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AuthorBy Chris Cammack
Updated: October 20, 2022

While there is no such thing as an Islamic Forex Broker, there are many brokers who offer Islamic Forex accounts. An Islamic Forex account is a halal Forex account which complies with the Shari’ah prohibition on Riba, or the accumulation of interest.

Islamic Forex accounts will not charge interest on open positions held overnight; this charge is also called the swap fee, so Islamic Forex accounts are sometimes called swap-free accounts. As they will not charge interest, some Islamic Forex accounts will charge commission or have wider spreads than a traditional Forex account.

Islamic Forex trading has never been easier, as many brokers now offer Islamic accounts; these are the best brokers offering Islamic Forex accounts based on their regulation, trading conditions, education and trading platforms.

  • HFM (HotForex) - Best Islamic Micro Account
  • FBS - Islamic Swap Free Account with Highest Leverage
  • AvaTrade - Best Mobile Trading Experience
  • XM - Fast Approval Islamic Account
  • FxPro - Largest Account Variety
  • FP Markets - Most Transparent Islamic Accounts
  • XTB - Best Proprietary Platform for Islamic Traders
  • FXTM - Best MT4 Islamic Forex Trading
  • Amana Capital - Best Technical Analysis Tools
English

Forex brokers with the best Islamic accounts

Last updated on October 20, 2022
Updated October 20, 2022
by Editorial Director Chris Cammackby Chris Cammack
Chris Cammack
All Brokers Regulated
All Brokers Regulated
by Trusted Authoritiesby Trusted Authorities
Trusted
1
HFM (HotForex)
Min. Deposit
USD 5
4.434.43
Min. Spread
0 pips
Swap Free
REGULATED BY
Overall Rating
11110.54.43/ 5
AlertAccepts Kenyan Clients. Average spread EUR/USD 1.00 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA.
2
FBS
Min. Deposit
USD 1
4.234.23
Min. Spread
0.70 pips
Swap Free
REGULATED BY
Overall Rating
11110.54.23/ 5
AlertAccepts Kenyan Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 3000:1. Islamic account available. MT4 & MT5 platforms supported. FBS is regulated by ASIC, CySEC, the FSCA, and the IFSC.
3
AvaTrade
Min. Deposit
USD 100
4.384.38
Min. Spread
0.90 pips
Swap Free
REGULATED BY
Overall Rating
11110.54.38/ 5
AlertAccepts Kenyan Clients. Average spread EUR/USD 0.90 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA.
4
XM
Min. Deposit
USD 5
4.254.25
Min. Spread
0.60 pips
Swap Free
REGULATED BY
Overall Rating
11110.54.25/ 5
AlertAccepts Kenyan Clients. Average spread EUR/USD 1.60 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the IFSC.
5
FxPro
Min. Deposit
USD 100
4.294.29
Min. Spread
0.40 pips
Swap Free
REGULATED BY
Overall Rating
11110.54.29/ 5
AlertAccepts Kenyan Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the DFSA
6
FP Markets
Min. Deposit
AUD 100
4.224.22
Min. Spread
0 pips
Swap Free
REGULATED BY
Overall Rating
11110.54.22/ 5
AlertAccepts Kenyan Clients. Average spread EUR/USD 0.10 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5 & IRESS platforms supported. FP Markets is regulated by CySEC and ASIC.
7
XTB
Min. Deposit
USD 0
4.294.29
Min. Spread
0.80 pips
Swap Free
REGULATED BY
Overall Rating
11110.54.29/ 5
AlertAccepts Kenyan Clients. Average spread EUR/USD 0.70 pips on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & xStation platforms supported. XTB Group is regulated by CySEC, FCA and the IFSC
8
FXTM
Min. Deposit
USD 10
4.274.27
Min. Spread
0 pips
Swap Free
REGULATED BY
Overall Rating
11110.54.27/ 5
AlertAccepts Kenyan Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage 2000:1. Islamic account available. MT4 & MT5 platforms supported. Leverage offered can vary depending on country of residence, and your trading knowledge and experience. FXTM is regulated by CySEC, FCA, FSCA, and the FSC.
9
Amana Capital
Min. Deposit
USD 50
3.833.83
Min. Spread
1.40 pips
Swap Free
REGULATED BY
Overall Rating
1110.503.83/ 5
AlertAccepts Kenyan Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. Amana Capital Group is regulated by the CySEC, FCA, and the DFSA.

