Best Islamic Forex Broker Accounts

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.

I opened an Islamic Forex Account with FP Markets, which provides zero interest/swap on currency pairs such as EUR/USD and GBP/USD. During the account setup, I discovered that the broker also offers two account types: a Standard account with no commissions but wider spreads, and an Islamic Raw account that features commissions and tighter spreads.

For an in-depth evaluation of FP Markets, I opted to test the Raw account and found that raw spread averaged 0.10 pips on EUR/USD. This result stunned me as it is significantly lower than the industry average of 0.24 pips on EUR/USD.

If you’re looking to trade major currency pairs, I also found the broker has excellent spreads across other major pairs, averaging 0.22 pips. This is one of the lowest average spreads I encountered during my tests.

On major forex pairs, you benefit from a five-night grace period during which the broker does not charge an admin fee. This feature is particularly useful if you have an open position and forget to close it before midnight. In my experience, the admin fee is highly competitive compared to other brokerage companies, ranging from $1 per lot for highly liquid assets to $6 per lot for more volatile assets.

For these novel offers, I consider FP Markets as an excellent broker if you want to scalp the markets. Our analyst, Ross Collins, also discovered that the broker has one of the lowest market order execution speeds, averaging 96 ms. This is crucial for scalping since slow execution speeds can cost you profits and result in missed entry prices.

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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.

Pepperstone has a swap-free account that benefits from the broker’s Electronic Communication Network (ECN) set-up. In simple analogy, 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, resulting to better pricing and less slippage.

Pepperstone offers a Razor account which comes with a small commission and tighter spreads from 0.0 pips on major currency pairs. Since the broker offers spreads starting from zero pips, I wanted to determine how long these low spreads are maintained and how much you could potentially save.

So, our analyst Ross Collins had been tasked to test the broker to find out some answers. Ross found that Pepperstone indeed provides 0.0 pips 100% of the time across the major pairs. With spreads at zero on the majors, traders pay the $3.50 per lot traded commission, which is about the industry average.

And yes, thanks to its ECN services, the swap-free account also benefits from Pepperstone’s fast execution. I ran a test and found out that the broker has a limit order speed of 77ms and a market order speed of 100ms. Pepperstone placed third out of the 20 brokers I tested, making the broker one of the fastest and most reliable options if you are seeking efficient execution.

In addition to being the largest broker by trading volume, IC Markets grants access to 25 global liquidity providers, enabling them to consistently offer tight spreads across both their Standard and RAW accounts, both of which are available as swap-free accounts.

With IC Markets, I found that it’s possible open an Islamic account with either the broker’s Standard and Raw account. In my experience, having this flexibility has given me a great control over how I wanted my forex trading fees to apply.

If you are a beginner, I recommend opting for the Standard account, as its straightforward pricing structure includes all trading costs within the spread.

The Raw account offers tighter spreads directly from the liquidity provider with no markups. This makes trading more transparent and I couldn’t recommend this enough if you are trading in higher volumes and taking larger positions. In exchange for the tighter spreads, you’ll be charged a commission of $3.50 per lot traded, which is the same amount as Pepperstone charges.

I tested the Raw account and found its spreads to be the lowest in the financial markets, averaging 0.02 pips on EUR/USD. So, not only will you not pay swap fees, but you can also save on spreads when using the Raw account.

IC Markets provides a wide range of platforms, including cTrader, MetaTrader 4, MetaTrader 5, and TradingView. This variety ensures you can trade with the most popular and trusted platforms available when using this broker.

I recommend using 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.

I recommend Axi for the NexGen add-on tool which enhances the experience when using MetaTrader 4. As an advanced trader who likes to switch things up frequently, I particularly appreciate having access to tools for advanced trading management, sentiment trading, and enhanced post-trade features. What’s great is that all these features are available with Axi’s Islamic account, making the broker an excellent choice if you have versatile trading needs.

Axi offers a great way to enhance MetaTrader 4 experience. 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. These are the alarm manager, automated trade journal, and economic calendar.

I tested the sentiment trading tool as part of the NextGen bundle. It was surprisingly easy to set up: I simply dragged the EA onto the chart and it started working. The EA grabbed my open order data from Axi and showed a percentage of how many are long or short the currency pair.

I find this EA particularly effective for gaining insights into current trends. By seeing where other traders place their open orders, you get an idea of where supply and demand are. This data helps you assess how much control buyers or sellers have in the market, enabling you to time your trades more proficiently.

Axi offers swap-free services on both Standard and Pro accounts, allowing you to tailor your trading costs and comply with the principles of Islamic finance. 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.

I recommend FXTM as a good CySEC-regulated broker with excellent trading conditions, averaging 0.22 pip forex spreads for its Advantage (commission-based) account. As such, I find FXTM to be working well for European traders seeking an Islamic account with competitive spreads.

If you’re seeking a broker offering Islamic accounts in Europe, FXTM is a top choice. Regulated by CySEC, FXTM provides excellent trading conditions and an Islamic swap-free trading account. This regulation ensures that if you trade within the EU, your funds are segregated and protected, offering you peace of mind during uncertain times.

