IC Markets
AvaTrade Islamic Account: Swap-Free Rules, the 5-Day Limit and Exclusions
AvaTrade's Islamic account removes overnight fees for up to five days per position, after which fees may apply. You request it after verifying and funding your account, and it excludes crypto and some currency pairs. Here is how it works and how to apply.
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AvaTrade offers an Islamic, or swap-free, account for clients who follow Sharia principles and want to avoid interest-based overnight fees. According to AvaTrade's Islamic account page, positions on these accounts can stay open for up to five days without an overnight fee; positions open longer than five days may incur a fee. Its Help Center states the limit more firmly: trades held for more than five days will be charged swaps, even on swap-free accounts.
It isn't a separate account type you open at registration. You request the status for an existing account once it is verified and funded.
| Overnight fee | None for up to 5 days per position |
|---|---|
| After 5 days | Swaps or fees may be charged |
| Eligibility | Verified and funded account |
| Processing | Usually 1 to 2 business days |
| Not available | Crypto; ZAR, TRY, RUB, MXN pairs |
| Spreads | Increased on FX pairs |
How to apply
- Verify your account by uploading identity and address documents.
- Fund your trading account.
- Ask Customer Services or your Account Manager to set the account as Islamic.
- Wait for approval, usually within one to two business days.
The five-day rule
The five-day limit is the condition that matters most. An Islamic account at AvaTrade is built for positions you close within a working week. Hold a trade past five days and it can be charged overnight fees like any other account. Long-term positions, such as holding gold for weeks, don't suit it.
| Holding period | Overnight fee on an Islamic account |
|---|---|
| Intraday | None |
| 1 to 5 days | None |
| More than 5 days | Swaps or fees may be charged |
What it costs instead
AvaTrade states that Islamic accounts are subject to increased spreads on FX pairs, and its Islamic page describes swap fees on forex products being converted into daily administration fees within MT4 and MT5. In practice, the cost of holding overnight moves from an interest charge into the price you trade at. Compare the spread on your Islamic account with a standard one before trading heavily.
What you can and can't trade
| Instrument | On an Islamic account? |
|---|---|
| Major and minor forex pairs | Yes |
| Gold and silver | Yes |
| Oil and indices | Yes |
| Cryptocurrencies | No |
| ZAR, TRY, RUB and MXN pairs | No |
To trade crypto or the excluded pairs, AvaTrade says you must give up Islamic status and accept the normal fees and interest.
Interest and VIP benefits
AvaTrade pays interest on free margin to VIP clients with equity over $10,000, but its VIP page says Islamic accounts are excluded. That is consistent with the swap-free principle.
Is AvaTrade's Islamic account halal?
AvaTrade includes a clear note: it is not a religious authority, so its definition of an Islamic account is not permission to trade. It asks clients to make sure their trading fits their beliefs. Many scholars hold different views on leveraged CFD trading; consult a scholar you trust.
A swap-free account removes interest charges. Whether leveraged CFDs are permissible is a separate question that a broker can't answer for you.
How it compares
Islamic accounts differ across brokers. Exness, for example, gives clients from Islamic countries swap-free status automatically. Our Exness Islamic account guide and Exness vs AvaTrade comparison show the differences.
Tips for trading on an AvaTrade Islamic account
- Plan to close positions within five days.
- Track how long each position has been open; MT4 and MT5 show the open time.
- Check spreads on the pairs you trade against a standard account.
- Avoid crypto and the excluded currencies unless you are willing to give up the status.
Islamic vs standard account
| Islamic account | Standard account | |
|---|---|---|
| Overnight fee | None for up to 5 days | Charged each night at 22:00 GMT |
| FX spreads | Increased | Standard |
| Crypto | Not available | Available |
| ZAR, TRY, RUB, MXN pairs | Not available | Available |
| VIP interest on free margin | Excluded | Available to eligible VIPs |
Counting the five days
Count from the day you open a position. A swing trade opened early in the week and closed before the weekend fits comfortably; one carried into the following week is likely to pass the limit. Ask Customer Services how weekends are counted for your account before you rely on the last day.
Before you apply
- Make sure your identity and address documents are approved.
- Fund the account you want to convert.
- Decide if you need crypto or the excluded pairs; if so, keep a separate standard account for them.
- Request the Islamic status and keep the confirmation email.
Gold, oil and indices on an Islamic account
AvaTrade's Islamic account page covers more than forex. It describes swap-free trading of gold and silver, oil, whose price is tied to oil futures, and the main stock indices, paying only the bid-ask spread. That makes the account usable for a broad short-term strategy, as long as each position closes within the five-day window.
The five-day limit is written into AvaTrade's terms, so build your trading around it. A swap-free account that charges after day five is fine for swing trades but not for positions you mean to hold for weeks.
Yusuf asked AvaTrade to set his verified MT5 account as Islamic and received confirmation after two business days. He trades gold and EUR/USD swing positions, closes everything within four days, and checks the open time on each position every Friday.
Frequently asked
Does AvaTrade offer an Islamic account?
Yes. AvaTrade's Islamic account has no overnight fee for positions held up to five days.
What happens after five days on an AvaTrade Islamic account?
Positions held longer than five days may be charged swaps or fees, even on a swap-free account.
How do I open an AvaTrade Islamic account?
Verify and fund your account, then ask Customer Services or your Account Manager. Requests are usually processed within one to two business days.
Can I trade crypto on an AvaTrade Islamic account?
No. Crypto isn't available on Islamic accounts, and neither are ZAR, TRY, RUB and MXN pairs.
Are spreads higher on AvaTrade Islamic accounts?
Yes. AvaTrade says Islamic accounts are subject to increased spreads on FX pairs.
Do AvaTrade Islamic accounts earn VIP interest?
No. AvaTrade's VIP page says Islamic accounts are excluded from interest.
Is AvaTrade's Islamic account approved by Islamic scholars?
AvaTrade says it is not a religious authority and that its Islamic account definition isn't permission to trade. Check with a scholar you trust.
Can positions on an AvaTrade Islamic account stay open indefinitely?
No. AvaTrade's terms limit swap-free holding to five days; positions held longer may be charged.
Can I trade gold on an AvaTrade Islamic account?
Yes. AvaTrade's Islamic account page covers gold and silver, oil and stock indices as well as forex.
Does an AvaTrade Islamic account cost more?
There's no overnight fee for five days, but FX spreads are increased, and AvaTrade describes swap fees on forex being converted into daily administration fees.
Can I trade crypto if I have an AvaTrade Islamic account?
Only by giving up Islamic status on that account and accepting normal fees and interest. Many traders keep a separate standard account instead.
Do swap-free rules cover indices at AvaTrade?
Yes. AvaTrade's Islamic page covers stock indices, gold, silver and oil as well as forex, within the five-day limit.
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