HFM (HotForex) – Best Islamic Micro Account

HFM offers Islamic accounts for all customers of the Muslim faith on three of its four account types, including the Micro Account. Trading conditions are especially good on the Micro Account, with spreads starting at 1 pip, a low minimum deposit of 5 USD, and hedging, scalping, and copy-trading all available. While HFM’s Islamic account spreads are slightly wider than usual to cover the cost of removing the swap fee and MT5 is not supported, trading conditions are broadly similar to traditional trading accounts. 

Islamic accounts incur an additional carry charge on any position held overnight for more than seven days. While this is not a significant cost, it does make positional trading more costly over the long term. All Islamic accounts feature market execution and maximum leverage of 1:400.

Pros
  • Low minimum deposit
  • Tight spreads
  • Well regulated
  • Good range of accounts
Cons
  • Limited base currencies
AlertAccepts Kenyan Clients. Average spread EUR/USD 1.00 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA.

FBS – Islamic Swap Free Account with Highest Leverage

A well-regulated international CFD broker, FBS offers trading on various accounts to suit traders of all experience levels on MT4, MT5, and FBS Trader, a web-based trading platform. FBS has three standard commission-free accounts, with a minimum deposit starting from 1 USD and spreads as tight as 0.8 pips on the EUR/USD. FBS offers very high leverage up to 3000:1 and allows all trading strategies, including hedging, scalping, and copy trading.

Swap-free options are available for Muslim clients on all account options except the ECN accounts. However, Islamic clients should note that swap-free trading is not available for trading Forex exotics, indices, energies, and cryptocurrencies. Furthermore, FBS may charge a flat fee for long-term trading (positions opened for more than two days), which is determined by the trading volume.

Pros
  • Tight spreads
  • Low minimum deposit
  • Excellent education
  • Excellent market analysis
Cons
  • Limited range of assets
  • Extreme leverage
AlertAccepts Kenyan Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 3000:1. Islamic account available. MT4 & MT5 platforms supported. FBS is regulated by ASIC, CySEC, the FSCA, and the IFSC.

AvaTrade – Best Mobile Trading Experience

AvaTrade offers Islamic accounts on MT4, MT5, Webtrader, and the excellent and newly designed AvaTradeGo mobile app. The AvaTradeGo app offers Kenyan forex traders an intuitive and sophisticated trading experience, with spreads as low as 0.9 pips on the EUR/USD for Islamic accounts. AvaTradeGo features an advanced dashboard, with intuitive management tools, clear charts, zoom for details, and a Market Trends feature to monitor trading trends within the AvaTrade community. The AvaProtect tool is also available in the mobile app, allowing traders to purchase loss protection for a time. 

Islamic accounts at AvaTrade require a little more setup than other brokers. First, a normal account must be opened and funded. Once this step is complete, an application for an Islamic account must be made and approved. Applications are usually processed within 1-2 business days. Islamic accounts at AvaTrade are not charged swap fees or a commission, as is common with other Islamic accounts, but instead, the spread will be marked up to cover overnight fees.

Pros
  • Good for beginners
  • Well regulated
  • Low minimum deposit
Cons
  • Dealing desk
  • Limited market analysis
AlertAccepts Kenyan Clients. Average spread EUR/USD 0.90 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA.

