Forex glossary
Islamic account (swap-free)
A swap-free account removes specified overnight financing charges under provider terms and may be marketed as an Islamic account. Coverage can depend on instrument, eligibility and holding period, with other fees possible. The account label does not certify every transaction's religious compliance.
Illustrative example
How does it work in practice?
A hypothetical swap-free tariff charges no swap for the first three nights but applies a 2 USD administration fee from night four. Holding for five nights produces 4 USD of fees under these assumptions.
A case to work through
Two instruments, different coverage
Hypothetical tariff: instrument A has no swap; B has a 3 USD/night administration fee from the first night.
- First identify the instrument’s tariff group.
- Two nights in B cost 2 × 3 = 6 USD despite the account label.
What follows? Compare the individual symbol’s tariff rather than the account name.
Example boundary: This tariff is invented; the label does not certify religious compliance.
A useful distinction
Islamic account (swap-free) / swap (overnight charge)
Swap is a financing adjustment; swap-free conditionally removes specified adjustments.
Check your understanding
Check exemption scope and calculate a replacement fee.
Show the answer and explanation
12 USD
Three chargeable nights × 4 USD = 12 USD. In this hypothetical tariff, no swap does not mean no other fees.
Products, delivery and financing calendars
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Read the fuller explanation
Related terms
Sources and documentation
- Exness: swap-free status
An example of conditional provider coverage; new case rates and fees are fictional.
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.