What is the Swap-Free Account
Forex swaps also known as overnight fees are interest payments that a trader either earns or pays for holding a trade overnight.
Swaps are charged by the prop trading firms once a day usually between 23:00 and 0:00 "server time" which most of the time is 5 pm New York time.
Why do Prop Trading Firms offer such accounts?
In response to religious considerations in finance, particularly within Islamic finance where interest payments are prohibited, prop firms have introduced swap-free accounts and this is the reason why they are often referred to as "Islamic" or "Shariah" accounts. In such accounts, the prop firm charges a fixed fee regardless of whether the Forex pair has a positive or negative swap rate respecting traders' beliefs.
How Does Swap Affect My Trading?
Forex swap is often underestimated in trading. It affects your trades through interest payments and can impact profitability. Being aware of swap rates helps optimize your strategy and seize favorable opportunities in the market.
Prop Trading Firms' Halal Compliance
Is forex prop trading halal or haram in Islam? Sharia law prohibits the following activities:
- Overnight rollover
- Forward sales and short
- Margin deposit and interests
- Loan
- Margin trading
Best Prop Firms that Offer Swap-Free Accounts
| Prop Firm | Swap-Free Accounts |
|---|---|
| FundedNext | |
| the5ers | |
| FTMO | |
| OspreyFX | |
| Lux Trading Firm | |
| FidelCrest | |
| My Forex Funds | |
| Alpha Capital Group | |
| Finotive Funding | |
| FTUK | |
| Alpine Funded | |
| True Forex Funds |
No-Swap Period: Please keep in mind that some prop firms will only allow you a limited amount of time in which you can trade swap-free. This is known as no-swap or swap-free periods.
Prop Firms that DON’T Offer Swap-Free Accounts (yet)
| Prop Firm | Swap-Free Accounts |
|---|---|
| FunderPro | |
| SabioTrade | |
| Toptier Trader | |
| UltraCap Trading | |
| MyFundedFX | |
| Topstep | |
| Blue Guardian | |
| Funded Trading Plus | |
| Funding Pips | |
| FXIFY | |
| Earn2Trade | |
| City Traders Imperium | |
| E8 Markets | |
| Goat Funded Trader | |
| The Trading Pit | |
| The Funded Trader | |
| SurgeTrader | |
| Alphachain | |
| Audacity Capital | |
| Bespoke Funding | |
| BluFX | |
| BuoyTrade | |
| Leveled Up Society | |
| Funded Academy | |
| Ment Funding | |
| Nations Trading | |
| Smart Prop Trader | |
| Super Funded | |
| ThorFX | |
| Axe Trader | |
| SFX Funded | |
| PipFarm |
How to open a Swap-Free Islamic Prop Trading account in 2 simple steps
- Verify your account: send all the relevant documentation to the prop firm.
- Wait for Approval: after applying for an Islamic account that operates under the Sharia Law your request will then be forwarded to the relevant department of the prop firm for review and approval. Requests are usually processed within 1-2 business days.
