Islamic Forex Brokers

Islamic Forex Brokers
Are you a practicing Muslim, and you wish to trade forex without infringing on the tenets of your faith? If you are a Sharia adherent, you will not want to engage in any economic activity that betrays your religious principles, and you shouldn’t. Fortunately for you, there are Islamic forex brokers that provide Muslim traders with the option to trade with Islamic forex accounts.

Although these types of accounts exist, you need to know that not all forex brokers offer these types of accounts. So before choosing which broker to trade with, you need to evaluate their service features carefully.

Top Islamic Forex Brokers List for 2021

Broker
Rating
Regulated
Min. Deposit
Demo
Max. Leverage
1.
Admiral Markets

FCA, CySEC, ASIC

Min $100 Deposit

1:500

Review » Visit » Visit
Terms & conditions apply
Risk warning: Trading Forex (foreign exchange) or CFDs (contracts for difference) on margin carries a high level of risk and may not be suitable for all investors. There is a possibility that you may sustain a loss equal to or greater than your entire investment. Therefore, you should not invest or risk money that you cannot afford to lose. Before using Admiral Markets UK Ltd, Admiral Markets Cyprus Ltd, Admiral Markets AS Jordan Ltd or Admiral Markets Pty Ltd services, please acknowledge all of the risks associated with trading.
2.
Deriv

VFSC, FSC, IBFC

Min $5 Deposit

1 000:1

Review » Visit » Visit
Terms & conditions apply
CFDs are considered complex derivatives and may not be suitable for retail clients. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The products mentioned here may be affected by changes in currency exchange rates. If you invest in these products, you may lose some or all of your investment, and the value of your investment may fluctuate. You should never invest money that you cannot afford to lose and never trade with borrowed money.
3.
ActivTrades

FCA

Min $100 Deposit

50:1

Review » Visit » Visit
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
4.
Vantage FX

FCA, ASIC, CIMA, SIBL

Min $200 Deposit

500:1

Review » Visit » Visit
Terms & conditions apply
Trading Forex and CFDs involves significant risk and can result in the loss of your invested capital. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Trading leveraged products may not be suitable for all investors. Before trading, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
5.
XM Broker

ASIC, IFSC, DFSA, CySEC

Min $5 Deposit

500:1

Review » Visit » Visit
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.28% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
6.
Blackbull Markets

ASIC, VFSC

Min $100 Deposit

500:1

Review » Visit » Visit
Terms & conditions apply
Risk Warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money you cannot afford to lose. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle.
7.
Fusion Markets

ASIC, VFSC

Min $100 Deposit

500:1

Review » Visit » Visit
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74-89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
8.
Eightcap Review

ASIC, VFSC

Min $100 Deposit

500:1

Review » Visit » Visit
Terms & conditions apply
Margin trading involves a high level of risk, and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Eightcap, and seek independent advice if necessary. Forex and CFDs are highly leveraged products which mean both gains and losses are magnified. You should only trade in these products if you fully understand the risks involved and can afford losses without adversely affecting your lifestyle (including the risk of losing substantially more than your initial investment).
9.
Libertex

CySec

Min $100 Deposit

30:1

Review » Visit » Visit
Terms & conditions apply
Trading leveraged products such as CFDs involves substantial risk of loss and may not be suitable for all investors. 83% of retail investor accounts lose money when trading CFDs with this provider. Trading such products is risky and you may lose all of your invested capital.
10.
Capital.com

FCA, CySEC

Min $20 Deposit

30:1

Review » Visit » Visit
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

What is an Islamic Forex Account?

An Islamic Forex account, also called a halal trading account, is unlike conventional trading accounts. This type of account is specially created for believers of Sharia practices. According to Sharia law, interest accruals on finds are prohibited, so these accounts do not incur any type of interest or swap point rollovers on open trades by the time the New York forex market closes.

Another feature with Islamic forex accounts is that trading transactions are settled immediately in trades that have been popularly termed hand-to-hand trading.

Best Islamic Forex Brokers Reviewed

Now let us briefly review down of the best Islamic forex brokers online.

Forex.com

forex.com Logo
First on our list of the best Islamic forex brokers is Forex.com. This broker is one of the best brokers in the world, and they also offer special trading accounts to halal traders. There are up to 80 different currency pairs you can trade with using an Islamic forex account with a minimum trade size of 0.01 pip. Forex.com does not advertise this type of account, but it does exist. It is a great option for beginners and active traders who live by Sharia principles. The maximum leverage for traders in the US is 50:1, while traders in Europe enjoy the leverage of 30:1.

Their interest-free account also accrues a commission of $5 for every $100,000 traded, which is quite low. As for their interface, they have MT4, MT4 Mobile and MT4 VPS.

