Best Islamic (Swap Free) Forex Accounts of 2023

Searching for the best forex brokers offering Islamic accounts? Through our hands-on analysis, we’ve narrowed down the top 5 options to meet diverse trading needs. Practical tips from our experts are included.

By: Dan Blystone
Reviewed By: FX Empire Editorial Board
Updated: Dec 5, 2023
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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.

Best Overall

This material on this website is intended for illustrative purposes and general information only. It does not constitute financial advice nor does it take into account your investment objectives, financial situation or particular needs. Commission, interest, platform fees, dividends, variation margin and other fees and charges may apply to financial products or services available from FP Markets. The information in this website has been prepared without taking into account your personal objectives, financial situation or needs. You should consider the information in light of your objectives, financial situation and needs before making any decision about whether to acquire or dispose of any financial product. Contracts for Difference (CFDs) are derivatives and can be risky; When trading CFDs you do not own or have any rights to the CFDs underlying assets. FP Markets recommends that you seek independent advice from an appropriately qualified person before deciding to invest in or dispose of a derivative. A Product Disclosure Statement for each of the financial products available from FP Markets can be obtained either from this website or on request from our offices and should be considered before entering into transactions with us. First Prudential Markets Pty Ltd (ABN 16 112 600 281, AFS Licence No. 286354). FP Markets is a group of companies which include, First Prudential Markets Ltd (registration number HE 372179), a company authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC License number 371/18, Registered Address: Griva Digeni, 109, Aigeo Court, 2nd floor, 3101, Limassol, Cyprus. FP Markets does not accept applications from U.S, Japan or New Zealand residents or residents from any other country or jurisdiction where such distribution or use would be contrary to those local laws or regulations.
  • Min Deposit
  • Tradable Instruments
  • Fees

Sydney, Australia-based FP Markets was founded in 2005 and has entities regulated by top-tier CySEC and ASIC. With over 10,000 instruments across stocks, indices, forex, commodities, and cryptocurrencies, Islamic traders can experiment across a broad range of markets.

Islamic Account Features:

  • Account types: Islamic Standard, Islamic Raw
  • Available trading platforms: MetaTrader 4, MetaTrader 5
  • Minimum deposit: $100 AUD or equivalent
  • Spreads: 1 pip in EUR/USD, 14 pips in Gold
  • Financing fee: $1 to $80 per lot per night, applicable from the 11th night
  • Maximum leverage: 1:500 (St. Vincent entity), 1:30 (ASIC), 1:30 (CySEC)
  • Base currencies: USD, AUD, EUR, GBP, SGD, CHF, CAD, JPY, HKD, PLN, ZAR, MXN, BRL

The swap-free Islamic account is available on Raw and Standard account types on the MT4 and MT5 trading platforms. Islamic Accounts are not charged any swap or admin fee for the first ten nights. If positions are held longer, a financing fee is applicable from the eleventh night. Islamic account admin fees range from $1 (for example, in major indices such as the Germany 30) up to $80 for spot natural gas (XNGUSD) per night, per contract. Popular currency pairs like EUR/USD have an admin fee of $5 per night.

FP Markets offers competitive trading costs: in my live tests, I experienced spreads of 14 pips in gold and 4 pips in crude oil. Speed is the name of the game at this broker – made possible with low latency trade execution delivered from the Equinix NY4 facility server cluster. I also confirmed that scalpers and algorithmic traders can be more confident of having a stable trading environment thanks to free VPS hosting.

I assess that the FP Markets’ selection of platforms is robust and can cater to the most sophisticated traders. Islamic account holders have access to MetaTrader 4 and MetaTrader 5 only, while standard clients have access to all three platforms including cTrader. Another significant benefit is excellent 24/7 email, phone, or live chat support. Over two weeks of my testing, customer support responded quickly with well-informed and helpful answers.

  • Fast and simple account opening process.
  • No withdrawal fees.
  • Impressive range of tradable instruments.
  • Competitive spreads in forex pairs.
  • No proprietary platform.

Best Low Spreads

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
  • Min Deposit
  • Tradable Instruments
  • Fees

Founded in 2007, IC Markets is a veteran of the forex and CFD industry. With over 180,000 active clients worldwide and US $1.2 trillion in trading volume (according to the broker’s website), it has emerged as a market leader.

The Sydney, Australia-based broker provides access to trading in CFDs on currency pairs, commodities, indices, shares, ETFs, futures, and cryptocurrencies. While researching trust and stability signals, I confirmed that multiple authorities, including top-tier ASIC and CySEC, regulate IC Markets.

