For Muslim traders, choosing a broker is not only about spreads and platforms. Islamic finance prohibits paying or receiving interest, and the swap charged on positions held overnight works like an interest payment. That is why many brokers offer Islamic accounts, also called swap-free accounts.
XM, one of the biggest brokers in the world, offers an Islamic option on all of its account types. In this XM Islamic account review, we look at how the account works, what it costs, who can open one, and what XM's Islamic account terms say about charges and revocation.
75.12% of retail investor accounts lose money when trading CFDs with this provider.
Terms and conditions apply. Subject to regional availability.
Understanding Islamic Finance and Forex Trading
Islamic finance is guided by several principles that Muslim traders often consider when deciding whether and how to trade:
- Riba (interest): Charging or paying interest is prohibited. In forex trading, this is most relevant to overnight swaps, which are based on interest rate differences.
- Gharar (excessive uncertainty): Contracts involving excessive uncertainty or ambiguity are discouraged.
- Maysir (gambling): Purely speculative activity based on chance is prohibited.
An Islamic account addresses the first point by removing swaps. Whether leveraged CFD trading is acceptable more broadly is a question scholars answer differently, which our article on whether forex trading is halal explains in more detail. If you are unsure, consult a qualified Islamic scholar.
How the XM Islamic Account Works
XM offers an Islamic option as standard on all of its account types, so you keep the same spreads and trading conditions as XM's regular accounts. No swaps are charged or paid on positions held overnight, and XM does not list a time limit on how long positions can be held.
| Accounts with Islamic option | All account types, including Standard and Ultra Low |
| Spreads | Standard from 1.6 pips, Ultra Low from 0.8 pips on majors |
| Commission | None on Standard and Ultra Low |
| Overnight charges | Fair value adjustments on CFDs on cash energies and spot metals |
| Activation | Request in the Members Area after verification |
| Platforms | MetaTrader 4, MetaTrader 5, XM app |
Overnight Charges on Energies and Metals
While no swaps are charged, the account is not free of overnight costs on every instrument. According to XM's Islamic account terms, XM applies fair value adjustments to positions held overnight on CFDs on cash energies and spot metals, such as palladium (XPDUSD) and platinum (XPTUSD). The current rates are published in the Members Area and can change without notice.
The terms do not list these adjustments for forex, so currency traders are the least affected. If you plan to hold energies or metals overnight, check the current rates in the Members Area before opening a position.
Who Can Open an XM Islamic Account
Under XM's terms, swap-free accounts are available only to clients who cannot use swaps because of their religious beliefs. XM may ask for proof that you need the account and can refuse a request without giving a reason. If approved, the swap-free terms apply from the date XM emails you, and you cannot claim back swaps paid before the conversion.
Keep in mind that requesting Islamic status converts all of your real trading accounts, so you cannot keep some on swaps and others swap-free. XM can also remove the status at any time, and if it detects abuse, such as using the account to profit from swaps, it can recover unaccrued swaps for the swap-free period, close accounts and cancel trades.
Pros of the XM Islamic Account
- No swaps: No swaps are charged or paid on overnight positions, which addresses the interest concern for Muslim traders.
- Same trading conditions: Spreads, leverage and instruments are the same as on XM's regular accounts.
- Available on all account types: You can choose the account that suits your trading style, including the commission free Ultra Low account.
- No listed overnight charges on forex: XM's terms list overnight adjustments only for cash energies and spot metals, not for currency pairs.
- No listed holding limit: Scalping, short term trades and longer held positions are all possible.
Cons of the XM Islamic Account
- Overnight adjustments on energies and metals: Fair value adjustments apply to CFDs on cash energies and spot metals, and the rates can change without notice.
- All accounts convert: You cannot keep a mix of swap-free and regular accounts.
- Strict eligibility and revocation rules: XM can ask you to justify your request, refuse it without explanation, and revoke swap-free status at any time.
About XM: Accounts and Regulation
XM has operated since 2009 and reports more than 20 million clients worldwide, making it one of the largest forex brokers globally. It offers three main trading accounts, and all of them come with an Islamic option on request. The Standard account has spreads from 1.6 pips on major pairs and the XM Ultra Low account from 0.8 pips, both without commission, while the Shares account charges commission depending on the share traded and the trade size.
The XM group is regulated in several jurisdictions, including by CySEC in Cyprus, the DFSA in the UAE and the FSC in Belize. The Islamic account terms we reviewed are those of XM Global Limited, which is regulated by the FSC of Belize, and the protections you receive depend on the XM entity that holds your account.
How to Open an XM Islamic Account
Opening an XM Islamic account involves three main steps:
- Register a trading account: Open an account with XM by providing your personal details. During registration, enter our XM partner code REBATES30 to get a 30% rebate on every forex trade on Standard and Ultra Low accounts, credited automatically by XM. The code can only be entered when you register, not added to an existing account.
- Verify your account: Log in to the Members Area and complete verification with your identity and proof of address documents.
- Request Islamic status: Submit a swap-free request in the Members Area. XM reviews it, may ask for supporting information, and emails you once your accounts are converted.
Final Verdict
The XM Islamic account is a strong option for Muslim traders who mainly trade forex. It is available on every XM account type, keeps the same spreads and conditions as regular accounts, and XM's terms do not list an admin fee on currency pairs.
It is not free of overnight costs on every market, though. Fair value adjustments apply to CFDs on cash energies and spot metals, requesting Islamic status converts all of your accounts, and XM can revoke the status at any time. Read XM's current Islamic account terms and check the adjustment rates in the Members Area before trading energies or metals overnight.
75.12% of retail investor accounts lose money when trading CFDs with this provider.
Terms and conditions apply. Subject to regional availability.
Frequently Asked Questions
Yes. XM offers an Islamic option as standard on all of its account types, with no swaps charged or paid on overnight positions.
No swaps are charged, but XM applies fair value adjustments to positions held overnight on CFDs on cash energies and spot metals. The current rates are shown in the Members Area. Spreads, and commission on the Shares account, also apply as on regular accounts.
Under XM's terms, the account is intended for clients who cannot use swaps because of their religious beliefs. XM may ask for proof of need and can refuse a request at its discretion.
No. Under XM's terms, requesting Islamic status converts all of your real trading accounts to swap-free.
Yes. XM can revoke swap-free status at any time. If it detects abuse, it can also recover unaccrued swaps for the swap-free period, close accounts and cancel trades.
If you trade energies or metals overnight, or the XM Islamic account is not available to you, Exness applies swap-free status automatically to accounts in eligible Islamic countries and states that no charges replace the swap, while RoboForex offers swap-free trading on forex and metals without a listed replacement fee. Read our Exness Islamic account review, our RoboForex Islamic account review, or compare all options in our guide to the best Islamic forex brokers.
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