While the forex market presents a lot of opportunities, it is important for traders to ensure they are following both religious and national laws. For Muslim traders, there are laws that have been in place for centuries to govern their trading activities. These laws ensure that Muslim individuals do not break Sharia law during financial transactions.
Luckily, there are forex brokers that have this in mind and provide Islamic Accounts for Muslim traders. In this review, we will look at some of the best Islamic Forex Brokers in existence. Let’s jump into it.
FP Markets is one of the best brokers that offers an Islamic account. This broker has a lot of upsides worth talking about. For starters, this broker is regulated by multiple organisations in multiple jurisdictions. It is under the supervision of the CySEC, the ASIC, and the FSCA. Regulated brokers are always a safer bet to invest with. The Islamic accounts provided by FP Markets do not charge any swap or interest charges on overnight positions. This is in line with Sharia law requirements. However, users of these accounts are charged an administration fee on positions which is deducted from the account balance. Interestingly, these accounts are only available on MetaTrader platforms. It is not available on either the Iress or the cTrader platforms.
The spreads on the Islamic accounts are cheap and manageable. On the Islamic Standard account, the spreads can go as low as 1.0 pips on major currency pairs. On the other hand, the spreads start at 0.0 pips on the Islamic Raw account. However, clients pay a commission of $3 per lot per 100,000 traded. Clients can greatly diversify their portfolios on the Islamic accounts. They can trade over 70 currency pairs alongside CFDs on shares, bonds, metals, indices, ETFs, and commodities. In total, there are over 10,000 trading instruments to invest in.
79.39% of retail CFD accounts lose money
eToro is a multi-asset broker that also offers an Islamic account to its clients. On this account, eToro does not charge any additional rollover commissions for contracts lasting longer than 24 hours. Additionally, eToro does not charge any commissions or fees for account management on this account. The revenues on this account come strictly from spreads. Finally, this account provides clients with interest-free leverage.
To open an Islamic account with eToro, a client needs to open a real account and fund it with at least $1,000. Then the client has to provide identification documents to complete the verification process. With this broker, clients can trade over 5,000 trading instruments under 6 main asset classes. These include CFDs on forex, cryptocurrencies, ETFs, and Indices. Clients can also purchase real stocks and cryptocurrencies on the eToro broker site.
The main trading platform availed by eToro to its clients is the in-house-built eToro platform. This platform excels in functionality and versatility. Additionally, it comes with the cutting-edge CopyTrader that allows traders to follow the moves of more successful investors on the platform. Further, the spreads are favourably low starting at 1.0 pips on major currency pairs. Finally, eToro is a regulated broker in multiple jurisdictions. These include the FCA, the CySEC, the ASIC, FINRA, and the SEC. These are some of the best regulators in the market.
77% of retail CFD accounts lose money
AvaTrade is one of the best forex in the market today with regulations in multiple jurisdictions. This broker is regulated by the Central Bank of Ireland, the ASIC, the FSCA, and the CySEC, among others. Regulations alone are not enough. However, this company has a long history in the market without breaking any laws. On a good note, AvaTrade offers Islamic accounts to its clients. All a client has to do is verify their account using the relevant documentation. These accounts can keep positions open for a maximum of 5 days without incurring any rollover fees. However, positions kept open for more than 5 days incur a fee. This account gives clients 24-hour access to CFD markets, allowing them to trade forex, commodities, shares, bonds, and ETFs. Notably, this account allows for Halal trading of gold and silver, oil, and indices.
Typical spreads on AvaTrade can fall below 1.0 pips for major currency pairs. For example, the spreads on the EURUSD pair can go as low as 0.9 pips. These are some of the lowest spreads offered by a forex broker. Further, AvaTrade provides its clients with some of the best trading platforms around. These include MetaTrader 4, MetaTrader 5, AvaTradeGO, DupliTrade, and ZuluTrade.
76% of retail CFD accounts lose money
XTB has the bragging rights for being awarded the best Islamic forex broker of 2018 by the Global Venture Awards. At the time of writing this, XTB is currently running a special offer for Islamic account users from certain jurisdictions. If you qualify, you will receive some cashback when trading after opening an Islamic account. Needless to say, the Islamic account on this broker site is swap and interest-free. XTB spreads are some of the lowest on any broker today. On the Islamic swap-free account, the spreads can fall as low as 0.7 pips on major currency pairs. Additionally, clients can trade a plethora of trading instruments with this broker, totalling over 2,100. These include CFDs on forex, indices, cryptocurrencies, commodities, shares, and ETFs.
The trading platform available to clients is the xStation and the xStation mobile application. This platform can be accessed directly via a web browser or downloaded on Google Play or App Store. xStation 5 provides a simple, intuitive and seamless trading environment packed with great charting tools. Finally, XTB is regulated by several regulators including the FCA in the UK, the CySEC in Cyprus, the KNF in Poland, and the IFSC in Belize. Having multiple regulations is always a good sign from a forex broker.
81% of retail investor accounts lose money when trading CFDs with this provider.