Islamic Account Features:

  • Account types: Standard, Raw Spread
  • Available trading platforms: MetaTrader4, MetaTrader 5, cTrader
  • Minimum deposit: $200
  • Spreads: 0.6 pip in EUR/USD, 18 pips gold
  • Financing fee: Between $5 per lot and $80 per lot per night, applicable from the first night
  • Maximum leverage: 1:500 (Seychelles entity), 1:30 (ASIC), 1:30 (CySEC)
  • Base currencies: USD, GBP, AUD, EUR

For most instruments, Islamic account holders at IC Markets do not pay swap or financing fees. When holding exotic currency pairs, Brent crude oil, natural gas, and WTI crude oil, a fixed financing fee is applied overnight, starting from the first night. Financing fees vary from $5 per contract per night for a currency pair such as EUR/HKD up to $80 for natural gas (XNG/USD).

Rock-bottom trading costs are a hallmark of this broker, providing an edge for active, short-term traders. I experienced spreads as low as 2.2 pips in GBP/JPY, 18 pips in gold, and 3 pips in crude oil. Advanced and systematic traders can take advantage of the full suite of MetaTrader platforms along with the more intuitive cTrader.

  • Excellent range of tradable instruments.
  • Rock bottom spreads.
  • Robust platforms and tools.
  • 24/7 customer support.
  • $1M insurance via Lloyds of London (offshore entity).
  • Trading platforms may take time to master.

Best MT4 Islamic Account

Your capital is at risk.
  • Min Deposit
  • Tradable Instruments
  • Fees

Founded in 2012, JustMarkets is a multi-asset online CFD broker based in Limassol, Cyprus. I confirmed that Just Markets Ltd is regulated by Tier-1 CySEC and has several offshore entities. Traders can choose between four account types, MT4 and MT5 trading platforms, and eleven base currencies.

Islamic Account Features:

  • Account types: Standard Cent, Standard, Pro, Raw Spread
  • Available trading platforms: MetaTrader 4, MetaTrader 5
  • Minimum deposit: $1
  • Spreads: 0.7 pips in EUR/USD, 28 pips in gold
  • Financing fee: No fee for clients outside EU
  • Maximum leverage: 1:3000 (Seychelles FSA), 1:30 (CySEC)
  • Base currencies: USD, EUR, GBP, ZAR, KWD, IDR, CNY, MYR, JPY, VND, THB

Islamic account holders outside the EU do not pay swap fees, and there are no financing fees. For EU clients, Islamic accounts are available via Raw Spread and Pro account types on the MT5 platform. Swap-free accounts are subject to a daily order handling fee determined by the size of financing costs charged to JustMarkets by its vendors.

Professional traders can benefit from the advanced features of MetaTrader 4 and MetaTrader 5, such as automated trading. In my hands-on tests, I experienced competitive spreads of 2 pips in GBP/JPY and 4 pips in WTI crude oil. The Raw Spread account helps traders keep costs to a minimum, with spreads starting at 0 pips. JustMarkets also offers copy trading via MT4, which allows experienced traders to earn additional income when others copy their trades.

  • Regulated by a Tier-1 CySEC.
  • Multiple deposit and withdrawal options.
  • Various account types for MT4 and MT5.
  • Good customer support.
  • Limited research materials.

Best for Professional Traders

By using this website and or its services, you agree that neither MultiBank Group nor any of its affiliates and service providers will be held responsible for the accuracy of any information available on this site. Although information on this site is provided in good faith and is believed by MultiBank Group or its affiliates to be accurate, there are no explicit or implicit warranties of accuracy or timeliness made by MultiBank Group or its affiliates and service providers regarding this information. Furthermore, in visiting this site and in opening an MultiBank Group or its affiliates Forex trading account you agree not to hold MultiBank Group or any of its affiliates and service providers liable for any decisions you may make based on the information you obtain on this website or websites we link to. It is recommended that you make your decisions only after you have reviewed information and collected opinions from several credible sources and have verified ALL facts you need to know about Forex trading from other independent sources. MultiBank Group and its web hosting providers and its affiliates shall in no event be liable for any damages and or loss resulting from interruption of website service or the inability to use our website. Unless stated otherwise, material on this site is copyright of MultiBank Group. MultibankFX is the trading name of Multibank FX International Corporation (BVI) Company No. 1377324.
  • Min Deposit
  • Tradable Instruments
  • Fees

Founded in 2005, MultiBank has an impressive track record as a CFD broker and has grown to have a significant global presence. The Dubai-based broker is regulated across five continents and maintains over 20 offices worldwide. MultiBank Group offers the popular MetaTrader platform and uses a non-dealing desk ECN model of order execution.

