Best Islamic (Swap Free) Forex Accounts of 2023

List of Top Brokers with Islamic Accounts

• FP Markets – Best Overall
  Regulated by top-tier CySEC and ASIC. MT4 and MT5. Islamic Standard and Raw Spreads accounts available. 10-day grace period before financing fees are charged on Islamic accounts.
• IC Markets – Best Low Spreads
  Regulated by top-tier CySEC and ASIC. Very tight spreads. 2000+ instruments. MT4, MT5, and cTrader. Islamic Standard and Raw Spreads accounts available. No financing fee for many instruments in the Islamic account.
• JustMarkets – Best MT4
  Tight spreads. MT4 and MT5. Standard Cent, Standard, Pro, and Raw Spread Accounts can be converted to Islamic. Base currencies from Arabic countries. No financing fee on Islamic accounts for clients outside the EU. 1:3000 leverage.
• MultiBank – Best for Professional Traders
  Regulated by top-tier ASIC and CySEC. Low fees. Wide range of trading instruments. No financing fee for many instruments in the Islamic account. Grace period of up to 10 days on certain instruments. Islamic account available on Standard and Pro accounts.
• Tickmill – Best for Beginners
  Regulated by top-tier FCA and CySEC. Lots of tradable instruments. Classic, Pro, and VIP can be converted to Islamic. Financing fee only applies from the 4th night of holding a position. No financing fee is charged for most instruments in an Islamic account.

How do Islamic or Swap-Free Forex Accounts work?

In the global market, a diverse range of financial products cater to various cultural, religious, and personal preferences. For Muslim traders who want their financial transactions to be in line with Islamic law, or Shariah, the advent of Islamic forex accounts has been a game-changer.

CFD traders are typically charged or credited interest on the leveraged positions they hold overnight. These costs are known as overnight fees or swap fees. Islamic accounts, also known as swap-free accounts, have been designed specifically to eliminate the collection and payment of ‘Riba’, or interest, which is strictly prohibited in Islam.

Instead of the overnight swap fee, forex brokers typically charge Islamic account holders a fixed fee per contract held overnight. Usually, this fee is called an admin fee or a financing fee. There may be a grace period of a number of nights before the nightly fee is applied.

How did FX Empire choose the winning brokers for best Islamic accounts?

• We checked for the availability of an Islamic account.
• We checked the available account types for CFD trading and examined which of them are convertible to Islamic.
• We measured the financing fees replacing the swap fees.
• We tested other fees and trading costs, including spreads, inactivity fees, and withdrawal fees.
• We assessed brokers’ level of financial strength and transparency.
• We conducted a test drive for each trading platform, digging into available order types, charting, watchlists, and UX.
• We checked the availability of a broad variety of tradable CFD instruments.
• We looked for fast, responsive, and helpful customer support via phone, live chat, and email.
• We verified the availability of a good variety of deposit and withdrawal methods, making it fast and easy to move money in and out of your account.

Our team of experts has identified each broker’s strengths and weaknesses using FX Empire’s comprehensive methodology. Here’s how we test.

Now let’s go through the selected brokers.

Our Methodology

In selecting the best brokers for Islamic accounts we used the results of our advanced proprietary methodology. All of the brokers listed were among the leaders in our tests.

FXEmpire has been reviewing brokers since 2010 and has pioneered the in-depth evaluation of CFD brokers. Our process has taken years to refine and involved hundreds of reviews. We’ve gone to a granular level – with over 250 data points in our analysis of each broker – so you can feel confident in selecting the right platform.

To provide the most comprehensive view, we break down the brokers according to nine different categories:

• Trust
• Fees
• Platforms and tools
• Tradable instruments
• Customer service
• Deposit and withdrawal
• Account types
• Research
• Education

In our individual broker reviews, we explain complex areas like regulatory status, so you can easily understand the safety of your funds and the benefits you are guaranteed.

Data is gathered through live testing, research, detailed questionnaires, and in-person broker demonstrations. An account is opened with each broker, focusing primarily on the services of one entity and testing using the most standard account type and platform. We conduct live tests of spreads and measure overnight swap fees and account-related costs.

Our side-by-side analysis reveals whether a broker is competitive in relation to the industry as a whole. Trading platforms take time to master, but we have already done the legwork for you and our evaluations highlight their important features and usability.

For this guide, we selected brokers offering Islamic accounts. We then assessed each broker’s level of financial strength and transparency to ensure reliability. In order to understand the cost-effectiveness, we tested fees and trading costs, including spreads, admin fees, inactivity fees, and withdrawal fees. We looked at the range of account types available for CFD trading and examined which of them are convertible to Islamic.

We took each platform for a test drive, examining available order types, charting, watchlists, and the overall user experience. Our search also prioritized the availability of a wide range of tradable CFD instruments, and responsiveness of customer support across phone, live chat, and email. We ensured that each broker offered a good variety of fast and easy deposit and withdrawal methods, facilitating smooth transactions.

