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Rollover Free Accounts: Benefits and Drawbacks

Forex Rollover Free AccountsTraders who use rollovers to carry out trades and hedge their positions need to hold currencies that are likely to rollover successfully in order to profit. Rollover free accounts are also known as swap-free Forex accounts. In this process, brokers may apply rollover/swap fees while at the same time looking for ways to offset the risks from trading by hedging the same currency pair with another brokerage firm that does not charge rollover fees but which's charging a small commission instead. Our expert team created interest free forex brokers and broker with no rollover fees list so you can choose according to your trading style.

This article will discuss the details of rollover free accounts and how to find the best forex broker for rollover free accounts.

 

Understanding the Rollover Free Accounts

The high-profit margins of forex trading have always attracted people. Trading in forex has always been popular with traders of all cultures, ethnicities, sects, and countries. In Forex trading, as in any other field, there may be some peculiarities regarding traders who adhere to strongly held religious beliefs. Moreover, according to the Islamic Shariah Law, Muslims are not allowed to take interest. As a result, overnight rollover/swap payments can occasionally be problematic.

Brokers started offering Islamic or interest-free accounts to address the issue for all stakeholders. However, it is necessary to pay an additional fee. Depending on the broker, the fee will differ. As a result, changing the title of interest to fee still won't solve the problem because for interest to be paid, there has to be a fee, and for Shariah Law, this is strictly prohibited. In reality, this is a interest free forex brokers account.

Rollover free accounts are forex trading accounts that do not charge rollover fees. Fixed fees may be imposed, which are not interest rates. Commissions and interests are typical methods of earning money for forex brokers. Most of the interest comes from overnight rolling over positions, which is referred to as rollover fees. Some traders, however, don't handle interest because they believe it violates their religious beliefs. So even though they have an interest, they avoid forex trading. Forex brokers offer these traders rollover free accounts to entice them into forex trading. This type of account is actually a risk-free overnight position account. It is sometimes referred to as a swap-free account by some brokers.

Who are the Users ?

Rollover free accounts are not available to all traders. The only traders who can apply for a rollover free account are those with religious contradictions to interest charges. If a person wants to open a swap-free account, they must demonstrate the reasons for doing so. Mostly, Muslims are able to open an account with no rollover charges. The Muslim community, however, is not compelled to open this kind of account; regular accounts are also available to them.

Choosing a Broker for Rollover Free Account

A broker should be chosen after considering certain important factors. Among these factors are whether the broker is regulated, what types of Islamic accounts are offered, and the corresponding fees. Many brokers can offer Islamic trading accounts, but they may involve excess fees, which, as per Shariah Law, is in conflict. It is also rare to find a broker who truly offers Islamic trading accounts that take all aspects of Shariah Law into account as well as incorporate them.

However, Rollover Free Accounts are unavailable in many countries. It is mainly found in the countries where most people are Muslim.

 

RANK VISIT
BROKER
REGULATION

We only list licensed brokers that comply with the requirements of prominent regulatory agencies.

MIN
DEPOSIT

The minimum amount you need to deposit in order to start trading.

DEPOSIT
BONUS
RATING MAX
LEVERAGE

Leverage refers to the ratio of securities you can buy for a given payment. The higher the leverage ratio, the higher your buying power (and the higher the risk). For example, a leverage ratio of 500:1 means you can purchase 500 securities, but only pay the equivalent of 1 security valuation. The leverage ratio offered can vary depending on the experience level of the trader.

PAYMENT
SYSTEM
SUPPORT START
TRADING
1
ASIC, CySEC
$100
No Bonus
1:500

Telephone: +44 28 2544 7780

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Pros
  • Excellent education tools
  • Low forex fees
  • Fast account opening
  • Easy funding methods
Cons
  • No bonuses
Platforms & Devices
2
FCA, CySEC, FSCA, SCB
$100
No Bonus
1:100

Telephone: +44 (0) 203 151 5550

image
Pros
  • Excellent customer service
  • Free deposit and withdrawal
  • Negative balance protection
  • Wide range of platform
Cons
  • Inactivity fee
  • High Trading Fees for some CFDs
Platforms & Devices
3
FSC
$100
65%
1:200

Telephone: +52 556 826 8868

image
Pros
  • Different passive income options
  • Discount on commissions for active traders
  • Positive price correction
  • Tight market spreads
Cons
  • Low leverage
  • Less research tools
Platforms & Devices
4
ASIC, CySEC, FSA, SCB
$200
No Bonus
1:500

