Best Islamic Forex Broker Accounts

FP Markets – Best low spread broker For ECN Pricing

FP Markets is one of the most reliable brokers in the industry with some of the most competitive spreads on their tradable instruments. FP Markets have one the best swap free accounts for the following reasons:

1. ECN pricing with tight spreads
2. 10 day period with no swaps or admin free
3. Good for all FP Markets clients

FP Markets Islamic Accounts

FP Markets gives you a choice of two trading accounts. These are the standard account that has no commissions and spreads from 1.0 pip and the RAW account which uses ECN pricing.

The Islamic RAW account offers the best value of the two accounts. It has the same spreads as the RAW account with swaps which means you are getting the best spreads available directly from liquidity providers. The chart below compares the average spreads brokers offer for ECN pricing trading accounts (both swaps and swap-free) that brokers publish and we check and update each month. As one can see, FP Markets spreads are excellent.

ECN Broker Spreads	USD/JPY USD/CAD EUR/USD EUR/GBP AUD/USD AUD/JPY GBP/USD USD/JPY USD/SGD	USD/JPY USD/CAD EUR/USD EUR/GBP AUD/USD AUD/JPY GBP/USD USD/JPY USD/SGD	USD/JPY USD/CAD EUR/USD EUR/GBP AUD/USD AUD/JPY GBP/USD USD/JPY USD/SGD	USD/JPY USD/CAD EUR/USD EUR/GBP AUD/USD AUD/JPY GBP/USD USD/JPY USD/SGD	USD/JPY USD/CAD EUR/USD EUR/GBP AUD/USD AUD/JPY GBP/USD USD/JPY USD/SGD
	0.30	0.40	0.20	0.40	0.30
	0.26	0.47	0.17	0.40	0.24
	0.20	0.30	0.20	0.40	0.20
	0.50	0.60	0.30	0.50	0.50
	0.30	N/A	0.30	0.50	0.40
	0.20	0.83	0.44	0.40	0.42
	0.24	N/A	0.17	0.54	0.30
	0.30	0.70	0.20	0.50	0.40
	0.30	1.10	0.10	0.60	0.50
	n/a	0.30	n/a	0.60	0.50
	0.61	1.18	0.34	0.98	1.14

Data taken from broker website. Accurate as at 01/07/2022

10-Day swap-free and admin free period

Many brokers charge an admin fee in place of overnight rolling charges for their swap-free Islamic accounts. While each broker has its own policy for how long you can hold an open position before an admin fee is charged, 2 or 3 overnights are common. FP Markets gives your a full 10 overnights before an admin fee will apply. This means if you frequently open and close your trades, then you will not incur additional trading costs.

Should you hold overnight positions then fees start from $1 per lot/per night for major indices, $5 per lot/per night for major currency pairs and metals.

FP Markets has noted that the Islamic account status will not apply to certain exotic forex pairs and Share CFDs. If you wish to trade those markets then ensure to close your positions before the end of day 00:00 platform time. WTI is a futures derivative product and doesn’t have a swap fee, but there is a monthly rollover swap charge. If you don’t want that fee to show up on the swap column then ensure your position is closed before the rollover occurs.

Islamic Accounts are good for all Muslim FP Markets clients

While some brokers require you to be from an Islamic country to be eligible for a swap-free (Islamic) account, FP accepts applications from all their clients provided you can provide a document signed from a mosque stating you are of the Muslim faith.

FP Markets have the following entities

• Europe and the UK – First Prudential Markets Ltd (registration number HE 372179) with regulation by Cyprus Securities and Exchange Commission (CySEC License number 371/18)
• Australia – First Prudential Markets Pty Ltd (ABN 16 112 600 281, AFS Licence No. 286354)
• Other regions – FP Markets LLC. which is a registered company of St. Vincent and the Grenadines, Limited Liability Number 126 LLC 2019

FP Markets has made it easy for their Muslim clients to access an Islamic account. First, you have to open a MetaTrader 4 or MetaTrader 5 (MT4/MT5) account. Once the account has been successfully opened, just email your account number to their onboarding email address and request for it to be converted. Then just wait for their team to confirm it and you can start trading.

View FP Markets Review >>Visit FP Markets >>

Pepperstone – Lowest Standard Account Spreads forex broker

Pepperstone is a forex broker from Australia, that specializes in the trading of forex, commodities, and indices. Pepperstone makes the list of best brokers with Islamic accounts for the following reasons:

• Low administration fees (in place of swaps)
• Lowest average spreads for Standard Account

Pepperstone Swap-free Account

The Pepperstone Islamic account is only available to clients who practice Islam, and not for anyone who wants to try a swap-free trading strategy. As a result, Pepperstone doesn’t publicly advertise its swap-free Islamic trading options.

