Best Islamic Forex Brokers 2021

Looking for a swap-free Islamic forex account? In this guide, we’ll highlight the 9 best Islamic forex brokers for 2021 and show you how to start trading today.

Best Islamic Brokers 2021 List

Here are the 9 best Islamic forex brokers you can trade with in 2021:

  • eToro – Overall Best Islamic Forex Broker for 2021
  • VantageFX – Best Islamic Forex Broker for High Leverage
  • AvaTrade – Best Swap-free Account for Options Trading
  • Forex.com – Top Islamic Forex Trading Account in the US
  • IC Markets – Best MT4/MT5 Broker with Islamic Forex Accounts
  • Pepperstone – Cheapest Islamic Forex Broker for 2021
  • Skilling – Best Forex Islamic Account for Beginners
  • Interactive Brokers – Top Swap-free Account for Exotic Forex Pairs
  • IG – Best Swap-free Account for Advanced Forex Traders

Top Islamic Forex Brokers Reviewed

Want to learn more about the best Islamic forex brokers? We’ve put together reviews of the top 5 platforms so you can decide which is right for you.

1. eToro – Overall Best Islamic Forex Broker for 2021

etoro logoeToro is our overall top pick for Islamic traders in search of a swap-free account. This broker offers Islamic accounts with no rollover fees on contracts lasting more than 24 hours, no commissions for forex trades, and no interest on leverage. Plus, with eToro, you can trade over 40 major and minor currency pairs.

To open an Islamic account with eToro, you’ll need to fund your trading account with at least $1,000. The broker makes this simple by accepting a wide variety of payment methods, including credit cards, debit cards, PayPal, Neteller, Skrill, and bank transfer. There are no deposit fees and eToro’s inactivity fee doesn’t take effect unless you go a whole year without trading.

eToro stands out for its custom trading platform, which is available for the web and mobile devices. You get an easy to use charting interface with over 100 built-in studies and drawing tools, plus a news feed and economic calendar. eToro also offers market research from professional analysts to help guide your trades.eToro copy trading

Past performance does not guarantee future results.

Even better, eToro has a social trading network where you can follow millions of other traders from around the world. The platform lets you see what other traders think about a forex pair, so you can see changes in momentum at a glance. In addition, eToro supports copy trading. That means that you can mimic the moves of more experienced forex traders and put your portfolio on autopilot.

eToro is regulated by the UK’s Financial Conduct Authority. Plus, the broker offers 24/5 customer support if you need help setting up your Islamic forex account.

Pros:

  • Commission-free trading on over 40 forex pairs
  • Access professional market research
  • Custom trading platform with 100+ technical tools
  • Social trading network and copy trading
  • Regulated by the UK FCA with 24/5 support

Cons:

  • $1,000 minimum deposit for Islamic accounts

67% of retail investor accounts lose money when trading CFDs with this provider.

2. VantageFX – Best Islamic Forex Broker for High Leverage

VantageFX logoVantageFX is another top forex broker that offers Islamic trading accounts. This forex trading platform is especially good for traders who want to use high leverage, since VantageFX offers margin up to 500:1 for major forex pairs. In addition, most minor and exotic pairs can be traded with leverage of 75:1 or greater.

Another benefit to VantageFX is that the broker offers swap-free accounts with both STP  (straight-through processing) and ECN (electronics communication network) order processing. STP accounts charge spreads starting at 1.4 pips, while ECN accounts charge spreads as low as 0.0 pips and a commission of $3 per lot per side. VantageFX Open a Trade

VantageFX has its own trading platform, which we found to be very easy to use. However, it is a little bit limited when it comes to technical analysis. The good news is that VantageFX also integrates with MetaTrader 4 and 5, so you have access to forex signals, custom indicators, strategy backtesting, and more.

VantageFX has over 40 forex pairs available to trade and the broker requires just a $200 minimum deposit to open a new account ($500 for ECN accounts). The broker is regulated by the Australian Securities and Investment Commission (ASIC) and offers 24/5 customer support for Islamic forex trading accounts.