Telephone: +248 467 19 76

image
Pros
  • Low forex fees
  • Fast order execution
  • Analytical training materials
  • 90+ instruments
Cons
  • Slow live chat support
  • Non-EU traders don’t get investor protection
Platforms & Devices
5
ASIC, CySEC
$1
100%
1:3000

Telephone: +35 7251 23212

image
Pros
  • No withdrawal fee
  • Low stock and stock index CFD fees
  • Negative balance protection
  • No inactivity fee
Cons
  • Average forex CFD fees
  • No PAMM accounts
Platforms & Devices
6
FSA
$0
No Bonus
1:500

Telephone:

image
Pros
  • 9 base currencies
  • 24/7 technical service
  • Direct market access
  • VPS, FIX API, copy trading
  • Superior trading conditions
Cons
  • No negative balance protection
  • Withdrawal fees
Platforms & Devices
7
ASIC, CySEC, FSC
$5
Up to $5000
1:1000

Telephone: +501 223-6696

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Pros
  • Low withdrawal fees
  • Great educational tools
  • Wide range of leverage
  • Multilingual customer support
Cons
  • Non-EU traders don’t get investor protection
  • Lack of weekend customer support
Platforms & Devices
8
FCA, DFSA, FSCA, FSA, CMA
$5
100%
1:1000

Telephone: +44-2030978571

image
Pros
  • Low spread
  • Controlled by several regulators
  • Numerous deposit and withdrawal
  • Favorable trading conditions
Cons
  • Few account currencies
  • Only USD or EUR as base currencies
Platforms & Devices
9
ASIC, FCA
$0
No Bonus
1:500

Telephone: +61 2 9965 5830

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Pros
  • Automatic insurance coverage
  • Low entry threshold
  • Fully digital account opening
  • Low forex fees
Cons
  • Limited research tools
  • Only forex and CFD trading
Platforms & Devices
10
FCA, ASIC, DFSA
$200
No Bonus
1:30

Telephone: +1786 628 1209

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Pros
  • Digital account opening process
  • Seamless deposit and withdrawal
  • Attractive trading conditions
  • No inactivity fee
Cons
  • No cent account
  • Few analytical materials
Platforms & Devices

How Does Rollover Free Accounts Function?

Analyzing risk management and market conditions, currency pairs are traded based on swap charges. Changing tools and accounts are offered by brokers constantly. The use of technology has made forex trading easier than ever. Trading in the global currency markets is now accessible to traders from all over the globe because of the internet. Forex traders enjoy greater freedom of choice when it comes to investing their hard-earned money in the foreign exchange market with a broker who supports their religious practice, enhancing their chances of making a profit.

When is Rollover Fee Charged? 

If you hold onto a position overnight, a rollover fee is charged. It is also commonly referred to as a swap. Swaps are based on the difference in interest rates between two currency pairs. In most cases, it is calculated based on the length of the position.

Nevertheless, you should remember that your order will determine the interest rate or swap fees you pay. This means that the swap rates may differ between buying and selling. Therefore, swaps do not always have to be considered as interest.

Interest is one of the charges associated with forex trading. It is not possible to calculate this type of interest. In the case of religious obligations, traders can take advantage of a rollover-free or swap-free account. Muslim citizens have the opportunity to create a rollover free account as they are prohibited from participating in interest-bearing transactions.

Rollover Fees and Currency Pairs

Rollover can either be negative or positive for certain currency pairs depending on the market position taken. Here, negative refers to the fact that you have to pay, and positive refers to the fact that you will get paid. Traders who use rollover/swap-free Forex accounts do not pay a commission or get paid for holding positions past 17:00 pm when a rollover is calculated according to time-zone.

Traders who engage in long-term trading strategies, from holding trades longer than one day or two up to a month or more, and who don't wish to pay rollover fees, may find that Forex currency trading accounts that achieve no rollover and no swap attractive.

Traders that use rolling/swapping-free Forex accounts are perfect for carrying trades and hedging strategies, in which they hold currencies that earn positive rolling (broker with no rollover fees ) and at the same time hedge the same currency pair through a broker that charges no rollover fees but charges a small commission instead.

Nonetheless, Islamic forex will not be promoted by brokers since the trading of Islamic forex helps them earn a minimum profit. However, the brokers do not discuss interested in opening one is warmly welcomed.

