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.
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.
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.
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:
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.
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:
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.
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:
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.
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:
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.
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:
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.
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:
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.
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.
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 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.
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.
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.
Consider the following questions when searching for a suitable broker with an Islamic account.
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.
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.
The minimum deposit to trade live can vary from less than $100 (for example, $50 at Multibank) to more considerable sums.
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.
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.
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.
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.
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.
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.
At FXEmpire, we strive to provide unbiased, thorough and accurate broker reviews by industry experts to help our users make smarter financial decisions.