Quick Summary

• Swap-free trading lets you hold positions overnight without paying or earning interest (swap or rollover fees).
• A swap-free account is ideal for traders who follow Sharia (Islamic) finance, hold trades for several days, or want complete cost transparency.
• With swap-free accounts, you avoid interest-based costs, but the selection of eligible trading instruments may be more limited.
• You can easily open a swap-free trading account on Deriv MT5 from your dashboard.
• This type of account is especially popular among Muslim traders and long-term position holders.

What is swap-free trading?

Swap-free trading means you can hold positions overnight without paying or receiving interest.

Normally, when you leave a trade open overnight - say, you’ve bought EUR/USD and don’t close it by the end of the trading day - you either earn or pay a swap (also called a rollover fee), depending on the interest rate difference between the two currencies.

But with a swap-free account? That overnight charge is removed.

This is especially important for traders who, due to religious beliefs or long-term strategies, want to avoid interest-based costs.

Why do swaps exist in trading?

Swaps aren’t random fees. They’re based on interest rate differentials between the two currencies in a pair.

Here’s how it works:

• If you’re holding a currency with a higher interest rate than the one you’re selling, you might receive a small amount.
  
• If it’s the opposite, you’ll likely pay the difference.
  

It’s a bit like holding money in a savings account - you earn a little interest. But in trading, this concept applies across currencies, and that’s where swaps come into play.

So, swaps are basically the cost (or benefit) of “borrowing” one currency to buy another overnight.

Why are swap-free accounts so popular in the UAE??

Swap-free accounts have gained popularity over the last few years, especially in the Middle East region. They are favoured by: 

• Muslim traders who follow Sharia-compliant finance and want to avoid earning or paying interest.
  
• Long-term traders or position holders who keep trades open for days or weeks.
  
• Traders who simply want cost transparency and prefer fixed account conditions.
  

Even if your motivation isn’t religious, a swap-free account can be helpful if your strategy relies on holding trades overnight or longer without having swap costs stack up.

Swap-free vs. standard accounts

Here’s a quick side-by-side:

If you’re a short-term trader who closes most positions the same day, a standard account might be fine. But if you hold trades longer, or want to trade without interest for religious reasons, swap-free is the way to go.

How to open a swap-free account on Deriv

Getting started is easy. Here’s the flow:

1. Log in to your Deriv dashboard
   
2. Head over to your Deriv MT5 account section
   
3. Choose to create a new Swap-Free account
   
4. Start trading - without swaps!
   

It only takes a few clicks, and you’ll be ready to trade in a way that fits your personal or strategic preferences.

Instruments available for swap-free trading

On Deriv, swap-free accounts give you access to a wide range of instruments, including:

• Major and minor forex pairs
  
• Commodities like gold and oil
  
• Popular indices
  

Some instruments may not be available due to the nature of swap calculations. You can always check the full list directly within your trading platform.

Are there any drawbacks to swap-free trading?

Swap-free accounts are designed for fairness and transparency, but here are a few things to keep in mind:

• Not all instruments are eligible - If you trade something outside the list, you may need a standard account.
  
• There may be a holding period cap - On some platforms, swap-free status may be limited to a set number of days, especially for certain instruments.
  
• No interest-based earnings - You won’t get credited swap benefits either (but that’s kind of the point).
  

So, while they’re ideal for specific traders, swap-free accounts aren’t a one-size-fits-all solution.

Feeling like the swap-free account is for you after reading this guide? Sign up for a swap-free account on Deriv MT5 today and trade with confidence!