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XM Islamic Account: Swap-Free Trading and How XM's Swaps Work
XM says every account type comes with an Islamic option as standard, and its Ultra Low account trades selected instruments swap-free. Here is what XM publishes about swap-free trading, how its swaps are calculated, and what to check before you trade.
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XM offers Islamic, or swap-free, trading. Its account page states that all accounts offer an "Islamic option as standard", alongside negative balance protection and hedging. Separately, XM's Ultra Low account lets anyone trade selected instruments swap-free. Beyond those two statements, XM publishes little about how its Islamic option works, so the most useful thing a trader can do is understand exactly how XM's swaps are charged and check each instrument before holding it overnight.
Swaps are the interest you earn or pay for keeping a position open past the daily rollover. Avoiding them is the whole point of an Islamic account for traders who can't pay or receive interest for religious reasons. Everyone else simply pays a cost that grows the longer a trade stays open.
| Islamic option | Available on all XM account types (XM account page) |
|---|---|
| Ultra Low account | Selected instruments swap-free for all holders |
| Copy trading | An Islamic trading account makes the Investor Account Islamic too |
| Swap basis | Tom-next rate minus a mark-up (forex and spot metals) |
| Triple swap | Wednesday |
| Futures | No swaps charged |
What XM says about Islamic accounts
XM's account comparison lists three account types, Standard, Ultra Low and Shares, and says all of them offer negative balance protection, hedging and an Islamic option as standard. Its copy trading rules add one more detail: if you hold an Islamic trading account, your copy trading Investor Account is automatically Islamic as well.
XM doesn't publish a public page setting out how to request the option, whether any fee replaces swaps, or which instruments are covered. Ask XM's support team, which is available around the clock by live chat, before you open positions that you plan to hold overnight, and get the answer in writing. Our XM customer support guide lists the contact options.
FX Recap doesn't give religious rulings. Here we explain how XM's accounts and swaps work, so you can take the facts to someone whose judgement you trust.
Swap-free instruments on the Ultra Low account
The Ultra Low account offers a second route to swap-free trading that doesn't depend on religious status. XM's Help Center is clear that only selected instruments qualify, not all of them. It also explains how to check any instrument:
- Log in to XM and open the Markets section.
- Select the instrument, for example Gold.
- Click the 'i' icon on desktop, or tap '...' and then 'Symbol Information' on mobile.
- If no swaps are listed, the instrument is swap-free on your Ultra Low account.
The Ultra Low account also has tighter spreads than Standard. XM lists them as low as 0.8 pips on EUR/USD against 1.6 on Standard, with the same $5 minimum deposit and up to 1000:1 leverage. Our XM account types guide compares the two in full.
How XM calculates swaps
For anyone not on a swap-free arrangement, XM's Help Center publishes the formulas it uses. With them you can estimate the overnight cost before you hold a trade.
| Market | XM's formula | What drives it |
|---|---|---|
| Forex and spot metals | Trade size × (± tom-next rate − mark-up) | The interest-rate gap between the two currencies |
| Stocks and stock indices | (Trade size × closing price) × (± short-term interbank rate − mark-up) | Local interbank rates |
| Futures contracts | No swaps | Positions close at expiry instead |
XM gives a USDJPY example: with tom-next rates of +0.5% for a long position and −1.5% for a short, a long position earns 0.5% minus XM's mark-up and a short pays 1.5% plus the mark-up. The mark-up always works against you, so even the side that earns interest earns a little less than the raw rate.
The Wednesday triple swap
Spot forex settles two days after the trade, so a position held through Wednesday's rollover covers the weekend. XM charges or pays three days of swap that night. A trade you plan to hold from Tuesday to Thursday therefore carries three nights' worth of swap on top of one.
Dividends and swap-free status
Dividend adjustments are separate from swaps. When a share or a cash index goes ex-dividend, XM credits buy positions and debits sell positions by the dividend amount per lot. That applies to CFDs on cash indices and stocks, but not to futures indices or the GER40Cash. A short index position held over a dividend date will pay that adjustment even on a swap-free account, because it isn't interest.
Before you hold a swap-free position
- Confirm in writing with XM support that the Islamic option is active on your account, and whether any holding charge applies.
- Check each instrument's Symbol Information for swaps before holding overnight.
- Remember that XM's dormancy fee of $10 a month applies after 90 days of inactivity, whatever the account type.
- Watch dividend dates on index and stock positions.
- Keep leverage modest. Swap-free status doesn't reduce risk; XM's 20% stop-out level is the same.
Is XM's swap-free account halal?
That is for a qualified scholar to judge. The facts a scholar would ask about are these: XM's Islamic option is described only as swap-free, trades are leveraged CFDs rather than ownership of the asset, and dividend adjustments still apply to stock and index positions. Our best Islamic account brokers page compares how brokers structure them.
Islamic option or Ultra Low: which fits?
| Islamic option | Ultra Low account | |
|---|---|---|
| Who it is for | Clients who can't pay or earn interest | Any client |
| Swaps | Swap-free, per XM's account page | Only on selected instruments |
| How to check | Confirm with XM support | Symbol Information shows no swaps |
| Spreads | Those of your account type | From 0.8 pips on EUR/USD |
| Minimum deposit | $5 on Standard or Ultra Low | $5 |
If you want swap-free trading for religious reasons, the Islamic option is the relevant one; the Ultra Low account's swap-free list is narrower and applies only to the instruments XM selects. Our XM account types guide covers the rest of the Ultra Low conditions.
Where a broker publishes little about its Islamic option, the burden shifts to you. Get the terms in writing from support, check each instrument's swap before you hold it, and keep that email with your records.
Amina opened an XM Ultra Low account for EUR/USD and gold swing trades. Before holding a position overnight she checked Symbol Information for both, found gold listed without swaps but EUR/USD with them, and emailed support to ask about the Islamic option. She kept XM's written reply and now only holds positions overnight on instruments she has confirmed are swap-free.
Frequently asked
Does XM offer an Islamic account?
Yes. XM's account page says all accounts offer an Islamic option as standard. Its Ultra Low account also lets any client trade selected instruments swap-free.
How do I get an XM swap-free account?
XM doesn't publish the request process on its public pages. Ask its 24/7 support team by live chat or email before holding positions overnight, and keep the written confirmation.
Which instruments are swap-free on XM Ultra Low?
Only selected ones. In XM, open Markets, select the instrument and view Symbol Information; if no swaps are listed, it is swap-free on the Ultra Low account.
How are XM swaps calculated?
For forex and spot metals, trade size × (± tom-next rate − mark-up). Stocks and indices use (trade size × closing price) × (± short-term interbank rate − mark-up). Futures carry no swaps.
When does XM charge triple swaps?
On Wednesday. Spot forex settles two days after the trade, so Wednesday's rollover covers the weekend and three days of swap are applied.
Is copy trading swap-free at XM?
If your trading account is Islamic, XM makes your copy trading Investor Account Islamic automatically, according to its copy trading rules.
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