A swap-free account, also known as an Islamic account, is a trading account type in which no overnight interest or swap fees are charged for positions held open beyond the trading day. This model was originally designed to allow traders who cannot pay or receive interest for religious reasons to participate in financial markets. In practice, swap-free accounts can be used by any trader who wishes to avoid overnight swap costs. Instead of swaps, some brokers apply alternative fees such as administrative charges or slightly wider spreads. The availability and conditions of swap-free accounts vary depending on the broker and jurisdiction. For short-term traders, the impact is usually minimal, while for long-term positions it can become financially relevant.
