The best Forex brokers that provide Islamic accounts (trading accounts compliant with Shariah law), and that do not charge interests like swaps (swap-free), according to our research, are:
- XM
- eToro
- AvaTrade
- FBS
- OctaFX
- Pepperstone
- IC Markets
- FXTM
- Vantage
- HYCM
To rank the best swap-free Islamic Forex brokers we considered the following criteria:
- A swap replacement fee
- The minimum deposit and spread for the Islamic account
- The differences with the standard account
- Certifications from Islamic entities
Round-up
Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
| BROKERS | SWAP FREE ACCOUNT MINIMUM DEPOSIT | ADMINISTRATION FEE | CHARGES HIGHER SPREADS? |
|---|---|---|---|
| eToro | $1000 | No | No |
| AvaTrade | $100 | No | Yes |
| FBS | $1 | Yes | No |
| OctaFX | $25 | No | No |
| Pepperstone | $0 | Yes | No |
| IC markets | $0 | Yes | No |
| FXTM | $10 | Yes | No |
| Vantage | $200 | Yes | No |
| HYCM | $100 | Yes | No |
Review
XM
XM offers Islamic account options across all account types. XM allows conversion to swap-free with a minimum deposit of $5. XM maintains spreads from 0 pips for Islamic accounts.
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About XM
XM is a global forex and CFD broker founded in 2009, offering trading on currencies, commodities, indices, stocks, and cryptocurrencies. XM provides MetaTrader 4, MetaTrader 5, and proprietary platforms. XM is regulated by multiple authorities including CySEC, ASIC, and IFSC. XM is known for competitive spreads, extensive educational resources, and multilingual customer support. XM serves over 5 million clients from 196 countries. XM offers various account types and a no-requote policy.
XM Features
The features of XM are listed below.
- XM has been awarded for having the best Islamic account for 2021 by InvestinGoal.
- Any XM account type available has the option to be converted with the swap-free option.
- The minimum deposit for the XM Islamic account is $5.
- Islamic accounts with XM charge spreads from 0 pips with either MT4 or MT5.
- Trading conditions on swap-free XM accounts are the same as standard accounts with no commissions or additional markups.
- Trading exotic pairs is unavailable with XM Islamic accounts.
XM Pros and Cons
Advantages of XM
The advantages of XM are listed below.
- There’s a wide range of account types
- The demo account at XM is unlimited
- Wide range of educational resources
Disadvantages of XM
The disadvantages of XM are listed below.
- No social trading features available
- The account availability changes depending on the location of the trader
- High minimum deposit to invest in securities ($10000 for the XM Shares account)
eToro
eToro converts standard accounts into swap-free on request. eToro requires a $1,000 minimum deposit for Islamic accounts. eToro does not charge swaps or admin fees for compliant trading.
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About eToro
eToro is a global multi-asset investment platform founded in 2007, offering trading on stocks, ETFs, Crypto CFDs, commodities, and forex. eToro provides a proprietary web and mobile platform with social trading features. eToro is regulated by multiple authorities including FCA, ASIC, and CySEC. eToro is known for its user-friendly interface, copy trading functionality, and commission-free stock trading. eToro serves over 30 million users worldwide. The eToro CEO and co-founder is Yoni Assia.
eToro Features
The features of eToro are listed below.
- The eToro standard account can be converted into a swap-free account on request.
- To complete the Islamic account procedure, eToro requires you to make a minimum deposit of at least $1,000.
- Spread on forex with eToro starts from 1 pip though it may be increased when trading on Islamic accounts.
- eToro won’t charge any swap nor any admin fees for an open position for more than 24 hours keeping it all halal.
- Cryptocurrencies and some other assets with etoro may be restricted to you under swap-free trading conditions.
eToro Pros and Cons
Advantages of eToro
The advantages of eToro are listed below.
- Great copy trading and social trading features
- Wide range of asset classes
- It allows to buy fractional stocks from $10
Disadvantages of eToro
The disadvantages of eToro are listed below.
- The eToro spreads can be high
- Offers only USD accounts
- Transferring cryptocurrencies to other platforms can be hard
AvaTrade
AvaTrade offers swap-free accounts to Islamic traders. AvaTrade requires a $100 minimum deposit. AvaTrade restricts certain currencies and cryptocurrencies from Islamic trading.
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About AvaTrade
AvaTrade is a global forex and CFD broker founded in 2006 and headquartered in Dublin, Ireland. AvaTrade offers trading on currencies, commodities, indices, stocks, bonds, ETFs, and cryptocurrencies. AvaTrade provides proprietary platforms alongside MetaTrader 4 and 5. AvaTrade is regulated by multiple authorities including CySEC, ASIC, and FSA. AvaTrade serves over 300,000 clients worldwide. AvaTrade is known for competitive spreads and extensive educational resources. The AvaTrade CEO is David Dryzin since 2016.