XM – Fast Approval Islamic Account

XM is unusual in the Forex industry because it does not apply any extra charges for Islamic accounts. Most other brokers apply a commission or widen the spread to cover the cost of the lost swap fees. XM does neither, meaning its Islamic account has exactly the same trading conditions as a normal trading account, minus the swap fee. In addition, opening an Islamic account with XM is relatively straightforward: First, a trader must open and validate a standard account and then file a request for an Islamic account with the XM back office. Approval usually takes a matter of minutes.

XM is one of the most regulated market makers in the Forex industry and stands out for leading trading conditions, account choice, execution speed, and a wide range of CFD assets available on both the MT4 and MT5 platforms. With a minimum deposit of 50 USD, traders can open the XM Ultra Low Account, where spreads start at 0.6 pips with no commission charged.

Pros
  • Well regulated
  • Excellent education
  • Free deposits and withdrawals
Cons
  • Dealing desk
  • Wide spreads on its entry-level accounts
AlertAccepts Kenyan Clients. Average spread EUR/USD 1.60 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the IFSC.

FxPro – Largest Account Variety

A respected broker with no dealing desk intervention, FxPro offers excellent trade execution on various platforms and account choices.  Islamic swap-free options are available on the MT4, cTrader, and FxPro Edge account types, which feature a minimum deposit of 100 USD and leverage of up to 200:1.  Spreads are relatively wide on its MT4 and FxPro Edge account types, averaging at around 1.84 pips on the EUR/USD.  Spreads tighten on the cTrader Account, down to 0.31 pips, in exchange for a commission of 4.5 USD per lot.  Most trades are executed in under 14 milliseconds, with 80.48% of market orders executed at the requested price and 9.6% at a better price, known as positive slippage. 

Instead of the interest charged on overnight positions, Islamic traders will be charged a commission of 7.50 USD per lot, which only applies after the 8th night of trading.   FxPro only offers Swap-free accounts for religious purposes as per the Shariah law.  To open an account, traders will need to provide an official document such as a Birth or Marriage certificate or an official letter from the leader of their local Muslim community.

Pros
  • Well regulated
  • Great platform choice
  • Tight spreads
Cons
  • Limited education
AlertAccepts Kenyan Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the DFSA

FP Markets – Most Transparent Islamic Accounts

An ECN/DMA broker, FP Markets offers trading on multiple instruments, including Forex, shares, metals, commodities, and indices.  Unlike many other brokers, FP Markets publishes all information about the Islamic accounts on its website and caters to Muslim traders with two distinct Islamic account options.  The swap-free account option is available on both its Raw and Standard account types on the MT4 and MT5 trading platforms. 

The Islamic Standard Account requires a minimum opening balance of 100 AUD. Spreads start at 1.0 pips on the EUR/USD, and no commissions are charged on the trades.  The Islamic Raw Account also has a minimum opening balance of 100 AUD, spreads starting at 0.0 pips on the EUR/USD, which is tighter than other ECN brokers, and a low commission of 3 USD per lot traded.  Note that FP Markets charges administration fees on its Islamic account, which vary depending on the instrument traded.  A fee of 5 USD is charged on the EUR/USD, but this will only be applicable from the eleventh night a position is held open.

Pros
  • Well regulated
  • Tight spreads
  • Good range of accounts
  • Great customer support
Cons
  • Expensive withdrawals
AlertAccepts Kenyan Clients. Average spread EUR/USD 0.10 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5 & IRESS platforms supported. FP Markets is regulated by CySEC and ASIC.

XTB – Best Proprietary Platform for Islamic Traders

Founded in 2002, XTB is a well-regulated market maker offering trading on its award-winning platform on two market execution account types: The Standard Account and the Islamic Account.  Islamic Account-holders are charged both a spread mark-up and a commission per lot.  Spreads start at 0.5 pips (EUR/USD) on the Standard Account and 0.7 pips (EUR/USD) on the Islamic Account, which is still tighter than other market makers.  Islamic account holders are also charged a commission of 10 USD/lot, while Standard Account-holders are charged a commission starting at 0.08% but only on stocks and ETFs. 

