Islamic Forex Brokers

Finding a Shariah-compliant account to trade Forex, stocks and even cryptocurrencies is harder than it sounds. We've reviewed the best Islamic trading accounts and narrowed the list down to 3.

In this article:

Top 3 Islamic Brokers

Buy shares outright or trade CFDs on shares, indices, Forex, cryptocurrencies (including DOGE coin) and more*. Connect with over 6 million other investors, follow or copy their trades in real-time on eToro.com.

  • Risk warning: 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
  • Markets: NA
  • Platforms: Copy trading
  • Regulators: Australia, CySEC, UK
  • Incorporated: 2007

$1000
deposit

1:30
leverage

Instant
execution

AvaTrade (AvaTrade.com) is an award winning online broker. Access a wide range of markets spanning Forex, crypto-currencies, shares, metals and more on competitive spreads.

  • Risk warning: 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
  • Markets: Forex (CFD), Cryptos (CFD), Stocks (CFD), Indices (CFD), Metals (CFD), Energy (CFD), Commodities (CFD), Bonds (CFD)
  • Platforms: MetaTrader 4, MetaTrader 5, Copy trading
  • Regulators: Australia, BVI, Ireland, Japan, South Africa, UAE
  • Incorporated: 2006

$100
deposit

1:400
leverage

Instant
execution

$100
deposit

1:30
leverage

Instant
execution

$100
deposit

1:400
leverage

Instant
execution

$100
deposit

1:30
leverage

Instant
execution

$100
deposit

1:400
leverage

Instant
execution

LQDFX (LQDFX.com) is an international Forex broker and CFD provider headquartered in the Marshall Islands. It delivers STP execution on MT4 across 71 currency pairs, indices and commodities.

  • Markets: Forex (CFD), Indices (CFD), Metals (CFD), Commodities (CFD)
  • Platforms: MetaTrader 4, Mirror trading
  • Regulators: Marshall Islands
  • Incorporated: 2015

$20
deposit

1:300
leverage

Market
execution

Islamic Brokers Reviewed

Before we get started, let's touch on what the 3 brokers featured in this article have in common. First, they charge no interest on positions that you keep open overnight. Their Islamic accounts are fully Shariah-compliant. Second, they don’t make-up for the lost interest by charging you extra. The spreads you’ll pay are the same as that paid by other traders. And finally, their islamic trading accounts have no additional charges.

eToro

eToro is TrustedBrokers' "Best Islamic Broker" in 2021.

With eToro (eToro.com), you can buy over 2,000 shares and ETFs from a wide range of American and international companies. This includes companies listed on the Nasdaq, the S&P, in Europe, Hong Kong and even Saudi Arabia. Because you’ll actually own the shares, you’ll be entitled to receive dividends. This will be of interest if you are a long term investor.

You can also buy over 20 crypto-currencies through eToro, and store them safely in your wallet. Popular coins include Bitcoin, Ethereum, Binance Coin and even Dogecoin. And if you’re a long term investor, you can now earn interest on your coins by staking them. However, please note that crypto-currencies may not be available in your country.

We like that eToro’s Islamic trading account places no restrictions on how long you can keep your positions open. Furthermore, there are no extra fees or hidden charges. However, you should note that it comes with a 1,000-dollar minimum first-time deposit. Subsequent deposits need only be above $50.

To open an Islamic account with eToro, open an account on eToro.com, fund your account, and contact eToro's customer service team to request a Shariah-compliant account. It's important that you do this before placing your first trade.

AvaTrade

AvaTrade (AvaTrade.com) allows you to trade CFDs on over 1000 instruments. These include Forex, stocks, indices, commodities and bonds. And while AvaTrade also offers CFDs on crypto-currencies, these are not available through its Islamic account. AvaTrade supports MetaTrader 4 and 5, two of the world’s leading retail trading platforms.

We like that AvaTrade allows you to open an account from a low $100 initial deposit. 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 to day traders.

To open an Islamic account with AvaTrade, open an account online on AvaTrade.com, fund your account and apply for an Islamic account for trading. AvaTrade aims to process your request within 1 to 2 business days.

LQDFX

We like that LQDFX (LQDFX.com) places no restrictions on how long you can keep your positions open in its Islamic account. Furthermore, there are no additional charges or hidden fees. You can open an account from a low as $500, or upgrade to a VIP one when you deposit over $25,000.

However, LQDFX supports fewer instruments than AvaTrade and eToro: its MetaTrader 4 platform is focussed around CFDs on Forex, indices and commodities. It doesn't support CFDs on stocks, indices or crypto-currencies. But does allow all trading styles and Expert Advisors (such as hedging, scalping and arbitrage bots).

Because LQDFX operates as a straight-through processing broker, it aggregates prices from leading banks, and forwards your orders onto them for execution. Ultimately, you’ll benefit through tighter spreads, greater certainty of execution and no re-quotes. This may appeal to you, if you dislike the idea of your broker acting as a market maker.

Islamic Broker Checklist

We hope this article has helped narrow your options and we would encourage you to create either a live or a demo account with each of these brokers, to see what they have to offer. If not, here's a checklist of items to look for when searching for a Shariah-compliant broker:

Checklist

  1. No interest on overnight positions (also called swap fees).
  2. No time limit placed on positions kept open overnight.
  3. No fees charged on positions kept open overnight.
  4. No additional charges (e.g. administrative fees).
  5. No spread-widening for Islamic accounts.


FxPro

MT4 Floating - Instant Execution

Trade 70+ currency pairs, spot indices, energies, metals and shares on floating spreads and instant ... More

  • $500 deposit
  • 1:200 leverage ?
  • 1.71 pips EUR/USD
Risk warning: 79.78% of retail investor accounts lose money when trading CFDs with this provi... More

AvaTrade

Islamic Account [BVI]

Trade a wide range of financial instruments with a Shariah compliant account. AvaTrade does not ... More

  • $100 deposit
  • 1:400 leverage ?
  • 1.9 pips EUR/USD
Risk warning: 79% of retail investor accounts lose money when trading CFDs with this provider... More

eToro

Islamic Account [EU]

Trade 47 currency pairs, crypto-currencies, popular stocks, indices, gold and silver with no ... More

  • $1000 deposit
  • 1:30 leverage ?
  • 3 pips EUR/USD
Risk warning: 67% of retail investor accounts lose money when trading CFDs with this provider... More

AvaTrade

Professional Account [EU]

Trade 55 currency pairs on fixed spreads, plus CFDs on crypto-currencies, stocks, indices, bonds and... More

  • $100 deposit
  • 1:400 leverage ?
  • 0.6 pips EUR/USD
Risk warning: 79% of retail investor accounts lose money when trading CFDs with this provider... More