Best Brokers with Islamic Trading Accounts

Need a broker that provides Interest Free Trading Accounts? Most Forex brokers do not offer Islamic accounts we compiled the ✔ Best Islamic Brokers that offer Swap-Free Trading

Best CFD trading platform for UK traders, Award winning xStation5 trading platform
4.6
Rating Score
Spread
Eur/Usd

2

Spread Type
  • blue TickFixed
  • blue TickVariable
Account Type
  • blue TickDemo
  • - Micro Account
  • blue TickStandard
Platforms
  • blue TickMetaTrader 4
  • blue TickMetaTrader 5
  • blue TickApp & Tablets
Fees
  • -Deposit Fee
  • -Withdrawal Fee
  • -Inactivity Fee

  • blue TickCommodities
  • blue TickCryptocurrency
  • blue TickForex
  • - Futures
  • blue TickIndices
  • blue TickMetals
  • blue TickStock
  • blue TickCFDs
  • -Options
  • -Social Trading
  • Risk Warning: CFDs are leveraged products & 73% of traders lose money when trading CFDs.

    Trust Rating

    A

    Min Deposit

    £250

    Max Leverage

    200:1

    Competetive Spreads
    Customer Support
    Security & Regulation
    best metatrader broker platform, awarded the Best FX broker in Europe 2018
    4.6
    Rating Score
    Spread
    Eur/Usd

    1.6

    Spread Type
    • - Fixed
    • blue TickVariable
    Account Type
    • blue TickDemo
    • blue TickMicro
    • blue TickStandard
    Platforms
    • blue TickMetaTrader 4
    • blue TickMetaTrader 5
    • blue TickApp & Tablets
    Fees
    • -Deposit Fee
    • -Withdrawal Fee
    • -Inactivity Fee

  • blue TickCommodities
  • blue TickCryptocurrency
  • blue TickForex
  • - Futures
  • blue TickIndices
  • blue TickMetals
  • blue TickStock
  • blue TickCFDs
  • -Options
  • -Social Trading
  • Risk Warning: 69.45% of retail investor accounts lose money when trading CFDs with this provider. 

    Trust Rating

    A

    Min Deposit

    £50

    Max Leverage

    30:1

    Competetive Spreads
    Customer Support
    Security & Regulation
    Best trading platform for beginners
    4.6
    Rating Score
    Spread
    Eur/Usd

    1.5

    Spread Type
    • blue TickFixed
    • blue TickVariable
    Account Type
    • blue TickDemo
    • blue TickMicro
    • blue TickStandard
    Platforms
    • blue TickMetaTrader 4
    • blue TickMetaTrader 5
    • blue TickApp & Tablets
    Fees
    • -Deposit Fee
    • -Withdrawal Fee
    • -Inactivity Fee

  • blue TickCommodities
  • blue TickCryptocurrency
  • blue TickForex
  • - Futures
  • blue TickIndices
  • blue TickMetals
  • blue TickStock
  • blue TickCFDs
  • blue TickOptions
  • -Social Trading
  • Risk Warning: 71% of retail investor accounts lose money when trading CFDs with this provider.

    Trust Rating

    A

    Min Deposit

    £100

    Max Leverage

    30:1

    Competetive Spreads
    Customer Support
    Security & Regulation
    Award winning Top Australian CFD broker for Best Customer Service and Lowest Spreads
    4.4
    Rating Score
    Spread
    Eur/Usd

    1.2

    Spread Type
    • blue TickFixed
    • blue TickVariable
    Account Type
    • blue TickDemo
    • - Micro Account
    • blue TickStandard
    Platforms
    • blue TickMetaTrader 4
    • blue TickMetaTrader 5
    • blue TickApp & Tablets
    Fees
    • -Deposit Fee
    • -Withdrawal Fee
    • -Inactivity Fee

  • blue TickCommodities
  • blue TickCryptocurrency
  • blue TickForex
  • blue TickFutures
  • blue TickIndices
  • blue TickMetals
  • - Stock
  • blue TickCFDs
  • -Options
  • -Social Trading
  • Risk Warning: 78% of retail investor accounts lose money when trading CFDs with this provider.

