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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.

Flexible leverage ?Commission / lot ?Min. deposit ? 
AvaTrade
AvaTrade
Islamic Account
Risk warning ?
1.9 pips
1:200
$0$250
AvaTrade
AvaTrade
Retail Account
Risk warning ?
1.3 pips
1:30
$0$250
AvaTrade
AvaTrade
Pro Account
Risk warning ?
1.3 pips
1:400
$0$250
AvaTrade
AvaTrade
MT4 Standard
Risk warning ?
1.3 pips
1:400
$0$250
Plus500
Plus500
Retail Account
Risk warning ?
Variable pips
1:30
£0£100
Read review »
FXTM
FXTM
Standard Account
Risk warning ?
1.6 pips
1:30
$0$100
Read review »
FXTM
FXTM
ECN Account
Risk warning ?
0.1 pips
1:30
$2$500
Read review »
FXTM
FXTM
FXTM Pro
Risk warning ?
0.1 pips
1:30
$0$25000
Read review »
ForexMart
ForexMart
ECN Standard
Risk warning ?
2 pips
1:500
$0$1
Read review »
ForexMart
ForexMart
ECN Zero Spread
Risk warning ?
0 pips
1:500
$Variable$1
Read review »
FxPro
FxPro
MT4 Fixed - Instant Exec.
Risk warning ?
1.6 pips
1:500
$0$500
Read review »
FxPro
FxPro
FxPro cTrader
Risk warning ?
0.3 pips
1:500
$9$500
Read review »
FxPro
FxPro
MT4 Floating - Instant Exec.
Risk warning ?
1.4 pips
1:500
$0$500
Read review »
FxPro
FxPro
MT5 Floating - Market Exec.
Risk warning ?
1.4 pips
1:500
$0$500
Read review »
FxPro
FxPro
MT4 Floating - Market Exec.
Risk warning ?
1.2 pips
1:500
$0$500
Read review »
FP Markets
FP Markets
Standard ECN Account (MT4)
1.45 pips
1:500
$0$100
Read review »
FP Markets
FP Markets
ECN Raw Account (MT4)
0.45 pips
1:500
$3.5$1000
Read review »
FP Markets
FP Markets
Standard ECN Account (MT5)
1.45 pips
1:500
$3.5$100
Read review »
FP Markets
FP Markets
ECN Raw Account (MT5)
0.45 pips
1:500
$3.5$1000
Read review »
LiteForex
LiteForex
Classic Account
Risk warning ?
2.2 pips
1:500
$0$50
LiteForex
LiteForex
ECN Account
Risk warning ?
0.4 pips
1:500
$10$50
FXPRIMUS
FXPRIMUS
Variable Spreads [EU]
Risk warning ?
1.6 pips
1:30
$0$100
Read review »
FXPRIMUS
FXPRIMUS
ECN Premier [EU]
Risk warning ?
0.3 pips
1:30
$10$500
Read review »
FXPRIMUS
FXPRIMUS
Variable Spreads [Vanuatu]
Risk warning ?
0.3 pips
1:30
$0$100
Read review »
FXPRIMUS
FXPRIMUS
ECN Premier [Vanuatu]
Risk warning ?
0.3 pips
1:1000
$10$500
Read review »
InstaForex
InstaForex
Standard Account
3 pips
1:1000
$0$1
Read review »
InstaForex
InstaForex
Eurica Account
0 pips
1:1000
$30$1
Read review »
     

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 EU tend to apply a carry charge after 7 days.

How to open an Islamic account

Our comparison table shows popular Forex brokers with Islamic accounts.

  • Some brokers such as easyMarkets or HotForex have dedicated Islamic accounts, in which case signing up is straight forward.
  • Finally, others such as AvaTrade.com can convert a conventional Forex account into a Sharia compliant account on request. You'll need to speak to your account manager to make that happen before placing your first trade.

FXTM

Trade 45 currency pairs and CFDs on shares, indices and metals with market execution ... More

Risk warning ?

FXPRIMUS

Trade over 120 instruments across Forex, commodities, energies, global indices and US... More

Risk warning ?

AvaTrade

Trade 55 currency pairs on fixed spreads, plus CFDs on crypto-currencies, stocks, ind... More

Risk warning ?

AvaTrade

Trade a wide range of financial instruments with a Shariah compliant account. AvaTrad... More

Risk warning ?