AvaTrade Features
The features of AvaTrade are listed below.
- AvaTrade offers Islamic traders the ability to trade with swap-free accounts.
- AvaTrade has a minimum deposit of $100 to open accounts and the same applies for swap-free accounts.
- Forex trading on AvaTrade Islamic accounts comes with increased spreads.
- There is no fee for keeping open positions for several days in a row with AvaTrade.
- Cryptocurrencies along with ZAR, TRY, RUB, and MXN forex pairs are not available for swap-free trading with AvaTrade.
AvaTrade Pros and Cons
Advantages of AvaTrade
The advantages of AvaTrade are listed below.
- Tight fixed spreads from 0.6 pips (0.9 pips for retail traders)
- The mobile apps are well designed
- Can be connected to ZuluTrade and Duplitrade
Disadvantages of AvaTrade
The disadvantages of AvaTrade are listed below.
- High inactivity fees
- The demo account is limited to 30 days
FBS
FBS supports swap-free trading on most accounts. FBS requires only the minimum deposit of the chosen account. FBS applies a fixed fee for positions held longer than two days.
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About FBS
FBS is a global forex and CFD broker founded in 2009, offering trading on currencies, commodities, indices, stocks, and cryptocurrencies. FBS provides MetaTrader 4, MetaTrader 5, and proprietary platforms. FBS is regulated by multiple authorities including CySEC, ASIC, and IFSC. FBS serves over 27 million clients in 150+ countries. FBS is known for low minimum deposits, extensive educational resources, and copy trading services.
FBS Features
The features of FBS are listed below.
- All FBS account types, except ECN and Crypto, support swap-free trading.
- To open an Islamic account with FBS you just have to apply the minimum deposit of the corresponding account type.
- The FBS spread starts from 0 pips on either standard or Islamic accounts.
- For open positions for more than two days, FBS charges a fixed administration fee based on the total days during which the order was opened which is still considered halal trading.
- Swap-free option with FBS is not available for trading on forex exotic, indices instruments, energies, and cryptocurrencies.
FBS Pros and Cons
Advantages of FBS
The advantages of FBS are listed below.
- Low minimum deposit
- User-Friendly Platforms
- 90 international awards
Disadvantages of FBS
The disadvantages of FBS are listed below.
- Limited Financial Instruments
OctaFX
OctaFX provides swap-free options on all accounts. OctaFX requires deposits mirroring the chosen account type. OctaFX charges a fixed fee instead of interest to comply with Islamic rules.
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About OctaFX
Octa, formerly known as OctaFX, is a global forex and CFD broker founded in 2011. Octa offers trading on currencies, commodities, indices, stocks, and cryptocurrencies through MetaTrader 4, MetaTrader 5, and proprietary platforms. Octa is regulated by multiple authorities including CySEC. Octa is known for competitive spreads, extensive educational resources, and copy trading services. Octa serves clients in over 100 countries worldwide.
OctaFX Features
The features of OctaFX are listed below.
- OctaFX provides Islamic accounts for any trading solution offered.
- The OctaFX minimum deposit to open an Islamic account reflects the account chosen.
- Spreads from 0.2 pips on forex remain the same when trading with swap-free options at OctaFX.
- OctaFX charges a fixed fee for using swap-free accounts which is still halal as it doesn’t count as interest.
- You can expect that some assets are unavailable with OctaFX under swap-free options such as the crypto market.
OctaFX Pros and Cons
Advantages of OctaFX
The advantages of OctaFX are listed below.
- Low Trading Costs
- Robust Educational Resources
- Multiple Trading Platforms
Disadvantages of OctaFX
The disadvantages of OctaFX are listed below.
- Limited Asset Range
- No VIP Discounts
- Restrictions on High-Frequency Trading
Pepperstone
Pepperstone allows switching to Islamic accounts without a new deposit. Pepperstone charges no additional mark-ups on spreads. Pepperstone imposes an admin fee for trades held over 10 days.
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About Pepperstone
Pepperstone is a global forex and CFD broker founded in 2010 in Melbourne, Australia. Pepperstone offers trading on currencies, commodities, indices, stocks, and cryptocurrencies through MetaTrader and cTrader platforms. Pepperstone is regulated by multiple authorities including ASIC, FCA, and CySEC. Pepperstone is known for competitive spreads, fast execution, and extensive educational resources. Pepperstone serves clients in over 160 countries worldwide. The Pepperstone CEO is Tamas Szabo.
Pepperstone Features
The features of Pepperstone are listed below.
