ThinkMarkets may allow a client to use an account set as ‘swap free’ under certain conditions. Swap-free accounts with ThinkMarkets do not earn swap or interest for any products held in the account. Instead, you will be charged a simple weekly administrative fee for positions that are held for seven days or more. Please note that not all products all available on an swap-free account. For more information, click here.
A client is typically granted swap free status for religious purposes such as for Islamic clients that must abide by Sharia law and cannot have exposure to interest rates. We may in certain situations offer a swap free account to non-Islamic clients, although this is typically in extreme circumstances.
ThinkMarkets may continue to be charged or credited swaps by LPs regardless of the status of the individual account responsible for the trades therefore swap-free account status is a privilege, not a right.
Swap Free Abuse
In certain situations, either deliberately or inadvertently, a client may trade in a manner which is deemed to be ‘unfair’ and results in financial losses to ThinkMarkets as a result of holding long term positions to benefit from swap rate differentials.
If an account is viewed to be guilty of abusing the swap free status, whether intentionally or by virtue of their trading style, we may inform a client of the removal of swap free status and the account may be held liable for any swap fees that have been 'avoided' resulting in the amount being removed from the trading account. We will endeavor to provide suitable notice, which will typically be a minimum of 24 hours. Any decisions regarding the approval or removal of an account’s swap free status will be at the sole discretion of ThinkMarkets.