AvaTrade provides fully regulated brokerage services ideal for beginners and experienced traders. It also offers an impressive array of trading instruments, including forex, stocks, commodities, crypto and indices. Opening an Islamic account is usually as easy as contacting the customer support team of any top forex broker.

What is a swap-free account?

If you like trading multiple assets, ThinkMarkets will be a great partner, offering a wide choice of CFDs with Islamic accounts. While reviewing the broker, I came across a solid selection of 3,000+ markets, which covers most major markets, including 46 currency pairs, 59 ETFs, 22 indices, and 15+ commodities. I consider Pepperstone as the best ECN Forex Broker for Islamic traders because of its fast execution speeds, competitive spreads, and diverse range of trading platforms. Additionally, I like Pepperstone’s trading tools, such as Smart Trader Tools for MT4 and MT5, which enhanced my ECN platform trading experience. An Islamic account, also known as a swap-free account, is a trading account that incurs no trade99 review interest charges or swaps on overnight positions to comply with the Islamic Shariah principles.

Best for Tiered Fee Structure: HYCM

The broker offers a wide range of forex currency pairs and uses the popular MetaTrader 4 platform, as well as a proprietary advanced trading platform and mobile app. In more than 15 years of trading in the financial markets, Vladimir dealt with a wide range of brokers and financial instruments. Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio. Dan Blystone began his career in the trading industry in 1998 on the floor of the Chicago Mercantile Exchange.

Forex Brokers That Offer Islamic Trading Account 2024

In essence, even if you do not follow Islamic finance principles, Islamic Forex accounts can provide you with ethical and practical benefits. The absence of swap charges and a commitment to transparent, ethical investing make these accounts an attractive choice for anyone who values fairness and profitability in their investments. Unlike standard accounts where traders might receive or pay interest when holding positions overnight, Islamic accounts ensure that positions remain open without accumulating interest.

I like that the broker has built CopyTrader, a platform that makes copy trading easy and straightforward. In my opinion, the platform’s simple layout, consisting of a search tool which allows you to filter out traders based on your requirements, is unmatched in the competition. Alternatively I recommend using the Standard account which averaged 1.10 pips for EUR/USD if you aren’t fond of paying commission. The broker provides 10+ expert advisors (EAs), known as NextGen add-ons, which are freely offered to Axi account holders. I found these EAs to be very useful for improving my trader management within the MetaTrader 4 platform. I took note of some of the tools which I am convinced can help boost your trading efficiency.

JustMarkets also offers copy trading via MT4, which allows experienced traders to earn additional income when others copy their trades. Islamic account holders outside the EU do not pay swap fees, and there are no financing fees. For EU clients, Islamic accounts are available via Raw Spread and Pro account types on the MT5 platform. Swap-free accounts are subject to a daily order handling fee determined by the size of financing costs charged to JustMarkets by its vendors. For most instruments, Islamic account holders at IC Markets do not pay swap or financing fees.

The elimination of swap rates in Islamic finance is an interesting aspect that might resonate with you, regardless of your religious background. Additionally, Islamic accounts may charge a commission or apply a markup on the spread to compensate for the interest-free nature of the account. This itrader review way, if you are a broker, you generate revenue without violating Islamic finance principles.

I recommend FP Markets as the top broker for offering low spreads across a basket of major currency pairs on Islamic account. Adding to the broker’s low trading costs, you can trade 71 forex pairs, with the fastest market execution speeds I’ve tested for an Islamic account. The best Islamic forex broker accounts reviewed on this page are all swap-free accounts, for use by Muslims who want to trade forex. Most of the largest and most respected forex brokers offer Islamic trading accounts, including Pepperstone, Axi and FXTM. To sum up, all these brokers offer local and international regulatory protection, ensuring a secure trading environment for those seeking an Islamic account forex broker. By choosing one of these regulated forex brokers, you can have confidence in the safety of your funds and the transparency of their operations.

HYCM also provides educational and investing resources for both experienced and novice traders. The team of forex and CFD writers and editors at FX Empire is composed of trading industry professionals and seasoned financial journalists. Our writers have been published on leading financial websites such as Investopedia and Forbes. Forex trading, in the context of Islamic finance, is debated due to principles of Islamic law (Sharia). The primary concerns revolve around the concepts of Riba (usury or interest), Gharar (excessive uncertainty), and Maisir (gambling), which are prohibited in Islam.