- Pepperstone traders have the ability to switch to an Islamic account for both account types provided.
- The Pepperstone minimum deposit remains the same at $200 if you choose to switch to halal trading.
- Forex trading charges spread from 0 pips depending on the account type with no additional mark-ups.
- Pepperstone charges an admin fee for positions left open for more than 10 days when using swap-free options.
- Trading on Pepperstone Islamic accounts you may find some unavailable assets to comply with the Shariah law.
Pepperstone Pros and Cons
Advantages of Pepperstone
The advantages of Pepperstone are listed below.
- Stable raw spreads (0,09 pips on EUR/USD on average)
- Caters for algorithmic trading
- Has won over 30 Forex industry awards
Disadvantages of Pepperstone
The disadvantages of Pepperstone are listed below.
- The demo account is not unlimited
IC Markets
IC Markets offers two swap-free account options. IC Markets requires the same minimum deposit for Islamic accounts. IC Markets uses a fixed charge for trades open beyond one day.
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About IC Markets
IC Markets is a global forex and CFD broker founded in 2007 and based in Sydney, Australia. IC Markets offers trading on over 2,250 instruments including currencies, commodities, indices, stocks, and cryptocurrencies. IC Markets provides MetaTrader 4, MetaTrader 5, and cTrader platforms. IC Markets is regulated by multiple authorities including ASIC and CySEC. IC Markets is known for its ECN execution model and low spreads. The IC Markets CEO is Andrew Budzinski.
IC Markets Features
The features of IC Markets are listed below.
- IC Markets offers two swap-free account options if you need to engage in Islamic trading.
- To open an Islamic IC Markets account there is the same minimum deposit of $200.
- Forex trading starts from 0 pips on IC Markets and no additional charges on Islamic options.
- Complying with halal trading, IC Markets applies a fixed financing charge for any trade open for more than 1 day.
- Trading on swap-free accounts is limited to over 90 financial instruments to comply with Shariah law.
IC Markets Pros and Cons
Advantages of IC Markets
The advantages of IC Markets are listed below.
- Low-latency trading environment
- Institutional level liquidity
- MT4, MT5, cTrader platforms are all available
Disadvantages of IC Markets
The disadvantages of IC Markets are listed below.
- Small amount of educational tools for new traders
- Small range of tradable assets compared to other CFD/Forex brokers
FXTM
FXTM enables swap-free trading on all accounts except MT5. FXTM requires the normal minimum deposit for Islamic trading. FXTM charges one admin fee based on the traded asset.
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About FXTM
FXTM, also known as ForexTime, is a global forex and CFD broker founded in 2011. FXTM offers trading on currencies, commodities, indices, stocks, and cryptocurrencies through MetaTrader 4, MetaTrader 5, and proprietary platforms. FXTM is regulated by multiple authorities including CySEC, FCA, and FSC Mauritius. FXTM is known for low spreads, fast execution, and extensive educational resources. FXTM serves over 2 million clients worldwide. The FXTM CEO is Nicholas Defteras.
FXTM Features
The features of FXTM are listed below.
- All FXTM account types are available for swap-free trading options except if you trade on the MT5 platform.
- The minimum deposit matches the FXTM account chosen for halal trading starting from $10.
- FXTM keeps the same spread on forex from 0 pips when trading with an Islamic account.
- There is just one admin fee that FXTM can apply which varies depending on the asset traded and is typically applied after 2 or 7 days of holding a position.
- Exotic pairs are not available for swap-free FXTM accounts.
FXTM Pros and Cons
Advantages of FXTM
The advantages of FXTM are listed below.
- User-Friendly Platform
- Fast Customer Support
- Low Minimum Deposit
Disadvantages of FXTM
The disadvantages of FXTM are listed below.
- Withdrawal Fees
- Limited Product Range
- Inactivity Fees
Vantage
Vantage provides Islamic accounts on STP and ECN types via MT4. Vantage requires a $200 minimum deposit. Vantage attaches an admin fee to swaps-free account trades.
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About Vantage
Vantage is a global multi-asset broker founded in 2009, offering trading on forex, CFDs, commodities, indices, shares, and cryptocurrencies. Vantage provides MetaTrader 4, MetaTrader 5, and proprietary platforms. Vantage is regulated by multiple authorities including ASIC, FCA, and CIMA. Vantage is known for fast execution, competitive spreads, and extensive educational resources. Vantage serves over 3 million registered users worldwide. The Vantage CEO is David Shayer.
Vantage Features
The features of Vantage are listed below.
- Vantage Islamic accounts are available for both standard STP and raw ECN account types, only on the MT4 platform.
- To open an Islamic account, Vantage keeps the same minimum deposit of $200.
