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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.

easyMarkets

Standard Account
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easyMarkets

Standard 1 pip Account
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easyMarkets

VIP Account
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HotForex

Micro Account
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HotForex

Islamic Account
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LCG

CFD Trading - MT4
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LCG

ECN Trading - MT4
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Fullerton Markets

ECN Account
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Fullerton Markets

Variable Spread Account
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AvaTrade

AvaTrader Account
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AvaTrade

MT4 Fixed
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AvaTrade

MT4 Floating
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LQDFX

Islamic Account
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Plus500

Live Account
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InstaForex

Standard Account
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InstaForex

Eurica Account
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LiteForex

Cent Account
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LiteForex

Classic Account
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LiteForex

ECN Account
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FxPro

MT4 Fixed
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FxPro

cTrader
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FxPro

MT4 Floating
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Fortrade

Live Account
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FXOpen

STP (MT4) Account
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FXOpen

ECN (MT4) Account
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FXPRIMUS

Floating Spreads
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FXPRIMUS

ECN Premier
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FOREXYARD

Standard Account
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FOREXYARD

VIP Account
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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 at no additional cost. What's more, you can keep your open positions overnight for up to two weeks with no additional cost.

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 NordFX or InstaForex 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.

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Featured Brokers

#1 for Pros

1:300 leverage
$500 deposit
0.8 pips EURUSD

#1 Low Spreads

1:400 leverage
$100 deposit
1.8 pips EURUSD

#1 Islamic

1:200 leverage
$250 deposit
1 pip EURUSD

#1 for Beginners

1:500 leverage
$10 deposit
0.95 pips EURUSD


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Trading foreign exchange, contracts for differences or spread bets on margin carries a high level of risk and may not be suitable for all investors. You could sustain a loss of some or all of your funds if the markets move against you. For this reason, you should not invest more than you could afford to lose. ForexBrokersAZ.com does not accept deposits, advise on investments, deal in investments (as agent or principal) or arrange deals in investments. Information published on this website and in our external communications is factual and for information purposes only. It does not constitute financial advice under the Financial Services and Markets Act 2000.

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