Benefits of Trading with a Rollover Free Account
  • Measurement of position length: An overnight trade that is held in a rollover free account does not incur any interest, unlike an overnight trade on a regular account. If someone wishes to have the position for several days, then they will be charged some fixed commission even though there will be no interest fees.
  • Friendly to Muslims: Rollover Free accounts are highly beneficial to Muslims as they are designed with the rules of the Islamic trading and banking system in mind. The Islamic trading community mainly utilizes swap-free accounts without any worries.
  • Option of Fixed Commission: A trader can also hold the currencies to earn money in this type of account through a fixed commission. They are also useful for hedging and carry trade strategies.
  • No Extra Charges: Free rollover accounts do not charge you extra money to hold your pairs. A fixed fee may instead be charged if the position stays open for at least ten days.
  • Hassle-Free: Traders of options benefit from this kind of account since they can implement long-term strategies without hassle.
  • Lower commissions than Rollover Accounts: Overnight commissions vary in amount depending on which broker changes them. The commission charged is quite low compared to rollover fees, though it may vary based on the brokerage firm's policy.
  • Convenient for Holding Position: The roller-coaster ride of options trading is made more convenient with a rollover-free account that lets traders hold positions for up to a month. No extra profit is gained from holding long positions, but the trader is protected against possible additional losses.
  • Charges are based on Profit: Charges of a Rollover Free are also determined by certain trading factors, including trading lot, size, pair, type, and profit. However, interest rates are not taken into account when imposing fees. Currency pairs are always paid or received interest according to the interest rates of both pairs.
  • No Imposed Payment: The best forex brokers offer rollovers or swap-free forex accounts that require no payment or expenses from the customer.
Drawbacks of Trading with a Rollover Account 
  • Imposed Conditions: Brokers can impose their own terms and conditions outside of the swap-free offers, which may differ from broker to broker. On top of that, some brokers may also offer services via their regular accounts to people with swap-free accounts.
  • Not Accessible for Everyone: Trading accounts that do not require swaps cannot be accessed by everyone. The only traders who can use this system are those whose beliefs prevent them from using swaps.
  • Not for Profiting Solely from Swaps: A swap-free account that a trader request has to be verified based on its details and purpose. Additionally, traders who intend to profit solely from swaps are not allowed to open rollover-free accounts.

What to Look to find the Interest Free Forex Brokers?

Not all brokers offer the rollover free account. Therefore, you must need a broker with no rollover fees to take benefit from interest free forex brokers accounts. So, how would you find the best interest free broker? Nevertheless, the finding procedure is almost the same as the regular trading broker. The only thing you should look for is, find out if the broker offers interest-free accounts. Let’s take a glance to find interest free forex brokers. 

  • Regulations: This is the first thing you should check when looking for a broker with no rollover fees.
  • Account types: As we have mentioned earlier that not all brokers offer rollover free accounts. But nowadays, most of the brokers are heading towards offering these account types. So, when you search for it, you should know first if your intended broker offers this kind of account.
  • Account Features: Each forex broker is unique; hence the accounts’ features will be different too. So, you should look at some areas while choosing the interest free forex brokers.
  • Leverage and Margin: The broker with no rollover fees may offer you the leverage and margin as optional features. It is because if you ever change your mind and switch to another account, the leverage and margin will come in handy.
  • Commissions and Spreads: While there is no interest fee incurred in a rollover free account, brokers charge commissions along with offering the variations in spreads. So, try to know all the options you will have with the account.
  • Initial Deposit: The initial deposit should not be the main factor while choosing the interest-free forex broker. But still, it will not harm you. So, look for that. Usually, most brokers allow the trader to deposit as low as $50.
  • Method of Account funding: Know the account deposit and withdrawal method as you may need to deposit and withdraw often. So, your focus should be the ease of fund transfer in and out.
  • Currency Pair: A broker with no rollover fees should offer you all the benefits like a regular account holder. Therefore, you should be able to access all the available currency pairs. So, before sign up, know the currency pairs you will get from your broker.
  • Trading Platform: You are supposed to have access to the regular trading platform. If any broker offers you any sort of special trading platform, you should avoid it as this kind of fishy. For example, you should be able to use MetaTrader 4 or MetaTrader 5 trading platforms.

Aside from these, you can also check out the customer service, forex educational offerings, order entry types and more.

Conclusion

Traders are required to meet various requirements in order to open rollover free accounts, which offers some extra benefits also for a certain group of customers. In order to make an informed decision about whether to open an account with a best forex broker, it is better to know what offerings are available. Besides, study different forex broker reviews for the broker recommendation.

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