With this account, my tests found that eToro averaged 1 pip on EUR/USD, which is excellent considering you can access the markets and copy trading services. Other services have additional fees attached to copy trading, or brokers widen their spreads on these services – so this is a huge plus for eToro in my books. As for Islamic accounts, easyMarkets is among the few brokers offering fixed spreads with swap-free accounts. With fixed spreads, you don’t have to worry about widening spreads during increased volatility; you get the same spreads regardless of market conditions. With spreads of 0.80 pips on EUR/USD, I found easyMarkets’ fixed spreads to be very competitive, outperforming most variable spread brokers. If you’re seeking a broker offering Islamic accounts in Europe, FXTM is a top choice.

AvaTrade is widely regarded as a trustworthy broker, and in fact was one of the first online retail Forex / CFD brokers. AvaTrade offers an Islamic account option, not as a standalone account, but rather as an Islamic version of any other account type. I want to stress that we at Compare Forex Brokers are not Islamic scholars, we’re simply a team of industry experts who’ve done our research on the topic. Our team highly encourages you to also continue to conduct your own research before making a decision on the forex broker that you in yourself are most comfortable with.

Understanding Islamic Forex Accounts

I tried the Standard account and found that the broker offers decent spreads, averaging 1.20 pips on EUR/USD, lower than the industry average of 1.24 pips. It is quite obvious that since Islamic forex accounts don’t charge interest, brokers will want to find a different way to make an income. They do this by charging an extra flat fee each month or by charging slightly higher spreads. When choosing a sharia-compliant forex broker, take the time to look at their overnight rates and then compare them to what they are asking in return.

In its place, a trader is charged an administration fee on positions which is deducted from the balance of the account. Primarily, these principles prohibit the payment or receipt of interest (Riba). To adhere to these principles, forex brokers offer Islamic accounts, also known as swap-free accounts. As for Pepperstone, their Islamic account is highly regarded, and they boast an overall Trust Score of 95 out of 99. They offer trading on both MT4 and MT5 platforms, ensuring that you’re taken care of regardless of your trading style. Pepperstone’s spreads can be as low as 0 pips, and they charge no commission on their standard accounts.

1. The minimum deposit is $200, and Pepperstone allows micro lot trading without strategy restrictions, making it one of the best Islamic Forex brokers.
2. Check the hours of availability, for example, whether help is on hand 24/7 or only during business hours.
3. An Islamic forex broker account, sometimes referred to as swap-free accounts, are trading accounts for Muslim clients who are unable to earn or pay the interest due to religious beliefs.
4. Regulations are important for all traders when choosing from a list of the best Islamic Forex brokers.
5. A swap free account in Forex means that you will not be charged or paid swap interest if you decide to keep a trade position open overnight.

– Social Trading Without Interest Charges

London-based Tickmill performed well in all major categories of our hands-on tests. This well-rounded broker was founded in 2014 and provides access to a wide selection of CFDs, futures contracts, and options. Tickmill offers the popular MetaTrader 4 and MetaTrader 5 platforms that feature advanced order types, robust charts, and automated trading. Founded in 2012, JustMarkets is a multi-asset online CFD broker based in Limassol, Cyprus. I confirmed that Just Markets Ltd is regulated by Tier-1 CySEC and has several offshore entities. Traders can choose between four account types, MT4 and MT5 trading platforms, and eleven base currencies.

The most notable difference from standard accounts is the absence of overnight swap rates. Most substitute the lack of financing fees on leveraged overnight positions with other trading costs, making trading more expensive. There may also be some exotic currency pairs or less common trading markets that are unavailable when trading through an Islamic account. In forex trading, the swap, also known as the overnight fee, is the interest the trader either pays or gains based on their asset when it is held during leveraged trading. The XM Islamic account is specifically designed for Muslim traders, adhering to Sharia principles and offering swap-free trading on forex, stocks, commodities, and indices. When it comes to fees, XM charges a small commission on some accounts, while others use a spread-based pricing model.