Jun 24 2021 0

Swaps are a type of fee that can eat into a lot of your profits. To avoid being charged overnight, you have 2 options. One is not to open positions overnight. And if you choose a long-term strategy, then you are forced to find brokers with swap-free forex accounts. So what account types are free of swap in the forex market?

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What is forex swap?

When holding positions overnight in forex trading, you will inevitably have to pay the fee that your forex broker charges for holding the position overnight. Basically, for individual forex trading through retail forex brokers, the swap is the amount that the forex broker will collect from you or pay you back to hold the position trading overnight.

Swap fees will be calculated based on the size of the order you open. Each exchange will have a different way of charging overnight fees.

Which forex accounts are swap-free?

First, you need to know what types of accounts there are in the forex market:

Forex demo account

This type of forex accounts is purely for practicing forex trading on the trading platform. It is given to a potential trader or investor by a forex broker and can be used to practice trading or test new strategies. It is also known as a paper money account because it is funded with fake/virtual money. Fake money allows them to understand the broker's trading platform and try different trading strategies without risking real money.

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The features of a forex demo account are exactly the same as those of a real trading account. These include access to market data, analytical tools/indicators, and even access to a customer support team. The only significant difference between the real account and the demo account is that the demo account does not have access to live market data but relies on simulated data.

STP account

An STP account is an account type that allows you to trade with your own forex broker. For every buy or sell order you open on your STP account, the exchange will either find a matching order for you or the exchange itself will trade with you (rarely on major exchanges). When trading STP, you will be free of commission because the broker has already eaten your spread.

STP accounts will be divided into 2 types, Cent and Standard. A Cent account is one-hundredth the size of a Standard account. The purpose of the Cent account is for those who have little capital or are new to trading. They can trade with a small amount to minimize risk and loss. See now the best forex brokers with Cent accounts.

ECN account

An ECN account is an account type that allows you to trade with other traders or directly with liquidity providers. The forex broker now only acts as a bridge between you and that electronic market.


Since the forex broker can't interfere with your spread at this time, the broker will charge a commission as a service fee for providing the trading platform. Trading an ECN account requires a large amount of capital since you are dealing with a huge global market, so it is more suitable for professional traders.

So what account types are swap free?

The truth is that there are very few forex brokers that offer swap free fees. This is a basic fee in trading, so nearly every major and reputable forex broker in the market applies an overnight fee to their service.

Swap free feature for Muslims only. More specifically, Muslim traders can open an Islamic version of a forex broker's account types. They can then trade that type of account just like any other trader, but they get a free swap.


The account types that offer swap free are actually Islamic versions of the normal accounts that forex brokers offer. In the market, there will be real forex brokers that offer 100% swap free for all their accounts. However, they will definitely charge another fee to compensate. You can check out the list of swap free forex brokers here.


Fanara Filippo

Hey, I’m Fanara Filippo. I’m the founder of this site. I'm currently living in Bangkok, Thailand. I have been trading forex for more than 5 years. You can read my articles about the best forex brokers on this page. Let’s review brokers today.

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