Best CFD Broker For Swap-Free Trading for 2024 - TOP 5

Best CFD Broker for swap-free trading: Investment Programs

Earning passive income is just as important for traders as earning profit by actively trading. Therefore, it is important to consider investment instruments offered by the company. There are different investment programs and their choice strongly depends on a specific broker. TU analysts have prepared a review of investment programs of the 5 best brokers.

1

RoboForex - Investment Programs

Investment Programs, Available Markets and Products of the Broker

RoboForex is the ideal broker for those looking to invest their money in the Forex market. This company has everything to earn a stable income — from professional analytics to technical functionality and optimal trading conditions. It is especially worth noting its investment program like RoboForex CopyFx which allows you to receive passive income without doing anything. According to customer reviews, RoboForex is the most popular brokerage company.

RoboForex CopyFx is a service for copying deals

RoboForex CopyFx is a passive investment option that involves connecting an investor's account to a professional trader's account and then copying his transactions. In this case, all trader's transactions are automatically opened on the investor's account. A specific trader's commission is deducted from the investor's profit in case of a successful transaction. The entire service is fully automated which minimizes your work to almost 0%. Learn More about CopyFX From RoboForex

CopyFX at RoboForex - how to choose a trader | Firsthand experience of Oleg Tkachenko

The minimum deposit is only $100, so everyone can test the waters. Having started working, the investor gets access to professional traders' ratings, which indicates the period of the account's existence, profitability, maximum drawdown level, and other statistics. Also, the investor can contact the trader directly.

An investor can connect to an unlimited number of traders, provided that his deposit can withstand such a load. Such diversification of risks makes it possible to form a full-fledged investment portfolio from traders' transactions.

An investor can disconnect from a trader at any time if he doesn't like something in his trading methods. It is a serious tool for protecting a deposit from RoboForex, which not all brokerage companies provide.

Separately, it should be noted that any person can simultaneously act as both an investor and a trader. All statistics on the effectiveness of copying transactions are displayed in the client's account.

Algorithm of working with the CopyFx copy trading platform:

• Once you register and pass verification, open a trading account. Investors can open any account, except for accounts with the MT5 and R StocksTrader platforms. Traders planning to provide signals open a separate account by choosing Open FxCopy Trader Account.

• In the Investment menu, open MT4 Trader Rating. Traders must meet minimum requirements of the broker in order to be included in the rating, such as the number of trades, the number of days the account has been active, and profitability. You will need to contact Customer support to learn about specific requirements.

• You will see main criteria in the list of traders: maximum drawdown, number of copy traders, profitability, account existence period, etc.

• Click on the profile of each trader to view trading statistics. You can activate the copy trading option in the profile of the trader you’d like to copy.

Copy trading is available on real accounts, subject to the deposit in the amount higher than the one specified in the trader’s profile. You can disconnect from a trader’s account at any time.

How to start investing in copy trading with RoboForex | Firsthand experience of Oleg Tkachenko

RoboForex affiliate program

It is not necessary to be familiar with trading to make money with RoboForex. Attract customers and earn up to 50% of the company's income. It works like this:

• You register as a partner, after which you receive information materials for posting on your website/blog, forums, or social networks. You also get a referral link.

• The person follows your referral link and deposits capital in his account.

• The broker receives the spread and credits a part of his profit to the partner's account in the referral trades.

Also, each partner can participate in the loyalty program with the possibility of receiving up to 20% additional partner remuneration every month.

Depending on the chosen partnership program and account type, the total amount of partner rewards can exceed 50% of the fees paid by the referral. For example, on Affiliate accounts, rewards are up to 70%. Taking into account the general fee of the VIP program with the loyalty reward, the total rewards of a partner could be as high as 84%.

2

Exness - Investment Programs

Investment Programs, Available Markets and Products of the Broker

Exness clients can make passive income on copy and algorithmic trading. Forex novice traders can earn from copying trades of experienced traders with the social trading platform and standard opportunities of MetaTrader platforms. If Exness clients know how to trade, they can make additional income on broadcasting their own strategies.

How to start earning with social trading

Exness clients can choose any convenient method to receive trading signals. These can be signals broadcast directly on MetaTrader or in the Exness in-house mobile app.

