Islamic forex brokers

Top Rated Islamic Forex Brokers Reviews - 2017.

Not all brokers offer an Islamic Forex account but those that do open up trading to millions of Muslim investors. According to Islamic law, often referred to as Sharia law, Muslims are prohibited from earning interest on their giving. This law also applies to interest earned on any banking or investing. Many brokers offer these traders the possibility of trading Forex according to Sharia law by opening an Islamic Forex account where interest-free Forex trading is made available. This is also called a ‘No Riba Forex’ account.

The team at Daily Forex examined the top Muslim friendly Forex brokers and has compared them in an easy to read list where you can determine which Islamic Forex broker is the best one for you. Some brokers will agree to change a traditional Forex account into an Islamic Forex account quickly and easily and this one of the features we have noted in the listing below, in addition to the other important information about our recommend Islamic Forex brokers.

Islamic Forex Brokers Reviews.

Markets is operated by Safecap Investments Limited, a Financial Services Company authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 092/08 and by the Financial Services Board (FSB) in South Africa as an authorized Financial Services Provider under the no. 43906. Markets was the recipient of the London Investor Show Forex “Best Customer Service 2012” award, and the Global Banking Finance Review “Best Broker in Customer Service Europe 2012” award, in addition to numerous other awards over the past years.

eToro, founded in 2007 and domiciled in Limassol, Cyprus, is a leading social site on the global scene with 5,000,000 traders. It is regulated by NFA, CySEC, ASIC, CFTC, MiFID, FCA and has been the recipient of several awards.

AvaTrade is among the top Forex brokers in the world with offices in New York, Dublin, Sydney, Milan, Tokyo and other locations. It is regulated by the Central Bank of Ireland and licensed by MiFID in the European Union as well as by several other licensing bodies. AvaTrade’s features include, among other things, a choice of platforms, a demo account, an Ava debit card for all live account holders, access to Trading Central charting tools for depositors of over $1000 and free withdrawals.

FXCM (Forex Capital Markets) was founded in 1999 in the U. S.A. and was an early pioneer of internet-based trading. FXCM was listed among the fastest growing companies by Inc. 500 List of America’s Fastest Growing Companies three years in a row. The FXCM Group has headquarters in New York, with offices around the globe in places such as the U. K., France, Italy, and Australia. It is regulated and licensed in each of them. FXCM is also a publicly traded company on the Nasdaq Exchange, the major U. S. exchange listing the equity of large technology-based companies.

XForex is a retail Forex broker that opened its doors in Cyprus in 2003. It is under CySec regulation as well as by the Australian Securities and Investment Commission (ASIC) and several other licensing agencies. XForex offers many currency pairs with a tight fixed spread which makes this broker an attractive choice for traders seeking stable trading environments. Additionally, the ability to trade spot metals is a big advantage as the gold and silver markets have become quite attractive over the last several years.

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Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly.

Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly.

Islamic Forex.

What is an Islamic Forex account?

According to Islamic law, or Shariah law, Muslims are prohibited from earning interest on their giving. This law, when applied literally, also applies to interest earned on Forex trading. To address this issue and to make it possible for Muslims to trade Forex according to Islamic law, many Forex brokers opened the opportunity for Islamic Forex accounts which offer interest-free Forex trading (aka No Riba Forex).

We've taken the time to examine the leading Islamic Forex options and to provide you with a comprehensive comparison so that you can see at a glance which Islamic Forex account is best for you. If you wish to change from a traditional Forex account to an Islamic account, many brokers will accommodate this change quickly and easily. We've noted this ability in the chart below, along with other important information about our recommend Islamic Forex accounts.

When choosing an Islamic Forex broker it's important to consider not just the account type, but also the services and trading conditions offered by the broker or brokers you're considering. Sometimes traders prefer to open accounts with two different brokers to see which they like better, and which platform has better performance. Oftentimes traders are willing to take higher spreads in order to get a better trading platform or better customer service. Before choosing your Islamic Forex broker, make sure to consider all your options and to read Forex broker reviews that can help make the decision easier.

Choosing an Islamic Forex Account.

No matter what type of Forex account you choose, it's important to execute your trades as wisely and responsibly as possible. It's also important to understand the characteristics of your specific account. Therefore, if you're opting for an Islamic account, consider the options below:

Swap Free Forex Account: In Forex trading, a rollover is the term used to describe a position left open overnight. This type of trading usually has fees attached to it, but Islamic accounts waive these fees. No Riba: Although most financial institutions and banks charge or pay interest of some sort, Islamic accounts eliminate all forms of interest.