XTB only offers trading on its award-winning trading platform, xStation 5. Intuitive, powerful, and fast, xStation 5 introduces sentiment data directly into the platform, so traders can view the percentage of long or short clients and on which instruments.  It also offers powerful charting tools, one-click trading, and real-time performance statistics. Mobile versions of the platform are available on iOS and Android and seamlessly connect to the desktop versions of the app.  

Pros
  • Well regulated
  • Tight spreads
  • Low minimum deposit
  • Good for beginners
Cons
  • Limited platform choice
AlertAccepts Kenyan Clients. Average spread EUR/USD 0.70 pips on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & xStation platforms supported. XTB Group is regulated by CySEC, FCA and the IFSC

FXTM – Best MT4 Islamic Forex Trading

FXTM offers three accounts on MT4 and MT5, but Islamic accounts are only available on MT4, and trading on exotic currency pairs is prohibited. Unlike many brokers, FXTM makes switching your account to an Islamic account a simple process and can be done inside the MyFXTM dashboard with a few clicks. While Islamic accounts will not be charged a swap fee, a commission is charged instead, starting at 12.90 USD per lot on the EUR/USD. 

FXTM is well-regulated and offers trading on Forex, commodities, stocks, and indices. Minimum deposits are low, and spreads are generally tight, starting at 1.5 pips on the Micro Account but down to 0 pips – plus a 4 USD commission – on the Advantage Account. Islamic account users can also take advantage of FXTM’s copy-trading platform, FXTM Invest, which allows traders to follow profitable traders for a fee.

Pros
  • Good for beginners
  • Excellent education
  • Well regulated
  • Low minimum deposit
  • Copy trading accounts
Cons
  • Expensive withdrawals
AlertAccepts Kenyan Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage 2000:1. Islamic account available. MT4 & MT5 platforms supported. Leverage offered can vary depending on country of residence, and your trading knowledge and experience. FXTM is regulated by CySEC, FCA, FSCA, and the FSC.

Amana Capital – Best Technical Analysis Tools

A well-regulated market maker broker, Amana Capital offers trading on multiple assets, including Forex, indices, metals, commodities, cryptocurrencies, energies, and shares.  Amana Capital offers full support for the MT4 and MT5 platforms and an extensive range of trading tools, including Autochartist, Trade Captain, and a free VPS service.  With competitive trading conditions on three live accounts, spreads are tight, leverage is high, and minimum deposits start at 50 USD.  All accounts can be converted into swap-free accounts for traders who choose not to receive or pay interest in adherence to Islamic religious principles.

Amana Capital does not charge any administration fees on the swap-free accounts, which is unusual because most brokers mark up the spread or add a commission to compensate for the lost swap fees.  However, swap-free accounts at Amana capital are unavailable on some Forex pairs, cash CFDs, spot energies, and all share CFDs. To open a swap-free account, clients must submit the relevant documentation to Amana Capital’s customer support, and the company will, at its discretion, approve the request.   

Pros
  • Well regulated
  • Tight spreads
  • Great customer support
Cons
  • High minimum deposit
  • Limited market analysis
AlertAccepts Kenyan Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. Amana Capital Group is regulated by the CySEC, FCA, and the DFSA.

Islamic Forex Trading

There are three articles of the Islamic Mua’malat that are relevant to Forex trading:

  • Riba: Prohibition of payment and receipt of interest
  • Gharar: Prohibition on gambling
  • Shared Risk: Both profit and losses

The key element here is the elimination of Riba – or interest on loans or assets.

Riba is central to conventional Forex trading, but according to Islamic law, or Shari’ah law, Muslims are banned from earning interest on loans. Some scholars believe that the practice of removing Riba, as brokers do on their Islamic Forex accounts, legitimises Forex trading under Shariʻah.

Islam also emphasises that when conducting business transactions, elements of uncertainty, excessive speculation and gambling should also be avoided, so it could be argued that hedging trades with Forex is also legitimate under Shari’ah. It is also widely agreed that conventional Forex transactions – if used carefully – are a very effective means of protecting banks from exposure to international risk.

