Islamic (Swap-Free) Account

An Islamic account is a swap-free trading account designed to comply with Sharia law's prohibition on riba (interest), so no overnight swap is charged or paid on positions held open. Brokers typically replace the swap with a fixed administrative fee instead, especially for positions held beyond a set number of days. Islamic accounts are open to Muslim and non-Muslim traders alike at most brokers, but eligibility and time limits vary, so it's worth checking a broker's specific terms before assuming a position can be held indefinitely swap-free.