The Foreign Exchange (Forex) market is highly competitive, with many local and international brokers offering diverse trading services. However, stepping into Forex trading while honouring Islamic principles requires carefully selecting brokers and platforms that align with Halal guidelines. The challenge lies in finding a trading environment that caters to your financial goals and respects your religious and ethical beliefs.
In this comprehensive guide, we explore the best Islamic Forex brokers, aiming to assist you in making informed choices that harmonise with your unique trading preferences and religious convictions
Best Islamic Forex Brokers in 2023 Compared
|Platform||Number of currency pairs||Spreads starting at
|Minimum deposit||Deposit method||Countries|
|eToro||40+||1||$1,000||Bank transfer, credit/debit cards, PayPal, Neteller, Skrill, and more||International, exceptions apply|
|XTB||45+||0.9||$0||Bank transfer, credit/debit card, and Skrill||MENA region|
|Interactive Brokers||100+||0.1 pip and tier pricing commission||$0||Bank transfer||International, few exceptions apply|
|Forex.com||80+||0 (subject to commission);
1.0 (no commission)
|$100||Bank transfer, credit/debit cards||International, few exceptions apply|
|Plus500||60+||1.2||$100||Bank transfer, credit/debit card, PayPal and more||International, exceptions apply|
|Pepperstone||90+||0.8||Equivalent of AUD 200 (~$130)||Bank transfer, credit/debit cards, PayPal, Neteller, Skrill, and more||International, exceptions apply|
Best Islamic Forex Brokers Reviewed
76% of retail CFD accounts lose money.
eToro at a glance
Founded in 2007, eToro is a leading online trading platform that offers users access to various financial instruments, including Forex, stocks, ETFs, cryptocurrencies, and commodities. eToro offers Islamic accounts that comply with Sharia law. The Islamic account ensures a Riba-free environment throughout the contract. It offers benefits such as no rollover commissions for contracts lasting over 24 hours, zero charges for account management, and interest-free leverage.
To open an eToro Islamic account, you need to register for a real account, invest a minimum of $1,000, provide identification documents for account verification, and contact customer support for confirmation.
eToro trading fees are generally low and built into the spread, which starts at 1 pip on average and depends on trading hours and the currency pairs. Here is a brief overview of eToro’s spreads on major currencies.
eToro spreads on major currencies
|Currency pair||Spreads in pips|
The user-friendly web platform caters to beginners with an intuitive layout and various features to enhance the trading experience, including one-click trading, limit orders, and advanced charting tools. Notably, eToro’s copy trading and social trading capabilities enable users to follow successful traders, copy their trades, and engage in market discussions within a community of over 30 million users.
Although eToro is one of the best brokers for new Forex traders, it might not be the best choice for day traders or professional traders. This is because some currency pairs have wider spreads compared to other brokers. Additionally, USD is the only account currency available, and withdrawal fees are a bit high if you plan to withdraw funds frequently ($5 per withdrawal).
Read our in-depth eToro review for a complete evaluation.
77% of retail CFD account lose money.
XTB at a glance
XTB, a renowned global CFD broker, has been operating since 2002 and serves over 800,000 clients. The company is publicly listed on the Warsaw stock exchange and is regulated by multiple top regulatory authorities, ensuring compliance with financial standards. XTB offers Islamic trading accounts compliant with Islamic principles, providing traders with swap-free options and cashback opportunities.
The XTB Islamic account is available through XTB International and is accessible to clients from specific countries, including Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Malaysia, Morocco, Oman, Qatar, Saudi Arabia, Tunisia, and the UAE.
XTB offers Forex trading on 45+ currency pairs as well as a wide range of CFD instruments, including indices, commodities, shares, ETFs, and cryptocurrencies, all at competitive prices with minimal spreads. You can trade up to 200x leverage without paying swaps or interest but remember that higher leverage also means higher risk.
XTB spreads on major currencies
|Currency pair||Spreads in pips|
XTB offers beginner and experienced traders a dynamic trading experience with its two trading platforms, xStation 5 (desktop-based) and xStation (mobile), which have advanced charting tools and indicators. xStation 5 provides a user-friendly interface and customisable features. You can conveniently set up alerts and notifications to receive updates on specific events through email, SMS, or push notifications, such as margin calls, deposits, or withdrawals.
Furthermore, XTB distinguishes itself with its extensive educational materials and robust customer support. The platform offers a comprehensive online library featuring numerous videos to enhance traders’ skills and knowledge. Additionally, users can access reliable customer service through various channels, including live chat, phone support, and email. You can fund your account via bank wire transfer, credit or debit card, or Skrill;there is no minimum amount to open an account.
On the downside, XTB charges a $30 fee for withdrawals of less than $50. Still, they do not impose a fee on withdrawals over that amount. Additionally, they charge a $10 monthly fee after 12 months of inactivity.
For more detailed insights, you can read our XTB review.