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Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly.

Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly.

Islamic Forex Brokers.

Forex trading can be challenging for religion-abiding Muslims. However, solutions exist to trade currencies in a way that is ḥalāl. Compare the top 5 brokers with Islamic Forex accounts.

MT4 Fixed - Instant Exec.

MT4 Floating - Instant Exec.

MT5 Floating - Market Exec.

MT4 Floating - Market Exec.

CFD Trading - MT4.

ECN Trading - MT4.

STP MT4 Account.

ECN MT4 Account.

Forex trading and the Sharia.

Traditional Forex trading can pose problems for religion-abiding Muslims because it often involves interest. Your Forex broker could charge interest if you borrow to open a position. And if you keep your position open overnight, you could stand to receive or pay interest depending on the prevailing interest rates.

It is possible to trade currencies without incurring interest: 1) invest no more than you can afford and 2) remember to close any open positions by 5pm New York time. However, this is likely to reduce how much you can afford to invest and may not be an option if 5pm New York time (10 pm UTC/GMT) is in the middle of your night time.

Benefits of an Islamic broker.

Instead, you could open an account with a Sharia-compliant broker Forex broker to enjoy interest-free leverage and avoid interest on rollovers.

Interest-free leverage. Islamic Forex brokers will provide interest-free leverage. In other words, you can borrow entirely free of charge. No rollover interest. With an Islamic Forex account, your open positions will be closed by 5pm New York time to avoid rollover interest. You can them re-open them immediately after that. Some brokers will open them on your behalf free of charge.

Are there any disadvantages?

If you're a non-Muslim thinking of opening an Islamic account simply to avoid interest, think again. Most brokers will ask that you provide evidence of your faith if you request a Sharia compliant account. They could close your account altogether if they have grounds to believe you are trying to game the system.

Interest-free doesn't necessarily mean you'll be at an advantage, as some brokers will look for alternative sources of revenue if they cannot charge interest. This is why Islamic accounts can have marginally wider spreads than conventional accounts. Other brokers may require higher minimum deposits.

However, this isn't always the case. easyMarkets offers Forex and commodity trading accounts in Islamic format to all clients of Muslim faith. In addition, you can keep your open positions overnight for up to 14 days at no additional cost. Others, such as HotForex tend to apply a carry charge after 7 days.

Islamic Forex Accounts.

Compare Islamic Forex & CFD Brokers.

Introduction – Why are normal Forex accounts not Sharia compliant (“Halal”)?

Standard Forex trading accounts tend not to be Sharia compliant due to the practice of charging overnight swaps. Forex accounts either receive or are charged a fixed rate of interest when a trader holds a position overnight. Whether an account receives or is charged a rate of interest depends on the borrowing costs for the two quoted currencies, though many brokerages add in an extra charge to cover the costs of financing a position overnight. It should be clear that the practice of charging overnight swaps would in breach of Sharia law and this is why standard Forex accounts aren’t strictly compliant with Islam.

Best Trading Account for Practicing Muslims.

Updated: Dec 23, 2016 – Tuesday, the 23th of Rabi’ al-awal, 1438 A. H.

Rated at Top Provider on TheFXView ( More Than 50 Brokers Tested) Minimum Deposit: $1,000 Max Leverage: 1:400 Shariah Compliant 100% – No Swap Fees – Deals with thousands of Muslim Clients Regulated: By CySec (Europe), FCA (UK), ASIC (Australia, Asia Pacific) Largest Selection of Instruments – Stocks, Indices, Commodities, Currencies and Crypto Currencies Good Spreads – From 2 Pips and No Swap Fees (Interest) for Muslims Has an Extensive Social Trading Platform – With Thousands of Successful Traders to Copy.

Additional Muslim Forex Account Providers:

What is an ‘Islamic’ account?

Islamic (or Sharia, Halal, Muslim) accounts are special accounts designated for those unwilling to pay/receive daily interest fees as a result of their trading activity. Islamic accounts also do not pay interest on the funds deposited with the FX broker (as some FX brokers bow offer bonuses including account balance top-ups simply for maintaining funds in your trading account).

Why are Islamic accounts offered?

