Best Islamic Forex Broker Accounts

IC Markets – Best Islamic Forex Broker Account

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

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 of the 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 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.

Pepperstone – Best ECN forex broker

Pepperstone is an ECN forex broker from Australia, that specialises in the trading of forex, commodities, and indices.

While Pepperstone has been recognised as one of the most trusted ECN forex brokers on the planet, they’re interesting here because they choose to not actively market their Islamic forex account. To open an Islamic account with Pepperstone, you must first open a Standard ECN account and then via your secure client log-in, request that the account be altered to swap-free.

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 their swap-free, Islamic trading options. If you’re a Muslim who specifically wants to trade forex with Pepperstone on an Islamic account, then the account change is at the sole discretion of the broker.

Some Muslims may find this process of having to prove to their forex broker that they are Muslims and not just looking to implement a trading strategy without daily rollovers, quite intimidating. While we’ve never come across any Muslims having their account change request denied, this is something to keep in mind so you’re not shocked by the process.

If your Pepperstone account is changed to an Islamic account, then instead of paying interest in the form of swaps or rollovers on overnight positions, you will instead pay an administration fee that is acceptable in Shariah law. You will trade under STP conditions and see the type of tight spreads and choice of trading platforms that Pepperstone is famous for:

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AxiTrader – Strongest MetaTrader 4 Enhancements

One of the other most popular Australian forex brokers, AxiTrader, also has an Islamic forex broker account option. Like Pepperstone, AxiTrader 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 AxiTrader 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 AxiTrader 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 AxiTrader’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 AxiTrader forex market sentiment is sitting, then you will face no problems on an Islamic account.

AxiTrader’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 AxiTrader ME.

With a major customer hub operating out of the Middle East, AxiTrader 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.

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FXTM – CySEC regulated broker

The CySEC 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.

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.

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ThinkMarkets – 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.

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 of the 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 >>

EasyMarkets – 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 makeseasyMarkets a popular choice for traders looking to open a swap-free or Islamic forex broker account.

Yes,easyMarkets offer trading accounts that adhere to Islamic laws (Sharia). On alleasyMarkets 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 on their positions and remain fully Sharia-compliant.

Accordingly, the maximum period that you’re able to hold a position on aneasyMarkets 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 witheasyMarkets 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 offense.

Take a look at theeasyMarkets Islamic account checklist below:

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AvaTrade – 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.

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. t’s 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.

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eToro – 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.

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.