5 cheapest forex brokers with Islamic swap-free accounts
Shariah, the Islamic law, prohibits interest payment. However, the rollover interest is an integral part of forex trading. How can a Muslim forex trader from Saudi Arabia or the United Arab Emirates trade currencies without violating the religious law? The answer is to find a forex broker willing to offer an Islamic forex account with no overnight interest. Such swap-free accounts are usually offered only to Muslims in order to prevent abuse. To substitute for the revenue from a missing swap, Islamic forex brokers also charge a flat fee for this service. The only exceptions is InstaForex, which does not charge any additional fee for its Sharia account.
A review of five brokers offering an Islamic forex account follows. This list of Islamic forex brokers was created using our interactive comparison of forex brokers. I included only the online forex brokers that offer Islamic swap-free accounts and are regulated by trustworthy authorities. The five cheapest Muslim friendly brokers are ordered starting with the lowest spread (transaction costs).
#1. InstaForex
InstaForex is one of the few ECN forex brokers who offer Islamic forex accounts. What do the letters “ECN”, so coveted by forex traders, mean in practice? First, InstaForex has no dealing desk that would trade against their clients or requote prices. Second, InstaForex’s variable spread can sometimes decrease to zero pips. Alternatively, you can also ask them for a fixed spread, which is a bit higher (2 pips on EUR/USD). But, why would you? Muslim forex traders can trade 121 currency pairs, gold, oil, stocks, indexes, and futures. Depending on the account, you can choose any leverage from 1:1 up to 1000:1, which is the highest leverage offered by any forex broker. InstaForex uses the popular and highly sophisticated MetaTrader 4 trading platform. It supports hedging, trailing stops, and automated trading. Quality is guaranteed by awards that this forex broker regularly gets. In last two years, InstaForex was named the best forex broker in Asia and I personally know several traders from Malaysia, who trade with this broker. What is very important, InstaForex is also the only forex broker that does not charge any additional fee for an Islamic forex account. The customer support at InstaForex also speaks Arabic. You can get more information about this Islamic forex broker from our detailed InstaForex review.
#2. FXOpen
FXOpen welcomes traders from all Muslim countries. The fixed spread is among the lowest in the industry (2-3 pips on majors). In addition to 32 currency pairs, a Muslim forex trader can also trade precious metals (gold). The available leverage is among the highest (500:1), but you can also choose a leverage 1:1 if you wish. Since FXOpen’s minimum deposit is only $1 and it the minimal contract size only $100, it is possible to test FXOpen’s live trading platform practically without any risk. The forex trading platform itself is the popular MetaTrader 4 (MT4), which features hedging, trailing stops, and free automated trading (EA). FXOpen also offers mobile trading. Their customer support speaks Malaysian. For more information read the FXOpen review.
#3. eToro
eToro distinguished itself from the rest of the crowd by an easy-to-use, visually-based trading platform. Obviously, their platform appeals more to beginners than to advanced traders. For example, although it supports hedging, eToro does not provide any algorithmic trading. On the other hand, both beginners and advanced traders would be definitely interested in eToro’s fixed spread of 2-3 pips on all majors. It is not so frequent to see a broker offering the fixed spread of 2 pips on USD/CHF. Another attractive feature of this Islamic forex broker is the leverage of 400:1. eToro also provides support in the Arabic language. For more details, see the eToro review.
#4. Finexo
Finexo is a forex broker from Cyprus, under the oversight of strict European authorities. The leverage is 200:1 and the minimum deposit $25. Features of the trading platform include trailing stops and mobile trading. But the spread is higher (2-5 pips for major currencies) than in the previous cases. What is unique, Finexo can communicate with Muslim forex traders not only in Arabic, but also in Turkish. You can find more details in the Finexo review.
#5. Easy Forex
Easy Forex offers the spread of 3-6 pips on majors, which I consider a bit too high. However, they offer a great variety of 182 different currency pairs and precious metals. Another advantage over their competitors is that you can hold an Islamic forex account in one of twelve currencies, not just USD or Euro. The customer support speaks Arabic. Easy Forex offers the 200:1 leverage, a minimum deposit of $100, hedging, mobile trading, but, again, there is no automated trading. If you want to know more about this Islamic forex broker, please read the Easy Forex review.


October 11th, 2008 at 12:45 pm
Thanks,
As a Muslim, and just starting to learn about Forex, your post was very helpful.
October 22nd, 2008 at 9:29 pm
Thanks for the great review!
The info is really helpful. But I think there is a bit of an issue. I don’t think that muslims are allowed to use leverage either, i.e. it has to be 1:1. Do you know if there are any brokers that provide interest free accounts with 1:1 leverage?
Thanks again.
October 24th, 2008 at 4:12 pm
You can use the 1:1 leverage with any forex broker. Even if the “official” leverage offered by your forex broker is let say 200:1, the real use of leverage is up to you. To make sure you always use the leverage of 1:1, always trade only the amount of money you have on your account. If you have $1,000 on your account and your broker’s leverage of 200:1 offers you an opportunity to command $200,000, you can still buy or sell 1,000 USD instead. It is always your choice.
November 6th, 2008 at 4:58 am
Hi
The information you have provided is extremely useful esspecially to Muslims who want to venture into forex trading.
Thanks
December 5th, 2008 at 3:35 am
You did a great job because Muslims will really start their forex trading business in successful way with these accounts.