Forex.com Logo

Min $100 Deposit

Regulated By: FCA, IIROC, JFSA, NFA, CIMA, FSA, ASIC, CFTC

Foundation Year: 1999

Headquarters: New Jersey, United States


Terms & conditions apply
Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.

AvaTrade

Avatrade Logo
AvaTrade is another reliable Islamic forex broker worth mentioning. This platform offers a wide spectrum of tradable instruments such as commodities, stocks, indices, forex, and CFDs. One feature many have come to appreciate about AvaTrade is their 24-hour customer service which remains open in different languages. So should you encounter one issue or another, you can be sure to get all the support you need as quickly as possible.

They have easy-to-use interfaces for beginners like WebTrader and AvaTradeGo. For advanced traders, they can use the advanced MT4, MT5, and AvaOptions which all have varying degrees of automated features. With this broker, you don’t need to worry about keeping your trades open overnight in violation of your religious principles. All it takes is a minimum of $200 to open an account with AvaTrade, and you can trade as many as 60 currency pairs.

If you live in the following countries, you can enjoy Swap-free accounts.

Albania- Brunei-Bahrain – Brunei – Darussalam – Algeria – Egypt – Guinea – Indonesia – Jordan and a host of other countries.

Avatrade Logo

Min $100 Deposit

Regulated By: ASIC, CBI, BVI, FSCA, IIROC, FFAJ, JFSA, ADGM FRSA

Foundation Year: 2006

Headquarters: Dublin, Ireland


Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. This content is intended for information and educational purposes only and should not be considered investment advice or investment recommendation.

eToro

eToro Logo
eToro is a US-based broker known for its advanced social trading platform. On this platform, you can use your Islamic forex account to trade up to 47 currency pairs. There are hundreds of financial assets on the platform, and this broker offers a special account to traders in adherence to Sharia law. Their Islamic account does not attract interest or settlement for more than hours, and trades in open positions close automatically at the close of the trading day.

eToro will not charge any extra commission or fees for managing your Islamic account, and revenues earned are based strictly on spreads. However, the only downside to investing with this broker is that you will have to invest a minimum of $1000 to activate an Islamic account. Also, you will have to provide extra verification to verify your identity. However, eToro is reliable and dependable. The minimum trade size starts from 0.01 pips.

eToro Logo

Min $200 Deposit

Regulated By: FCA, ASIC, CySEC

Foundation Year: 2006

Headquarters: London, ‎United Kningdom


Terms & conditions apply
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

easyMarkets

easyMarkets Logo
easyMarkets is another broker that offers Islamic forex accounts to interested traders. Domiciled in the Marshall Islands, this broker offers Islamic accounts with 2 weeks limitations on open trades held overnight. However, such trades do not incur swap and interest charges. easyMarkets accounts are Sharia-compliant, but besides that, they have the same advanced features just like other trading account types.

Islamic traders have access to as many as 200 CFD markets, some of which are Cryptocurrencies, indices, commodities, precious metals, and many more. The maximum leverage ratio for Islamic accounts is 400:1, and the commission fees are quite low. easyMarkets trading tools are advanced but yet, easy to use. Their platform supports MetaTrader4. You also have access to free e-books, webinars, and other training resources to help you brush up your skills.

esyMarkets Logo

Min $100 Deposit

Regulated By: ASIC, CySEC

Foundation Year: 2001

Headquarters: Limassol, Cyprus


Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. This content is intended for information and educational purposes only and should not be considered investment advice or investment recommendation.

Conclusion

You can succeed at trading forex without compromising your Islamic beliefs but only if you trade with brokers who offer special Islamic forex accounts. Consider opening an Islamic forex account today and start trading.

Islamic forex brokers FAQs

Is it legal to trade forex under Islamic law?

Forex trading is permissible under Islamic law, provided the trading account does not accumulate any sort of interest and does not violate the tenets of Sharia.

Is it lawful under Sharia for someone to trade forex for me?

No, it is not. All trades must be done in person.

Do all forex brokers offer Islamic accounts?

No, not all brokers offer Islamic accounts. To find out, you will have to visit the broker’s website to check the list of accounts they offer.

Can I trade all available tradable assets with an Islamic forex account?

Yes, you can. This type of account has the same access as all other accounts.

Why don’t brokers keep trades open overnight with an Islamic account?

They do not keep trades open because doing so could accrue interest, and interest accruals violate Sharia law.

About James Johnson
About James Johnson

Expert in Economics, Trading, Investments and Personal Finance. Graduated in 2001 in Business Economics and Management at Harvard University. After several years of working in the foreign exchange trading industry, I co-founded Forex Online Brokers in 2015 with the aim of distributing my personal knowledge and professional experiences in the field of trading and investments in general.