60-90% of retail traders lose money trading Forex and CFDs. You should consider whether you understand how CFDs and leveraged trading work and if you can afford the high risk of losing your money. We may receive compensation when you click on links to products we review. Please read our advertising disclosure. By using this website, you agree to our Terms of Service.

EditorEditor: Alison HeyerdahlUpdated: April 22, 2024
AuthorAuthor: Chris Cammack

Last Updated On April 22, 2024

Chris Cammack
1

AvaTrade

Best Mobile Islamic Account

Visit
2

Tickmill

Lowest Commission ECN/STP Broker

Visit
3

XM

Lowest Cost Islamic Account

Visit
4

FxPro

Largest Account Variety

Visit
5

Axi

Best MT4 Islamic Swap-Free Account

Visit
6

HF Markets

Best Swap-Free Zero Account

Visit
7

IC Markets

Best Raw Spread Islamic Account

Visit
8

FP Markets

Best for Day Traders

Visit
9

Admirals

MT5 Muslim traders

Visit
10

Vantage

Best for traders on the go 

Visit

These are the best Islamic Forex accounts for 2024.

Scroll for more detailsPreviousNext
Broker
Broker Score
Official Site
Islamic Acct
Min. Deposit
Max. Leverage
Currency Pairs
MetaTrader 4 (MT4)
MetaTrader 5 (MT5)
cTrader
Regulators
Website Language: English
Support Language: English
Compare
AvaTrade
4.59 /5
Read Review
Visit Broker >
76% of retail CFD accounts lose money
GBP 10030:163 ASIC Regulated BrokersFinancial Services Conduct AuthorityCySEC Regulated BrokersFinancial Services AgencyCentral Bank of IrelandFinancial Regulatory Services AuthorityIsrael Securities Authority
Tickmill
4.58 /5
Read Review
Visit Broker >
71% of retail CFD accounts lose money
GBP 10030:162 CySEC Regulated BrokersFCA Regulated Forex BrokersLabuan Financial Services AuthorityFinancial Services Conduct AuthorityThe Seychelles Financial Services AuthorityDFSA Regulated Forex Brokers
XM
4.45 /5
Read Review
Visit Broker >
75.33% of retail CFD accounts lose money
GBP 530:157 CySEC Regulated BrokersASIC Regulated BrokersDFSA Regulated Forex BrokersInternational Financial Services CommissionFinancial Services Conduct Authority
FxPro
4.39 /5
Read Review
Visit Broker >
71.58% of retail CFD accounts lose money
GBP 10030:170 FCA Regulated Forex BrokersCySEC Regulated BrokersFinancial Services Conduct AuthorityDFSA Regulated Forex BrokersSecurities Commission of the Bahamas
Axitrader
4.44 /5
Read Review
Visit Broker >
75.6% of retail CFD accounts lose money
GBP 030:170 FCA Regulated Forex BrokersCySEC Regulated BrokersASIC Regulated BrokersFinancial Markets Authority of New ZealandDFSA Regulated Forex BrokersFinancial Services Authority – St. Vincent & the Grenadines
HF Markets
4.45 /5
Read Review
Visit Broker >
72.83% of retail CFD accounts lose money
GBP 030:10 FCA Regulated Forex BrokersDFSA Regulated Forex BrokersFinancial Services Conduct AuthorityCySEC Regulated Brokers
IC Markets
4.56 /5
Read Review
Visit Broker >
70.81% of retail CFD accounts lose money
GBP 20030:164 CySEC Regulated BrokersASIC Regulated BrokersThe Seychelles Financial Services AuthoritySecurities Commission of the Bahamas
FP Markets
4.40 /5
Read Review
Visit Broker >
79% of retail CFD accounts lose money
GBP 5030:170 ASIC Regulated BrokersCySEC Regulated BrokersFinancial Services Conduct AuthorityCapital Markets AuthorityThe Seychelles Financial Services Authority
Admiral Markets
4.28 /5
Read Review
Visit Broker >
76% of retail CFD accounts lose money
GBP 25030:182 ASIC Regulated BrokersCySEC Regulated BrokersFCA Regulated Forex BrokersFinancial Services Conduct AuthorityJordan Securities CommissionFinantsinspektsioon (Estonian Financial Supervision and Resolution Authority)
Vantage FX
4.35 /5
Read Review
Visit Broker >
of retail CFD accounts lose money
USD 5030:146 FCA Regulated Forex BrokersFinancial Services Conduct AuthorityASIC Regulated BrokersCayman Islands Monetary AuthorityVanuatu

How did FxScouts choose the Best Brokers with Islamic Accounts?