December 7th, 2008 at 7:14 am
Thanks for your research for swap-free brokers. I am also searching for a reliable and regulated swap-free broker. My comment on the above listing is that you should also include the origin, address and regulation for each of these brokers.
Thanks
Keep progressing in your great initiative.
February 25th, 2009 at 6:32 am
WHy cant a muslim use the leverage, unless there is intrest paid on the leverage what would be the problem in using it,So the question is, is intrest paid on the leverage
March 16th, 2009 at 8:07 pm
I am an Islamic trader and I trade with Forex-Metal.com.
April 13th, 2009 at 6:38 am
assalaamualaikum,
thanks for all informations and good news for islamic trader.
July 1st, 2009 at 11:17 am
good to know, thank for the info mate, i will spreat it around.
August 7th, 2009 at 6:02 am
hey why dont know you add arab financial brokers http://www.afb.com.kw AFB it’s an islamic broker and offer all islamic trading ( swap free ) accounts . this company based in kuwait ( a muslim country in the middle east ) and offer trading in forex 2-3 pips and also offer trading in commodities and metals.
August 10th, 2009 at 1:11 pm
FX Trading (www.fxtrading.com) is one of the first US based forex retail brokers, with Islamic accounts.
For more info, email: mohsin@fxtrading.com
September 28th, 2009 at 2:57 am
Hi, check also conditions on islamic accouts in http://www.brocompany.com, they seem to be the most favourable for muslim shariya.
Good job
Thanks
October 1st, 2010 at 2:10 pm
If anyone here who is muslim trading in FX, I would like to talk to you a bit more. I am myself trading and would like to learn and teach from fellow muslim traders. my email is abdullahjib@gmail.com
October 30th, 2010 at 2:03 pm
please is these conditiones are avalable on any broker minimum spread 4 pip
islamic account
LEVERAGE 1:1
minimum deposit 500$
minimum transaction 500$
commodities gold
because even with swap free our islamic sharia dont permit 1:2 or more leverage
it’s called in other word (loan) with benefit
the profit is not nececary be a fee it can be : attracting more traders by high leverage
so if any loan has joined with any benifit it is no permited by Islam low
hope you understande me sir
October 30th, 2010 at 2:10 pm
thanks to anon to sustaine the choice of 1:1 leverage
because it’s a real islamic profile account not only swap free
I know it’s hard because the profit/loss will be minim 2 or3$
a day and no more but it’s hala with no loan
special thanks to muslims supporting no leverage positions.
December 13th, 2010 at 2:04 pm
any website and low min deposit Muslim trading web anyone send me
May 16th, 2011 at 9:05 am
is helpul info to muslim brothers
thanx
May 27th, 2011 at 11:19 am
no leverqge
1:1 halal leverage
if the broker offer 200:1
then u only can trade amount of money you have on your account..deposit $100 then u cannot trade $101…if the amount of money you have on your account is $20 then u trade $100, u already in loan…islamic religion is so easy to folow and understand…
June 19th, 2011 at 12:26 am
if th leverege is more than 1:1 and there is no interest then what is wrong with leverege
August 5th, 2011 at 1:14 am
assalamu wa alaikum,
i want to knw which broker provide islamic account wid mobile wap trader. Nd want to learn more abt fx nd cfd trading…please add me in yahoo or g talk account:
Mazher88@yahoo.co.in
Mazher88gmail.com
Shukran
September 29th, 2011 at 6:05 am
ECN THANKS.
November 3rd, 2011 at 2:38 pm
could someone provide me a link for an account with 1:1 leverage, any help appreciated. thanks
November 21st, 2011 at 12:24 am
re: asim
“if th leverege is more than 1:1 and there is no interest then what is wrong with leverege”
A reply to this can be found here (I dont know how creditable this is, so you decide on your own):
http://www.islamqa.com/en/ref/106094/forex
Based on my limited understanding (which is VERY VERY little). You can not profit from loans. So when you apply leverage for a trade the broker(or lender) makes profit by charging pips for every trade transaction on top of the loan that was given to you. And if you get stopped out then the lender takes back their money in full without sharing the loss. Therefore when you trade you need to use only your own cash without taking a loan.
Please note, the latter explanation is based on my opinion and my understanding (which is very VERY little) of Forex in light of Islam. Please do your own research and be sincere to yourself.
November 21st, 2011 at 8:07 am
re: one lone pip
Islamic law prohibits charging interest when you lend money. But it is all right to borrow money (without paying any interest) and use them to run your business. And this is exactly what leverage in forex does. Yes, you have to repay the borrowed money back to the forex broker even if your trade is not profitable. But you would do the same if you were a barber and took a loan from a bank or from your uncle. Leverage is not against Islam!
And spread is not against Islam either. You pay few pips as a transaction fee. You always pay transaction fees when you are moving money (or goods) around. This is all right.
The only thing that it against Islam is rollover interest. But you can avoid it if you use a forex broker with a a swap-free account. The article is right in this regard.
November 29th, 2011 at 9:39 am
Hi I’m Aziz from Malaysia. I trade on micro swap-free account in tradersway.com
I want try ecn account but they don’t allow swap-free there. Can you recommend me swap-free ecn account broker.
January 12th, 2012 at 9:27 pm
http://WWW.FXCM.COM – they offer Islamic accounts. $2,000 minimum on MT4. Also available to US residents. Keep in mind that you have to have 1:1 leverage which makes it halal and you can only BUY/SELL(long). You can’t sell/buy(short) as this is haraam.