Pros:

  • Trade with leverage up to 500:1
  • STP and ECN accounts available
  • Spreads as low as 0.0 pips with ECN account
  • Integrates with MT4 and MT5
  • Regulated by ASIC

Cons:

  • Above-average spreads with an STP account

Your capital is at risk.

3. AvaTrade – Best Swap-free Account for Options Trading

avatrade brokerFor Islamic traders who want to buy and sell vanilla forex options, AvaTrade is one of the best trading platforms available. This broker carries 55 forex pairs, many of which you can trade either as spot currencies or through options contracts. Both spot and options forex trading is 100% commission-free.

AvaTrade has its own custom platform for forex options trading, called AvaOptions. With this platform, available for web and mobile, you can easily pull up profit & loss charts and see the likelihood of profiting from a trade based on historical volatility. You can also analyze multi-leg options strategies and easily execute them through AvaTrade.AvaTrade best forex demo account

For spot trading, AvaTrade offers a separate web and mobile trading platform that’s packed with features. You can conduct technical analysis with dozens of built-in studies, plus keep watch over the market with a news feed and economic calendar. AvaTrade also supports social trading and copy trading through its standalone AvaSocial mobile app.

AvaTrade is regulated by the UK’s FCA and Australia’s ASIC. The broker offers 24/5 customer support if you need help setting up your account. To open a new Islamic account, you’ll need to make a $100 minimum deposit and then make a request for a swap-free account through the customer support team.

Pros:

  • 100% commission-free spot and options trading
  • AvaOptions app for multi-leg options analysis
  • Social trading through AvaSocial mobile app
  • Low $100 minimum deposit
  • Regulated by the FCA and ASIC

Cons:

  • Multiple different trading platforms for spot, options, and social trading

Your capital is at risk.

4. Forex.com – Top Islamic Forex Trading Account in the US

Forex.com Logo Forex.com is one of the best Islamic forex brokers in the US. This brokerage was one of the early pioneers of online forex trading and has been operating since 2001. As a US broker, it’s regulated by the Securities and Exchange Commission (SEC) and the Commodities and Futures Trading Commission (CFTC).

Forex.com offers trading on over 80 currency pairs, plus gold and silver. Spreads with a Standard account start as low as 1.0 pips. Alternatively, you can also open a Commission account that charges spreads as low as 0.2 pips and commission of $5 per 100,000 of volume traded. Forex.com Trading Platform

One of the best things about Forex.com is that it provides you with tons of analysis of the forex market. This broker offers professional research and market reports, plus a news feed and economic calendar. You also get access to pivot point analysis, which offers actionable trade ideas based on technical price movements.

Forex.com has its own web and mobile trading platform that we found to be quite comprehensive. It even includes performance analytics, so you can track your wins and losses over time and make improvements to your strategy. Forex.com only requires a $100 minimum deposit to open an account, but you must deposit funds via bank transfer or debit card.

Pros:

  • US broker regulated by the SEC and CFTC
  • Spreads as low as 1.0 pips with Standard account
  • Only requires $100 minimum deposit
  • Professional market research and pivot points analysis
  • Trading platform with performance analytics

Cons:

  • Does not accept credit or e-wallet payments

Your capital is at risk.

5. IC Markets – Best MT4/MT5 Broker with Islamic Forex Accounts

ICMarkets logoIC Markets is another top Islamic forex broker that offers trading on more than 60 currency pairs. One of the key advantages to this broker is that most major pairs can be traded with leverage up to 500:1, which enables you to take large positions in the forex market even with a small initial deposit.

The real selling point to IC Markets, though, is its integration with MetaTrader 4 and 5. The broker doesn’t have its own trading platform and instead focused on making its integration with these popular trading platforms as seamless as possible. With MT4 and MT5, you can build custom indicators and trading strategies, apply forex signals, and even set up automated trading strategies.IC Markets Forex Pairs

IC Markets offers both STP and ECN swap-free trading accounts. STP accounts are 100% commission-free and charge spreads starting from 0.6 pips, which is incredibly inexpensive. ECN accounts charge spreads as low as 0.0 pips and carry commissions of $3.50 per lot. Islamic accounts also carry overnight charges of $5-$10 for most forex pairs in lieu of swap charges.

