda, not FCA, AFCA, etc.


Jessica Wang

Sep 11 2020

It has been a good experience and profitable trades with ThinkMarkets. That I did is I just followed my plan and risk management. Kindly advise you that you need to be educated or just find a good signal provider


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Most importantly, in choosing a broker, make sure to understand every policy in their swap-free account and find the one that suits your needs. Do not hesitate to turn one down and find another because a swap-free account is already quite common among brokers. You won't run out of choices of a good forex broker with an ideal swap-free trading condition.

 

If you find yourself in a dilemma because your ideal forex broker turns out doesn't have a good swap-free policy, you can always minimize the trading cost from the other perspective: the spread. This list may provide you with the lowest major pairs' spreads you ever found in forex brokers.