Best Raw Spread Islamic Accounts

For many Muslim traders, traditional brokerage accounts present a dilemma due to the involvement of interest (riba) and other non-Sharia-compliant practices. This is where Islamic accounts come in, specifically designed to adhere to the principles of Islamic finance. But not all Islamic accounts are created equal. Some brokers offer different versions of Islamic accounts to accommodate varying trading strategies. 

Among these, raw spread Islamic accounts have gained significant attention. These accounts aim to offer direct market pricing with minimal markups. As such, they can potentially provide competitive trading conditions while ensuring compliance with Sharia law. In this detailed article, we’ll explore some of the best raw spread Islamic accounts available today, comparing their features and benefits to traders.

What Are Raw Spread Islamic Accounts?

Raw spread Islamic accounts combine the benefits of raw spread accounts with Sharia-compliant trading conditions. A raw spread account offers traders direct access to interbank market prices with minimal or no broker markups. Spreads typically start from 0.0 pips, but a commission is charged per trade. These accounts are favoured by scalpers and high-frequency traders due to their low trading costs and fast execution.

In an Islamic context, raw spread accounts are adapted to comply with Sharia law by eliminating swap fees, which are considered riba. Raw spread Islamic accounts are ideal for traders who prioritise transparency, low spreads, and adherence to Islamic financial principles. 

Please note that some brokers may charge a flat administration fee for positions held overnight, ensuring compliance with the prohibition of interest. So, what are some of the best brokers that offer Raw Spread Islamic accounts? Let’s take a look.

Top Brokers Offering Raw Spread Islamic Accounts

HFM

HFM is a globally recognised broker that also offers its traders a Raw Spread Islamic account. Specifically, this is available on the broker’s Zero account. This account features raw market spreads starting from 0.0 pips and includes a commission of $3 per side per lot. While this account offers swap-free trading, several instruments may face carry charges after a position has been rolled over for a sequential period of days. This fee depends on the instrument being traded.

Interestingly, swap-free trading conditions are also available for clients who do not observe Sharia law, on specific trading accounts and specific instruments. The details on this are available on HFM’s website. Further, there is no minimum deposit requirement to open an HFM zero account. This means that traders can start trading with whatever amount they wish to invest.

This account offers traders access to the full range of trading instruments available on HFM. This includes CFDs on forex, energy, indices, stocks, metals, bonds, commodities, cryptocurrencies, and ETFs. The trading platforms available to use include MetaTrader 4, MetaTrader 5, and the HFM Platform.

HFM is a regulated broker with licenses in various jurisdictions. It is duly regulated and authorised by the FSCA, CySEC, the DFSA, the FCA, and the CMA. Although the broker holds regulation in the UK and EEA, it is currently not onboarding new retail clients from these regions. However, retail traders from most other countries remain welcome.

Remember that Forex and CFDs available at HFM are leveraged products.
Their trading can result in the loss of your entire capital.

Exness

Exness stands out for offering one of the best raw spread Islamic accounts. This broker features five different trading accounts, all of which have a swap-free version. The Raw Spread Islamic account on Exness offers traders access to raw market spreads that start from as low as 0.0 pips. However, this account also charges a commission of up to $3.5 per side per lot. 

No swaps are charged on the Islamic Raw Spread account, making it an ideal choice for Muslim traders and those looking to hold positions for extended periods. It is important to note that eligibility for any Islamic account on Exness depends on the country of the trader. There are a select Islamic countries where Exness supports automatic swap-free accounts. Any account created in these regions is swap-free by default. In non-Islamic countries, swap-free trading is also available, but only for certain assets. This includes gold, indices, cryptocurrencies and some forex pairs. Please note that Exness requires a minimum deposit of $200* (may vary depending on your region) to open a Raw Spread account.

Nonetheless, Exness supports the trading of a deep collection of market products. Its range of financial instruments includes CFDs on forex, indices, commodities, stocks, and cryptocurrencies. To trade these assets, traders can use various trading platforms, including MetaTrader 4, MetaTrader 5, and the broker’s proprietary Exness Terminal platform.