Islamic Account Features:

  • Account types: Standard, Pro
  • Available trading platforms: MetaTrader 4, MetaTrader 5
  • Minimum deposit: $50
  • Spreads: 1.5 pips in EUR/USD, 25 pips in gold
  • Financing fee: No fee applies
  • Maximum leverage: 1:500 (CIMA), 1:30 (CySEC), 1:30 (ASIC)
  • Base currencies: USD, EUR, GBP, AUD, CAD, CHF

On certain instruments, MultiBank offers a grace period of up to 10 days for Islamic accounts, after which normal swap rates apply. For example, there are no swap fees for a period of 10 days for indices, and for exotic forex pairs the grace period is 3 days. In some assets such as major currency pairs, there are no swap fees on a continuous basis.

From my research of Multibank’s offering, advanced traders can take advantage of tight spreads, high leverage of 1:500, free VPS hosting, expert advisors, MAM/PAM, and Fix API. The Pro account (available as an Islamic account) offers trading with zero commissions, tight spreads, and instant execution. MultiBank Group uses a non-dealing desk model of order execution, and all orders go through an ECN to over 20 interbank liquidity providers. In my live tests, I experienced competitive spreads of 1.9 pips in GBP/JPY and 5 pips in WTI crude oil.

  • Well-established global broker.
  • Stable, nanosecond execution.
  • Great customer service.
  • Accounts insured up to $1,000,000.
  • Limited educational materials.

Best for Beginners

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd. You should consider whether you understand how CFDs, or any other of our products work, and whether you can afford to take the high risk of losing your money.
  • Min Deposit
  • Tradable Instruments
  • Fees

London-based Tickmill performed well in all major categories of our hands-on tests. This well-rounded broker was founded in 2014 and provides access to a wide selection of CFDs, futures contracts, and options. Tickmill offers the popular MetaTrader 4 and MetaTrader 5 platforms which feature advanced order types, robust charts, and automated trading.

Islamic Account Features:

  • Account types: Classic, Pro, VIP
  • Available trading platforms: MetaTrader 4, MetaTrader 5
  • Minimum deposit: $100
  • Spreads: 1.6 pips in EUR/USD, 18 pips in gold
  • Financing fee: from $5 to $50 per contract per night, applicable from the 4th night
  • Maximum leverage: 1:500 (Seychelles FSA), 1:30 (FCA), 1:30 (CySEC)
  • Base currencies: USD, EUR, GBP, PLN

I confirmed that Tickmill allows you to convert Classic, Pro, or VIP accounts into swap-free accounts keeping the same trading conditions and terms as regular trading account types. The only difference is that there are no swaps on trading instruments. However, when a position is held open for over three consecutive trading days (including weekends), an Islamic account is subject to daily charges on select instruments ranging from $5 to $50 per contract.

The Classic Account can be opened for just $100. I noted that Tickmill offers trading micro-lots, which helps beginners minimize their risk when trading live. Over two weeks of exhaustive testing via phone, live chat, and email, our team experienced strong customer support.

Tickmill excels in another critical area for new traders: education. I found the live webinars guided by industry experts to be especially valuable. Similarly, broker’s research materials are rich and insightful. While evaluating trading costs, I experienced spreads as low as 18 pips in gold and 5 pips in WTI crude oil.

  • Trading fees are better than the industry average.
  • Wide range of platforms.
  • Fully licensed and regulated broker.
  • Multiple account types.
  • Customer support is not 24/7.

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.

Get to Know Our Authors

Dan Blystoneauthor

Dan Blystone began his career in the trading industry in 1998 on the floor of the Chicago Mercantile Exchange. Later Dan gained insight into the forex industry during his time as a Series 3 licenced futures and forex broker. He also traded at a couple of different prop trading firms in Chicago. Dan is well-equipped to recommend the best forex brokers due to his extensive experience and understanding of the brokerage industry.

Jitan Solankiauthor

Jitan Solanki is a professional trader, market analyst, and educator. He day trades major currency and index markets and focuses on swing trading US equities and commodities. A qualified Market Technician, Jitan also works with trader education and brokerage companies on various projects. These include market analysis, live trading events, and broker reviews. As an experienced trader and educator, Jitan brings all his qualities in action when reviewing and recommending brokers.

Plamen Stoyanovauthor

Having been a retail trader since 2013, Plamen has gained an in-depth understanding of the challenges that novice traders face today. His expertise is swing trading and day trading with a heavy emphasis on psychological and fundamental analysis. Plamen’s favourite trading instruments include FX majors and gold. He earned a Bachelor's degree in Economics and International Relations. Plamen's broad experience has equipped him with the expertise to recommend the best forex brokers.

Vladimir Zernovauthor

In more than 15 years of trading in the financial markets, Vladimir dealt with a wide range of brokers and financial instruments. His career as a day-trader at a proprietary trading firm goes back to 2007. Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio. Using his experience, he helps traders find the best broker in his reviews.

