What swap-free means
A swap-free (Islamic) account is structured to avoid overnight interest, in line with principles that prohibit earning or paying riba.
Instead of swap, the broker may charge an administration or fixed fee, which should be disclosed in the account terms.
How it is implemented
Brokers apply different models: some waive swap entirely, others replace it with a flat fee or wider spread. The cost profile varies, so compare like for like.
Eligibility and documentation may be required to open a swap-free account.
- No overnight interest
- Possible administration fee
- Terms vary by broker
Compare the true cost
A swap-free label does not mean free. Use the Trading Cost and Broker Fee calculators with the alternative fee to see the real cost.
Our sample records mark swap treatment as not yet verified; confirm with the broker.
Ask exactly how the broker replaces swap. A flat fee can be cheaper or dearer than the swap it replaces, depending on your holding period.
Frequently asked questions
Do swap-free accounts cost more?
Sometimes. The broker recovers the cost another way, so compare total cost, not just the absence of swap.
Who can open one?
Policies differ; some require a declaration of intent. Check the broker's eligibility rules.