Islamic accounts are exactly the same as regular FX trading accounts minus the interest fees/payments. The reason behind this prohibition is the belief that Muslims should give for the sake of giving and not in order to get something in return. According to Islamic Law, it is forbidden to take or give interest of any kind and Islamic Forex accounts were designed with this in mind.

Islamic account eligibility.

FX brokers will offer Islamic accounts and some will ask for some evidence of the client being a Muslim. However, given that religious beliefs are a personal thing, and not a bureaucratic signpost, most brokers simply take the clients word for it. As part of the Terms and Conditions, FX brokers tend to stipulate that any abuse of this zero-interest provision will be immediately remedies and appropriate charges reinstated in full.

Also, it is worth mentioning that although FX brokers waive the interest charges for clients — they must still pay interest charges themselves to their liquidity providers who will not offer Islamic accounts. Apart from being a messy exercise, these costs are passed onto Islamic account holders via wider spreads, higher commissions or flat service fee charges added to their trading statement at the end of the month.

Unfortunately, in the land of financial services, everyone pays the pied piper, including those of the Muslim faith.

Are Halal accounts new?

Zero-interest trading accounts are nothing new and brokers have been offering this type of service for years. As increasingly more people have engaged in trading at the retail level, Muslim accounts have been something people have asked for. Brokers have responded by providing accounts that suit the requirements of Muslims and continue to offer these accounts on a regular basis upon request.

Why are normal Forex accounts not Sharia compliant (“Halal”)?

Standard Forex trading accounts tend not to be Sharia compliant due to the practice of charging overnight swaps. It is a staple of the FX market, to see overnight swap rates charged on all trades done.

Forex accounts either receive or are charged a fixed rate of interest when a trader holds a position overnight. Whether an account receives or is charged a rate of interest depends on the borrowing costs for the two quoted currencies, though many brokerages add in an extra charge to cover the costs of financing a position overnight. It should be clear that the practice of charging overnight swaps is in breach of Sharia law and this is why standard Forex accounts aren’t strictly compliant with Islamic practises.

This is easily remedied simply by contacting your broker and finding out the details. Do be careful about the exact Terms and Conditions, because some brokers often levy exorbitant fees as a means of recouping the lost/gained interest charges which tend to be negative for most tradable currency pairs.

Here is an example of how a prominent FX broker addresses the issue of Islamic accounts — simply adding a ‘fee’ to all transactions and changing the terminology from ‘interest’ to ‘fee’:

Note the complete lack of availability of Islamic accounts for corporate entities — Islamic accounts are an entirely retail-market phenomenon especially created to attract clientele. Some brokerages will simply waive the overnight swaps without labelling the account ‘Islamic’. Typically, brokerages will waive various fees including interest, if a client has deposited a significant sum of money with the firm and is trading actively.

This is why Islamic accounts often require traders to deposit a significant sum of money. In some cases brokerages will waive the overnight charges but charge Islamic accounts a slightly wider spread in order to make up for the lost overnight swap fees. Alternatively, some Forex brokerages offer Islamic accounts where there are no overnight swaps, but where the brokerage takes a share of customer’s profits again in order to make up for lost overnight swap fees.

Islamic trading accounts are becoming increasingly popular not only with practicing Muslims but with those who want to hold positions for a significant period of time without occurring overnight costs.

Our Best Muslim Accounts Forex Broker Selection.

The brokers featured as the top broker for Muslim traders are also the ones receiving the highest score on our tests. We have independently reviewed over 50 forex, CFD, and social trading brokers, and made sure we will report the most credible companies to invest with.

3 thoughts on “ Islamic Forex Accounts ”

I would like more info regarding your shariah compliant trading.

Do investors trade individually or are there professional traders that trade on their behalf?

Also please advise, Are their any shariah board advisory that oversees Islamic Trading?

Hi Feroz. I don’t think there’s a Shariah Advisory Board supervising over this topic.

As far as we know things are pretty straightforward and Shariah Compliant Trading has never been posed an issue.

Re: trading – if you consider using professional traders that will trade on your behalf, we advise you to use social trading platforms like eToro or Zulutrade where you can automate your trading without the risk of being scammed by your so-called dedicated broker.

hi guys assalamualikum , my name is ali and i am from nigeria , and i will like to trade forex but am scared to invest my money in some kind of a scam broker , and i think the islamic broker will be good but how good is it? and do you guys have an office here in nigeria ? if yes how can i get there ? if not how can i invest?