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EditorEditor: Alison HeyerdahlUpdated: Jan 12, 2024
AuthorAuthor: Chris Cammack

Last Updated On Jan 12, 2024

Chris Cammack

Most traders want an Islamic Forex account because they comply with the Shari’ah prohibition on Riba, or the accumulation of interest. Some brokers try to compensate for the missed revenue that would otherwise have been generated by collecting interest, so we always look for limitations on trading opportunities, additional fees, and widened spreads. Otherwise, we focused on finding the best Islamic accounts for all types of trader, including a range of platforms, excellent trading tools and good education for beginners.

According to our testing and our research, these are the best Islamic Forex accounts for 2024.

  • AvaTrade - Best Mobile Trading Experience
  • FXTM - Best MT4 Islamic Forex Trading
  • XM - Fast Approval Islamic Account
  • HFM - Best Islamic Micro Account
  • FxPro - Best for Islamic Account Variety
  • FP Markets - Most Transparent Islamic Accounts
  • XTB - Best Proprietary Platform for Islamic Traders
  • markets.com - 900+ CFDs and no commissions

Forex brokers with the best Islamic accounts

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Broker
Broker Score
Official Site
Islamic Account
Min. Deposit
Max. Leverage
Currency Pairs
MetaTrader 4 (MT4)
MetaTrader 5 (MT5)
cTrader
Regulators
Compare
AvaTrade
4.59 /5
Read Review
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76% of retail CFD accounts lose money
USD 100400:163 ASIC Regulated Forex BrokersFSCA Regulated Forex BrokersCySEC Regulated BrokersFinancial Services AgencyCentral Bank of IrelandFinancial Regulatory Services Authority
FXTM
4.27 /5
Read Review
Visit Broker >
81% of retail CFD accounts lose money
USD 102000:162 FCA Regulated BrokersFSCA Regulated Forex BrokersFinancial Services CommissionCapital Markets Authority
XM
4.45 /5
Read Review
Visit Broker >
75.33% of retail CFD accounts lose money
USD 51000:157 CySEC Regulated BrokersASIC Regulated Forex BrokersDubai Financial Services AuthorityInternational Financial Services CommissionFSCA Regulated Forex Brokers
HFM (Hotforex)
4.53 /5
Read Review
Visit Broker >
72.90% of retail CFD accounts lose money
USD 01000:153 CySEC Regulated BrokersFCA Regulated BrokersFSCA Regulated Forex BrokersDubai Financial Services AuthorityFinancial Services CommissionThe Seychelles Financial Services Authority
FxPro
4.39 /5
Read Review
Visit Broker >
71.58% of retail CFD accounts lose money
USD 100200:170 FCA Regulated BrokersCySEC Regulated BrokersFSCA Regulated Forex BrokersDubai Financial Services AuthoritySecurities Commission of the Bahamas
FP Markets
4.40 /5
Read Review
Visit Broker >
79% of retail CFD accounts lose money
AUD 100500:170 ASIC Regulated Forex BrokersCySEC Regulated BrokersFSCA Regulated Forex BrokersCapital Markets AuthorityThe Seychelles Financial Services Authority
XTB
4.39 /5
Read Review
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78% of retail CFD accounts lose money
USD 0500:157 CySEC Regulated BrokersFCA Regulated BrokersDubai Financial Services AuthorityInternational Financial Services CommissionKomisja Nadzoru Finansowego
Markets.com
4.68 /5
Read Review
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70.3% of retail CFD accounts lose money
USD 100300:156 FCA Regulated BrokersCySEC Regulated BrokersASIC Regulated Forex BrokersFSCA Regulated Forex BrokersBritish Virgin Islands Financial Services Commission

AvaTrade – Best Mobile Trading Experience

Broker Score
4.594.59 / 5
🏦  Min. DepositUSD 100
🛡️  Regulated By
💵  Trading Cost 
USD 9
⚖️  Max. Leverage400:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

AvaTrade offers Islamic accounts on MT4, MT5, Webtrader and the excellent and newly designed AvaTradeGo mobile app. The AvaTradeGo app offers Tanzanian Forex traders an intuitive and sophisticated trading experience, with spreads as low as 0.9 pips on the EUR/USD for Islamic accounts. AvaTradeGo features an advanced dashboard, with intuitive management tools, clear charts, zoom for details, and a Market Trends feature to monitor trading trends within the AvaTrade community. The AvaProtect tool is also available in the mobile app, allowing traders to purchase loss protection for a time. 

