Best Islamic Forex Broker
Finding a good Shariah-compliant trading account is harder than it sounds. Here's TrustedBrokers' "Best Islamic Broker" in 2023 and reviews of other brokers with swap-free accounts.
Best Islamic Broker in 2023
FXCC.com is TrustedBroker's Best Islamic Broker in 2023. Trade CFDs on Forex, crypto-currencies, precious metals, oil and stock indices, with leverage up to 1:500. FXCC supports the MetaTrader 4 platform where it allows all trading styles, including automated trading, hedging and scalping.
FXCC's swap-free account enjoys the same trading conditions as its ECN XL account. It charges no additional fees or commissions on its swap-free account. You can also keep your positions open overnight for as long as you want, at no additional cost.
To get started, open a regular account online at FXCC.com. Fund your account, then contact customer support to request a swap-free account before placing your first trade. Please note that this account is for clients of Muslim faith only.
Other Islamic Brokers
FXCC isn't the only broker with a swap-free account. However, its account is the best by far. Here's how other popular brokers compare.
No restrictions on Islamic accounts
- 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 expect from a broker.
Fees on overnight positions
- 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).
- HYCM.com: charges no overnight fees for the first 14 days a position is opened. After that, overnight positions incur a flat $5 fee per contract, per night(1). HYCM offers three accounts (with fixed, variable and raw-spreads) and all are available in Islamic format.
- 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(2). To open an Islamic account, open an account online and contact FxPro's back-office team before your first trade, to make it Islamic.
Restrictions on overnight positions
- AvaTrade.com: its 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.
Spread-widening for Islamic accounts
- 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 it 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 brokers. Why not create an account with FXCC.com to test-drive its platform. FXCC will cover any deposit fees charged by your bank, card provider or crypto wallet.
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About the author
I'm Stéphane, a trader and an entrepreneur. My mission with TrustedBrokers is to help you find the right broker for you, whether you're a beginner or a pro. I've personally used and tested the brokers on our service, opening and funding real-money accounts, contacting customer service and placing trades. I started my career in investment banking in London.
- 1. HYCM. (2023). Islamic Fees. https://www.hycm.com/sites/www.hycm.com/files/pdfs/islamic_fees.pdf
- 2. FxPro. Swap Free Account Commissions. https://files-mrkt.s3.eu-central-1.amazonaws.com/datarepo/docs/doc/swap_free/swap-free-accounts-commission-en.pdf
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