- Forex trading with Vantage starts from 0 pips and has no higher spread with swap-free options.
- There is an admin fee attached to every position that you open on a swap-free account with Vantage.
- Trading with Vantage Islamic accounts you can choose among 400 tradable assets.
Vantage Pros and Cons
Advantages of Vantage
The advantages of Vantage are listed below.
- Competitive spreads and low commissions
- Strong range of asset classes
Disadvantages of Vantage
The disadvantages of Vantage are listed below.
- Not available to US traders
- Customer service could be improved
HYCM
HYCM offers Islamic accounts for fixed, classic, and raw types. HYCM requires deposits of $100 or $200. HYCM charges a $5 admin fee after 14 days for swap-free accounts.
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About HYCM
HYCM is a forex and CFD provider with over 40 years of cumulative group experience. HYCM offers trading in various assets through MetaTrader 4, MetaTrader 5, and its proprietary HYCM Trader app. HYCM provides fast order execution, and professional customer support, and is regulated by multiple authorities in Europe and Asia.
HYCM Features
The features of HYCM are listed below.
- HYCM provides Islamic accounts for either fixed, classic, or raw account types.
- The HYCM minimum deposits for Islamic accounts are either $100 or $200 depending on the account type selected.
- HYCM charges spreads on forex from 0.1 pips and there is no higher spread for halal trading.
- Trading on swap-free accounts you’ll be charged a flat $5 admin fee which is charged after 14 days.
- To comply with halal trading you may find some assets unavailable with HYCM when trading on Islamic accounts.
HYCM Pros and Cons
Advantages of HYCM
The advantages of HYCM are listed below.
- Low Trading Fees
- User-Friendly Platforms
- Educational Resources
Disadvantages of HYCM
The disadvantages of HYCM are listed below.
- Limited Product Range
- Inactivity Fee
What is a swap-free account?
This type of trading is used by those following Shariah law as the law forbids the paying of interest.
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. This type of interest either paid inward or outward on a regular forex trading account would not be halal under Shariah law and therefore, forex brokers often facilitate the opening of swap-free accounts.
Islamic law on different assets
The law of Islamic trading is complex in terms of how it can be applied in each market for forex trading and because of this, we will take a look at each type of traded asset and how the law impacts each.
Forex: why are swap fees haram?
In forex trading, the “swap fee” is typically charged to you as a trader and acts as a form of tax you should pay, although occasionally depending on the asset, it can be earned by you. Either way, this kind of fee, which depends on the forex currency pair you may be holding, is not permitted in Islamic law.
For this reason, these kinds of fees are not charged in Islamic accounts, thus, they are swap-free.
Stocks: are dividends earned from shares halal?
Stock dividends under Islamic trading and Shariah law are considered halal. Why is this? Well, these gains are made directly from the growth of a company you have invested in and are somewhat quantifiable in nature, at least in theory. This separates them from interest which can be viewed as punitive in nature.
The complexity deepens though when we consider investing in companies such as alcohol brands, tobacco brands, and others. This kind of investing would be haram and so, you should be careful as a trader following Islamic law, in what you choose to invest.
ETFs and stock indices: are they ahalal investment?
ETFs and Stocks are halal due to the fact that they both relate to investing in pools of companies. Therefore, any monies gained from this kind of investment can be viewed as coming from the growth of the company.
As mentioned above, there may be some haram companies included in these pools. To negate this, as a trader, you should simply calculate how much of the profit is as a result of these companies and donate that percentage of gain to a charity.
Bonds: are they actually haram?
The simple answer here is yes. Typically, bonds are considered haram, as they are technically loans to be repaid over a period of time that is inclusive of interest. There are, however, Islamic trading compliant bonds. These Islamic bonds are certified as being compliant with Islamic laws.
Are demo accounts halal?
Since forex broker demo accounts are only dealing in virtual funds and not your real money, then they can all be considered Halal and compliant with any Islamic trading laws.
Islamic account costs
Trading with an Islamic account is typically free of charge. This is good news for any trader. With that said, some broker minimum deposits may be higher than usual in order to open an account, although not always.
Opening an Islamic account is usually as easy as contacting the customer support team of any top forex broker. With some brokers, but not many, the trading costs could be higher to make up for the absence of swap fees. You should consult your individual broker on this. They may impose a fee that is not interest and is, therefore, compliant with Islamic trading law. This admin fee is typically applied after a number of days of holding an asset.
Another thing that could occur, although less frequently, is the raising of spreads or commissions for Islamic trading accounts, which can be balanced by choosing a broker with low spreads, such as ECN brokers (consider checking our ecn forex brokers list). There may also be some exotic currency pairs or less common trading markets that are unavailable when trading through an Islamic account.