When comparing Islamic accounts, we:

  • Ensured that the brokers are regulated by entities such as the FCA in the UK. Regulation ensures that Islamic traders are treated fairly when trading.
  • Made sure there are no swap fees charged. A swap fee is usually charged every 24 hours that a position is held open. According to Shari’ah law, interest cannot be earned nor charged, so most brokers provide accounts without swap fees specifically for Islamic traders.
  • Checked if there were time restrictions on how long a trade can remain open without a swap fee.
  • Analysed which live accounts from each broker offer an Islamic option. Not all live trading accounts have a swap free version, and we made sure to consider the brokers with better options for Islamic traders.
  • Ensured that we listed the accounts with a reasonable minimum deposit requirement. Some brokers request a higher minimum deposit for Islamic accounts in comparison to their other live accounts.
  • Analysed the restrictions on Islamic accounts. Some brokers increase spreads on swap free accounts, or do not allow swap-free trading on specific instruments, or have other extra fees. We looked for brokers with minimal restrictions on their Islamic account offer.
  • Selected the brokers with best access to trading platforms, education, and customer service.

Our Broker Score and Trust Rating

FxScouts’ Broker Score and Trust Rating constantly evolve to reflect the forex market’s dynamics. We ensure transparency by incorporating regulator data and user insights. Our in-depth reviews consider over 200 metrics across seven key categories:

  • Trust Rating: Assessment of broker reliability and reputation
  • Trading Costs: Spreads and fees for clear comparisons
  • Platforms: User-friendliness and features
  • Asset Selection: Forex, stocks, and other available instruments
  • Transactions: Simple and straightforward deposits & withdrawals
  • Education: Support for beginners and developing traders
  • Customer Support: Accessibility, responsiveness, and expertise

Learn how we set the standard for broker reviews. Explore our in-depth review process here.


Others Also Visit

Scroll for more detailsPreviousNext
Visit
AvaTrade
4.59 /5
Read Review
Visit
Tickmill
4.58 /5
Read Review
Visit
Spreadex
4.26 /5
Read Review
Visit
XM
4.45 /5
Read Review
Visit
Pepperstone
4.61 /5
Read Review
Visit

AvaTrade – Best Mobile Islamic Account

Broker Score
4.594.59 / 5
🏦  Min. DepositGBP 100
🛡️  Regulated By
💵  Trading Cost 
USD 9
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best for:

AvaTrade offers trading in Gold, Silver, Oil, Indices and Forex. Therefore, we recommend this broker for Muslim traders that want to diversify their portfolio while remaining halal.

Why do we like it?

We like that AvaTrade offers Islamic accounts on MT4, MT5, Web Trader and the easy-to-use and intuitive AvaTradeGO mobile app.

Drawbacks

Certain forex pairs, such as the ones that include ZAR, TRY, RUB, and MXN, are not available on Islamic accounts.

Summary

Islamic accounts at AvaTrade do require a little more setup than with other brokers. First, a normal account must be opened and funded. Once this step is complete, an application for an Islamic account must be made and approved. Applications are usually processed within 1-2 business days.

Islamic accounts are subjected to an increased spread on forex pairs. Also, the swap fees are replaced by daily administration fees on all Forex trading products.

Pros
  • Top-tier regulation and security with licenses from ASIC and CBI among others
  • Accessible trading with a low minimum deposit of 100 USD
  • Award-winning mobile trading with the AvaTradeGO app with social trading features
  • Wide range of assets including unique instruments like vanilla options
  • Educational material to support trader development and strategy enhancement
Cons
  • Market analysis could be more extensive
  • Poor regulatory oversight outside of the UK and EU
  • Avatrade is a Market Maker and operate a dealing desk which might not align with all trading preferences
AlertAccepts UK Clients. Average spread EUR/USD 0.90 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA. 76% of traders lose money with this provider.

