Swap (also known as rollover interest, or overnight interest) is interest that a trader either receives or pays for positions that are held overnight, and are based on the interest differential between the currencies that their position involves. Swap-free accounts are intended mainly for Islamic traders who wish to comply with Sharia law, which prohibits any type of interest payments. These accounts can also be useful to non-Islamic traders who simply wish to do away with the uncertainty in overnight interest, who plan on taking a longer term negative swap position, or other reasons. Some brokers who offer these types of accounts charge certain fees instead of actual interest, so that traders wouldn't abuse the privilege. On the other hand, some brokers do not charge any extra fees (but most do monitor such accounts for abuse). Listed below are some brokers that offer such swap-free, Islamic forex accounts. Each listing also describes any such extra fees that the broker may charge, so please read through the reviews in detail before opening a real account.
The volatility in the crude oil market is not for the faint of heart, but if good risk management is used, trading in oil contracts can be less wild and still lucrative. Many forex brokers offer CFDs on oil futures from NYMEX (West Texas Intermediate, or WTI) and ICE (Brent Crude). If you are interested in trading crude oil, please look below to find a broker that offers its clients crude oil trading.
AFB FX is a forex and OTC futures broker based in Cyprus. By far the best feature offered by AFB FX is the availability of Professional Accounts, which offer highly flexible trading conditions. The spreads, margin requirements and virtually all other parameters are negotiable on Professional Accounts, making them the preferred choice among account managers. Having said that though, most of the other accounts also offer trading conditions that are quite reasonable.
Location:
Cyprus
Guaranteed stop losses:
Yes, limit and stop orders are guaranteed against slippage, except under market conditions
Swap-free accounts:
Yes - no extra charges and available to everyone, not just Islamic traders
UFX Bank provides a decent level of service to their customers, from the customer support, to trading support and easy access to the dealing desk. Withdrawal of funds appears to be a bit disorganized but it does get done eventually, whether you are withdrawing profits or not. UFX Bank's trading conditions are such that the benefits of a UFX account are most pronounced for well capitalized traders, which makes it more worthwhile for larger investors than for small traders. This is a known predatory practice.
Location:
Israel
Guaranteed stop losses:
Yes, all stop-loss and take-profit orders are guaranteed by UFX Bank against slippage.
Swap-free accounts:
- swap-free accounts are charged slightly higher spreads
Typical spread on EUR/USD:
2 pips (0.0002) for Platinum Accounts, 3 pips (0.0003) for Gold Accounts, 4 pips (0.0004) for Standard Accounts, 5 pips (0.0005) for Mini Accounts
The main advantage eToro has over other trading platforms is that it is very easy to use. It may not have all the functionality of some professional platforms, such as conditional order types, automated trading etc. or access to exotic currencies and other instruments, but it is a solid entry-level forex platform. Over and above currencies, eToro also allows traders to take part in the commodity market by trading Gold (XAU/USD) and Silver (XAG/USD). It should also be noted that eToro is a swap-free broker.
Location:
Cyprus
Guaranteed stop losses:
Yes
Swap-free accounts:
Yes - no extra fees are incurred on Islamic style accounts
EXNESS is a fairly new entrant into the forex arena, and it offers some very interesting trading conditions. Though there is no actual relationship between the two (as far as we are aware), EXNESS and Alpari which is also of Russian origin, thrive in a jurisdiction where the rule of law is not always respected. While EXNESS is regulated by Russian law, this in itself is not a great comfort for foreign traders. No doubt EXNESS management, much like Alpari, is aware of this and therefore goes well above the call of duty to ensure that clients are treated fairly.
Location:
St. Petersburg, Russia
Guaranteed stop losses:
No, all orders are executed at best available price
Swap-free accounts:
Yes - no extra charges and available to everyone, not just Islamic traders
Typical spread on EUR/USD:
0.1 pips (0.00001) on Expert Accounts, 0.4 pips (0.00004) on Classic Accounts, 0.7 pips (0.00007) on Mini Accounts
Trading Point Forex is a relatively new MT4 forex broker that is becoming well established as a result of the solid trading conditions and support services on offer, as well as being regulated by some of the world's most stringent regulatory agencies such as the FSA. Trading Point also ensures client funds safety, by keeping it segregated from company operating capital.
Location:
Limassol, Cyprus
Guaranteed stop losses:
No, all orders are executed at best available price.
Swap-free accounts:
Yes - no extra charges and available to everyone, not just Islamic traders
ICM Trading (iTrade Capital Markets) is an offshore broker (BVI) that deals primarily in spot forex, but also offers some common CFDs as well as forex options, which is a very nice feature. The number of tradable instruments is not staggering, since the spot forex pairs are limited to 19 pairs, with nothing exotic on offer. These are the most liquid pairs and are the staples of most professional traders, since the low liquidity, high spreads and less reliable research make exotics all but untradable for many traders. Please be sure to also read the WARNING at the bottom of this review.
Location:
British Virgin Islands (BVI)
Guaranteed stop losses:
Yes, all stop and limit orders are guaranteed against slippage.
Swap-free accounts:
All accounts are Shariah compliant, but a charge of $1/mini-lot/day is applicable to all overnight positions
Baron Forex, is an offshore forex broker that is regulated by the IFSC in Belize. Being based offshore can bring with it some advantages to forex traders, but at the same time can be risky due to lax (or non-existant) regulation standards in many offshore jurisdictions, as well as limited legal recourse in case a dispute arises. Baron Forex is no exception to this.
Location:
Belize City, Belize
Guaranteed stop losses:
Yes, stop loss orders are guaranteed against slippage
Swap-free accounts:
Yes - no extra charges if trading volume exceeds 1.5 million per 30 day period. Otherwise $20 per 100,000 held over night.
