Forex trading offers the potential for significant profits, and by using an Islamic Forex trading account, you can earn an income without violating your religious beliefs. The best Islamic Forex brokers offer educational resources and support to help you develop your trading skills and increase your chances of success.
In this article, we will highlight some of the best Islamic Forex brokers that you can consider for your trading needs.
| 💰 Rollover/Swap | 0.00 |
| 💳 Spreads | Standard |
| 🥇 Trading Instruments | All offered on other accounts |
| 💻 Trading Platforms | MT4, MT5, TradingView and others |
| ✨ Min Deposit | As Usual |
Top 10 Islamic Forex Brokers
- XM
- IC Markets
- Exness
- Pepperstone
- HF Markets
- JustMarkets
- RoboForex
- FBS
- FXTM
- OctaFx
When choosing an Islamic Forex broker, there are several key factors to consider. First and foremost, it’s important to ensure that the broker offers Islamic Forex accounts, also known as swap-free accounts, which comply with Islamic principles. These accounts do not charge or earn interest, which is prohibited under Islamic law.
Additionally, it’s important to choose a broker that is regulated by a reputable agency, such as the Financial Conduct Authority (FCA) in the UK or the Commodity Futures Trading Commission (CFTC) in the US. This ensures that the broker adheres to strict industry standards and operates in a transparent manner.
It’s also a good idea to choose a broker that offers a wide range of currency pairs and other trading instruments, as well as competitive spreads and fees.
Online forex trading can be a little challenging for Muslims who want to remain Shariah-compliant. There are issues inherent in forex trading that may make forex trading seem haram. However, and quite luckily, forex brokers have found solutions aimed at making forex trading halal.
Basics of Shariah Compliant Forex Trading
If you are a practicing Muslim, any form of online forex trading that you do must be Shariah-compliant. But what does this actually mean and how will you know what or not what to do? You need to know what Islam says about online forex trading.
Here are 3 key concepts about forex trading that you need to observe:
1. Islamic Forex Brokers with No Riba
Literally translated, Riba means increase or excess or hoarding. In Islam, this is seen as a form of selfishness, and is therefore prohibited. Riba is commonly used in reference to financial interest that might be charged by some businesses. Charging an interest of whichever form goes against the Muslim teachings of fellowship.
In order to remain Shariah compliant, you need to make sure that the forex broker you choose does not apply interest (also known as swap) on your overnight open positions. Check our Islamic Forex Brokers List to see the brokers we recommend.
2. Islamic Forex and Prohibition of Gharar
In Islamic religion, transactions that involve excessive risk are haram. Gharar is uncertainty, a risk, or a hazard that is caused by not being sure about the price of a commodity or not knowing what you’re buying or selling.
To remain totally shariah compliant in forex trading, Islamic traders are advised to enter into trades with proper risk management. There are many ways of doing this using sell and buy limits as well as stop loss orders. For instance, if you’re going long on the EUR/USD you might decide that your entry price will be 1.2208 while your exit price will be 1.2280. This gives the trade a certain certainty.
What is an Islamic Forex Account?
An Islamic trading account, also known as a swap-free trading account, is a type of trading account that is compliant with Islamic religious laws. This type of account is designed to meet the specific needs of Muslim traders, who are prohibited from earning or paying interest (known as riba in Islamic law) on financial transactions.
In the context of forex trading, Islamic accounts typically offer overnight swap-free financing, which means that no interest is charged or earned on positions that are held overnight. This allows Muslim traders to participate in the forex market without violating their religious beliefs.
The Muslim faith (Shariah law) forbids followers from earning interest on givings.
When literally applied, this law has an impact on to forex trading. Typically, any open positions that are not closed at the end of the day attract an interest.
To address this issue, many forex brokers have started offering Islamic forex trading accounts. These accounts do not accrue any interest on open positions that are held overnight. This type of trading is commonly referred to as No Riba Trading.
What is an Islamic Account in Forex?
An Islamic account in forex is a halal trading account that allows Muslim traders to invest in the forex market in a way that respects the Quran. With such type of an account, Islamic traders can open as much positions as they want and hold them for an indefinite period of time without worrying that the positions would attract Rollover fee/interest.
Is Forex Halal or Haram?
Online forex trading is halal if you make sure you’re treating it as any other business and not like gambling. To begin with, you should have realistic expectations and trade with proper risk management. Additionally, ensure that you’re trading with brokers that offer halal Islamic forex accounts. XM Forex is our #1 recommended forex broker for Islamic accounts.