Tickmill – Lowest Commission ECN/STP Broker

Broker Score
4.584.58 / 5
🏦  Min. DepositGBP 100
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best for:

If you are looking for an Islamic account that is versatile and offers plenty of instruments (including forex, stock indices, oil, commodities, bonds, cryptocurrencies, and stocks) to trade, Tickmill is an adequate choice. This offer makes Tickmill a reasonable choice for expert traders.

Why do we like it?

We like that Islamic accounts have the same trading conditions and terms as Tickmill’s regular trading account types. The only difference is that there are no swaps on trading instruments.

Drawbacks

A handling charge applies for holding several trading instruments overnight for more than three consecutive nights.

Summary

Spreads on Tickmill start at 1.6 pips (EUR/USD) on its commission-free Classic Account, which is wider than other similar brokers.  Conditions improve on the VIP Account, but it requires a minimum starting balance of 50,000 USD. 

Swap-free trading accounts are only available to those clients who cannot use ‘swaps’ owing to religious beliefs.  Accordingly, Tickmill requires adequate justification that the trader follows the Muslim faith. All requests for Islamic account status are processed within one business day, and traders will receive a confirmation email once it is set up. 

Pros
  • Tight spreads
  • Well regulated
  • Fast and free withdrawals
Cons
  • Limited base currencies
AlertAccepts UK Clients. Average spread EUR/USD 0.00 pips with 6 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 platform support. Tickmill is regulated by CySEC, FCA, FSCA, and the FSA-Seychelles. 71% of traders lose money with this provider.

XM – Lowest Cost Islamic Account

Broker Score
4.454.45 / 5
🏦  Min. DepositGBP 5
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best for:

XM stands out for its very low minimum deposit on all accounts, including, of course, their Islamic versions. This makes XM great for low budget traders of the Muslim faith. XM also stands out for its wide range of CFD assets available on both the MT4 and MT5 platforms.

Why do we like it?

We were pleased to note that XM does not apply any extra charges for Islamic accounts. This is unusual as most other brokers apply an admin fee to Islamic accounts in place of the swaps. 

Drawbacks

Certain financial instruments provided, like CFDs, may be considered Haram under Sharia law, as they may involve speculation and other prohibited practices.

Summary

XM is unusual in the Forex industry in that it does not apply any extra charges for Islamic accounts. In addition, opening an Islamic account with XM is relatively straightforward: First, a trader must open and validate a standard account and then file a request for an Islamic account with the XM back office. Approval usually takes a matter of minutes.

With a minimum deposit of 5 GBP, traders can open the XM Zero Account, where spreads start at 0.0 pips.

XM offers three account options: XM Ultra Low Micro Account, XM Ultra Low Standard Account, and XM Zero Account. As mentioned, all of them can be converted into Islamic accounts.

Pros
  • Well regulated
  • Excellent education
  • Free deposits and withdrawals
Cons
  • Limited platform choice
AlertAccepts UK Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the FSC. 75.33% of traders lose money with this provider.

FxPro – Largest Account Variety

Broker Score
4.394.39 / 5
🏦  Min. DepositGBP 100
🛡️  Regulated By
💵  Trading Cost 
USD 14
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best for:

All client trades are executed with no dealing desk intervention. Most trades are filled with lighting fast speeds in under 12 milliseconds. This makes FxPro’s Islamic account adequate for Muslim day traders and scalpers.

Why do we like it?

We like that Islamic swap-free options are available on the MT4, cTrader and FxPro Edge account types. All accounts can be converted into a swap-free option. Instruments include forex, shares, spot indices, futures, spot metals, and spot energies.

Drawbacks

In place of the interest charged on overnight positions, Islamic traders will be charged a commission of 7.50 USD per lot, that applies after the 8th night of trading. Some traders might be disappointed in having to pay this commission on top of regular fees.

Summary

FxPro only offers Swap-free accounts for religious purposes as per the Shariah law.  To open an account, traders will need to provide an official document such as a Birth or Marriage certificate or an official letter from the leader of their local Muslim community.

Spreads are relatively wide on its MT4 and FxPro Edge account types, averaging at around 1.84 pips on the EUR/USD. 

