Best Islamic Forex Broker
Finding a Shariah-compliant trading account is harder than it sounds. We've reviewed 8 brokers with Islamic accounts, and called out TrustedBrokers' "Best Islamic Broker in 2022".
Best Islamic Broker in 2022
AvaTrade (AvaTrade.com) is TrustedBroker's "Best Islamic Broker" in 2022. Trade CFDs on over 1,000 instruments spanning Forex, stocks, indices, commodities and even government bonds. CFDs on crypto-currencies are not available through its Islamic account. AvaTrade supports MetaTrader 4 and 5, two of the world’s leading trading platforms.
AvaTrade's Islamic account enjoys the same trading conditions as AvaTrade's other accounts. It charges no additional fees or commissions on its Islamic account. However, AvaTrade won't allow you to keep your positions open for more than 5 days. That's why its Islamic account is best suited for day traders, rather than long-term investors.
To get started, open a regular account online at AvaTrade.com. Fund your account from a low $100 deposit, and request an account in Islamic format from customer support before placing your first trade. AvaTrade aims to process your request within 1 to 2 business days.
Other Shariah-Compliant Accounts
However, AvaTrade isn't the only broker to offer a swap-free account. We've reviewed other brokers with swap-free accounts for Muslim investors below, and highlighted any restrictions or supplemental fees.
No restrictions placed on Islamic accounts
- LiteForex (LiteFinance.com): allows you to convert your account to an Islamic account at no additional cost. However, LiteForex reserves the right to revert your account to a swap-paying one, if your trades would otherwise mostly incur negative swaps (e.g. a cost to you). This may not provide the certainty you are seeking from a broker.
Administrative fees on overnight positions
- HYCM (HYCM.com): charges no overnight fees for the first 14 days a position is opened. After that, overnight positions are charged a flat $5 fee per contract, per night. You'll find a breakdown of HYCM's fees by instrument here. HYCM offers three accounts (with fixed, variable and raw-spreads) which can each be converted to Islamic format.
- HotForex (HotForex.com): charges no overnight fees for the first 7 days. Fixed overnight fees apply beyond that. You'll find a breakdown of the fees in your HotForex account. However, you should know that HotForex reserves the right to apply additional fees, without prior notice, including across positions held for over a month.
- FP Markets (FPMarkets.com): charges no overnight fees for the first 5 days across Forex majors. However, an administrative charge will be levied immediately across all other instruments. These fees, published on its website, range from $1 for CFDs on indices to $33 for the EURZAR currency pair. FP Markets offers swap-free accounts on MT4 and MT5 (but not on the IRESS platform).
- FxPro (FxPro.com): charges no overnight fees for a certain number of days. The length of the grace period and fees vary with the account type and instrument. This PDF summarises FxPro's commissions across its accounts and instruments. To open an Islamic account, open an account online and contact FxPro's back-office team before your first trade, to make it Islamic.
- EagleFX (EagleFX.com): allows you to open an account with no prior identity checks. It supports all trading styles on MetaTrader 4. However, it charges an administrative fees on positions held overnight. You'll need to contact EagleFX's customer service team for specifics. To open an Islamic account, open your account online and contact the customer service team to convert it into a swap-free account.
Wider spreads for Islamic accounts
- 4XC (4xc.com): charges no administrative fees on its swap-free Islamic account. However, it does widen spreads marginally in order to compensate for the loss of revenue. 4XC places no restrictions on how long you can keep your positions open overnight. However, it reserves the right to discontinue your swap-free account if its suspects fraud, manipulation or swap arbitrage.
We hope this article has helped narrow your choices and highlighted the issues you need to consider when comparing Islamic trading accounts. Why not create a demo account with one or a handful of these brokers, to test-drive their platforms? Alternatively, open a real-money account to start trading right away.