I have taken the time to analyze various Islamic forex accounts so that you can see at a quick glance the forex broker that suits you best. I keep updating this page with new brokers who offer Islamic forex accounts. Make sure that you check it from time to time.
Regardless of the type of account you are opening, it is important that you do your due diligence before trusting your money with a forex broker. You should also analyze the type of services and trading conditions that the broker avails. sometimes, beginner forex traders prefer to open accounts with at least two brokers in order to gauge which platform will work best for them.
It is also important to note that many forex brokers will never allow you to run a normal account alongside an Islamic account.
Before you pick your Islamic forex broker from the list I have provided, make sure you have read a few reviews on the best forex brokers in Kenya and decide which one will best work for you. I personally recommend XM and HotForex for the No Riba Trading accounts.
Best Islamic Forex Brokers List
1. XM Group
XM Forex was established in 2009 and has grown to be one of the best forex brokers of all time. The company boosts of more than 3.5 million active traders and is regulated in more than 5 top-tier jurisdictions including the UK, Australia, Cyprus, Belize, and Dubai.
Among all the Islamic accounts on this list, XM Forex has the most fair and halal trading conditions. Unlike some brokers who widen spreads to cover for the interest that you’d have paid, XM does not impose any additional fees on Islamic accounts.
Additionally, traders on the XM Forex Islamic account enjoy the same trading conditions as traders on all the other account types. You can comfortably trade on the account while enjoying 100% real-time market execution, leverage up to 888:1, and free and instant access to all trading platforms.
The XM Forex Islamic account offers traders access to more than 1000 tradeable assets including forex currencies, stocks such as those of Apple, Amazon, Netflix and other reputable companies, precious metals including gold and silver, as well as oil. Click here to see the full list of tradeable instruments.
Additionally, XM Forex has 24/5 dedicated client support that’s available once you sign into your client dashboard at XM.com.
2. IC Markets
IC Markets Islamic trading accounts are forex trading accounts that are designed to be compliant with the principles of Islamic finance. This means that they are free from Riba, or interest, which is prohibited under Islamic law.
Instead of charging interest on overnight positions, IC Markets Islamic trading accounts use a swap-free system in which traders are charged a small fee to keep their positions open. This fee is based on the underlying market rates and is applied on a daily basis.
Features of the IC Markets Islamic Accounts
Access to over 90 forex pairs: With the IC Markets Islamic trading account, you can trade a wide range of forex pairs, including major, minor, and exotic currencies. This gives you plenty of opportunities to diversify your portfolio and capitalize on market movements.
Tight spreads: IC Markets offers some of the tightest spreads in the industry, with average spreads as low as 0.0 pips on major forex pairs. This means that you can trade with greater precision and potentially earn more from your trades.
Leverage up to 500:1: IC Markets Islamic trading accounts offer leverage of up to 500:1, which means that you can trade with a much larger position size than your actual capital. This can be a great way to amplify your potential profits, but it also comes with increased risk, so it’s important to use leverage responsibly.
Multiple platform options: IC Markets offers a range of trading platforms to suit different trading styles and preferences. You can choose from the popular MetaTrader 4 and 5 platforms, as well as the cTrader platform for advanced traders.
24/5 customer support: IC Markets provides customer support 24 hours a day, 5 days a week, so you can get help whenever you need it. Whether you have a question about your account, need assistance with a trade, or have any other concerns, you can contact the IC Markets support team via phone, email, or live chat.
3. Exness
Exness is a leading forex broker with a global presence and a reputation for providing high-quality trading services to its clients. The company offers a range of account types, including an Islamic trading account that is specifically designed for Muslim traders.
Exness is regulated in multiple jurisdictions by reputable financial regulatory bodies, such as the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA), and the Financial Services Authority of Seychelles (FSA).
Having multiple regulatory licenses allows Exness to provide its services to traders in different countries, while also ensuring that they operate in accordance with the relevant laws and regulations. This can provide added peace of mind to traders who are concerned about the safety and security of their funds.
In addition to regulatory licenses, Exness also maintains segregated accounts for all clients and offers negative balance protection, providing added security for your funds.
Exness Islamic Account Features
Automatic Assignment: Exness automatically detects whether you’re from a country where Islam is a dominant religion and automatically assigns you a swap-free account.
Automatic Assignment: Exness automatically detects whether you’re from a country where Islam is a dominant religion and automatically assigns you a swap-free account.
