While many prop firms offer “swap-free” or “Islamic” accounts, the term is not standardized. In practice, conditions differ significantly from provider to provider, and these differences directly affect both trading costs and Sharia compliance.
Cost compensation models are the most important variable. Some firms widen spreads on swap-free accounts, others charge a fixed administrative fee per lot or per night, and some replace swaps with higher per-trade commissions (FTMO takes this approach on their Swing account). A smaller number of firms — such as FundedNext and BrightFunded — offer swap-free with no additional costs at all, maintaining the same spreads and conditions as standard accounts.
Time limits are another critical factor. Not all swap-free accounts remain swap-free indefinitely. Some brokers offer a grace period of 3–5 days, after which admin fees kick in or positions are automatically closed. Others provide unlimited swap-free status with no time restrictions. For traders holding multi-day positions, this distinction can make or break both strategy execution and Sharia compliance.
Verification requirements also vary. Firms like FTMO require proof of religion to activate swap-free conditions, while others like FundedNext and Goat Funded Trader offer it as a standard toggle available to any trader — no documentation needed.
Finally, instrument coverage is not always universal. Some firms restrict exotic or high-yielding currency pairs on swap-free accounts, and metals traded through CFDs remain problematic from a Sharia perspective regardless of swap-free status.
To illustrate how these differences play out in practice: FTMO offers swap-free only on their Swing account type, using higher commissions instead of swaps, with unlimited duration but requiring proof of religion to activate. FundedNext takes the opposite approach – swap-free is available across every challenge type with no extra costs, no time limits, and no verification required, making it one of the most accessible options. Goat Funded Trader and BrightFunded follow a similar no-extra-cost model with unlimited swap-free across all account types, though BrightFunded still applies a standard $3/lot forex commission. On the other end of the spectrum, Fidelcrest uses wider spreads to compensate and only offers swap-free for a limited period, requiring religious verification. Alpha Capital Group charges admin fees on certain pairs with restrictions on exotics, while City Traders Imperium applies a fixed admin fee that varies by currency pair type. The5%ers offers swap-free with unlimited duration but requires traders to contact support to arrange it.
These variations matter for Sharia assessments. A fixed admin fee that closely mirrors the swap amount it replaces could still be considered disguised riba (interest), while wider spreads are generally viewed as a legitimate trading cost. Time-limited swap-free periods create an especially significant gray area — if swaps apply after a set number of days, the account is only partially compliant. Since no major prop firm currently holds formal Sharia certification, the burden of evaluating these details falls on individual traders and their scholars.