• Strategy copying. This option is available on the Exness proprietary platform. Investors choose the strategy based on important parameters for them, such as income, number of subscribers, leverage, fees, etc. The Most Copied option allows traders to view the most popular strategies among investors.

Who can provide strategies? Experienced traders with effective trading can do that. Currently, Exness offers two account types for providers — Social Standard and Social Pro. The minimum deposit for both of them is $500. Leverage is up to 1:200 and the fee is up to 50% of the investor’s profit.

Who can become an investor? Any Exness client with a verified user account can be an investor. The minimum investment is $10, thus this option is available even to Forex novice traders without big capital. Investors choose strategies and copy them in the social trading mobile app. Install it on your smartphone or tablet and log into your Exness user account. The broker’s website provides a link to download the app from Google Play and the App Store. Also, there is a QR code.

• Copy trading . To copy trades of other traders, use the MetaQuotes signal service — MQL4 on MT4 and MQL5 on MT5. First, investors pay subscription fees, and later they pay fees to traders for successful trades.

In addition to copying trades and strategies, Exness clients can use bots and expert advisors, which are available in app stores on the MQL4 and MQL5 websites. There are paid and free plug-ins. Also, you can ask an experienced trader to develop an advisor to fit your trading goals. Algorithmic trading is not available for Exness proprietary platforms.

How to copy signals from traders to your account. | Firsthand Experience of Oleg Tkachenko by TU

Partnership programs

Partner rewards are another type of passive income available to Exness clients. Any broker’s client can receive these rewards, regardless of their trading activity and deposits. The main condition to receive fees is to comply with the partnership program requirements.

Rewards for Exness partners:

• From $880 to $31,200 per month under the Introducing Broker (IB) program;

• From $10 to $1,850 for each client who makes the first deposit under the Affiliate Program.

Rewards for IBs depend on the number of referred clients — the more of them there are, the higher the fee. The maximum rate is 40% of Exness income from referral trading. Participants in the Affiliate Program receive fees subject to the first referral deposits.

3

TeleTrade - Investment Programs

Investment Programs, Available Markets and Products of the Broker

TeleTrade is a good broker for those who are used to combining active manual trading with trading using robots. However, the broker offers few investment programs. For example, such passive investment options as PAMM accounts or other forms of trust management are not available. However, the broker does offer the option of automatic copying of trades performed by experienced traders.

However, the abundance of trading instruments outweighs the small number of investment programs . In addition, the broker's VIP clients who trade large amounts can receive advice from personal managers. And what is more, the company offers good affiliate programs that can provide traders with  additional income.

TeleTrade’s affiliate program

• CPA partner. For each attracted client, an affiliate can receive up to $500. The broker makes daily payments for registration and verification of the client, and deposit replenishment. Also, payments are accrued for the trading activity of the trader referred by the affiliate.

• Introducing Broker (IB). This affiliate program allows you to receive a reward of at least 30% of the spread amount. The conditions depend on the market the representative works in. The percentage of the reward depends on the activity of the introducing broker.

Flexible terms of affiliate programs, as well as the provision of banners, landing pages and marketing materials by the company, enable everyone to create their own referral system. This can serve as a source of good extra income.

4

XBTFX - Investment Programs

Investment Programs, Available Markets and Products of the Broker

Traders come to brokerage companies to trade actively, but alternative methods of income, especially passive ones, may be of interest to many. Today, typical options are copy trading services, PAMM and MAM accounts, and referral programs. XBTFX provides each of these options.

Copy trading

Traders can register in the service as signal providers or investors. Providers trade as usual, but at the same time their trades are broadcast to interested investors. Investors, having connected to selected providers, automatically duplicate their trades. Traders can set a limit. For example, the provider may bet $1,000 and the investor may bet $100. If the provider's bet is successful, everyone makes a profit according to their proportional bets, and signal providers additionally charge investors a small fee for their services. Copy trading provides 100% passive income with reduced risk.

