Best Islamic Forex Broker Accounts

We opened an FP Markets Islamic Forex Account, which offers zero interest/swap on currency pairs like EUR/USD and GBP/USD. While opening the account, we found the broker offered a Standard account (no commissions with wider spreads) and an Islamic Raw account (with commissions and tighter spreads).

To test the broker, we opted for the Raw account and tested the spreads, averaging 0.10 pips on EUR/USD, much lower than the industry average of 0.24 pips on EUR/USD. If you want to trade the majors, we also found the broker had excellent spreads across the other major pairs, averaging 0.22 pips, which is one of the lowest major average spreads we tested.

On major forex pairs, you get a five-night grace period where the broker will not charge you an admin fee; this is helpful if you have an open position and forget to close it before midnight.

We found the admin fee varies between $1 per lot for highly liquid assets and $6 per lot for more volatile assets, which is quite competitive compared to the rest of the industry.

Based on our findings, FP Markets makes an excellent broker if you want to scalp the markets. Our analyst, Ross Collins, discovered that FP Markets had one of the lowest market order execution speeds, averaging 96 ms. This is important for scalping, as slow execution speeds can cost you profits and cause you to miss your entry prices.

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Pepperstone provides a swap-free account that can benefit from the broker’s ECN set-up. This gives you access to multiple top-tier liquidity providers, making the spreads tighter and trades faster to execute. The broker processes your trades and matches them directly with the ECN, with no dealer intervention, allowing you to benefit from better pricing and be less likely to suffer from slippage.

Pepperstone is an ECN broker that offers a Razor account with a small commission and tighter spreads from 0.0 pips on major currency pairs. As Pepperstone offers spreads from zero pips, we wanted to find out how long It keeps them this low and how much you could save.

So, we tasked our analyst, Ross Collins, with measuring this. He found that Pepperstone provided 0.0 pips 100% of the time across the major pairs. With spreads at zero on the majors, you just pay the $3.50 per lot traded commission, which is about the industry average.

Not only that, thanks to its ECN services, the swap-free account will also benefit from its faster execution. We found the broker to have one of the fastest overall execution speeds in our testing with a limit order speed of 77ms and market order speed of 100ms, placing it third out of the 20 brokers we tested.

We found that with IC Markets, you can open an Islamic account with the broker’s standard and Raw account, giving you further control over how you want your forex trading fees to apply.

If you are a beginner, we think the Standard account is best, as its straightforward pricing structure accounts for all the trading costs in the spread.

The Raw account has tighter spreads (direct from the liquidity provider and no markups), making trading more transparent. Instead, you are charged a commission of $3.50 per lot traded ( which is similar to Pepperstone) – we feel this is better if you trade in higher volumes because

We tested the Raw account and found the spreads to be the lowest in the industry, averaging 0.02 pips on EUR/USD. So, not only will you not pay swap fees, but you can also save on spreads with the Raw account based on our tests.

IC Markets offers a choice of platforms, including cTrader, MetaTrader 4, MetaTrader 5, and TradingView, making it easy to trade with IC Markets on the most popular platforms.

We think you should choose MetaTrader 5 to get the most out of IC Markets. The platform has a solid foundation of 38+ indicators with excellent trading tools, including the Depth of Markets tool and one-click trading, that can take advantage of ECN brokers like IC Markets.

To enhance MetaTrader 4 further, we found that Axi provides a range of 10+ expert advisors (EA) called NextGen add-ons that are freely available to Axi account holders. These EAs are designed to help improve trader management using the MetaTrader 4 platform, with tools such as an alarm manager, automated trade journal, and economic calendar.

We tested the sentiment trading tool as part of the NextGen bundle. It was easy to set up by simply dragging the EA onto the chart, and then it started working. The EA grabs the client’s open order data from Axi and shows a percentage of how many are long or short the currency pair.

This EA can be useful for gaining insights into current trends by seeing where other traders place their open orders, giving you an idea of where supply and demand are. With this data, you can effectively judge how much control the buyers or sellers have on the market to time your trades proficiently.

The broker offers Islamic swap-free services on both its Standard and Pro accounts, allowing you to customise your trading costs. We tried the Standard account and found that Axi had decent spreads, averaging 1.20 pips on EUR/USD, just lower than the industry average of 1.24 pips.

FXTM is a top broker regulated by CySEC that offers excellent trading conditions and an Islamic swap-free trading account. This allows you to be fully covered if you trade within the EU and ensures your funds are segregated should anything happen to FXTM.

While signing up for the FXTM Islamic account, we noticed that they offer swap-free accounts. However, some markets, like exotic forex pairs, are not swap-free. So, if you trade these markets, which tend to be more volatile and have higher fees, you should close your position at the end of the day to avoid these charges.

To place trades with FXTM, the broker offers MetaTrader 4 and MetaTrader 5. Both platforms provide an excellent environment for performing technical analysis and automating trades through expert advisors.