Islamic accounts at AvaTrade do require a little more setup than with other brokers. First, a normal account must be opened and funded, once this step is complete an application for an Islamic account must be made and approved. Applications are usually processed within 1-2 business days. Islamic accounts at AvaTrade are not charged swap fees or a commission, as is common with other Islamic accounts, but instead, the spread will be marked up to cover overnight fees.

Pros
  • Top-tier regulation and security with licenses from ASIC and CBI among others
  • Accessible trading with a low minimum deposit of 100 USD
  • Award-winning mobile trading with the AvaTradeGO app with social trading features
  • Wide range of assets including unique instruments like vanilla options
  • Educational material to support trader development and strategy enhancement
Cons
  • Market analysis could be more extensive
  • Poor regulatory oversight outside of the UK and EU
  • Avatrade is a Market Maker and operate a dealing desk which might not align with all trading preferences
AlertAccepts Tanzanian Clients. Average spread EUR/USD 0.90 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA.

FXTM – Best MT4 Islamic Forex Trading

Broker Score
4.274.27 / 5
🏦  Min. DepositUSD 10
🛡️  Regulated By
💵  Trading Cost 
USD 15
⚖️  Max. Leverage2000:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

FXTM offers three accounts on MT4 and MT5, but Islamic accounts are only available on MT4 and trading on exotic currency pairs is prohibited. Unlike many brokers, FXTM makes switching your account to an Islamic account a simple process and can be done inside the MyFXTM dashboard with a few clicks. While Islamic accounts will not be charged a swap fee, a commission is charged instead, starting at 12.90 USD per lot on the EUR/USD. 

FXTM is well-regulated and offers trading on Forex, commodities, stocks, and indices. Minimum deposits are low, and spreads are generally tight, starting at 1.5 pips on the Micro Account but down to 0 pips – plus a 4 USD commission – on the Advantage Account. Islamic account users can also take advantage of FXTM’s copy-trading platform, FXTM Invest, which allows traders to follow profitable traders for a fee.

Pros
  • Good for beginners
  • Excellent education
  • Well regulated
  • Low minimum deposit
  • Copy trading accounts
Cons
  • Expensive withdrawals
AlertAccepts Tanzanian Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage 2000:1. Islamic account available. MT4 & MT5 platforms supported. Leverage offered can vary depending on country of residence, and your trading knowledge and experience. FXTM is regulated by CMA, FCA, FSCA, and the FSC.

XM – Fast Approval Islamic Account

Broker Score
4.454.45 / 5
🏦  Min. DepositUSD 5
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage1000:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

XM is unusual in the Forex industry because it does not apply any extra charges for Islamic accounts. Most other brokers apply a commission or widen the spread to cover the cost of the lost swap fees. XM does neither, meaning its Islamic account has exactly the same trading conditions as a normal trading account, minus the swap fee. In addition, opening an Islamic account with XM is relatively straightforward: First, a trader must open and validate a standard account and then file a request for an Islamic account with the XM back office. Approval usually takes a matter of minutes.

XM is one of the most regulated market makers in the Forex industry and stands out for leading trading conditions, account choice, execution speed and a wide range of CFD assets available on both the MT4 and MT5 platforms. With a minimum deposit of 50 USD, traders can open the XM Ultra Low Account, where spreads start at 0.6 pips with no commission charged.

Pros
  • Well regulated
  • Excellent education
  • Free deposits and withdrawals
Cons
  • Limited platform choice
AlertAccepts Tanzanian Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 1000:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the Belize FSC.