MAM and PAMM accounts

These are joint accounts that combine the manager's main account and sub-accounts owned by investors. Managers, in addition to their own capital, use investor funds when trading, but with some restrictions. For example, investors can set a trade limit of $500. If a manager executes a successful trade, then both the manager and investors make a profit according to their bets. PAMM and MAM accounts differ from copy trading in that managers control sub-accounts, although not completely, while in copy trading, the provider's actions are simply duplicated on investor accounts.

Referral program

Each client of this company receives a personal referral link, which can be freely placed on the internet (social networks, forums, or sent via instant messengers). Users who follow this link to this broker's website become referees of its owner. Referees bring the link’s owner a percentage of their income. Profit is accrued every hour in USD. The program has three levels: 1-5 referrals, 6-9 referrals, and 10 or more referrals. On the first level, the bonus payout is 10%; on the second, it’s 20%, and on the third, it is 30%. The number of referrals is unlimited.

5

IronFX - Investment Programs

Investment Programs, Available Markets and Products of the Broker

IronFX offers the TradeCopier platform as a passive income option. Beginners can use the platform to copy strategies of experienced traders. After registering as a Follower, users can access the rating of the most effective IronFX clients called Strategy Providers. At the initial stage, a Follower can choose one Strategy Provider for copying. However, once the platform is used actively, connecting to several traders from the rating becomes available.

To start copying trades on the TradeCopier platform, follow these steps:

• Register as a Follower. The registration form can be found in the section of the website with information about TradeCopier. Provide your first name, last name, email, choose the Copy Trade account type and its base currency, and create a password;

• Pass verification (provide documents to confirm identity and place of residence) and make a deposit;

• Choose a Strategy Provider from the general list of providers and connect to their account.

The TradeCopier platform is not available in all countries. For example, it is not offered by the FCA-regulated branch in the United Kingdom. As an alternative, traders can use the signal copying service directly in the MetaTrader 4 platform. All conditions of its operation are described on the MT4 website in the Signals section.

What Is A Forex Swap Free Account?

A Forex swap-free account, also known as an Islamic account, adheres to Islamic religious principles by neither charging nor earning interest on trades.

How Does A Forex No-Swap Account Work?

In a standard Forex account, traders often hold positions overnight, which involves the exchange of one currency for another. When this happens, there is typically a swap charge (or interest) applied, as the positions are subject to the difference in interest rates between the two currencies being traded. This charge is either paid or earned by the trader.

In a no-swap account, these interest charges are eliminated, and instead, the account may involve other fees or charges to compensate for the absence of swap charges. Some swap-free brokers may widen the spreads or charge a commission to cover the costs associated with offering swap-free accounts.

It's important to note that Islamic accounts are not exclusively for Muslim traders. Non-Muslim traders who wish to avoid swap charges for other reasons can also opt for a swap-free account.

Why Are Islamic Accounts Swap Free?

Islamic accounts are swap-free to comply with the principles of Islamic finance, which are guided by Sharia law. Sharia law is the legal framework derived from the religious precepts of Islam. It governs various aspects of life, including economic and financial activities.

One of the key principles of Islamic finance is the prohibition of riba. Riba is the interest charged on loans or deposits. Riba is considered unjust and exploitative because it lead to wealth accumulation by the lenders at the expense of the borrowers.

In a standard Forex trading account, when a trader holds a position overnight, they either earn or pay a swap charge (interest). This practice is in direct conflict with the prohibition of riba in Islamic finance.

To accommodate the needs of Muslim traders who want to participate in Forex trading without violating their religious beliefs, some brokers offer swap-free or Islamic accounts.

Are Forex Halal Or Haram?

The acceptability of Forex trading from an Islamic perspective is a topic of debate. The main reason being it depends on the trading approach. The main concerns revolve around the concepts of riba (interest), gharar (excessive uncertainty), and speculation.

Riba (interest)

As mentioned earlier, Islamic finance prohibits charging or receiving of interest. In standard Forex accounts, traders holding positions overnight may earn or pay swap charges (interest), which goes against this principle. However, swap-free or Islamic accounts address this issue.

Gharar (excessive uncertainty)

Some scholars argue that Forex trading involves a high degree of uncertainty due to the rapid fluctuations in currency values, making it haram (forbidden). However, others argue that not all forms of uncertainty are prohibited. Since currency exchange is a necessity in global trade, Forex trading can be considered halal (permissible) if conducted without excessive speculation.