Spreads tighten on the cTrader Account, down to 0.31 pips, in exchange for a commission of 4.5 USD per lot.  Most trades are executed in under 14 milliseconds, with 80.48% of market orders executed at the requested price, and 9.6% at a better price, known as positive slippage. 

Pros
  • Well regulated
  • Great platform choice
  • Tight spreads
Cons
  • Limited education
AlertAccepts UK Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the SCB. 71.58% of traders lose money with this provider.

Axi – Best MT4 Islamic Swap-Free Account

Broker Score
4.444.44 / 5
🏦  Min. DepositGBP 0
🛡️  Regulated By
💵  Trading Cost 
USD 10
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best for:

With 140 trading products to choose from, – including forex and CFDs such as commodities, metals and stock indices – Axi’s Islamic account is great for expert traders who know exactly what assets they want to trade.

Why do we like it?

We like that Axi offers a trading account tailored to Islamic traders on the MT4 platform. The MT4 platform offers customisation and is enhanced by other comprehensive tools, including the MT4 NexGen plugin.

Drawbacks

Some Islamic traders might be disappointed by the lack of variety regarding platforms, since Axi only supports MT4. However, it should be noted that this platform, no matter how old, is still a popular choice.

Summary

On the MT4 tool suite, NexGen offers a sentiment indicator, a correlation trader, an intuitive window, and an automated trade journal.  Axi also offers a range of tools, including AutoChartist, a powerful automated technical analysis tool, PsyQuation, an AI diagnostic tool that tracks your trading style, VPS hosting, and other trading algorithms to install on the platform. 

Opening an Islamic Account is a simple process.  Traders are required to open a Standard Account and request approval from Axi’s customer support, which usually takes a few minutes. 

Axi does not charge any extra fees on the Islamic account, which is unusual as most brokers apply a commission or widen the spreads to make up for the lost swap fees.

Pros
  • Low minimum deposit
  • Tight spreads
  • Innovative trading tools
Cons
  • MT4 only
  • Limited range of assets
AlertAccepts UK Clients. Average spread EUR/USD 1.00 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. Axi Group is regulated by the FCA, ASIC and the DFSA. 75.6% of traders lose money with this provider.

HF Markets – Best Swap-free Zero Account

Broker Score
4.454.45 / 5
🏦  Min. DepositGBP 0
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best for:

There isn’t a minimum deposit to start trading in this Islamic account. The education section is also quite detailed and offers 12 courses for all traders, covering topics like Trading Tools, Trading Strategies, and even Economics. These features make HF Markets perfect for beginner Muslim traders.

Why do we like it?

HF Markets offers a swap-free option for every account type available. Also, all traders get access to a swap-free account if they prefer it, meaning Islamic accounts are a lot easier to get in comparison to other brokers.

Drawbacks

Islamic accounts do incur an additional carry charge on any position held overnight for more than 7 days.

Summary

HF Markets offers Islamic accounts for all customers on all available account types. Trading conditions are especially good on the Zero Account, with raw spreads starting at 0.1 pips on the EUR/USD.  Note that raw spreads are only available on major currency pairs, and exotic pairs still carry wider spreads. As with all raw spread accounts, you will be charged a commission – in this case, the charge is 3 USD per lot (6 USD total round turn).

Pros
  • Well regulated
  • Excellent market analysis
Cons
  • Limited base currencies
AlertAccepts UK Clients. Average spread EUR/USD 0 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA. 69.03% of traders lose money with this provider.

IC Markets – Best Raw Spread Islamic Account

Broker Score
4.564.56 / 5
🏦  Min. DepositGBP 200
🛡️  Regulated By
💵  Trading Cost 
USD 8
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best for:

IC Markets is one of the few brokers offering Islamic accounts on both the Raw Spread and commission-free account types, and allowing Islamic accounts to trade over 90 instruments. This means that their accounts are suitable for Muslim traders interested in a diversified portfolio.

Why do we like it?

We like that, unlike many other brokers, IC Markets does not charge extra fees or commissions for an Islamic account. Also, swap-free account types are available on the MetaTrader4, MetaTrader 5 and cTrader platforms, and on both Standard and Raw Spread accounts.