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.


An Islamic or swap-free account is a special type of trading account offered by many forex brokers. It is designed to comply with Islamic law, also known as Shariah law, which prohibits the collection or payment of interest or "Riba".
Islamic scholars have divided opinions on whether forex trading is halal (permissible) or haram (forbidden). The answer can vary depending on the specific circumstances and practices of the trading. While interest, or "riba", is forbidden, some brokers offer Islamic or swap-free accounts that align with this principle. However, the speculative nature and certain practices in forex trading may still contradict other Islamic principles like gharar (uncertainty) and requirements for "hand to hand" exchange.
To compensate for the lack of swap fees, brokers usually introduce a different kind of charge on Islamic accounts. This is typically in the form of a fixed commission or an administrative fee for each trade or for trades that remain open past a certain time period, often referred to as a "financing fee" or "administration fee". The exact structure and amount of these fees can vary significantly from broker to broker.
Swap fees in forex trading are considered haram, or forbidden, in Islam because they are a form of interest, also known as "riba" in Arabic. In Islamic law, money is viewed simply as a means of exchange, a way to define the value of a thing—it has no value in itself, and therefore, Muslims should not receive or pay interest for holding money. The prohibition of interest is based on the Islamic economic principle that money should be used for productive, real economic activities, rather than generating profit by itself.
Dividends from shares can be considered halal (permissible) in Islam if the company's business and profits align with Islamic principles, meaning they don't involve prohibited activities or sources of income like alcohol, pork, gambling, or substantial interest earnings. Moreover, a company's debt ratio, especially if heavily financed by interest-bearing debt, can impact the halal status of dividends. As circumstances vary, it's advisable to seek tailored advice or use certified Islamic investment platforms.
There is no interest earned or paid when using a demo account, so normally it would be considered halal.
Yes, instead of swap fees, brokers charge Islamic account holders a fixed fee for every trade held open past a certain time period, often called an administrative or financing fee. The exact structure and amount of these fees can vary from one broker to another. Some brokers may charge a higher spread on Islamic accounts compared to standard accounts. Others might apply a flat fee for every trade or for trades that remain open beyond a certain number of days.
In an Islamic account, overnight swaps or interest charges are eliminated to comply with Islamic Shariah law. Brokers compensate for this by imposing a flat administration or financing fee for trades held open beyond a certain period. The exact structure of these fees can vary among brokers, so it's crucial to review individual broker policies.
The range of financial instruments available for trading in an Islamic account can vary based on the broker but typically includes a broad array of options. These often encompass major, minor, and exotic forex pairs, commodities, indices, stocks, and cryptocurrencies.
Yes, Islamic accounts can be accessed in the same ways as regular accounts.
The available orders are the same in an Islamic account as in a regular account. This typically includes market orders (buying or selling at the best available price), limit orders (buying or selling at a specified price or better), stop orders (buying or selling once the price of the asset reaches a specified price), and stop-limit orders (a combination of stop orders and limit orders).
No, typically there is no difference in the minimum deposit when opening an Islamic account.
The available leverage is the same in an Islamic account as in a regular account.
Clients with Islamic accounts have the same protections as regular account holders. This may include negative balance protection, segregated funds, and a compensation scheme.
The same deposit and withdrawal methods are available when using an Islamic account.

About the Author

Dan Blystone began his career in the trading industry in 1998 on the floor of the Chicago Mercantile Exchange. Later Dan gained insight into the forex industry during his time as a Series 3 licenced futures and forex broker. He also traded at a couple of different prop trading firms in Chicago. Dan is well-equipped to recommend the best forex brokers due to his extensive experience and understanding of the brokerage industry.

Why you can trust FX Empire

At FXEmpire, we strive to provide unbiased, thorough and accurate broker reviews by industry experts to help our users make smarter financial decisions.

Why you can trust FX Empire

FXEmpire was founded in 2011, making us one of the first forex broker review sites. You can trust FXEmpire because of our thorough and unbiased review process. With over a decade of experience, we have a team of industry experts who conduct rigorous tests to ensure our reviews are accurate and unbiased. Our reviews are designed to bring clarity and confidence to the process of choosing a broker, and are based on objective criteria and measurable data. Our editorial team is composed of trading industry professionals and seasoned financial journalists, who ensure that our reviews are accurate and unbiased. Additionally, our review system is based on 9 core categories and over 250 distinct variables, which ensures that all aspects of a broker are considered before giving a final rating. So, you can trust FXEmpire to provide you with honest and informative reviews that will help you make an informed decision on which broker will best enable you to reach your financial goals.