Best Forex Brokers Supporting Islamic Accounts

The Forex market is gaining popularity every day in all regions around the world. More and more people of the Muslim faith are acquiring trading skills and succeeding at Forex trading. As the interest in trading from Islamic regions increased, the Forex brokers began finding the solutions to provide the most Islam-friendly trading environment and conditions. There are few aspects that complicate trading in Forex within a regular environment for Islamic traders. Several factors actually go against the principles of Sharia law, including the accumulation of interest, which is a huge drawback for individual traders. Traders that use Islamic accounts are not able to receive or pay interest rates.

Islamic accounts are often referred to as swap-free accounts and they differ in several ways from the regular trading account. Besides the fact that Muslim traders can not receive interest rates, transactions made by them must be completed without delay, meaning that currencies that are transferred from one account to another should carry out immediately, and transaction costs must also be covered in no time.

In order to support Islamic Forex trading and promote the benefits of the Forex market, making it accessible to a global community, the best brokerage firms adopted Islamic account options. These accounts fully support and comply with the Sharia laws and make the trading conditions much more comfortable, convenient, and beneficial for Muslim traders. Mostly, the account types are equipped with special features, different types of fees, and applicable rates that do not go against Riba principles and ultra-fast execution of the trading orders. Despite the fact that numerous brokers will claim today that they are operating fully in support of Sharia laws, it is not recommended to simply believe the statement, but rather to double-check its legitimacy. For this purpose, we present you the article overviewing the best brokers in the Forex industry that support Islamic trading.

Islamic Forex brokers

As we have already mentioned, Islamic traders do not find the regular trading environment acceptable and require different approaches, terms, and conditions for their trading. They need special administrative fees that will extract any interest or rollover fees associated with the trading as it goes against their religious laws. Since for the regular traders, rollover and swap fees are a common feature of the trading in Forex, the brokers need to create a separate account for Islamic traders only. You can find the list of the best Islamic Forex brokers below.

XM Group

XM Forex Review

Minimum deposit

5$

Regulation

CySEC, FCA, ASIC

Bonus

30$, 50%+20%

Maximum leverage

1:1000

Year founded

2009

Trading platform

MT4, MT5, WebTrader

AvaTrade

Review of AvaTrade – Broker with over 15 years of experience

Minimum deposit

$100

Regulation

CySEC, CBI, FSA, FFAJ, BVI FSC, FSCA, FSRA

Bonus

Maximum leverage

1:400

Year founded

2006

Trading platform

MT4, MT5, WebTrader, AvaTradeGO

SAXO Bank

SAXO Bank Forex Review

Minimum deposit

USD 5,000

Regulation

FINMA, FCA, ASIC, FSA, MAS, AFM

Bonus

N/A

Maximum leverage

1:30

Year founded

1992

Trading platform

SaxoTraderGo, SaxoTraderPro

HotForex

HotForex Review – Trade 1,000+ of Symbols with this Broker

Minimum deposit

$5

Regulation

SVGFSA, FCA, DFSA, FSCA, FSA

Bonus

From 30% to 100%

Maximum leverage

1:1000

Year founded

2010

Trading platform

MT4, MT5

ForexMart

ForexMart Review – High-class trading experience

Minimum deposit

15

Regulation

CySEC

Bonus

30%

Maximum leverage

1:500

Year founded

2015

Trading platform

MT4, WebTrader

CM Trading

CM Trading FX broker review – Is it legit?

Minimum deposit

$250

Regulation

FSCA

Bonus

Maximum leverage

1:200

Year founded

2012

Trading platform

MT4, WebTrader

Plus500

Plus500 Review

Minimum deposit

100$

Regulation

FCA

Bonus

N/A

Maximum leverage

30:1

Year founded

2008

Trading platform

Custom

IQ Option

An in-depth IQ Option Review of fees, opportunities and more

Minimum deposit

$10

Regulation

Risk Warning: YOUR CAPITAL MIGHT BE AT RISK

Bonus

N/A

Maximum leverage

1:1000

Year founded

2013

Trading platform

Proprietary

Exness

Exness Broker Review – Should You Trade With It?