    Trust Rating

    A

    Min Deposit

    £200

    Max Leverage

    30:1

    Competetive Spreads
    Customer Support
    Security & Regulation
    Awarded "most innovative FX broker of 2018", offers features like 'deal cancellation'
    4.3
    Rating Score
    Spread
    Eur/Usd

    1

    Spread Type
    • blue TickFixed
    • - Variable
    Account Type
    • blue TickDemo
    • blue TickMicro
    • blue TickStandard
    Platforms
    • blue TickMetaTrader 4
    • blue TickMetaTrader 5
    • blue TickApp & Tablets
    Fees
    • -Deposit Fee
    • -Withdrawal Fee
    • -Inactivity Fee

  • blue TickCommodities
  • blue TickCryptocurrency
  • blue TickForex
  • - Futures
  • blue TickIndices
  • blue TickMetals
  • - Stock
  • blue TickCFDs
  • -Options
  • -Social Trading
  • Risk Warning: 85% of retail investor accounts lose money when trading CFDs with this provider.

    Trust Rating

    A-

    Min Deposit

    £100

    Max Leverage

    30:1

    Competetive Spreads
    Customer Support
    Security & Regulation

    Best Brokers with Islamic Trading Accounts

    Is Forex Trading Halal? What are the Advantages & Disadvantages of Islamic Trading Accounts Vs. Standard Trading Accounts?

     

    Trading The financial markets including the Forex Market can be very lucrative and is an opportunity that is accessible to majority of nations and to people of all walks of life. However, there are rules and regulations adhered by many religious faith concerning commercial activities and the standards of dealings and trade.

    The Islamic Faith or religion of Islam entails strict rules and regulations about the way Follower of the Faith (Muslim) should trade. As such, let us try to look and gain some insights as to how exactly do they carry out one of the most basic chore which is of performing commerce in the day to day life, and shall restrict ourselves to all commerce and trade done in the market – the Stock/Financial Markets that is to say.

     

     

     

    Is Forex Trading Permissible (Halal) or Forbidden (Haram)?

    Shariah law (Islamic Law and Jurisprudence) is Like all activities of the everyday life have been mandated either as halal (Permissible) or haram (Forbidden), the question as to whether the practice of trading in the stock market is in line with Islamic principles and Sharia is more imminent (now more than ever). What creates a major problem for a Muslim (Follower of the Islam) wanting to enter the Share/Commodities/forex market in order to gain some extra money for their family is the fact that Islam views the concept of interest as ‘haram’ (Arabic term defined as forbidden) and is thus forbidden with no room for twisted interpretations. Therefore, the trade process would state that you exchange exactly the same amount that you had originally put up – an unpractical approach that if does not allow for losses certainly does not also allow for any profits (even marginally). 


    The problem becomes a whole other topic for debate if the company you’re investing in, deals in services that are proclaimed as haram (non-permissible) under Islamic Law. For stocks and companies not tied up in such services, the only option to Invest or Trade with them is to go for an Islamic Trading Broker Account: a concept that allows Muslims to participate in the stock market, or any market for that matter, whilst making sure that none of the activities of a traditional market violates their beliefs and makes them do something that would be fundamentally haram. The most imminent question in everyone’s mind would be “what exactly is an Islamic Trading Account and in what ways does it differ from a normal trading account”. The answer in all honesty is relatively simple and straightforward. Majority of the reputable brokers currently in the market offer both traditional trading platform accounts and Islamic 'swap free' account.

     

      XTB UK AvaTrade XM Group
    Overall Trust Score A A A
    Year Established 2002 2006 2009
    US Client Accepted
    Regulatory Authority FCA

    ASiC, BVI, CBI, MiFlD

    CySEC, FCA, ASIC, MiFID

    Segregated Accounts
    Why Choose?
    • 5-star Rating on Trust Pilot
    • Client funds in segregated accounts
    • Competitive Fixed & Variable Spreads
    • 200 plus Instruments to trade
    • Client funds in segregated accounts
    • Regulated in 5 continents
    • Popular- Over 1,000,000 users
    • Client funds in segregated accounts
    • No Re-quotes and No Rejections
    Read Review XTB Review AvaTrade Review XM Review
    Start Trading

     

    Islamic Trading Account Vs Standard Trading Account- Why No Swapping or Rollover Interest is permitted?