Further, Exness is a well-regulated broker. It operates under the regulatory oversight of the JSC in Jordan, the FCA in the UK, the CySEC in Cyprus, and the FSCA in South Africa, among others. While regulations alone are never enough, it is better to invest with a broker with licenses from various well-known institutions. Although the broker holds regulation in the UK and EEA, it is currently not onboarding new retail clients from these regions. However, retail traders from most other countries remain welcome.

Remember that Forex and CFDs available at Exness are leveraged products.
Their trading can result in the loss of your entire capital.

FP Markets

FP Markets is another broker that offers its traders a Raw Spread Islamic account. On this broker site, there are two different Islamic accounts, including the Standard Islamic account and the Raw Islamic account. The Raw Islamic account on this broker site offers spreads from 0.0 pips with a commission of $3 per 100,000 traded. In comparison, the Standard Islamic account has a spread as low as 1.0 pips with no commissions charged. Please note that the Islamic accounts on FP Markets are available exclusively on MetaTrader 4 and MetaTrader 5.

Additionally, it is important to note that FP Markets charges administrative fees when trading on an Islamic account. The exact fee differs depending on the asset a person is trading. For certain selected instruments, FP Markets offers a grace period of 5 nights during which traders can hold overnight positions without incurring any administration fees. Details on these specific instruments can be found on the FP Markets website. The minimum deposit required to open an account with FP Markets is $100.

On another note, FP Markets provides access to a vast range of over 10,000 trading instruments, including CFDs on forex, indices, metals, commodities, stocks, bonds, and ETFs. It is a regulated broker across various jurisdictions. It operates under the supervision of the CySEC in Cyprus, the ASIC in Australia, the FSCA in South Africa, and other authorities.

72.44% of retail CFD accounts lose money

Tickmill

Tickmill is a top-tier forex and CFDs broker that supports Islamic accounts across all its account options. Muslim traders can open any account with Tickmill and convert it into an Islamic type to enjoy the same trading conditions as with the regular standard accounts. Tickmill offers two different Raw Spread accounts. These include the Raw account and the Tickmill Trader Raw account.

The Raw account features spreads from 0.0 pips and has a commission of $3 per side per lot ($6 per round turn). In comparison, the Tickmill Trader Raw account has the same spreads from 0.0 pips but charges a commission of $3.5 per side per lot ($7 per round turn). Please note that these commissions only apply to CFDs on Forex and Precious Metals. There are no commissions on CFDs for Indices, Cryptocurrencies, Oil, and Bonds. 

However, please know that Tickmill charges a handling fee for holding several trading instruments overnight. The specific fee charged depends on the market product. There are grace periods that vary depending on the specific instrument. Tickmill accepts a minimum deposit of $100 to open an account.

The trading platforms available on this broker site include MetaTrader 4, MetaTrader 5, TradingView, and the broker’s own Tickmill Trader. These advanced trading platforms feature intuitive interfaces and are available across the web, PCs, and mobile devices, ensuring accessibility. Finally, Tickmill has a good standing on the regulatory front. It holds regulatory licenses from several institutions, including the FCA, the CySEC, the ASIC, and the FSA in Seychelles.

71-74% of retail investor accounts lose money when trading CFDs with this provider.

FXTM

Another worthy contender for the best raw spread Islamic account is FXTM. This broker offers two main swap-free accounts, including the Advantage Plus and the Advantage accounts. The Advantage account gives traders access to raw market spreads from 0.0 pips but also charges a commission depending on the market product being traded. For forex CFDs, the commission is $3.5 per side per lot. 

On the FXTM broker site, traders have access to a deep collection of market products. These include CFDs on forex, stocks, commodities, indices, cryptocurrencies, and shares. However, exotic currency pairs are not available on swap-free accounts. To trade these different global markets, investors can use MetaTrader 4, MetaTrader 5, and FXTM Trader. 

Regarding regulations, this broker has authorisation and regulation from various institutions. These include the FCA, the CySEC, the CMA, and the FSC in Mauritius. While regulations alone are not enough, this broker has a long track record of operating within the rule of law. FXTM has a minimum deposit of $200 to open an account.