Minimum deposit

10 USD

Regulation

FCA, CySEC, FSA

Bonus

N/A

Maximum leverage

1:Unlimited

Year founded

2008

Trading platform

MT4, MT5, WebTerminal

OspreyFX

OspreyFX review – regulations, features and possibility of OspreyFX scam

Minimum deposit

$10

Regulation

N/A

Bonus

N/A

Maximum leverage

1:500

Year founded

2019

Trading platform

MT4, custom

EagleFX

EagleFX review – Start trading with safe and secure broker

Minimum deposit

$10

Regulation

Bonus

Maximum leverage

1:500

Year founded

Trading platform

MT4

Forex.com

Forex.com Review

Minimum deposit

250$

Regulation

FCA, NFA

Bonus

N/A

Maximum leverage

200:1

Year founded

1999

Trading platform

MT4

easyMarkets

Can You Trust easyMarkets? There Are Things You Need To Know

Minimum deposit

$25

Regulation

ASIC, CySEC, FSA, BVI

Bonus

50%

Maximum leverage

1:400

Year founded

2001

Trading platform

WebTrader, MT4, TradingView

HYCM

Can you trust HYCM Forex broker? What you need to know?

Minimum deposit

100

Regulation

FCA, CySEC, DIFC, CIMA

Bonus

N/A

Maximum leverage

500:1

Year founded

1977

Trading platform

MT4, MT5

FPMarkets

Is FPMarkets reliable broker? Is it licensed to trade?

Minimum deposit

$100 AUD

Regulation

ASIC

Bonus

N/A

Maximum leverage

500:1

Year founded

2005

Trading platform

WebTrader, MT4, MT5, IRESS

Pepperstone

Pepperstone FX Broker – Everything You Need To Know About This Broker?

Minimum deposit

AUD$200

Regulation

ASIC, SCB, CMA, CySEC, FCA, BaFin and DFSA

Bonus

N/A

Maximum leverage

1:400

Year founded

2010

Trading platform

MT4, MT5, cTrader, TradingView

FXRoad

Review of FXRoad – Broker with Superior Islamic Accounts

Minimum deposit

250 EUR

Regulation

FSA (Seychelles)

Bonus

None

Maximum leverage

1:200

Year founded

2023

Trading platform

FXRoad web & mobile platforms

IMGFX

IMGFX Broker Review – Your Best Trading Experience

Minimum deposit

$50

Regulation

N/A

Bonus

N/A

Maximum leverage

1:500

Year founded

2015

Trading platform

MT4

FXOpen

FXOpen Review – The most experienced broker

Minimum deposit

1 USD

Regulation

ASIC, FCA

Bonus

10 USD

Maximum leverage

1:500

Year founded

2005

Trading platform

MT4, MT5, WebTrader

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 understand how CFDs work and whether you can afford to take the high risk of losing your money.

What is Islamic Account in Forex trading?

islamic forex trading accountIslamic Forex trading account is a special type of live trading account that shares most of the features with the regular accounts, however, avoids undesirable conditions that are considered haram by Islamic rules. There are basic principles within Sharia law that limit the behavior of Forex traders in the market. Therefore, these limitations produce below essential points that every Islamic account should satisfy in order to provide a legitimate and appropriate account for Islamic traders. Islamic account in Forex trading should come in compliance with all of the below-listed aspects:

  • None of the trades on Islamic accounts should acquire or result in interest rates
  • Gambling is not allowed
  • The exchanges should be processed immediately
  • Risks and benefits should be fairly distributed

Furthermore, the Islamic Forex account should have an access to the optimal trading platforms that process the orders with fast execution. Islamic traders will need seamless operations in their exchanges and it will be one of the most important factors that they will pay attention to, too. Some of the Islamic traders might also choose automatic trading robots if they do not have sufficient time to dedicate fully to trading and monitoring trades, therefore, it would be beneficial for them if the broker provides automated trading tools and platforms. Apart from the platforms, Muslim traders need a great diversity and room for choosing their desired trading asset, since not all financial assets (especially stocks) are allowed according to Sharia laws. The most popular financial instruments traded by Islamic clients are currency pairs which are fully compliant with their religious rules.

Register your Islamic with HotForex

Shariah Compliant Forex trading conditions

There are few things that distinguish a regular trading account from the Islamic one. If you are not a day trader, meaning that you do not open and close your trades within the same trading day then your trades should usually accumulate an overnight interest rate. First of all, day trading is a lot like gambling since in such a short period of time it is a highly risk-containing and complex thing to predict the market movement. Due to the gambling nature of day trading, most Islamic Forex brokers will prefer to avoid it at all. However, the accumulation of interest rates on overnight open positions also goes against the Riba principles of Sharia law. This overnight charge is often called a swap in trading glossaries.

For accounts in Islamic Forex, swap is not present, meaning that the brokers provide swap-free accounts without any interest fee paid or received from the traders’ side. Usually, these fees are included in the administration fees which are frequently asked to be paid on the Islamic trading accounts. Furthermore, the deducted fees might add up to the commission cost, however, it really depends on the Forex broker itself. Moreover, brokers will often provide the fastest executing trading terminals in order to support the urgency of the trades on Islamic accounts. Most of the brokers will offer the execution speed in a matter of seconds or milliseconds which is not a frequent feature in the standard and regular account types.

