Best Swap-Free Islamic Trading Accounts
Trade CFDs on Forex, shares and commodities under Shariah law with an Islamic trading account. We've reviewed the best swap-free Islamic trading accounts for you, and shone a light on hidden fees.
What is an Islamic Forex trading account?
When you keep positions open overnight, your broker will automatically carry them over into the following day. However, this poses a problem for investors that follow Sharia law, as interest arises during the rollover. This interest, also known as "swap charges" or "rollover fees", can be a positive or a negative value.
Islamic trading accounts have no such rollover fees. Unfortunately, some brokers charge administrative fees or widen the spreads you pay when you place orders, in order to recover lost revenue. However, some brokers don't. This article reviews each broker in turn, to help you find the right account.
What's the best Islamic trading account?
In our opinion, eToro offers the best Islamic trading account. eToro charges no swap fees, no commission on positions left open overnight and no additional account fees. In other words, eToro's islamic trading account provides interest-free leverage. To get started, open a real account on eToro, deposit at least $1,000 and contact customer service to switch your account to an Islamic one.
However, eToro isn't the only broker to offer a swap-free account. We've listed Islamic Forex brokers below, and discussed their hidden fees (or lack of fees), in more detail:
Brokers without additional charges
- eToro (eToro.com): charge no fees or commissions on its Islamic account. It makes money exclusively through the spread. Importantly, it places no restrictions on how long your positions can stay open. Buy shares, cryptocurrency or trade CFDs on over 2,000 instruments. This is, in our opinion, the best Islamic trading account. Simply open an account online, fund it with a minimum of $1,000 an contact customer service before your first trade.
- LQDFX (LQDFX.com): charges no fees or commissions on its Islamic account, and places no restrictions on how long you can keep your positions open overnight. Its trading conditions mirror that of its Gold account, with a low $500 deposit. However, LQDFX reserves the right to discontinue your swap-free account if it suspects fraud, manipulation or swap arbitrage.
- AvaTrade (AvaTrade.com): charges no fees or commissions on Islamic accounts. However, it doesn't allow you to keep positions open for more than 5 days. For this reason, AvaTrade's Islamic account is best suited for day-traders, or those who expect to close their positions within 5 days.
- LiteForex (LiteForex.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).
Brokers with administrative fees
- EagleFX (EagleFX.com): charges an administrative fees on positions held overnight. To get started, open an account online and contact the customer service team to convert it into a swap-free account.
- FP Markets (FPMarkets.com): free of overnight fees for the first 5 days for Forex majors. However, administrative charges immediately apply 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): free of overnight fees for a certain number of days. 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 with FxPro, open an account online and contact FxPro's back-office team before your first trade, to make it Islamic.
- HotForex (HotForex.com): free of overnight fees for the first 7 days. HotForex charges fees, published in the client area, beyond that grace period. HotForex reserves the right to apply additional fees, without prior notice (including across positions held for over a month).
- HYCM (HYCM.com): free of 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.
Brokers with spread-widening
- 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.
This article wouldn't be complete without mentioning that Plus500 also offers an Islamic account in certain jurisdictions. However, Plus500 does not communicate publicly on the conditions surrounding its Islamic account. To find out more, you will need to create an account and contact their customer service team.
Trade up to 71 currency pairs as well as CFDs on metals, commodities and indices through MT4. STP ... MoreTrade up to 71 currency pairs as well as CFDs on metals, commodities and indices through MT4. STP trading with no requotes. Swap-free account only available to clients of Muslim faith.
- $20 deposit
- 1:300 leverage ?
- 1.1 pips EUR/USD
Trade a wide range of financial instruments with a Shariah compliant account. AvaTrade does not ... MoreTrade a wide range of financial instruments with a Shariah compliant account. AvaTrade does not charge rollover fees or swaps on overnight positions. You cannot invest in crypto-currencies through this account.
- $100 deposit
- 1:400 leverage ?
- 1.9 pips EUR/USD
Trade Forex as well as CFDs on cryptocurrencies, shares, indices and metals on floating spreads ... MoreTrade Forex as well as CFDs on cryptocurrencies, shares, indices and metals on floating spreads without commission. This account, designed for Muslim clients, does not incur swap or rollover charges for holding positions overnight. Terms and conditions apply.
- $100 deposit
- 1:500 leverage ?
- 1.2 pips EUR/USD
Trade 47 currency pairs, crypto-currencies, popular stocks, indices, gold and silver with no ... MoreTrade 47 currency pairs, crypto-currencies, popular stocks, indices, gold and silver with no interest or commissions. Open an account online and request an Islamic account from your account manager.
- $1000 deposit
- 1:30 leverage ?
- 3 pips EUR/USD
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