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Find below the strengths of the forex brokers that offer Islamic accounts, updated for 2024:
- Forex.com - Best forex broker for Islamic accounts. Excellent selection of currency pairs. Competitive forex spreads. Diverse technical research tools.
- Oanda - Great trading platforms. Outstanding research tools. Fast and user-friendly account opening.
- eToro - Free stock and ETF trading. Seamless account opening. Social trading.
- Fusion Markets - One of the lowest commissions on the market. Wide range of currencies. Low withdrawal fee.
- IC Markets - Low FX commission and tight spreads. Wide range of currencies. Low withdrawal fee.
- VT Markets - Low trading fees. Easy and fast account opening. Great email and live chat support.
- Vantage - Great variety of deposit/withdrawal options. No inactivity fee. Leverage can be set manually.
- Moneta Markets - Low forex fees. Easy and quick account opening. Seamless deposit and withdrawal.
- Pepperstone - Low FX commission and tight spreads. Low withdrawal fee. excellent account opening.
- Tickmill - Low FX commission and tight spread. Rich selection of currency pairs. Low withdrawal fee.
Comparison of the top forex brokers for Islamic accounts
| Broker | Withdrawal fee | Minimum deposit |
|---|---|---|
| Forex.com | $0 | $100 |
| Oanda | $0 | $0 |
| eToro | $5 | $10 |
| Fusion Markets | $0 | $0 |
| IC Markets | $0 | $200 |
| VT Markets | $0 | $100 |
| Vantage | $0 | $50 |
| Moneta Markets | $0 | $50 |
| Pepperstone | $0 | $0 |
| Tickmill | $0 | $100 |
Other fees at the top forex brokers for Islamic accounts
Brokers charge various fees not directly related to trading. The most common among these are deposit/withdrawal fees, the inactivity fee and the account maintenance fee.
| Broker | Deposit fee | Account fee |
|---|---|---|
| Forex.com | $0 | |
| Oanda | $0 | |
| eToro | $0 | |
| Fusion Markets | $0 | |
| IC Markets | $0 | |
| VT Markets | $0 | |
| Vantage | $0 | |
| Moneta Markets | $0 | |
| Pepperstone | $0 | |
| Tickmill | $0 |
How does an Islamic account work?
An Islamic account, also called a Sharia-compliant brokerage account or swap-free account, adheres to the principles of Islamic finance.
Although the exact terms and conditions of an Islamic or swap-free account tend to vary from broker to broker, some features are constant.
Prohibition of interest: Islamic brokerage accounts avoid interest-based transactions. Instead of earning or paying interest, the account may employ alternative structures.
Exclusion of prohibited (haram) investments: investments in industries such as alcohol, gambling, pork, or weapons, which are considered non-compliant with Islamic principles, are typically avoided.
Transparency and accountability: Islamic brokerage accounts aim to provide transparency in their investment activities, ensuring that investors have a clear understanding of how their funds are being managed.
Note that some brokers may limit the types of assets that Islamic account holders can trade. Cryptocurrencies, for example, are not always availabe to trade for such account holders.
Some service providers do not allow clients to hold any other account type at the same time with Islamic trading accounts. If an investor has an existing account, it will be closed before the swap-free account can be opened.
Another important limitation to bear in mind is that brokers may offer Islamic accounts only in certain countries.
Islamic forex accounts
Forex is almost always traded using leverage. This is the practice of borrowing money from your broker to boost your buying power and open larger positions.
With a standard account, investors are charged or credited swap or interest on leveraged positions that they keep open at the end of each trading day. These costs are known as overnight fees or swap fees.
Islamic accounts for forex traders do not charge or pay overnight or swap fees.
Instead, Islamic account holders are typically offered wider spreads on the currency pairs they trade and are often charged an administration fee. The exact details and the fee structure may vary from broker to broker.
The administration fee is charged either per lot traded or as a lump sum regardless of the position size. At most brokers, the admin fee varies by currency pair.
Most brokers allow day trading, scalping and hedging for Islamic account holders.
Recommended for forex traders looking for low fees and great research tools
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69-77% of retail CFD accounts lose money
Recommended for forex traders who value a user-friendly platform and great research tools
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75% of retail CFD accounts lose money
Recommended for traders interested in social trading (i.e. copying other investors’ trades) and zero-commission stock trading
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eToro USA LLC; Investments are subject to market risk, including the possible loss of principal
Recommended for forex traders looking for low fees and a chance to use the MetaTrader 4 platform
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74-89% of retail CFD accounts lose money
Recommended for forex and CFD traders who value easy account opening and free deposit/withdrawal options
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70.64% of retail CFD accounts lose money
Recommended for forex traders familiar with the MetaTrader trading platforms
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74-89% of retail CFD accounts lose money
Recommended for forex and CFD traders familiar with the MetaTrader trading platforms
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74-89% of retail CFD accounts lose money
Recommended for forex and CFD traders familiar with the MetaTrader trading platforms
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74-89% of retail CFD accounts lose money
Recommended for forex traders looking for great account opening and customer service
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75.2% of retail CFD accounts lose money
Recommended for forex traders looking for low fees who are familiar with the MetaTrader 4 platform
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69% of retail CFD accounts lose money
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Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.
