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 | |
| FTMO | |
| the5ers | |
| FTUK | |
| Lux Trading Firm |
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 | |
| FunderPro Futures | |
| Funding Pips | |
| FXIFY | |
| Apex Trader Funding | |
| Bullwaves Prime | |
| SabioTrade | |
| Hola Prime | |
| NeomAAA Funds | |
| Top One Futures | |
| Take Profit Trader | |
| ThinkCapital | |
| UltraCap Trading | |
| TX3 Funding (Toptier Trader Rebrand) | |
| MyFundedFX | |
| BlueBerry Funded | |
| Topstep | |
| Blue Guardian | |
| Funded Trading Plus | |
| Top One Trader | |
| For Traders | |
| 1of1 Funding | |
| Alpha Trader | |
| DNA Funded | |
| PROP365 | |
| Funded Squad | |
| Propel Capital | |
| Plutus Trade Base | |
| Elites Funding | |
| EverBlue Trader | |
| PIP Traders Funding | |
| Bold Fund | |
| Clarity Traders | |
| Tycoon Funded | |
| Upcomers | |
| TradingFunds | |
| Funded Prime | |
| SuperFunded | |
| TakeCap | |
| Earn2Trade | |
| Crypto Fund Trader | |
| City Traders Imperium | |
| E8 Markets | |
| Goat Funded Trader | |
| The Trading Pit | |
| PipFarm | |
| Tradexprop |
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.
FAQs on Prop Firms Swap-Free Accounts
A swap-free prop trading account is an account that you do not pay or earn swap or interest on any trades you place with the prop firm for a position kept open overnight.
Yes you can avoid swap given that you select a prop firm that allows opening a swap-free account, normally known as Islamic or Shariah accounts, which normally charge a fixed fee instead of swap.
No, prop trading firms do not provide swap-free accounts just to anyone, they need proof of your religion.
Yes, making money through trading is permissible in Islam, as long as the trading is conducted in accordance with Islamic principles. Having said that even the so-called “Islamic” accounts are not free from problematic elements, for example metals are generally traded through CFDs which are not compliant.
Prop Trading is not haram, provided that swaps are removed you have a 1:1 leverage on that account and avoid problematic elements involving the trading assets, then your trading becomes validated according to Sharia law.