As this is a swap-free account, there are no overnight rolling costs. Instead, an administration fee is charged however this does not kick in until you have held your position for 11 days and is then applied every 11 days you hold your position thereafter. In other words, if you hold your positions for 16 days, you only be charged an administration fee once.

Pepperstone only makes the swap-free account to traders in Islamic countries and to qualify for a trading swap-free account, you will need to provide evidence of your Islamic faith with documented evidence from your mosque. The following countries are just some of the countries Pepperstone will accept as clients:

• Bahrain
• Brunei
• Egypt
• Indonesia
• Jordan
• Kyrgyzstan
• Morocco,
• Maldives
• Malaysia
• Oman
• Pakistan
• Qatar
• Tajikistan
• Turkmenistan
• Tunisia
• Turkey
• Uzbekistan

Pepperstone Swap-Free Trading Account Has The Best No Commission Spreads

The Pepperstone swap-free account is the same as the Pepperstone standard account but with no swaps. The Pepperstone standard account has some of the lowest spreads in the market. These spreads start from 0.60 pips for the EUR/USD currency pair which is very tight considering there are no commission costs.

The below table compares the average spreads for brokers publish on their website and is updated each month. As you can Pepperstone spreads for the standard accounts are among the best available spreads for multiple currency pairs.

Standard Account Spreads	EUR/USD AUD/USD EUR/GBP GBP/USD USD/JPY AUD/JPY EUR/JPY USD/CAD USD/SGD	EUR/USD AUD/USD EUR/GBP GBP/USD USD/JPY AUD/JPY EUR/JPY USD/CAD USD/SGD	EUR/USD AUD/USD EUR/GBP GBP/USD USD/JPY AUD/JPY EUR/JPY USD/CAD USD/SGD	EUR/USD AUD/USD EUR/GBP GBP/USD USD/JPY AUD/JPY EUR/JPY USD/CAD USD/SGD	EUR/USD AUD/USD EUR/GBP GBP/USD USD/JPY AUD/JPY EUR/JPY USD/CAD USD/SGD
	0.75	0.85	1.40	1.19	0.86
	0.86	0.74	1.19	1.19	0.83
	0.70	1.30	1.30	2.20	1.40
	0.80	0.90	1.70	1.80	0.80
	1.10	1.10	1.10	1.60	1.50
	1.20	1.40	1.70	1.50	1.30
	1.10	1.20	1.40	1.50	1.20
	1.30	1.40	1.50	1.50	1.40
	1.20	1.20	1.40	1.40	1.20
	1.20	1.20	1.40	1.40	1.40
	1.30	1.50	1.50	1.70	1.70
	1.30	1.70	2.10	1.40	1.50
	1.20	1.40	1.40	1.50	1.20
	1.52	1.65	1.64	1.10	1.45
	1.40	1.20	1.90	1.90	1.60
	1.70	1.80	2.00	2.20	1.60

Data taken from broker website. Accurate as at 01/07/2022

Pepperstone’s halal forex trading account guarantees no swap on FX trading. Click the button below if you want to enjoy the best forex trading conditions for Muslim traders.

View Pepperstone Review >>Visit Pepperstone >>

IC Markets – Good Swap-Free Trading Account

If you’re a Muslim looking for the best Islamic forex broker account, then you need to look no further than IC Markets.

Note* On top of the tier-one FX licences (ASIC and CySEC), IC Markets Global welcomes Muslim traders from all over the world through their entity regulated by the Financial Services Authority of Seychelles (FSA).

As in Islamic customs, Muslims are unable to receive or charge interest. To cater to the massive global demand for Islamic finance, where interest is not part of the broker’s business model, IC Markets offer Islamic trading accounts with a swap-free option. Islamic swap-free accounts at IC Markets, ensure that instead of paying interest, clients are billed a flat rate financing charge. Whether you’re trading forex, commodities or indices markets, you can be assured that you’ll never pay interest on an IC Markets Islamic account.

