What is an Islamic Forex account?
According to Islamic law, or Shariah law, Muslims are prohibited from earning interest on their giving. This law, when applied literally, also applies to interest earned on Forex trading. To address this issue and to make it possible for Muslims to trade Forex according to Islamic law, many Forex brokers opened the opportunity for Islamic Forex accounts which offer interest-free Forex trading (aka No Riba Forex).
We've taken the time to examine the leading Islamic Forex options and to provide you with a comprehensive comparison so that you can see at a glance which Islamic Forex account is best for you. If you wish to change from a traditional Forex account to an Islamic account, many brokers will accommodate this change quickly and easily. We've noted this ability in the chart below, along with other important information about our recommend Islamic Forex accounts.
When choosing an Islamic Forex broker it's important to consider not just the account type, but also the services and trading conditions offered by the broker or brokers you're considering. Sometimes traders prefer to open accounts with two different brokers to see which they like better, and which platform has better performance. Oftentimes traders are willing to take higher spreads in order to get a better trading platform or better customer service. Before choosing your Islamic Forex broker, make sure to consider all your options and to read Forex broker reviews that can help make the decision easier.
|Broker Name||Min. Deposit||Spreads
Islamic account *
|Maximum Leverage||More Info|
|1||$100||3 Pips||Yes||1:200||Sign Up Markets review|
|2||€/$100||1.5 Pips||Yes||1:400||Sign Up AvaTrade review|
|3||$500||5 Pips||Yes||1:200||Sign Up UFXMarkets review|
|4||$1000||2 Pips||Yes||1:400||Sign Up eToro review|
|5||$100||2.5 Pips||Yes||1:200||Sign Up FXCC review|
|6||$2000||3 Pips||Yes||1:200||Sign Up FXCM review|
|7||$500||From 1.7 Pips||Yes||1:500||Sign Up IronFX review|
|8||$200||From 1.8 Pips||Yes||1:200||Sign Up Easy Forex review|
|9||$100||From 2 Pips||Yes||1:400||Sign Up Xforex review|
No matter what type of Forex account you choose, it's important to execute your trades as wisely and responsibly as possible. It's also important to understand the characteristics of your specific account. Therefore, if you're opting for an Islamic account, consider the options below:
- Swap Free Forex Account: In Forex trading, a rollover is the term used to describe a position left open overnight. This type of trading usually has fees attached to it, but Islamic accounts waive these fees.
- No Riba: Although most financial institutions and banks charge or pay interest of some sort, Islamic accounts eliminate all forms of interest.