HFM (HotForex) – Best Islamic Micro Account

Broker Score
4.534.53 / 5
🏦  Min. DepositUSD 0
🛡️  Regulated By
💵  Trading Cost 
USD 10
⚖️  Max. Leverage1000:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

HFM offers Islamic accounts for all customers of the Muslim faith on four of its six account types, including the Micro Account and Auto Account. Trading conditions are especially good on the Micro Account, with spreads starting at 1 pip, a low minimum deposit of 5 USD, and hedging, scalping, and copy-trading all available. While HFM’s Islamic account spreads are slightly wider than normal to cover the cost of removing the swap fee and MT5 is not supported, trading conditions are broadly similar to traditional trading accounts. 

Islamic accounts incur an additional carry charge on any position held overnight for more than 7 days. While this is not a significant cost, it does make positional trading more costly over the long term. All Islamic accounts feature market execution and maximum leverage of 1:500.

Pros
  • Low minimum deposit
  • Tight spreads
  • Well regulated
  • Good range of accounts
Cons
  • Limited base currencies
AlertAccepts Tanzanian Clients. Average spread EUR/USD 1.00 pips on trading account with lowest minimum deposit. Max leverage 1000:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA.

FxPro – Best for Islamic Account Variety

Broker Score
4.394.39 / 5
🏦  Min. DepositUSD 100
🛡️  Regulated By
💵  Trading Cost 
USD 14
⚖️  Max. Leverage200:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

A respected FCA-regulated broker with no dealing desk intervention, FxPro offers excellent trade execution on a variety of platforms and account choices.  Islamic swap-free options are available on the MT4, cTrader and FxPro Edge account types, which feature a minimum deposit of 100 USD and leverage of up to 200:1.  Spreads are relatively wide on its MT4 and FxPro Edge account types, averaging at around 1.84 pips on the EUR/USD.  Spreads tighten on the cTrader Account, down to 0.31 pips, in exchange for a commission of 4.5 USD per lot.  Most trades are executed in under 14 milliseconds, with 80.48% of market orders executed at the requested price, and 9.6% at a better price, known as positive slippage. 

In lieu of the interest charged on overnight positions, Islamic traders will be charged a commission of 7.50 USD per lot, but this only applies after the 8th night of trading.   FxPro only offers Swap-free accounts for religious purposes as per the Shariah law.  In order to open an account, traders will need to provide an official document such as a Birth or Marriage certificate or an official letter from the leader of their local Muslim community.

Pros
  • Well regulated
  • Great platform choice
  • Tight spreads
Cons
  • Limited education
AlertAccepts Tanzanian Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the DFSA

FP Markets – Most Transparent Islamic Accounts

Broker Score
4.404.40 / 5
🏦  Min. DepositAUD 100
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage500:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

An ECN/DMA broker, FP Markets offers trading on multiple instruments, including Forex, shares, metals, commodities, and indices.  Unlike many other brokers, FP Markets publishes all information about the Islamic accounts on its website, and caters to Muslim traders with two distinct Islamic account options.  The swap-free account option is available on both its Raw and Standard account types on the MT4, MT5 and cTrader trading platforms. 

The Islamic Standard Account requires a minimum opening balance of 100 AUD. Spreads start at 1.0 pips on the EUR/USD, and no commissions are charged on the trades.  The Islamic Raw Account also has a minimum opening balance of 100 AUD, spreads starting at 0.0 pips on the EUR/USD, which is tighter than other ECN brokers, and a low commission of 3 USD per lot traded.  Note that FP Markets charges administration fees on its Islamic account, which vary depending on the instrument traded.  A fee of 5 USD is charged on the EUR/USD, but this will only be applicable from the eleventh night a position is held open.

Pros
  • Trusted since 2005 with top-tier regulation
  • 100 USD minimum deposit amount
  • Supports MT4 MT5 cTrader and TradingView
  • Spreads start at 1.0 pip and narrow to 0 pips with higher trading volumes
  • Welcoming South African traders with specific regulatory compliance
Cons
  • Notably higher withdrawal fees than competitors
  • Stock CFDs are limited on MT4/MT5 and primarily available through IRESS
  • High leverage up to 500:1 posing risks for inexperienced traders
AlertAccepts Tanzanian Clients. Average spread EUR/USD 0.10 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5 & IRESS platforms supported. FP Markets is regulated by CySEC and ASIC.