    With the same and unanimous rule of the law applying to both types of accounts, the only thing that differs in an Islamic Trading Account better known as Swap-free accounts is that no swap or rollover interest, or any other type of interest is implied or levied upon overnight positions in such accounts which sits well with the financing laws of Sharia, simply because according to Islamic principles, for a trade to be termed as halal, they need to be executed immediately, the transaction costs have to be settled immediately with no room for future repayment, and no interest rates should be implied on any trade.    

    In the explanations above, two new terms were discovered – swap and rollover interest: concepts without which the modern world trading in the market could lead to devastating and mind boggling losses for both the lender as well as the receiver. 

    Swapping essentially means keeping the position of your purchased stocks or active trades open even after the market has been closed for the day in order to sell them off just in case a person wishes to for what could be one out of a million possible reasons. Rollover Interest does manly imply to swing traders i.e. a trading style that is suited to holding positions for more than one day in the market. On the flipside, Day Traders or even traders that ‘Scalp’ the markets ensure they open and liquidate all their positions before close of day therefore they are not subject to Rollover Interest on their trading accounts. 

    The interest levied for opening your account and consequently your stocks/Forex trades that are open for manipulation even once the market is closed is what we refer to as swap or rollover interest and since it is a type of interest in itself which acts as a hindrance in such financial transactions. Which is why, no swap or rollover interest is levied upon Islamic Trading Accounts in order to protect an individuals’ beliefs and allow them for a passage to invest their money at the same time.

    We have highlighted below both advantages as well as some demerits to an Islamic trader account when pitted against a simple and standard CFD trading accounts. Let us identify some of them:

     

    3) Advantages of an Islamic Trading Account

    1. The very fact that there are no restrictions on the swap and rollover rates means that the virtually at the very least, the market is open 24/7 and 365 days of the year, giving a person the complete freedom to trade whenever and wherever they want without having to worry about paying anything extra to the broker. This definitely is contrary to the beliefs of Islam and Sharia to be precise, but a lot of people can choose to do so without much thought of their beliefs.
    2. Again, owing to zero swap and rollover interests allows for a person to save more from such commissions and even earn more by exploiting the privileges of their special accounts (if they choose to do so of course).
    3. The biggest advantage is that such accounts bring about a sense of unanimity and equality in the world population as a whole. Since the Quran and Sharia do not allow for trading (with profits) of any sorts and as good and honorable, though it may sound, the needs and especially the wants of an individual grow exponentially in today’s world, and satisfying them needs another source of income. Such accounts, thus at least give the opportunity to the entire Islamic community to indulge in the markets and derive its benefits while keeping their beliefs aligned with Sharia laws at the same time.

     

    4) Disadvantages of an Islamic Trading Account

    1. This disadvantage is not to the Islamic people, but rather to every other individual participating in the market. As said, no swap charges basically mean that the market virtually at the very least is open at every instance of a time to an Islamic person. This is not the case with other people making it a little unjust, for they cannot reduce their liabilities or risk all of a sudden if the market comes crashing.
       

     

    Top Three Featured Brokers

    Best CFD trading platform for UK traders, Award winning xStation5 trading platform
    4.3
    Rating Score
    With more than 14 years’ experience, XTB is one of the largest stock exchange-listed FX & CFD brokers in the world. They have offices in over 13 countries including UK, Poland, Germany, France and Turkey. XTB is also regulated by the world's biggest supervision authoriti... Read more

    best metatrader broker platform, awarded the Best FX broker in Europe 2018
    4.3
    Rating Score
    XM review is one of few brokers that have over 1 million clients registered. They are regulated by the FCA (Financial Conduct Authority) and are well known for fast order execution and have stats recorded to executed over 150 million orders executed with zero requotes. Thi... Read more

    Best trading platform for beginners
    4.3
    Rating Score
    AvaTrade is one of the leading Brokers today offering great platform for trading CFDs, Forex, Cyptocurrencies & Options. It has been established over 10 years since 2006 with a resource of 200+ instruments on offer. It’s one of few broker that offers up to eight differen... Read more

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