Speculation

Forex trading can involve a high degree of speculation. Some scholars argue that this speculative aspect makes Forex trading akin to gambling, which Islam prohibits. However, others contend that if traders approach Forex trading with proper analysis, risk management, and avoid excessive speculation, it can be considered halal.

How to Choose a Swap-Free Account?

It can be challenging to choose the right swap free forex broker due to the many options available. Consider the factors below to choose the right swap-free account for your forex trading needs.

1. Broker's reputation and regulation

Research the broker's background, customer reviews, and check whether they hold licenses from reputable regulatory authorities like the FCA, ASIC, CySEC, or others.

2. Additional fees or charges

Swap-free accounts may have alternative fee structures to compensate for the absence of swap charges. Brokers may widen spreads or charge a commission on trades. Analyze and compare the fee structure among various brokers to determine which one offers the most cost-effective option.

3. Customer support

A broker with a dedicated support team for swap-free account users will be better equipped to address your concerns and provide guidance on maintaining Sharia compliance.

4. Demo Accounts

A demo account allows you to practice before going live. Find a swap-free broker with a functional demo account to learn the basics before you finally invest your real money.

5. Trading platform and tools

Evaluate the broker's trading platform and tools to ensure they are user-friendly. They should provide essential features like charting, technical analysis, and risk management. A reliable platform, such as MetaTrader 4 or 5, is preferred by many traders.

Do CFD Brokers Charge Swaps?

Yes, CFD brokers do charge swaps. Swaps are fees charged for holding a CFD position overnight, and they can be either positive or negative depending on the interest rates in the underlying instrument. Most CFD brokers charge swaps as a percentage of the position's value or as a fixed fee per day, and the amount can vary depending on the broker and the specific instrument being traded.

Brokers charge swaps because CFD trading involves borrowing and lending, and the swaps compensate the lender for the interest they would have earned on the underlying asset. It's essential to check a broker's swap rates before opening a CFD position to avoid any surprises in fees that may impact profits.

What Is a Swap Free (Islamic) Account?

A CFD swap-free (Islamic) account is an investment account designed for Muslim investors who follow Shariah law. Shariah prohibits the payment or receipt of interest, which means traditional investment options such as bonds and savings accounts are not compliant. These accounts are also known as Shariah-compliant accounts and do not require the payment of swap fees by account holders.

So, why are swap-free Islamic accounts needed? Shariah law prohibits Riba, which is Arabic for interest. In Islamic finance, profit is earned through trade and investment in assets. Therefore, contracts that require the payment or receipt of interest are not considered halal. Swap-free Islamic accounts allow Muslim investors to engage in the global financial markets while following Shariah law.

Now, in a CFD swap-free Islamic account, instead of earning or paying interest, the account holder enters into an agreement to share the profit and loss of a trade or investment with the broker. This arrangement is called a mudarabah arrangement, which means one party provides the funds while the other party provides expertise to generate profits. Both parties share in the profits, with the account holder receiving the majority of the profits.

Not all brokers offer swap-free Islamic accounts. Those that do may charge a fixed fee or have wider spreads than traditional accounts. Do your due diligence and research different brokers to find one that offers a swap-free Islamic account with reasonable fees and competitive spreads.

Is CFD Trading Halal?

In Islam, receiving interest income is prohibited, which raises the question of whether CFD trading is halal or not. Based on Islamic principles, CFD trading by traditional means is not halal because it involves elements of gambling and speculative practices, which are strictly forbidden in Islam. However, if you trade with a swap-free account where there is no interest income involved, it may be considered a halal form of investment.

Besides avoiding interest income, Muslim investors must also follow other halal investing rules, such as avoiding investments in industries that are considered haram, such as alcohol, gambling, tobacco, and weapons. At Vantage, we understand the importance of halal trading to our Muslim clients, and we offer a nimble and powerful service for trading CFDs on Forex, Commodities, Indices, and more.

So, if you're a Muslim trader looking for a halal investment option that aligns with Islamic principles, consider trading with a swap-free CFD account and investing in halal industries. Start your journey towards ethical and halal trading today.