10 Best Islamic Forex Brokers (February 2023)

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Forex trading has gained considerable popularity in the Islamic world, but brokers must be cautious when dealing with this market segment due to cultural nuances. One such nuance is the Shariah law that prohibits Muslims from receiving interest.

This presents a challenge in forex trading, as the rollover/swap fee incurred for keeping positions open overnight goes against the principles of Shariah law. Therefore, brokers have developed Islamic or swap-free accounts to accommodate the unique requirements of the Islamic market. These accounts eliminate interest on overnight positions, but traders may be subject to additional account fees.

Here is a list of the top 10 Islamic forex brokers.

FP Markets

FP Markets is a well-known name in the forex industry, a top-notch Australian broker with 17 years under its belt and numerous accolades including awards for “Best Trade Execution,” “Best Customer Service,” and “Best Value for Money.” With access to more than 10,000 tradeable instruments and competitive minimum deposit and trading conditions, as well as the popular MetaTrader platforms, FP Markets is a top choice for traders.

Opening an account with FP Markets is simple. First, register and verify your identity and residency by submitting a valid government-issued ID and a recent utility bill or bank statement. This is in compliance with KYC and AML regulations. Next, deposit funds, meet the broker’s minimum requirements, and begin trading. For those new to trading or seeking a risk-free trial, a demo account is available.

Furthermore, traders with religious restrictions on paying or receiving swap or rollover interest can open an Islamic account with FP Markets. This account will not incur swap or rollover fees, however, some admin fees may apply, ranging from $1 to $33 depending on the traded instrument. Bear in mind that the broker waives admin fees for the first five trading nights.

FXTM

FXTM holds the keys to the castle, authorized and regulated to do business globally. With a client base of two million people from 180 countries, FXTM has a worldwide reach. The company’s reputation is top-notch, with trust and commitment being the pillars that uphold its values and ethos.

FXTM offers a smorgasbord of trading instruments, from forex to commodities, indices, and more, catering to every trader’s taste. With multiple account options and low minimum deposits, FXTM hits the sweet spot. On top of that, they give traders access to the tried-and-true MetaTrader platform that’s user-friendly and rock solid. Furthermore, FXTM’s commitment to regulation, safety, and top-notch trading conditions solidifies its status as a cream of the crop, a trustworthy choice for traders.

FXTM’s Islamic accounts (swap-free) offer the same trading conditions as its other accounts, but with the added bonus of no overnight fees that conflict with Muslim beliefs. Additionally, the company is entirely transparent about its swap-free fee that may come into play if you hold multiple positions overnight and exceed the swap-free day limit.

HF Markets

HF Markets (HFM), a veteran in the game with over a decade of expertise, is a name you can trust. It’s a highly regulated international broker with a wide range of trading products and account options. Most importantly, HFM is under the watchful eye of multiple regulatory bodies worldwide, providing traders with top-notch protection and security for a smooth trading journey. HF Markets is licensed by renowned financial regulatory bodies: the UK’s FCA and CySEC in Cyprus. These licenses assure clients of the broker’s compliance with strict financial standards.

Their Premium and Zero Spread accounts are tailored to comply with Sharia law. These Islamic accounts offer the same conditions as their respective trading accounts, but without the overnight swap or rollover charges.

XM

XM has been a leading name in forex trading since its foundation in 2009. With over 5 million customer accounts in over 190 countries, the company offers secure fund protection and adherence to multiple regulatory frameworks. The XM brand is supported by a solid crew of brokers, and they’ve secured four highly-regarded licenses from regulatory powerhouses worldwide.

Additionally, XM provides top-notch trading tools, fair terms, and zero fees for deposits and withdrawals. And the cherry on top is that you don’t have to take our word for it. XM offers free demo accounts that can be opened in a jiffy!

Moreover, their Islamic accounts (Micro, Standard, and XM Zero) offer the same trading terms as their respective accounts, with no overnight swap or rollover fees.