Below are some financing charges for holding trades overnight on some exotic trading pairs. Keep this in mind when executing your trading strategy on an IC Markets Islamic trading account:

IC Markets Islamic Forex Account Conditions

IC Markets makes swap-free trading simple for clients, allowing you to change both Raw Spread and Standard account types to swap-free. This means that you can trade on MetaTrader 4 (MT4), MetaTrader 5 (MT5), Webtrader and even the cTrader platform with an IC Markets Islamic trading account.

Please keep in mind that the rates & holding periods are subject to change, reflecting high-risk market conditions at the time. IC Markets Raw Spread and Standard Account commissions and spreads apply.

IC Markets have some of the best trading conditions of any ASIC regulated forex broker, and clients can be assured that their trades are being executed through the broker’s state-of-the-art trading infrastructure setup. By running a network of strategically placed servers, forex traders of the Islamic faith can be confident that the execution speeds on their trades mean they’re afforded the same competitive advantage as the rest of the broker’s client book.

To open an Islamic forex account with IC Markets, simply apply for a Raw Spread account with the broker’s swap-free option. This means that no interest fees will ever be credited or debited to your account, no matter how long you hold trades.

Available For All Clients

While some brokers restrict clients that can apply for a swap-free account to Islamic majority countries such as the UAE and Malaysia. IC Markets allow all clients to apply provided they can prove they follow Sharia law.

Axi has the strongest MetaTrader 4 enhancements

One of the other most popular Australian forex brokers, Axi (formerly known as AxiTrader) has an Islamic forex broker account option. Like Pepperstone, Axi doesn’t actively advertise their Islamic account option on their website with a dedicated landing page.

They instead have a similar process where after you’ve opened an Axi Standard or Pro account, you are then required to sign a form from your client login portal to indicate that you wish for your account to become swap-free.

When trading on an Islamic account via the Axi MT4 or MT5 platforms, you’ll notice in the market view that FX majors, minors and metals will all now display the .swf suffix. For example, if you’re trading EUR/USD on a swap-free account, the market will be displayed at EURUSD.swf.

All of Axi’s MT4 NexGen add-ons work seamlessly under swap-free trading conditions. Whether you’re after advanced trade management tools, further order placement options, or want to see where the current Axi forex market sentiment is sitting, then you will face no problems on an Islamic account.

Axi Islamic Account

Axi’s Islamic forex broker accounts are not subject to any type of interest (riba) in the form of swaps or rollovers, rather they have an administration fee applied to any positions held open for 5 consecutive days or more. This distinction is a common practice in Islamic finance, something that the company knows all too well after having set up a major Middle Eastern arm of their business called Axi ME.

With a major customer hub operating out of the Middle East, Axi can truly be called an Islamic forex broker, employing the expertise required to ensure the delicate balance between respecting faith and having the ability to professionally trade forex.

View AxiTrader Review >>Visit Axi >>

FXTM Is the best CySEC regulated broker with an Islamic Account

The CySEC (Cyprus Securities and Exchange Commission) regulated broker, FXTM, is another popular choice of forex traders looking for a swap-free option to trade. While FXTM does offer Islamic forex broker accounts, there are a few conditions that Muslim traders have to be aware of before they make a final decision on where to open an account.

FXTM Swap-Free Retail Investor Accounts

The swap-free option at FXTM is available on all of their trading account types, but traders are unable to log into them on the MT5 trading platform. This means that if you’ve already taken your forex broker’s advice and made the switch to MT5, then you’ll be unable to use your Islamic trading account.

The other condition that Muslims looking to open a swap-free account at FXTM need to be aware of, is that there are limitations on which currency pairs you can trade without accruing swaps. Even if you’re trading on the MT4 platform, then Islamic trading conditions still don’t apply to exotic currency pairs. Make sure you don’t get caught out by this.

With Islamic trading accounts only available for clients in selected countries, FXTM requires you to first apply for a standard trading account, then apply for a swap-free addition to your account through your MyFXTM client back end and then finally to select swap-free markets from the markets navigator in the sidebar of MT4.

View FXTM Review >>Visit FXTM>>

ThinkMarkets is the best CFDs trading account

Known as a premium, multi-asset online brokerage, ThinkMarkets are much more than a forex broker. A fact that is reflected in the full suite of CFDs that they offer to the Islamic trading community.

Risk disclaimer: Regulatory bodies consider CFDs as complex instruments, in particular to retail investors.

ThinkMarkets Swap-Free Account

ThinkMarkets offers traders the option to trade swap-free on positions held overnight, with a fully Sharia-compliant account. Another of the global brokers with a presence in the Middle East, ThinkMarkets understands the needs of Muslims and that they must be governed by the principles of the Islamic Shari’ah. By choosing to trade with ThinkMarkets, you can be assured that you’ll remain in full compliance with Sharia law.

