Prop trading firms are in the business of funding great traders from all walks of life. To truly open up forex trading opportunities to all, many prop firms now offer Swap-Free or Islamic Accounts that adhere to Islamic Law by eliminating roll-over interest and interest-related fees.
More and more prop firms are adding Halal Trading every day, so I’ll keep this list updated.
Prop Firms that Offer Swap-Free Accounts
Prop Firms that DON’T Offer Swap-Free Accounts (yet)
|Prop Firm||Swap-Free Account|
|The Funded Trader||No|
|City Traders Imperium||No|
If you know of other prop trading firms offering Swap-Free accounts, please let me know in the comments.
What is prop trading?
Proprietary trading, shortened to “prop trading” simply means any trading that is done for profit with an individual or firm’s own money. Prop trading firms like those listed above use their own money to fund good traders who need capital. In exchange they get a percentage of the trading profits, plus a sign-up fee.
How does prop trading work?
Joining a prop trading firm is as simple as signing up and completing a trader evaluation. If you pass that evaluation by abiding by the firm’s trading rules and meeting a profit target, you will become a funded trader and receive capital from the firm to trade. Any profits will be split between you and the firm, with you keeping anywhere between 50%-90% depending on the firm. Any trading losses will be covered by the firm, but you will lose your account if you don’t continue to meet profit targets and follow trading rules.
What is swap?
Swap in the context of forex trading is the interest that one pays or receives for holding a position overnight. Forex trading is actually purchasing one currency against another, and since different currencies have different interest rates, if you hold a position overnight you either owe or are due that interest rate difference.
What is a swap-free account?
A swap-free account is a forex trading account that does not include any exchange of interest rate fees. Swap-free accounts are also known as Islamic accounts because the Muslim faith prohibits the use of interest. Muslims can therefore open swap-free accounts to trade forex without violating any tenets of their faith.