Shariah Compliant Trading Account

islamic forex trading accountGenerally, the brokers operate several types of accounts. Essentially, they have standard accounts and VIP accounts with the frequent addition of Micro or Cent accounts, professional accounts, or specific type accounts such as Cryptos. Many of these brokers will allow Muslim Forex traders to choose any of the account types and apply Islamic account options to them. In this way, all the account benefits and conditions will remain the same including the leverage, spreads, and margins, however, the rollover policy on overnight positions will be excluded from the account type. Similarly, the terminals, software, and trading platforms are also accessible for Islamic option-placed account types.

The clients of the Muslim faith can also choose a Shariah-compliant trading platform that will offer an enhanced execution type, most frequently the order execution type will be market and sometimes instant. In addition, Islamic accounts might come with extra benefits, such as additional market data analysis or technical analysis features. Usually, promotional programs are also available for Islamic Forex accounts. The most popular Islamic account campaigns include performance-based trading contests and sometimes Forex cashback. On the other hand, some of the account types might limit the Islamic account option because of their trading assets portfolio. For instance, most of the crypto-trading accounts are not Islamic account-friendly, as cryptos themselves are not as popular assets for Muslim traders as binaries or spot metals.

How do I open an Islamic Forex account?

Opening a Forex Islamic account is a simple as registering a regular trading account. However, the procedure might vary from one broker to another. Usually, at first, the brokers will require that a trader goes through a general registration page. On the registration page, clients will need to fill up a form containing personal details fields. The customers should provide official and legit data about themselves since most of the brokers will require additional supporting documents issued by official institutions that prove the validity of the data. After registration, the clients should choose the live trading account type that they would like to operate with the broker.

For instance, registration on HotForex includes filling standard questionnaire – you need to fill out the information about your country of residence, phone number, email address, and other personal information.

islamic forex accounts

Once you fill out this information, you will be sent an activation link to your personal email address. Once you verify it by clicking on the link, the second part of the questionnaire comes into play, where you have to indicate more specific information, including addresses, location, etc.

top islamic forex accounts

Later on, the website will ask the customer to upload personal documentation including proof of legal existence and proof of address. Once you do that, you are ready to fund your account and start your trading journey right away.

best Islamic Forex brokers

If there is no special, separate registration required for an Islamic Forex account, it means that clients simply register a live trading account and later request Islamic account options to be applicable to that account. Only Muslim customers have the right to request an Islamic account, therefore the proof of residence and nationality or any other similar requirement might come from the broker. The supporting documents list usually includes an Identification Document (ID), a Driver’s License, or an International Passport. Afterward, the traders will have access to Islamic trading platforms, trading assets, their trader’s profile, account balance, and so on.

Choose different Islamic accounts at HotForex

Bottom Line

Finding a suitable broker, let alone a convenient trading account type is not easy for any kind of trader. However, if the trader knows what he or she is looking for then it is much easier to encounter the right choice. When it comes to trading Forex for Muslim traders, it is absolutely advisable to go through the available Forex account types, trading conditions, and the benefits applicable to Islamic accounts.

Furthermore, Islamic account deposit requirements, swaps, administration fees, and commission rates should not be overlooked. If the broker charges unreasonably high administration fees or commissions, it is better to look for another option. Additionally, the trading platform of the brokerage firm should be advanced and highly reputable on the market, such as MetaTrader 4 or MetaTrader 5. It is also important to read the information regarding the speed and type of the order execution as it plays a significant role, especially in currency pair trading.

FAQ on Best Forex Brokers Supporting Islamic Accounts

Is Forex allowed in Islam?

Yes, Forex is allowed in Islam, as long as there is no interest element involved in the trading process, and the assets purchased (whether it is commodities, currencies, or stocks) do not go against the rules of Islam. That’s why different platforms offer a separate option called Islamic, or swap-free accounts. They are specially designed for people Muslim people, giving them the ability to have a much more comfortable, beneficial, and convenient trading experience.

Is it haram to trade Forex?

No, trading Forex is not haram as trading is not mentioned anywhere in Islamic texts. However, while trading takes the place, the traders should not be paid interests, and the brokerage company should not invest in something that is unacceptable under the laws of Islam. Stocks, currencies, and commodities should not be against Islam.

Is leverage in forex Haram?

Yes, trading Forex using leverage is Haram, while trading, in general, is not. According to the laws of Islam, you can not sell something that is not ready to be harvested. As long as trading does not involve elements of interest, it is okay to be trading, otherwise, Muslims are not allowed to trade according to their religion.