Drawbacks

Both rates and holding period are subject to change to reflect market conditions when necessary. This brings uncertainty to traders using these accounts.

Summary

The IC Markets Standard Account has slightly higher trading costs than most other brokers’ entry-level accounts, with spreads starting at 1.4 pips on the EUR/USD. But trading costs improve on the Raw Spread Account, with EUR/USD spreads starting at 0.1 pips and a 6 USD commission.

Islamic account holders can access spreads as low as 0 pips on the EUR/USD. Commissions start at 5 USD per lot traded on the Raw Spread account. Opening an Islamic account is simple and can be done directly from IC Market’s website. However, customer service may ask for proof of Islamic faith before registering the trading account.

Pros
  • Well regulated
  • Tight spreads
  • Wide range of assets
  • Great platform choice
Cons
  • High minimum deposit
  • Limited market analysis
AlertAccepts UK Clients. Average spread EUR/USD 0.10 pips with 7 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. IC Markets is regulated by CySEC and ASIC.

FP Markets – Best for Day Traders

Broker Score
4.404.40 / 5
🏦  Min. DepositGBP 50
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best for:

Swap-Free Accounts will have the same trading conditions and terms as a regular MetaTrader 4 or MetaTrader 5 Platform Account. The fast execution under 40 milliseconds makes it great for day traders or scalpers, but its platform options make it suitable for any Muslim trader.

Why do we like it?

We like FP Markets Islamic accounts for their stable, secure and intuitive trading abilities without any hidden charges. There’s an Islamic Standard account, and an Islamic Raw account, both offering MT4 and MT5.

Drawbacks

It might not be that easy to get an Islamic account if your ID does not serve as proof of your Islamic faith. FP Markets might require a letter from the trader’s mosque to ensure that only those of the Muslim faith are accepted. Also, accounts on IRESS do not offer a swap free option.

Summary

When it comes to the instruments offered, there’s enough variety in the swap free accounts for any expert trader. These include over 70 pairs of currencies to trade; commodities like gold, silver, and more; 19 global indices; over 120 share CFDs; and, finally, cryptocurrencies like Bitcoin, Ethereum, Ripple, Litecoin, and more.

Access to tools includes WebTrader, and proprietary Android and iOS mobile apps other than MT4 and MT5.

FP Markets also recommends consulting with a religious authority in order to ensure that your trading activities are halal. This is great advice if you are a new Muslim trader. 

Pros
  • Trusted since 2005 with top-tier regulation
  • 100 USD minimum deposit amount
  • Supports MT4 MT5 cTrader and TradingView
  • Spreads start at 1.0 pip and narrow to 0 pips with higher trading volumes
  • Welcoming South African traders with specific regulatory compliance
Cons
  • Notably higher withdrawal fees than competitors
  • Stock CFDs are Limited on MT4/MT5 and primarily available through IRESS
  • High leverage up to 500:1
  • posing risks for inexperienced traders
AlertAccepts UK Clients. Average spread EUR/USD 0.10 pips with 6 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5, and cTrader trading platforms available. FP Markets is regulated by CySEC and ASIC.

Admirals – Best for Mt5 Muslim Traders

Broker Score
4.284.28 / 5
🏦  Min. DepositGBP 250
🛡️  Regulated By
💵  Trading Cost 
USD 8
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best for:

The Islamic account offers the same tight spreads, fast execution and the popular MT5 platform as the standard Trade.MT5 account, while being swap-free. MT5 is a new version of MT4 with more up to date features, and it will attract many traders that are used to the platform.

Why do we like it?

We value the wide variety of instruments available on Admirals’ swap free account. These include CFDs on currency pairs, indices, commodities, shares, ETFs and bonds.

Drawbacks

Any trades open with a holding period of more than 3 days (1 day for exotic currency pairs) are charged a flat administration fee. This administration fee is common, but most brokers with Islamic accounts have a longer holding period.

Summary

We recommend Admirals’ Islamic Forex Account to Muslim traders. The Islamic Forex account is swap-free, with no interest paid or received throughout the duration of the contract. Also, there is no spread widening or any up-front commissions for Islamic traders.

All Islamic traders have access to all other trading account benefits, including low spreads and commissions, and fast execution. There are no restrictions on trading styles, strategies or use of Expert Advisors.