IC Markets

IC Markets is one of the most trusted brokers for ECN-style trading. This broker offers swap-free versions on all its accounts, including the two Raw Spread accounts. The two Islamic Raw Spread accounts offer spreads from 0.0 pips plus a commission that depends on the trading platform a trader uses. The cTrader and TradingView Raw Spread account charges a commission of $3 per side per lot, while the MetaTrader Raw Spread account has a commission of $3.5 per side per lot.

While the Islamic accounts do not charge swap fees, the broker charges holding fees for leaving positions open overnight. The specific rate depends on the market product being traded. Regarding market products, IC Markets offers access to over 2,000 instruments. These include CFDs on forex, stocks, indices, commodities, cryptocurrencies, and bonds. Traders can choose from various trading platforms, including MetaTrader 4, MetaTrader 5, TradingView, and cTrader.

In terms of regulation, IC Markets holds licenses from several financial authorities. These include the ASIC, the CySEC, the FSCA, and the CMA. The starting deposit to open an account with IC Markets is $200.

Vantage Markets

Vantage Markets is a well-established broker that offers a compelling Raw Spread Islamic account. On this broker site, Muslim traders can open a Raw ECN Islamic account at Vantage, which combines the benefits of ultra-tight spreads with Sharia-compliant features. This account has a spread from 0.0 pips but charges a commission of $3 per side per lot.

Crucially, Vantage’s Islamic accounts are swap-free, ensuring that no interest (riba) applies to positions held overnight. Instead, traders may incur an administration fee, which varies based on the instrument traded. This account requires a minimum deposit of $50 to open.

Notably, this broker allows its clients to trade over 1,000 market instruments. These include CFDs on forex, indices, precious metals, commodities, energy, ETFs, shares, and bonds. The trading platforms available to choose from include MetaTrader 4, MetaTrader 5, ProTrader, and WebTrader.

Finally, let’s review the regulatory status of Vantage Markets. This broker is under the regulation and supervision of the CySEC, the FSCA, and the ASIC, among others. The goal of these regulators is to maintain a fair trading environment and to protect investor funds.

Key Considerations When Choosing a Raw Spread Islamic Account

• Sharia Compliance - Ensure that the broker you choose completely eliminates swap charges. If the broker charges any administration fees, ensure the fee is transparent and aligns with Sharia principles. Consult a religious authority if needed.
• Spreads and Commissions - Compare spreads and commission structures of various brokers. Raw spread accounts typically have spreads from 0.0 pips and charge a commission of $3 to $7 per lot per side.
• Grace Period - If your only option is brokers with admin fees, look for those offering a grace period (5–10 days) before admin fees apply. This can greatly reduce costs for short-term trades.

• Regulation - Choose a broker regulated by top-tier authorities like ASIC, CySEC, or FCA to ensure fund security and transparency.

• Platforms and Execution - Opt for brokers with low-latency execution and support for MT4, MT5, or cTrader, especially for scalping or algorithmic trading. TradingView is another top platform to consider for broad technical analysis capabilities.
• Instrument Range - Ensure access to a diverse range of halal instruments, such as forex, commodities, and indices. Note that cryptocurrencies and certain exotic pairs (e.g., USD/TRY) may not be available on Islamic accounts.

Final Comments

Raw spread Islamic accounts offer Muslim traders a powerful combination of cost efficiency, transparency, and Sharia compliance. Brokers like Exness, FP Markets, HFM, Tickmill, IC Markets, and the others listed here excel in this offering. They provide tight spreads, robust platforms, a deep collection of market products, and regulatory oversight. Nonetheless, there may be others that we have not listed here. Make sure you pick a broker that best aligns with your needs.

However, remember that trading Forex and CFDs carries a high level of risk and may not be suitable for all investors. Ensure you understand the risks involved before investing your hard-earned cash. Furthermore, always consult a religious authority to ensure your trading activities align with your personal interpretation of Sharia law.