#3 Interactive Brokers
Interactive Brokers at a glance
Founded in 1978, Interactive Brokers is one of the largest international brokers listed on the NASDAQ exchange (Ticker: IBKR) and is regulated by many international top-tier regulators with no minimum deposit requirement. Interactive Brokers does not explicitly have an Islamic account; however, if you trade using a cash account, you won’t be charged any interest.
The Interactive Brokers cash account requires you to maintain enough cash in the account to cover the cost of a transaction plus commissions. It is a Sharia-compliant account since it follows the following rules:
- Limited purchase and sale of options, and multi-currency trading is allowed through Forex conversions.
- No shorting of stock or futures day trading benefits
- Cash from the sale of stock, options and futures becomes available when the transaction settles. Accordingly, you won’t be able to trade until the money is available. Hence, no interest will be charged.
Interactive Brokers supports various account-based currencies, including GBP, USD, EUR, and other major currencies. However, funding these accounts is limited to bank transfers.
They offer one of the tightest spreads on Forex, but you are subject to a tiered commission based on the monthly volume of your trading activity. Below is a sample of the spreads applied to major currency pairs:
Interactive Brokers spreads on major currencies
|Currency pair||Spreads in pips|
Interactive Brokers offers a comprehensive range of trading platforms to cater to the diverse needs of traders. These platforms include the web-based Client Portal, the GlobalTrader Mobile app, and the professional-grade Trader Workstation (TWS), offering a wide array of features and tools to meet the diverse needs of traders.
The web-based Client Portal is designed to be user-friendly, making it accessible to both beginners and experienced investors. It provides real-time monitoring, customisable watchlists, alerts, and advanced features, such as over 120 technical indicators for advanced technical analysis. Traders can create personalised templates, access advanced charting tools, utilise various order types, and benefit from Smart Routing, which selects the optimal trading route for each trade.
For traders who prefer to trade on the go, Interactive Brokers offers the IBKR Mobile app, providing convenience and advanced functionality. You can also open a simulated trading account to practice trading before opening a live account and gain access to $10,000 in simulated cash.
On the downside, you might be overwhelmed by the number of buttons and features available on each platform, especially if you are new to trading. However, Interactive Brokers offers a lot of educational materials and video tutorials to assist you in navigating and utilising their platforms effectively.
We recommend you check out our comprehensive Interactive Brokers review.
Forex.com at a glance
Forex.com is a global online broker regulated by several top-tier regulatory authorities. It is a subsidiary of a publicly traded company, StoneX, which makes it a safe broker due to strict requirements regarding the reliability and availability of its financial information.
For traders looking for a swap-free experience, Forex.com provides an Islamic account, offering access to over 80 currency pairs and other financial instruments such as stocks, indices, commodities, and cryptocurrencies through CFDs.
Forex.com offers diverse trading platforms, including the popular MetaTrader4 and MetaTrader5, along with an exclusive platform for desktop, web, or mobile app use, catering to experienced traders with advanced tools.
Their platforms integrate TradingView charts with over 80 technical indicators and offer personalised watchlists. You also benefit from Reuters news, market analysis, and an economic calendar. Noteworthy features include smart trade tickets, Trading Central for actionable insights, and rapid execution, with 99.88% of trades executed in less than a second and an average speed of 0.02 seconds. Forex.com ensures competitive trading conditions, allowing users to trade EUR/USD as low as 1.0 pips.
Forex.com spreads on major currencies
|Currency pair||Spreads in pips|
Forex.com has flexible account funding options, including bank wire transfers, credit or debit cards, and e-wallets like Neteller or Skrill. Additionally, it does not charge any fees for depositing or withdrawing funds, and it offers three different account types with varying fee structures to suit different trading styles and volumes.
On the downside, Forex.com charges a $15 monthly inactivity fee if no trades are made within a 12-month period.
82% of retail CFD accounts lose money.
Plus500 at a glance
Established in 2008, Plus500 is another broker included in our list of the best Islamic and swap-free Forex brokers. It has developed its own user-friendly web trading platform and a mobile app. It’s a great choice for those wanting to keep their costs low, as it offers tight spreads, free deposits, and withdrawals.
The interest-free Islamic trading account offered by Plus500 complies with Islamic finance principles. It comes with various features, including no overnight charges (overnight funding), commission-free trading, no rollover charges (swaps), and no fees on deposits or withdrawals.
Opening an Islamic trading account is a simple three-step process. You open a Plus500 trading account, then choose ‘Islamic trading account‘ during registration, and finally, you can start trading with your interest-free account.
Plus500 spreads on major currencies
|Currency pair||Spreads in pips|
Plus500 allows trading on over 2,800 CFDs including 60+ Forex pairs, with leverage of up to 300x. Plus500 offers a wide range of indicators and drawing tools that assist you in analysing trends and market movements. The platform provides advanced trading tools, such as limit orders and guaranteed stops, to manage losses and lock in profits. You can open an account online with a minimum of $100 and fund it by bank transfer, credit or debit cards, and several other electronic payment methods.
On the downside, Plus500 provides very few educational materials and research reports compared to other brokers. Additionally, if you don’t access your account for three consecutive months, a $10 (or equivalent, depending on your currency) monthly fee will be charged. This is a shorter timeframe than some other brokers, who typically impose this fee after one year of inactivity.