Pros
  • Well regulated
  • Excellent education
  • Wide range of assets
Cons
  • Expensive withdrawals
AlertAccepts UK Clients. Average spread EUR/USD 0.80 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & MT4 Supreme Edition platforms supported. Admiral Markets is regulated by ASIC, CySEC, the JSC, and the FCA. 76% of traders lose money with this provider.

Vantage – Best for Traders on the go 

Broker Score
4.354.35 / 5
🏦  Min. DepositUSD 50
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best for:

Swap-free trading accounts allow all Muslim traders the ability to trade using MT4 and their mobile apps (iOS and Android). This account is great for clients that are busy and trade on the go often. The swap free accounts offer access to a wide variety of instruments: over 40 currency pairs, 13 indices, 20 commodities and 100 Share CFDs. 

Why do we like it?

The Vantage swap-free accounts have been tailored for Forex traders who are unable to receive or pay swaps due to religious beliefs. The broker offers swap-free versions of their Standard STP and Raw ECN accounts. The spreads are also quite low for an Islamic account, starting at 0 pips.

Drawbacks

Rather than increasing spreads or adding commission fees, an administration fee is credited to, or deducted from your account balance. This keeps trading Halal, but the administration fee might be a deterrent for some traders.

Summary

Vantage clients can start trading from 0.0 spreads, with a maximum leverage of 30:1 (according to FCA regulation). There are no deposit fees, however, other fees might be applicable.

Traders can access 13 global indices without collecting any swaps. The swap free accounts allow clients to trade the Forex market swap-free anywhere, anytime with over 40 forex pairs available.

For Islamic traders, the minimum deposit on the Swap-Free Standard Account is 200 GBP.

Pros
  • Well regulated
  • Tight spreads
  • Fast and free withdrawals
  • Great platform choice
Cons
  • Limited assets
  • High minimum deposit on Pro Account
AlertAccepts UK Clients. Average spread EUR/USD 0.00 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & Protrader platforms supported. VantageFX is regulated by the FCA, CIMA, VFSC & ASIC.

Islamic Forex Trading

There are three articles of the Islamic Mua’malat that are relevant to Forex trading:

  • Riba: Prohibition of payment and receipt of interest
  • Gharar: Prohibition on gambling
  • Shared Risk: Both profit and losses

The key element here is the elimination of Riba – or interest on loans or assets.

Riba is central to conventional Forex trading, but according to Islamic law, or Shari’ah law, Muslims are banned from earning interest on loans. Some scholars believe that the practice of removing Riba, as brokers do on their Islamic Forex accounts, legitimises Forex trading under Shariʻah.

Islam also emphasises that when conducting business transactions, elements of uncertainty, excessive speculation and gambling should also be avoided, so it could be argued that hedging trades with Forex is also legitimate under Shari’ah. It is also widely agreed that conventional Forex transactions – if used carefully – are a very effective means of protecting banks from exposure to international risk.

Shared Risk

Another concern about the Islamic nature of Forex trading is the element of shared risk. Luckily, with Forex trading, when you trade, you are investing in an asset – the currency purchased. If this asset increases in value, you will make a profit and if the asset loses value, you will make a loss. The result is a sharing of the benefits and losses of the currency exchange with your counterparty. From this point of view, Forex trading and Islam are compatible in terms of shared risk.

What is an Islamic Forex Account?

An Islamic Forex account is a halal Forex account that complies with the Shari’ah prohibition on Riba or the accumulation of interest. Islamic Forex accounts will not charge interest on open positions held overnight.

Islamic Forex accounts have two underlying attributes:

Other than the above, Islamic Forex accounts usually have the same trading terms and conditions as a regular Forex account. However, some most Forex brokers change the commercial terms of trading with them and might limit the trader from trading cryptocurrencies. 

Some Forex brokers will widen their spreads on Islamic accounts to compensate for the missed revenue that would otherwise have been generated by collecting interest. Another practice, but is far rarer, is that some Forex brokers charge an up-front commission on trades instead of widening the spreads.

