What an Islamic (swap-free) account usually means
In general industry practice, an Islamic or swap-free account removes overnight swap interest on positions held past the daily rollover. Brokers that offer such accounts often replace swaps with other cost structures, such as fixed administration fees after a set number of days, wider spreads on some instruments, or restrictions on which markets qualify. None of these details should be assumed for VT Markets without reading its current legal documents. Understanding the common patterns simply helps you know what to look for when you check.
- Swap-free typically means no overnight interest, not zero holding costs overall.
- Some brokers apply administration fees after a grace period; confirm any such fee schedule in writing.
- Eligibility may depend on your country of residence or a declaration of religious grounds.
- Certain instruments, such as exotic currency pairs, are sometimes excluded from swap-free terms.