Shared Risk

Another concern about the Islamic nature of Forex trading is the element of shared risk. Luckily, with Forex trading, when you trade, you are investing in an asset – the currency purchased. If this asset increases in value, you will make a profit and if the asset loses value, you will make a loss. The result is a sharing of the benefits and losses of the currency exchange with your counterparty. From this point of view, Forex trading and Islam are compatible in terms of shared risk.

What is an Islamic Forex Account?

Across the Islamic world, many brokers offer Shari’ah compliant accounts to make sure that your trading is not haram – though this does mean that there are a few differences when compared to traditional Forex accounts.

Islamic Forex accounts have two underlying attributes:

Other than the above, Islamic Forex accounts usually have the same trading terms and conditions as a regular Forex account. However, some most Forex brokers change the commercial terms of trading with them and might limit the trader from trading cryptocurrencies. 

Some Forex brokers will widen their spreads on Islamic accounts to compensate for the missed revenue that would otherwise have been generated by collecting interest. Another practice, but is far rarer, is that some Forex brokers charge an up-front commission on trades instead of widening the spreads.

Forex Brokers with Islamic Swap-free Accounts

There are a variety of brokers that offer Islamic accounts tailored for Muslim traders. There are usually no limitations on this account type – this means you can trade Forex, commodities, CFDs contracts and every financial instrument that complies with the Islamic financial regulations.

An important note:  With most Forex brokers, you will need to open a real trading account which can then be converted into an Islamic account. Few brokers have a registration page specifically for Islamic accounts, and even fewer have Islamic demo accounts, but some brokers with clients from predominantly Muslim countries automatically create accounts as Islamic accounts.

If you are in doubt, make sure you discuss your concerns with your account manager or broker representative before you make a deposit.

Forex Rollovers and Swap Rates Explained

In the Forex market, any position held overnight generates a rollover which will be earned or paid out depending on the currency you are trading and the direction of the market. Rollover interest is a form of interest that can be credited or debited from your Forex trading account, and thus it is prohibited by Islamic financial regulations.  In the financial world, this rollover is also known as the swap rate.  So, Islamic Forex accounts are swap-free accounts where no overnight interest is credited or debited.

Islamic Financial Regulatory Bodies

The central financial regulatory bodies in the Islamic world are the following:

Forex brokers that are registered in Muslim majority countries often have to comply with many local regulations and are required to follow Shari’ah law, whereas Western Forex brokers have much more flexibility when it comes to the interest charged to their clients.  This is why only some of the brokers offer this account type.

Summary

An Islamic Forex account, or swap-free account, is an optional account type that is often selected after signing up with a broker.  They are intended for use by traders of the Islamic faith, which prohibits generating income from interest payments.  Most Forex brokers can accommodate followers of the Islamic faith by offering swap-free trading accounts that are compliant with Shari’ah law. To learn more about different brokers further reading on how to compare Forex brokers can be found here.

Forex Risk Disclaimer

Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. 

Forex and CFD transactions involve high risk due to the following factors: Over-leveraging, unpredictable market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection for clients.

Traders should not deposit any money that is not disposable. Regardless of how much research you have done, or how confident you are in your trade, there is always a substantial risk of loss. (Learn more from the FCA or from ASIC)

Our Methodology

Our State of the Market Report and Broker Directory are the result of extensive research on over 100 Forex brokers. The explicit goal of these resources is to help traders find the best Forex brokers – and steer them away from the worst ones – with the benefit of accurate and up-to-date information.

With over 150 data points on each broker and over 3000 hours of research and review writing, we believe we have succeeded in our goal. 

In a world where trading conditions and customer support can vary based on where you live, our broker reviews focus on the local trader and give you information about these brokers from your perspective.

All research has been conducted by our in-house team of researchers and writers, gathering information from various company representatives, websites and by sifting through the fine print. Learn more about how we rank brokers

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Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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