Forex Brokers with Islamic Swap-free Accounts

There are a variety of brokers that offer Islamic accounts tailored for Muslim traders. There are usually no limitations on this account type – this means you can trade Forex, commodities, CFDs contracts and every financial instrument that complies with the Islamic financial regulations.

An important note:  With most Forex brokers, you will need to open a real trading account which can then be converted into an Islamic account. Few brokers have a registration page specifically for Islamic accounts, and even fewer have Islamic demo accounts, but some brokers with clients from predominantly Muslim countries automatically create accounts as Islamic accounts.

If you are in doubt, make sure you discuss your concerns with your account manager or broker representative before you make a deposit.

Forex Rollovers and Swap Rates Explained

In the Forex market, any position held overnight generates a rollover which will be earned or paid out depending on the currency you are trading and the direction of the market. Rollover interest is a form of interest that can be credited or debited from your Forex trading account, and thus it is prohibited by Islamic financial regulations.  In the financial world, this rollover is also known as the swap rate.  So, Islamic Forex accounts are swap-free accounts where no overnight interest is credited or debited.

Which Forex broker has the best Islamic Account?

XM has the best Islamic account. It is unusual in the Forex industry in that it does not apply any extra charges for Islamic accounts. Most other brokers apply a commission or widen the spread to cover the cost of the lost swap fees.

Islamic Financial Regulatory Bodies

The central financial regulatory bodies in the Islamic world are the following:

Forex brokers that are registered in Muslim majority countries often have to comply with many local regulations and are required to follow Shari’ah law, whereas Western Forex brokers have much more flexibility when it comes to the interest charged to their clients.  This is why only some of the brokers offer this account type.

Summary

An Islamic Forex account, or swap-free account, is an optional account type that is often selected after signing up with a broker.  They are intended for use by traders of the Islamic faith, which prohibits generating income from interest payments.  Most Forex brokers can accommodate followers of the Islamic faith by offering swap-free trading accounts that are compliant with Shari’ah law.

Forex Risk Disclaimer

Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. Forex and CFD transactions involve high risk due to the following factors: Leverage, market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection. Traders should not deposit any money that is not considered disposable income. Regardless of how much research you have done or how confident you are in your trade, there is always a substantial risk of loss. (Learn more about these risks from the UK’s regulator, the FCA, or the Australian regulator, ASIC).

Our Rating & Review Methodology

Our overall Forex Rankings report and Directory of CFD Brokers to Avoid are the result of extensive research on over 180 Forex brokers. These resources help traders find the best Forex brokers – and steer them away from the worst ones. These resources have been compiled using over 200 data points on each broker and over 3000 hours of research. Our team conducts all research independently: Testing brokers, gathering information from broker representatives and sifting through legal documents. Learn more about how we rank brokers

Editorial Team

 

Chris Cammack
Head of Content

Chris joined the company in 2019 after ten years experience in research, editorial and design for political and financial publications. His background has given him a deep knowledge of international financial markets and the geopolitics that affects them. Chris has a keen eye for editing and a voracious appetite for financial and political current affairs. He ensures that our content across all sites meets the standards of quality and transparency that our readers expect.

 

Alison Heyerdahl
Senior Financial Writer

Alison joined the team as a writer in 2021. She has a medical degree with a focus on physiotherapy and a bachelor’s in psychology. However, her interest in forex trading and her love for writing led her to switch careers, and she now has over eight years experience in research and content development. She has tested and reviewed 100+ brokers and has a great understanding of the Forex trading world.

 

Ida Hermansen
Financial Writer

Ida joined our team as a financial writer in 2023. She has a degree in Digital Marketing and a background in content writing and SEO. In addition to her marketing and writing skills, Ida also has an interest in cryptocurrencies and blockchain networks. Her interest in crypto trading led to a wider fascination with Forex technical analysis and price movement. She continues to develop her skills and knowledge in Forex trading and keeps a close eye on which Forex brokers offer the best trading environments for new traders.

 

Others Also Visit

Scroll for more detailsPreviousNext
Visit
AvaTrade
4.59 /5
Read Review
Visit
Tickmill
4.58 /5
Read Review
Visit
Spreadex
4.26 /5
Read Review
Visit
XM
4.45 /5
Read Review
Visit
Pepperstone
4.61 /5
Read Review
Visit