OctaFX

After launching in 2011, OctaFX quickly became one of the most successful forex brokers around. OctaFX is a European Union-licensed forex broker that is supervised by the Cyprus Securities and Exchange Commission (CySEC). It offers beneficial trading terms and a variety of dependable trading platforms, including MetaTrader5.

Additionally, In 2020, OctaFX received World Finance’s Best Islamic Foreign Exchange Account award, and for good reasons. OctaFX offers Islamic-compliant trading with its MT5 and MT4 Swap-free accounts, meaning no interest accrual, collection, or payment is involved, in accordance with the Sharia law.

FXCM

FXCM is a smart choice as a top-notch, well-regulated forex broker with excellent trading conditions. To top it off, traders have access to first-class trading on FXCM’s strong trading platforms, including the widely-used MetaTrader 4, its award-winning Trading Station, and NinjaTrader.

Additionally, FXCM provides multiple account options including an Islamic one. Traders can trade over 100 assets including Forex, commodities, indices, stocks, and more. Floating spreads start from 1.3 pips, but FXCM may add a 0.4 pip markup to offset the absence of rollover fees. All of this is accessible on multiple platforms such as MT4, Trading Station, TradingView, NinjaTrader, and Capitalise AI.

FXOpen

FXOpen is a trusted global forex broker, regulated in the UK and Australia, and serves both retail and institutional investors with its financial market trading services.

FXOpen offers 4 basic account options, each allowing trading with micro lots. The broker also offers personal multi-account manager accounts and swap-free (Islamic) options.

Additionally, Islamic accounts charge a commission for overnight positions instead of a swap. This commission is equal to the swap amount and is displayed on the account statement. Only Micro, ECN, and STP accounts can be converted to Islamic accounts, but Crypto accounts cannot.

ThinkMarkets

ThinkMarkets is a reputable and award-winning broker with a global presence in over 75 countries. They offer CFD and forex trading on a range of currency pairs, and traders can choose from three platforms: MT4, MT5, and the custom ThinkTrader. With favorable trading conditions, they have a lot to offer.

ThinkMarkets allows clients to opt for a “swap-free” account, which doesn’t accrue swap or interest for any positions held. However, a weekly administrative fee is imposed for positions kept for 7 or more days.

AvaTrade

AvaTrade, formerly AvaFX, has been around since 2006 and is a subsidiary of the Ava Group. This global company provides over 200 instruments for trading, including more than 50 currency pairs and a variety of CFDs on indices, stocks, commodities, precious metals, ETFs, and cryptocurrencies like Bitcoin and Litecoin. The Ava Group is based in Dublin, Ireland, but has a widespread presence, serving customers around the world from its offices in France, Spain, Italy, Australia, Japan, China, South Africa, and Mongolia

To accommodate clients following Riba principles of Sharia law, AvaTrade offers an Islamic account that allows positions to be held for up to 5 days without incurring the rollover fee. Positions held beyond 5 days will incur the fee.

AvaTrade’s Islamic accounts don’t provide crypto trading, but they do offer traditional forex trading. With AvaTrade, you can access a variety of instruments like forex, indices, bonds, ETFs, stocks, and commodities. Therefore, clients can enjoy a secure and stable trading experience, consistent with their beliefs and following the principles of Islamic law.

ICM Capital

Founded in 2009, ICM Capital is a well-known, global brand that is authorized and regulated in many different jurisdictions. The broker offers a variety of instruments including shares, cryptocurrencies, indices, CFDs, etc. across multiple financial markets, helping clients minimize risk and increase profits.

ICM Capital offers a choice of two account types: the standard ICM Standard and the direct ICM Direct. The Standard account features fixed spreads and instant trade execution, while the Direct account offers variable spreads, no requotes, and unrestricted trading strategies (market execution). Both accounts allow micro lot trades and the ICM Standard account offers a swap-free (Islamic) service that’s in line with Sharia law, making it ideal for clients with Islamic beliefs.