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.
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.
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.
Is forex prop trading halal or haram in Islam? Sharia law prohibits the following activities:
Prop Firm | Swap-Free Accounts |
---|---|
FTMO | |
the5ers | |
My Forex Funds | |
OspreyFX | |
FundedNext | |
FidelCrest | |
Lux Trading Firm | |
Alpha Capital Group | |
Finotive Funding | |
FTUK | |
MyFundedFX | |
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 Firm | Swap-Free Accounts |
---|---|
FunderPro | |
Topstep | |
Toptier Trader | |
SurgeTrader | |
Earn2Trade | |
City Traders Imperium | |
E8 Funding | |
The Trading Pit | |
Nations Trading | |
Smart Prop Trader | |
Super Funded | |
The Funded Trader | |
Alphachain | |
ThorFX | |
Audacity Capital | |
Goat Funded Trader | |
Bespoke Funding | |
Blue Guardian | |
BluFX | |
BuoyTrade | |
Leveled Up Society | |
Funded Academy | |
Funded Trading Plus | |
Ment Funding |
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