Wide range of instruments: The Exness Islamic trading account allows you to trade a wide range of instruments, including forex, precious metals, energy, and cryptocurrency. This means that you have plenty of options to choose from, regardless of your trading style or preferences. Exness never charges swap on stocks, cryptocurrency, and XAUUSD.
High leverage: The Exness Islamic account offers leverage of up to 1:2000, providing you with greater flexibility and trading opportunities. (For traders from Kenya, leverage is capped at 1:400 to comply to CMA regulations)
Exceptional customer support: Exness is known for its exceptional customer support, which is available 24/7 in multiple languages. The company’s customer service team is highly knowledgeable and always willing to help you with any questions or issues you may have.
4. Pepperstone
Pepperstone is an online forex and CFD broker that was founded in 2010. The company is headquartered in Melbourne, Australia and is regulated by the Australian Securities and Investments Commission (ASIC) and the Financial Conduct Authority (FCA) in the UK.
The company has built a reputation for providing high-quality services and support to its clients, and its Islamic trading account is no exception.
One of the key strengths of Pepperstone is their wide range of tradable assets, including over 60 forex pairs, a range of global indices, commodities, and cryptocurrencies. This diversity of assets allows traders to diversify their portfolios and potentially increase their overall returns.
If you are a Muslim trader, or simply someone who is interested in ethical and Sharia-compliant investing, then the Pepperstone Islamic trading account may be the perfect fit for you.
Features of the Pepperstone Islamic Account
The Pepperstone Islamic trading account is a comprehensive trading platform that offers a wide range of features and benefits to its users. Some of the key features of this account include:
Access to over 80 currency pairs and CFDs on popular financial markets, including forex, commodities, indices, and cryptocurrencies.
A user-friendly and intuitive trading platform that is suitable for traders of all levels of experience.
Competitive spreads and fees, with no hidden charges or commissions.
A range of educational resources and trading tools, including market analysis, trading signals, and webinars.
5. HF Markets
HF Markets (formerly HotForex) is a forex and CFD broker that offers traders a wide range of instruments to trade, including forex, commodities, indices, stocks, and cryptocurrencies.
HF Markets offers its services to traders around the world, including those in Europe, Asia, Africa, and Latin America. The company is regulated by several financial authorities, including the Financial Conduct Authority (FCA) in the UK and the Financial Sector Conduct Authority (FSCA) in South Africa.
Read: HF Markets Review
HF Markets offers its clients the option of trading with an Islamic account, also known as a swap-free account. This account is designed to comply with the principles of Islamic finance, which prohibits the charging of interest or fees for overnight positions.
In order to open an Islamic account with HF Markets, you must complete the standard account opening process and indicate your preference for an Islamic account.
Once the account has been approved, you can begin trading with the account, which operates in the same way as a standard trading account, with the exception of the treatment of overnight positions.
HotForex is another excellent forex broker that offers Islamic forex accounts. The broker has more than 10 years in existence and is regulated by more than 7 regulatory authorities.
What we like most about the HotForex Islamic Account is the number of premium tools that are available totally free. These tools are created to make your trading journey easier and are suited for both beginner and experienced forex traders.
In particular, HFCopy, a type of copy trading system allows new and inexperienced Islamic traders to copy trades and strategies from more experienced traders on HotForex. Same is the case with the HotForex PAMM which allows you to delegate a certain percentage of your deposited capital to a funds manager.
The HotForex Islamic account is available on MT4, WebTrader, and Mobile Trading, which is a little frustrating that the account is not available on more trading platforms. However, we have found that MT4 is ideal for most traders.
We have compiled a list of forex brokers that offer Islamic accounts.
Write a complete blog post about the best Islamic Forex brokers. The article must include subheadings. The article must make use “you” pronoun at all times
| Broker Name | Min. Deposit | Spreads(EUR/USD) | Upgrade toIslamic Account | Max. Leverage |
|---|---|---|---|---|
| Markets.Com | $100 | 3 Pips | Yes | 1:200 |
| Easy Forex | $200 | From 1.8 Pips | Yes | 1:200 |
| FXCM | $2000 | 3 Pips | Yes | 1:200 |
| Iron FX | $500 | From 1.7 Pips | Yes | 1:500 |
| AVaTrade | $100 | 1.5 Pips | Yes | 1:400 |
| Social Trading | $1000 | 2 Pips | Yes | 1:400 |