XTB – Best Proprietary Platform for Islamic Traders

Broker Score
4.394.39 / 5
🏦  Min. DepositUSD 0
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage500:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Founded in 2002, XTB is a well-regulated market maker offering trading on its award-winning platform on two market execution account types: The Standard Account and the Islamic Account.  Islamic Account-holders are charged both a spread mark-up and a commission per lot.  Spreads start at 0.5 pips (EUR/USD) on the Standard Account and 0.7 pips (EUR/USD) on the Islamic Account, which is still tighter than other market makers.  Islamic account holders are also charged a commission of 10 USD/lot, while Standard Account-holders are charged a commission starting at 0.08% but only on stocks and ETFs. 

XTB only offers trading on its award-winning trading platform, xStation 5. Intuitive, powerful, and fast, xStation 5 introduces sentiment data directly into the platform, so traders can view the percentage of clients who are long or short, and on which instruments.  It also offers powerful charting tools, one-click trading, and real-time performance statistics. Mobile versions of the platform are available on both iOS and Android and seamlessly connect to the desktop versions of the app.  

Pros
  • Well regulated
  • Tight spreads
  • Low minimum deposit
  • Good for beginners
Cons
  • Limited platform choice
AlertAccepts Tanzanian Clients. Average spread EUR/USD 0.70 pips on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & xStation platforms supported. XTB Group is regulated by CySEC, FCA and the IFSC

Markets.com – 900+ CFDs and no commissions

Broker Score
4.684.68 / 5
🏦  Min. DepositUSD 100
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage300:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

A market maker broker, Markets.com offers trading and investing on over 900 instruments on a broad range of platform choices, including MT4, MT5, and its own proprietary platform. Markets.com offers one live commission-free account that can be converted into an Islamic Account. Markets.com does not apply a commission or spread markup to its Islamic swap-free account, making it a good choice for Islamic traders.

The Markets.com platform is an advanced multi-asset trading platform packed full of features and is available as an app for both Android and iOS. Islamic account-holders can access a range of fundamental, technical and sentiment-based trading tools and expert analysis, in addition to in-depth charting and comparison tools. Lastly, Islamic account-holders should be aware that some instruments are not available for swap-free trading.

Pros
  • Regulation by top-tier authorities
  • Hassle-free withdrawal process without any fees
  • Its proprietary trading platform is praised for its user-friendly interface catering to both beginners and experienced traders
  • Competitive spreads starting from 0.6 pips
Cons
  • The maximum leverage of 300:1 could pose a risk for uninformed traders warranting cautious utilization
AlertAccepts Tanzanian Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 300:1. Islamic account available. MT4 & MT5 platforms supported. MarketsX is regulated by CySEC, ASIC, and the FSCA.

Islamic Forex Trading

There are three articles of the Islamic Mua’malat that are relevant to Forex trading:

  • Riba: Prohibition of payment and receipt of interest
  • Gharar: Prohibition on gambling
  • Shared Risk: Both profit and losses

The key element here is the elimination of Riba – or interest on loans or assets.

Riba is central to conventional Forex trading, but according to Islamic law, or Shari’ah law, Muslims are banned from earning interest on loans. Some scholars believe that the practice of removing Riba, as brokers do on their Islamic Forex accounts, legitimises Forex trading under Shariʻah.

Islam also emphasises that when conducting business transactions, elements of uncertainty, excessive speculation and gambling should also be avoided, so it could be argued that hedging trades with Forex is also legitimate under Shari’ah. It is also widely agreed that conventional Forex transactions – if used carefully – are a very effective means of protecting banks from exposure to international risk.

Shared Risk

Another concern about the Islamic nature of Forex trading is the element of shared risk. Luckily, with Forex trading, when you trade, you are investing in an asset – the currency purchased. If this asset increases in value, you will make a profit and if the asset loses value, you will make a loss. The result is a sharing of the benefits and losses of the currency exchange with your counterparty. From this point of view, Forex trading and Islam are compatible in terms of shared risk.

What is an Islamic Forex Account?

Across the Islamic world, many brokers offer Shari’ah compliant accounts to make sure that your trading is not haram – though this does mean that there are a few differences when compared to traditional Forex accounts.