While signing up for the broker’s Islamic account, I was glad to find that they offer swap-free accounts. However, the coverage is limited; some markets, such as exotic forex pairs, are not swap-free. If you trade in these markets, which are more volatile and incur higher fees, I advise that you close your positions at the end of the day to avoid these charges.

FXTM offers MetaTrader 4 and MetaTrader 5, providing an excellent environment for performing technical analysis and automating trades through expert advisors. However, you can only use MT4 with the Islamic trading account.

Although this appears to narrow down your choice of platforms, I find MetaTrader 4 and 5 to be virtually the same when it comes to trading forex and day trading. Both offer customisable indicators and automated trading, and you’ll not be missing out a lot without MT5.

One of the reasons I like FXTM is that the broker offers a decent range of Halal-compliant instruments. While testing my account, I found that FXTM provided 42 forex pairs, 219 share CFDs, 16 indices, and 11 commodities to trade.

In my experience, ThinkMarkets offers the best CFDs trading account, providing access to over 3000 financial instruments. The broker also stands out for its flexibility, offering low spreads with the ThinkZero account and three excellent platforms to trade on.

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.

To evaluate the broker, I opted for the ThinkZero account as I prefer having tight spreads, and its fixed commission of only $3.50 per lot traded sealed the deal. During my test, I found that this account averaged 0.10 pips in EUR/USD, which is 50% lower than the industry average. Hence, the broker fared slightly cheaper than Pepperstone and AXI.

Alternatively I recommend using the Standard account which averaged 1.10 pips for EUR/USD if you aren’t fond of paying commission. Featuring two trading accounts with costs lower than the industry average, I found ThinkMarkets to be a low-cost broker that helps you save on trading expenses — a significant advantage for a swap-free account.

When I opened the swap-free account, I noted that if positions are not closed before midnight, the broker charges an administration fee, which varies by market. For example, holding an overnight position on EUR/USD incurs a fee of $10 per lot, which can go up to $25 per lot. However, these administration fees are waived if you close your positions before midnight.

I recommend easyMarkets for its Guaranteed Stop Loss and Take Profit orders, which I find excellent for managing risk. Using GSLOs (at a slight cost) and TPs on your Islamic account with easyMarkets helps manage risk and reduce slippage (losses from trade execution) while trading.

If you are looking to trade with great risk-management, easyMarkets is the way to go. The broker has the easyMarkets Trading Platform, a flagship product that allows you to trade with fixed spreads and excellent risk management tools. This platform offers innovative trading methods, including dealCancellation, which can be used to cancel trades in a losing position up to 6 hours after opening.

One stand-out feature I noticed about easyMarkets is the offer of free guaranteed stop-loss orders on all trades. This is unique, as other brokers I’ve tested typically charge a premium for this function. This will be beneficial for beginners as well as if you’re trading in volatile markets, as it eliminates concerns about slippage and prevents unexpected losses.

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.

Moreover, the broker offers 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.

AvaTrade as an excellent choice for offering fixed spreads on Islamic, swap-free account. The broker’s fixed spreads are the lowest I’ve ever seen, averaging 1.4 pips across six major USD-backed currency pairs.

If you day trade the markets, having a broker offering fixed spreads like AvaTrade is ideal. This limits your exposure to volatility during high-impact announcements, unlike in variable spreads which widen during these announcements and makes trading costs more expensive. Fixed spreads stay the same, allowing you to keep the average costs throughout the day.

Using AvaTrade’s Islamic account, I tested the spreads and found the broker offers 0.9 pips on EUR/USD, comparable to easyMarkets’ spread. Both are lower than most variable spread brokers.

That said, AvaTrade’s spreads on currency majors are much lower than easyMarkets’. For this reason, I found AvaTrade to be the better choice when trading stable spreads.

You can take advantage of these stable spreads across the broker’s selection of markets which include 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, AvaTrade also offers a great 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 is my choice.

However, after trying the AvaTradeGO mobile app, I was impressed with the free trading signals (powered by Trading Central) and the market sentiment tool. The sentiment tool is available for most markets and shows where AvaTrade’s clients are placing their orders. In my opinion, this provides unique insights into market trends, helping you make more informed trading decisions.

eToro is my top recommendation for a social trading broker that doesn’t charge interest via swap-free, Islamic account. Not only does eToro has excellent copy trading features via its CopyTrader tool, the broker also boasts a user-friendly proprietary platform where you can trade over 3000 forex and CFD products.

If you lack time to research the markets or is a beginner trader wanting to leverage a successful trader’s experience, eToro is my top pick. 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.

With just a few options selected from the advanced filter tool, I managed to reduce the number of traders to copy from 2 million to just three. Two of these traders checked all the boxes I was looking for, allowing me to analyze them further. It also helped that eToro provided all the performance data for each trader, making the process of finding someone to follow and copy easier.

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, 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.

During my evaluation, I discovered 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.