Want to know more about Plus500? Check our Plus500 Review.
74-89% of retail CFD accounts lose money.
Pepperstone at a glance
Pepperstone was established in 2010 and currently serves more than 400,000 traders across the globe. It is ideal if you want a broker offering tight spreads with access to various trading platforms, including MetaTrader4, MetaTrader5, cTrader, and TradingView. They give you access to trade over 90 currency pairs with leverage that can go up to 1:500 but remember that higher leverage means higher risk.
Pepperstone offers a swap-free account that is tailored for traders looking for an interest-free trading experience. You benefit from deep liquidity and key features such as scalping, Expert Advisors (EAs), and hedging, in addition to spreads that start at 0.77 pips on the EUR/USD currency pair.
Pepperstone spreads on major currencies
|Currency pair||Spreads in pips|
You can choose from a range of trading platforms to elevate your trading experience. Each platform offers unique features and customisation options:
- MetaTrader 4 (MT4): Renowned for its customisation options, expert advisor creation, and a wide range of indicators.
- MetaTrader 5 (MT5): Offers enhanced functionality, faster processing, and advanced customisation options.
- cTrader: Intuitive and user-friendly, providing advanced features for order control and powerful charting.
- TradingView Integration: Easily integrated with cTrader, enabling access to a web-based social network for traders and fostering idea-sharing within a large trading community.
Pepperstone offers two account types: Standard account, suitable for new traders, and Razor account, ideal for scalpers and algorithmic traders. There are no commission charges, and you can open an account with a balance of AUD$200 or equivalent in various base currencies, including USD, AUD, EUR, and GBP. However, if a trade on this account is held for 5 days, an admin charge of $100 (per 1 standard lot size) will be deducted from the account’s balance.
Here is a list of countries where Pepperstone provides swap-free accounts: Albania, Algeria, Azerbaijan, Bahrain, Bangladesh, Brunei, Brunei Darussalam, Burkina Faso, Chad, Egypt, Guinea, Indonesia, Jordan, Kosovo, Kuwait, Kyrgyzstan, Malaysia, Maldives, Mauritania, Morocco, Niger, Oman, Pakistan, Palestinian Territory, Qatar, Sierra Leone, Tajikistan, Tunisia, Turkmenistan, Turkey, and Uzbekistan.
How to choose the best Islamic (swap-free) Forex broker
When selecting an Islamic Forex broker, several key features should be considered to ensure compatibility with Islamic finance principles and a seamless trading experience. Here are some main features to look for:
- Swap-Free Account: Ensure the broker provides a swap-free account, aligning with Islamic finance principles that prohibit interest.
- No Riba (Interest) Policy: Verify that the broker follows a strict no-interest (Riba) policy to align with Islamic finance regulations.
- Diverse Tradable Instruments: Check if the broker offers a comprehensive range of tradable instruments, including major, minor, and exotic currency pairs, as well as commodities and indices.
- Competitive and Transparent Pricing: Look for brokers with competitive and transparent pricing, featuring tight spreads and considerate leverage options.
- User-Friendly Trading Platform: Opt for a broker with a user-friendly trading platform and robust tools for analysis and risk management.
- Regulatory Standing: Verify the broker’s regulatory standing with recognised financial authorities to ensure a secure trading environment.
- Customer Support: Assess the broker’s customer support services, particularly their ability to address queries related to Islamic trading principles.
It can be challenging to compare different trading conditions and find the best Islamic Forex broker. There are various parameters to check, and it takes time to collect all the data and make the best decision for your needs. However, our analysts have completed this work for you and presented their results and analysis of the “Best Islamic Forex Brokers in 2023,” which is summarised below:
Throughout this comprehensive analysis, we have highlighted the essential features and benefits of these top Islamic and swap-free Forex brokers. Whether you are a new Forex trader or an experienced professional seeking to align your financial strategies with Sharia principles, we hope this article has provided valuable insights. When selecting a broker, we recommend opening a demo account to test the features before making your final decision. We welcome any feedback or questions you may have in the comments section.
Is Forex trading halal?
In Islamic finance, Forex trading can be considered halal if it adheres to the principles outlined in Sharia law. Traders can use Islamic Forex accounts that comply with Sharia principles, avoiding interest or swaps (Riba) and excessive uncertainty (Gharar).
What is an Islamic Forex broker?
An Islamic Forex broker offers an Islamic or swap-free account that adheres to Sharia principles, avoiding interest and following ethical guidelines.
Are there any specific risks associated with Islamic Forex trading?
Risks are similar to regular trading; however, adherence to Islamic principles may limit certain strategies.
What is the minimum balance to open an Islamic account with a swap-free broker?
Many Islamic Forex brokers do not have any minimum balance requirements, so you can start trading with as little as $1.
Can I use demo accounts to practice trading before opening a real Islamic Forex trading?
Yes, all the brokers mentioned in this article offer demo accounts that allow you to practice trading strategies and familiarise yourself with the platform without risking real money.