Islamic Forex accounts have two underlying attributes:

Other than the above, Islamic Forex accounts usually have the same trading terms and conditions as a regular Forex account. However, some most Forex brokers change the commercial terms of trading with them and might limit the trader from trading cryptocurrencies. 

Some Forex brokers will widen their spreads on Islamic accounts to compensate for the missed revenue that would otherwise have been generated by collecting interest. Another practice, but is far rarer, is that some Forex brokers charge an up-front commission on trades instead of widening the spreads.

Forex Brokers with Islamic Swap-free Accounts

There are a variety of brokers that offer Islamic accounts tailored for Muslim traders. There are usually no limitations on this account type – this means you can trade Forex, commodities, CFDs contracts and every financial instrument that complies with the Islamic financial regulations.

An important note:  With most Forex brokers, you will need to open a real trading account which can then be converted into an Islamic account. Few brokers have a registration page specifically for Islamic accounts, and even fewer have Islamic demo accounts, but some brokers with clients from predominantly Muslim countries automatically create accounts as Islamic accounts.

If you are in doubt, make sure you discuss your concerns with your account manager or broker representative before you make a deposit.

Forex Rollovers and Swap Rates Explained

In the Forex market, any position held overnight generates a rollover which will be earned or paid out depending on the currency you are trading and the direction of the market. Rollover interest is a form of interest that can be credited or debited from your Forex trading account, and thus it is prohibited by Islamic financial regulations.  In the financial world, this rollover is also known as the swap rate.  So, Islamic Forex accounts are swap-free accounts where no overnight interest is credited or debited.

Islamic Financial Regulatory Bodies

The central financial regulatory bodies in the Islamic world are the following:

Forex brokers that are registered in Muslim majority countries often have to comply with many local regulations and are required to follow Shari’ah law, whereas Western Forex brokers have much more flexibility when it comes to the interest charged to their clients.  This is why only some of the brokers offer this account type.

Summary

An Islamic Forex account, or swap-free account, is an optional account type that is often selected after signing up with a broker.  They are intended for use by traders of the Islamic faith, which prohibits generating income from interest payments.  Most Forex brokers can accommodate followers of the Islamic faith by offering swap-free trading accounts that are compliant with Shari’ah law. To learn more about different brokers further reading on how to compare Forex brokers can be found here.

Forex Risk Disclaimer

Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. Forex and CFD transactions involve high risk due to the following factors: Leverage, market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection. Traders should not deposit any money that is not considered disposable income. Regardless of how much research you have done or how confident you are in your trade, there is always a substantial risk of loss. (Learn more about these risks from the UK’s regulator, the FCA, or the Australian regulator, ASIC).

Our Rating & Review Methodology

Our State of the Market Report and Directory of CFD Brokers to Avoid are the result of extensive research on over 180 Forex brokers. These resources help traders find the best Forex brokers – and steer them away from the worst ones. These resources have been compiled using over 200 data points on each broker and over 3000 hours of research. Our team conducts all research independently: Testing brokers, gathering information from broker representatives and sifting through legal documents. Learn more about how we rank brokers.

Editorial Team

 

Chris Cammack
Head of Content

Chris joined the company in 2019 after ten years experience in research, editorial and design for political and financial publications. His background has given him a deep knowledge of international financial markets and the geopolitics that affects them. Chris has a keen eye for editing and a voracious appetite for financial and political current affairs. He ensures that our content across all sites meets the standards of quality and transparency that our readers expect.

 

Alison Heyerdahl
Senior Financial Writer

Alison joined the team as a writer in 2021. She has a medical degree with a focus on physiotherapy and a bachelor’s in psychology. However, her interest in forex trading and her love for writing led her to switch careers, and she now has over eight years experience in research and content development. She has tested and reviewed 100+ brokers and has a great understanding of the Forex trading world.

 

Ida Hermansen
Financial Writer

Ida joined our team as a financial writer in 2023. She has a degree in Digital Marketing and a background in content writing and SEO. In addition to her marketing and writing skills, Ida also has an interest in cryptocurrencies and blockchain networks. Her interest in crypto trading led to a wider fascination with Forex technical analysis and price movement. She continues to develop her skills and knowledge in Forex trading and keeps a close eye on which Forex brokers offer the best trading environments for new traders.

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