XM also offers clients a swap-free Islamic account. At a glance, the features of the account include no interest/swap charges on overnight positions, no spread widening, and positions that can be held with no time limit. On this account, clients can trade CFDs on forex, stocks, indices, shares, energies, cryptocurrencies, and precious metals. The spreads on XM are fairly low and rival some of the top forex brokers in the world. Here, clients enjoy spreads starting from as low as 1.6 pips on major currency pairs.
Additionally, clients enjoy a great line-up of trading platforms to choose from. These include MetaTrader 4, MetaTrader 5, and the XM trading app. These platforms are available on all kinds of devices including PC, macOS, iOS, and Android. Finally, XM is a regulated broker, which helps with its reputation in the market. This company is regulated by the CySEC, the FCA, the ASIC, and the FSC. With regulations from three of the top organizations in the world, XM stands out as one of the best brokers to trade with.
Exness was founded in 2008 and has grown to become one of the biggest brokers by trading volume in the world. The broker is regulated by the CySEC, the FCA, the FSCA, and the FSC. This regulatory status and its longevity in the market help improve its reputation. Notably, Exness has available swap-free accounts for residents of Islamic countries who are required to follow Sharia law. On these accounts, no swap is credited to or withdrawn from the trading account. Swap-free status can be applied to any of the account types on Exness. These include the Pro account, Raw Spread account, Zero account, Standard account, and the Cent Account offered by Exness, Standard Cent account.
With Exness, clients can trade over 200 trading instruments from 6 main global markets. These include forex, metals, cryptocurrencies, energies, stocks, and indices. Trading these instruments on the Exness broker site does not incur hefty charges. For example, the spreads are fairly low, starting from 1.0 pips on major currency pairs.
Remember that forex and CFDs available at Exness are leveraged products and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
A swap-free account is available for Muslim traders on Admiral Markets. This account allows traders to trade on standard terms without having interest fees credited or debited. The swap-free option is applied on the Trade.MT5 account, offering clients one of the fastest trading platforms in the market, MT5. Additionally, Admiral Markets is one of the brokers that support Trading Central. Additionally, this account does not have any restrictions on trading styles, strategies or the use of Expert Advisors. While overnight positions do not incur any overnight charges, positions held for more than 3 days are charged a flat administration fee depending on the instrument. Nonetheless, the spreads are fairly low starting from 0.5 pips on major currency pairs.
With this broker, clients can trade CFDs on currency pairs, indices, commodities, shares, ETFs, and bonds. Essentially, there is unrestricted access to all trading instruments offered by Admiral markets. There is also no spread widening or specific up-front commissions. Finally, we look at the regulatory status of this brokerage firm. The company operates under the watchful eyes of the FCA, the CySEC, the ASFL, the JSC, and the FSCA.
Pepperstone offers a swap-free account to traders who can’t receive or pay swaps. For Muslim traders, this account is perfect as it allows them to trade while honouring their religious laws. This account is interest-free and traders can take advantage of the deep liquidity offered by Pepperstone. Additionally, the account features low spreads starting from 1.0 pips for major currency pairs. In terms of regulations, Pepperstone does not disappoint. The FCA regulates this broker in the UK, BaFin in Germany, and the ASIC in Australia. These are some of the best regulators in the market. You are always safer investing with companies with regulations from reputable institutions.
There are over 1,200 CFDs available for trading on Pepperstone. Clients can trade CFDs on forex, shares, ETFs, indices, commodities, and currency indices. This variety of trading options is a characteristic of professional brokers who want to accommodate all kinds of traders.
IC Markets offers Islamic accounts to clients who cannot earn or pay interest due to their religious beliefs. The swap-free option can be applied on both the Raw Spread and Standard account types on the MT4, MT5, and cTrader platforms. Clients can pick and choose the trading platform that best suits their needs. Overnight charges are not applied to positions open over the first night. However, any positions kept open for more than one day are charged a flat rate financing charge. The spreads charged by IC Markets depend on the account a client is on. For example, the spreads start at 0.6 pips on the standard account.
On the other hand, the Raw Spread accounts feature a commission when trading. One of the accounts is only available on the cTrader trading platform. This account features a commission of $3 per $100,000 traded and spreads starting from 0.0 pips. The other account is available on the MetaTrader platforms and comes with a commission of $3.5 per side per lot. In terms of regulations, this broker is overseen by top-tier regulators such as ASIC, CySEC, and the FSA. The ASIC and the CySEC are two of the top regulators in the market which boosts the reputation of this broker among both seasoned and new traders.
Our Final Thoughts on Best Islamic Forex Brokers
While earning a profit is the main goal of trading financial markets, all traders want to know they are following the rule of law online. For Muslim traders, there are clear rules that govern their online trading activities to ensure they do not break Sharia law. Luckily, many top-regulated brokers offer Islamic accounts, ensuring such traders do not break religious laws.
In this article, we looked at some of the best Islamic forex brokers in the world. These brokers met our criteria to fall on this list, in that they are regulated and offer favourable trading conditions. Nonetheless, it is upon the individual trader to pick and choose the broker that best suits them after doing their own research.
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