A ThinkMarkets Islamic account is completely swap-free. What this means is that Muslims can be assured that their positions held overnight in their trading account will never accrue interest (riba). Instead, clients are charged a simple, weekly administrative fee for positions held for seven days or more. It’s worth noting that this is a weekly charge and not a daily charge, like some other Islamic forex broker accounts highlighted in this review.

The administrative fee is made in 7-day increments, with the following rates being charged in $USD, per 1 full lot, per day:

To open an Islamic trading account with ThinkMarkets, traders must follow 3 simple steps. Apply for one of the standard account types, send a request for an Islamic trading account to the broker’s support email, then simply fund your account with the minimum deposit and start trading swap-free.

View ThinkMarkets Review >>Visit ThinkMarkets >>

*Your capital is at risk ‘71.89% of retail CFD accounts lose money’

EasyMarkets has Guaranteed stop loss and take profit

EasyMarkets are another broker who is known as specialists in the field of trading CFDs, but offer a guaranteed stop loss and take profit to all clients. Their reputation as a simple, yet honest broker makes easyMarkets a popular choice for traders looking to open a swap-free or Islamic forex broker account.

EasyMarkets Islamic Account

Yes, easyMarkets offer trading accounts that adhere to Islamic laws (Sharia). On all easyMarkets Islamic trading accounts, when traders extend their strategy to hold a position overnight, no rollover fees will be charged the following day. This ensures that traders of the Islamic faith don’t ever accrue interest in their positions and remain fully Sharia-compliant.

Accordingly, the maximum period that you’re able to hold a position on an easyMarkets Islamic account is 2 weeks (or 14 days). After this period, open positions will automatically expire. While this may be an issue for traders implementing long term strategies, even many swing strategies don’t require 2-week holding periods.

EasyMarkets Islamic accounts with a swap-free option are only offered to clients who are following Islamic laws and are once again, not for regular traders who simply want to avoid swaps in their trading strategy. As a result, whether you’re able to open an Islamic account with easyMarkets is up to their sole discretion. Like we spoke about in the Pepperstone Islamic account section above, please keep this in mind when making an application so as not to run into any unintended offence.

Take a look at the easyMarkets Islamic account checklist below:

View easyMarkets Review >>Visit easyMarkets>>

AvaTrade allows trade on fixed spreads

AvaTrade is a global giant in the forex broker space, and its Islamic trading account lives up to the company’s reputation. By offering clients the option to trade on fixed spreads, they’re always trying to make sure they cater to all types of strategies.

AvaTrade Islamic Account

All AvaTrade Islamic accounts opened by Muslim clients are managed according to Sharia law, and as a result, forex traders of the Islamic faith can feel confident trading with AvaTrade. It is an important company ethos of AvaTrade to respect their Islamic clients’ beliefs and ensure the correct following of rules in Islam. With over 10 years of experience as a global forex broker, Muslims can feel safe that AvaTrade delivers on its promises.

To set up an Islamic account with AvaTrade, you must first open any of the broker’s regular account types and then contact your account manager before placing any trades. Your account manager will make the change to a swap-free account, ensuring that your trading is always fully compliant with Sharia law.

For your account manager to give the green light on the swap-free option, your account must first be fully verified and already funded. As this is the case, make sure that AvaTrade is the Islamic forex broker account that you’re set on using to trade, before going ahead and opening an account. If it just sits there unfunded, then it will never be changed to swap-free and a moral dilemma may be presented.

From there, requests for Islamic accounts are usually processed within 1-2 business days, with the process being moved faster if a customer support request is submitted. AvaTrade is considered safe because its global branches are regulated and authorized by top-tier financial institutions like ASIC, Central Bank of Ireland, IFSC and FSA and ADGM and FRSA in the United Arab Emirates (UAE).

Visit AvaTrade >>

eToro is top for Social trading without interest charges

At the social trading broker eToro, while copy trading is a little different from making the decisions yourself, the same issues around accruing interest on positions apply. At eToro, forex traders of the Muslim faith can copy trade on Islamic broker accounts that remain fully compliant with Sharia law.

eToro Islamic Account

The benefits of an eToro Islamic account include zero interest on settlements of more than 24 hours. This means that there’ll never be rollover interest applied to your account. Furthermore, there will never be any additional commissions charged for trades held over 24 hours. This is a huge plus when compared to the other best broker accounts reviewed on this page.