However, we found that the Islamic trading account could only use MetaTrader 4. Although this narrows down your choice of platforms, we think MetaTrader 4 and 5 are virtually the same when it comes to trading forex and day trading, both offering customisable indicators and automated trading.

One of the reasons we liked FXTM was that, in our testing, we found the broker to offer a decent range of Hala-compliant instruments. While testing our account, we found the broker offered 42 forex pairs, 219 share CFDs, 16 indices, and 11 commodities to trade.

If you want to trade multiple assets, ThinkMarkets offers a wide choice of CFDs with Islamic accounts. While reviewing the broker, we found it had a solid selection of 3,000+ markets, covering most major markets, including 46 currency pairs, 59 ETFs, 22 indices, and 15+ commodities.

To test the broker, the account we chose was ThinkZero, as we prefer having tight spreads and a fixed commission cost of $3.50 per lot traded.

In fact, during our testing, we found that ThinkZero averaged 0.10 pips in EUR/USD, which is 50% lower than the industry average. Thus, the broker is placed slightly cheaper than Pepperstone and AXI.

Alternatively, if you aren’t fond of paying commission, you can use their Standard account, which averaged 1.10 pips for EUR/USD. Having both trading accounts lower than the industry average makes them a low-cost broker, helping you save on your trading costs, which is a bonus on a swap-free account.

As we opened the swap-free account, we noted that if we failed to close our positions before midnight close, the broker would charge an administration fee, which is different for every market.

For example, if we had an open EUR/USD position overnight, ThinkMarkets charges $10 per lot opened, which is the cheapest and can go as high as $25 per lot. However, these administration fees will not be charged if you close your positions.

The easyMarkets Trading Platform is the flagship product to trade with fixed spreads and excellent risk management tools you won’t find anywhere else. The platform offers innovative trading methods, including dealCancellation, allowing you to cancel your trades in a losing position up to 6 hours after opening.

One of the stand-out features of easyMarkets is that the broker offers free guaranteed stop-loss orders on all your trades, whereas other brokers charge a premium. This is great if you are just starting or trading volatile markets, as you won’t have to worry about slippage, saving you from unexpected further losses.

As for the Islamic accounts available, easyMarkets is one of a few brokers offering fixed spreads with swap-free accounts. With fixed spreads, you don’t need to worry about the broker widening the spreads during volatility spikes, allowing you to enjoy the same spreads all day.

With spreads of 0.80 pips on EUR/USD, the fixed spreads are very competitive and are lower than most variable spread brokers, which is surprising.

As a note, we found that easyMarkets offered a generous 14-day grace period to hold your positions overnight before they close your position. Although this may seem strict to close your position, it’s better than being charged an admin fee per lot like other brokers.

Fixed spreads are ideal if you day trade the markets, as you’ll be exposed to the most volatility during high-impact announcements. Unlike variable spreads, which widen during these announcements, making it more expensive to trade, fixed spreads stay the same, allowing you to keep the average costs throughout the day.

Using AvaTrade’s Islamic account, we tested their spreads and found they offered 0.9 pips on EUR/USD, similar to easyMarkets’ spread. Both are lower than most variable spread brokers.

That said, AvaTrade’s spreads on its majors are much lower than easyMarkets’, which is why we think AvaTrade is the better choice if you want stable spreads.

You can take advantage of these stable spreads across AvaTrades’ selection of markets, which offers 55 forex pairs, 632 shares, 33 indices, and 27 commodities. All of these markets are compliant and available on the Islamic account.

To trade with fixed spreads, the broker offers a selection of trading platforms, including MetaTrader 4, MetaTrader 5, and AvaTradeGO – all offering excellent features. If you want more technical analysis or automated trading tools, MT4 and MT5 are our choice.

However, after trying AvaTradeGO as a mobile app, we were impressed with its free trading signals (powered by Trading Central) and market sentiment tool. The sentiment tool is available for most markets and shows you where AvaTrade’s clients are placing their orders, giving you a unique insight into where others believe the markets will go.

If you lack time to research the markets or have just started and want to leverage a successful trader’s experience, eToro is a top pick.

We like that eToro has built CopyTrader, a platform that makes copy trading as straightforward as possible. We found the platform’s simple layout consists of a search tool you select to filter out traders based on your requirements.

With just a few options selected from its advanced filter tool, we reduced the number of traders to copy from 2,000,000 to just three. These two traders checked all the boxes, allowing us to analyse them further, as eToro provides all the performance data for each trader, making it easier to find someone to follow.

The Islamic account with eToro is only available as a spread-only, no-commission account, as the broker does not offer Raw-style accounts.

With this account, our tests found that eToro averaged one 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 positive in our books.

We found that eToro’s Islamic account is subject to admin charges if you hold your position longer than seven trading days.

These charges are in line with the rest of the industry, which charges $10 per lot for major forex pairs, although the account does have a steep initial deposit requirement of $1,000 to open it.