Finally, we considered the quality of research and educational content offered by each broker, with the aim of helping traders better understand the financial markets, develop effective trading strategies, and make informed decisions.

Meet Our Writers

The team of forex and CFD writers and editors at FX Empire is composed of trading industry professionals and seasoned financial journalists. Our writers have been published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.

How to choose a broker with an Islamic account?

Consider the following questions when searching for a suitable broker with an Islamic account.

Can I trust the broker?

Take into account the regulatory status of the broker. Forex brokers regulated by top-tier financial authorities must undergo audits, meet capital requirements, and provide segregated accounts and negative balance protection. A compensation fund is sometimes available in the event of broker insolvency.

Tip: you can search the regulator’s website to confirm the broker’s status and check for any disciplinary action. The broker’s size and operating history are also worth considering. You can usually find these on the company’s LinkedIn page.

Read more about Best regulated forex brokers.

Are the fees competitive?

Working with a broker that keeps spreads and commissions to a minimum can make the difference between profit and loss at the end of the day. This is a crucial point for day traders. Also, don’t be caught off guard by miscellaneous account-related fees, such as inactivity and withdrawal fees.

On Islamic accounts, financing fees vary by instrument. They are typically the least expensive for indices like the Dax 40 and major currency pairs like EUR/USD. Exotic currency pairs such as EUR/TRY and commodities like natural gas (XNG/USD) have the highest fees. It’s also important to note that some brokers only charge the Islamic financing fee on select instruments, leaving others free of both swap and financing fees.

Check out our guide on best lowest spread forex brokers.

What is the minimum deposit?

The minimum deposit to trade live can vary from less than $100 (for example, $50 at Multibank) to more considerable sums.

What account types are available?

A broad range of account types helps a broker cater to different trader profiles. For example, a simple STP account may be the best for beginners in the markets, while an ECN/raw spread account can help sophisticated, active traders keep their costs to a minimum.

ECN accounts typically route orders straight to the interbank market, while STP accounts send orders directly to a counterparty that might be another STP broker, market broker, or ECN broker. Via ECN accounts, spreads are tighter and the speed of order execution is faster, making them suitable for active, short-term traders. However, a commission is charged in addition to the spread.

Islamic traders should check if their preferred account type is available swap-free. In some instances, account types cannot be converted to Islamic. For example, ECN accounts at Multibank are not available swap-free.

Read more about Best STP forex brokers and Best ECN forex brokers.

How to choose a trading platform?

When choosing a trading platform, prioritize one that is intuitive and easy to navigate to ensure a smooth start in the trading world. Opt for platforms, typically browser-based, that are developed by the broker as they tend to be more user-friendly. Key features to look for include watchlists, trading from the chart, search functions, news feeds, and a customizable interface.

Here are our picks of best forex trading platforms.

Platforms like MetaTrader 4 and 5 offer advanced features such as backtesting, automated trading, and a wide range of order types, although they might be less user-friendly. MetaTrader 4 is available in Arabic, making it well-suited to Islamic account holders.

Read more about Best MetaTrader 4 brokers and Best MetaTrader 5 brokers.

Is customer support reliable?

Having solid support on hand is essential. Check the hours of availability, for example, whether help is on hand 24/7 or only during business hours. Chat support is the most convenient, so look for an easy-to-access chat window built into the broker platform. In the case of a platform outage, it is also important to be able to contact support via phone.

What to avoid when choosing a broker with an Islamic account?

When selecting a broker offering an Islamic account, it is important to be conscious of the financing fees, when they are applied, and which instruments are charged. The most important thing to avoid is unreasonably high financing fees.

Some brokers apply the nightly financing fee immediately, while others offer a grace period with no charge for a number of nights. The fees charged vary by broker, so keep an eye on the cost, especially for exotic currencies and commodities, which can be very expensive to hold.

Also, pay attention to which instruments get charged a fee. Some brokers charge no swap or financing fee for most instruments, choosing to charge a financing fee for exotic currencies and commodities only. Meanwhile, other brokers charge a fee for all of them, including popular instruments such as EUR/USD.

How to avoid forex and CFD scams?

A common scam in the forex and CFD industry involves vendors offering a trading strategy that guarantees an outlandishly high return in little time. These may be based on automated trading using bots or a signal service where trades are shared via chat or social media. Nobody can guarantee returns with certainty, and it is more likely that such strategies will lose money. When assessing strategy or signal providers, you should look for a live track record audited by a third party and be conscious that past performance does not guarantee future results.

Traders should also be cautious about opening an account with an unregulated offshore broker. Such brokers may offer a straightforward account opening process, bonuses, and high leverage levels, but client funds are typically not protected. Meanwhile, brokers regulated by top-tier authorities must undergo regular audits and are held accountable for misconduct. Traders can also benefit from having their funds held in segregated accounts, negative balance protection, and a compensation fund in case of broker insolvency.

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