When copy trading on an eToro Islamic account, Muslim forex traders will never have charges, commissions or account management fees applied to their trading. This means that the only revenues made by the broker off Islamic accounts come from the spreads. This is massive!

Keep in mind that this also applies to all other fees and loans. With leveraged trading essentially relying on a loan from your broker, it is technically not permissible in Islam. To ensure full Sharia compliance on all Islamic trading accounts, eToro provides no interest leverage to clients.

To open an eToro Islamic account, clients must first register for a live account and fund it with a minimum of $1,000 USD. The application to trade swap-free is then made through your client account area, in consultation with support.

*Your capital is at risk ‘68% of retail CFD accounts lose money’

Markets.com Is The Best Islamic Forex Broker Account

If you are looking for the  best Islamic forex broker account, then you need to look no further than Markets.com

Markets.com is the best account for Islamic traders for the following reasons

1. Markets.com do not use other fee methods to replace swaps – no administration fees, no widened spreads
2. The swap-free account is available for all Islamic traders worldwide
3. Wide range of products are available with Markets.com swap-free account

Markets.com’s Swap-Free account is suitable for Islamic traders.

While many brokers have a swap-free account, many of these accounts are not truly compliant. For example, some brokers apply an administration fee in place of swaps, while other brokers widen their spreads.

Markets.com neither charge an administration fee nor widen their spreads, in fact, Markets.com don’t charge a fee of any form in place of swaps, This makes Market.com halal since they are compliant with sharia law as there is no “Riba”. Use of a riba when trading is considered a sin in sharia law since Muslims are forbidden from doing trades that involve interest charges, commissions, or profits that cannot be justified.

Markets.com spreads have no commissions

Markets.com does not charge commission in addition to the spread, instead, all costs are included as part of the spread. Unlike some brokers which may widen the spread in place of fees, Markets.com is a true standard account.

Spreads with Markets.com no commission account are some of the most competitive in the industry. Below is a sample of the best live spreads we witnessed on the 2nd of June 2021. We took particular note of the 0.60 pips for the EUR/USD currency pair we witnessed live which many brokers advertise as their minimum spreads for that currency pair.

A swap-Free account can be used by Islamic Trader world-wide

Some brokers limit Swap-free accounts only to traders from certain countries, usually countries that have a large Muslim population. For example countries in the middle east, Malaysia, Singapore, and certain African nations. Markets.com makes their account available to all Muslim traders that cannot accept swaps due to their religious beliefs.

Even better, unlike many brokers with an Islamic account that require you to provide proof of your Islamic faith which may mean getting a signed form from an authorized clergy such as an imam, mufti or ayatollah. Markets.com keeps their application for a swap-free account simple, you just need to sign a form saying you cannot accept swaps because of your faith.

Markets.com are regulated in the following regions or countries – Australia (ASIC), Europe (CySEC), The UK (FCA), Other (BVI).

Most products available with a swap-free account

Some brokers limit the products they offer with a swap-free account. This may be because they charge commissions to trade with the product, share CFDs for example are not always available with Islamic accounts. Other brokers limit swap-free trading currency pairs made up of 8 major currencies (USD, EUR, GBP, JPY, CAD, AUD, CHF, NZD), this is because emerging currencies such as Turkish lira, South African rand, and Russian ruble as these currencies have higher central bank interest rates. Higher central bank rates mean they are more costly to borrow and Islamic law limits the broker’s ability to recoup costs for this expense.

Markets.com allows you to trade nearly all their products with no swaps. The products that are limited will depends on the trading platform you are using but these products are mostly exotic forex pairs (for all trading platforms) which typically only have low trading volumes plus Ethereum, Dash, and Ripple cryptocurrency if you are using Marketx

This means you can access all 1990 shares across 20 stock markets around the world. So whether you wish to buy Apple, Nokia, or Zoom from NASDAQ or NYSE in the UK, Royal Dutch Shell, BP from the LSE in the UK, or BHP on the ASX in Australia you will be able to. This is a good thing as it means you can take full advantage of Market.com Share dealing platform.

Not only can you buy the full range of shares, you can also buy:

• 40 Indices
• 28 Commodities
• 25 cryptocurrencies (not available in the UK)
• 4 Bonds
• 60 ETFs
• 14 Blends

*Your capital is at risk ‘70% of retail CFD accounts lose money’