IC Markets is regulated by the Financial Services Authority of the Seychelles (FSA). The broker offers 24/7 customer support if you need assistance with your account.

Pros:

  • Trade with 500:1 leverage
  • Seamless integration with MT4 and MT5
  • STP and ECN Islamic forex accounts available
  • 24/7 customer support
  • Spreads as low as 0.6 pips with Standard account

Cons:

  • FSA is not a top-tier regulatory authority

Your capital is at risk.

Best Islamic Forex Brokers Comparison

Now that you know more about the best forex Islamic accounts, let’s see how they stack up in terms of fees:

Pricing Structure USD/GBP Spread Deposit/Withdrawal Fee Maximum Leverage
eToro Spread 2.1 pips $5 withdrawal fee 30:1
VantageFX Spread (STP)

Commission (ECN)

1.4 pips (STP)

$3 per lot (ECN)

None 500:1
AvaTrade Spread 1.6 pips None 400:1
Forex.com Spread (STP)

Commission (ECN)

1.0 pips (STP)

$5 per lot (ECN)

None 50:1
IC Markets Spread (STP)

Commission (ECN)

0.6 pips (STP)

$3.50 per lot (ECN)

None 500:1

How is an Islamic Broker Different?

Wondering what makes an Islamic account ‘Islamic?’ The key thing is that trading forex with an Islamic account is considered halal under Sharia law, whereas trading forex with a traditional account is considered haram or ‘forbidden.’

In a traditional forex account, when you hold a forex position overnight, your contract must be rolled over into a new contract for the next day. Most forex brokers charge interest on your position for completing this rollover. The interest charge is also known as a swap fee.

The problem is that interest charges are a form of riba, or usury, which is prohibited by Islamic law. So, any Muslim traders that hold forex positions for longer than a day would no longer be following Sharia law.

Islamic accounts get around this by eliminating overnight swap fees. Swap-free Islamic accounts don’t charge interest on your position. Instead, forex brokers may require a larger minimum deposit, charge a larger spread for forex trades made in swap-free accounts, or charge a flat commission for rolling over your contracts. All of these practices eliminate interest and thus are considered halal.

How to Get Started with an Islamic Forex Broker

Ready to start trading with the best forex Islamic account in 2021? We’ll show you how to sign up for eToro and place your first trade with a swap-free account.

Step 1: Register an eToro Account

Before you can open an Islamic account with eToro, you’ll first need to open a standard trading account. Head to the eToro website and click ‘Join Now.’ Enter your email and a new username and password for your account. You can also sign up using your Google or Facebook credentials.Sign up for an eToro account.

Step 2: Verify Your Identity

eToro is regulated by the UK FCA and complies with Know Your Customer (KYC) requirements. This means that you must upload a copy of your passport or driver’s license along with a copy of a recent bank statement or utility bill before you can start trading.eToro verify Identity

Step 3: Deposit Funds

Next, it’s time to fund your new eToro account. eToro only requires a minimum deposit of $250 for standard accounts, but you’ll need at least $1,000 if you want to change to an Islamic account. You can pay by credit card, debit card, PayPal, Neteller, Skrill, or bank transfer.eToro Deposit Funds

Step 4: Request an Islamic Account

To change from a standard to Islamic account with eToro, simply contact customer support. eToro’s customer support team is available 24/5. Your account status will be changed within 1-2 business days.

Step 5: Start Trading

Now you’re ready to start trading forex swap-free with eToro. Search for your favorite currency pair and click ‘Trade’ when it appears in the drop-down menu. In the order form, enter the amount you want to buy or sell. You can also choose how much leverage to apply to your trade and set a stop loss or take profit order.eToro Forex Pairs

When you’re ready, click ‘Open Position’ to complete your first forex trade.

eToro – Best Islamic Forex Broker for 2021

Keeping forex trading halal is easy with the best Islamic forex broker. These brokers offer swap-free accounts that don’t charge interest and cater specifically to the needs of Muslim traders.

Ready to start trading with the best Islamic forex broker for 2021? Click the link below to create an eToro account and get started with swap-free forex trading today!

etoro logo

67% of retail investor accounts lose money when trading CFDs with this provider.

FAQs

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