Best Swap Free Islamic Forex Accounts & platforms

17 Best Swap Free Islamic Forex Accounts

In this list of 17 Best swap free (Islamic) Forex Accounts you will find brokers that are established and well-regulated to safeguard you, while looking after your interests when Forex trading according to Islamic Shariah law.

10 Best Swap Free Islamic Forex Brokers

  1. Alpari
  2. FXTM
  3. FP Markets
  4. XM
  5. GO Markets
  6. AvaTrade
  7. Exness
  8. HFM
  9. eToro

Swap-Free Islamic Islamic Islamic Forex Accounts

As more and more people start to participate in retail Forex trading and it becomes more popular, many Muslims are asking if it is “haram” (forbidden) or “halal” (permissible) for them to participate in Forex trading.

As the Muslim population represents a quarter of the world’s population and a sizeable market, many Forex brokers are beginning to realize the importance of clearing the air on this issue.

 

A swap free trading account is a Forex trading account that is allowed by Islamic Shariah law.

 

In Sharia law it is not allowed to have any interest applied for an overnight position. This is important for Muslim traders because Sharia law forbids Muslims from charging and paying interest on a loan.

 

Fortunately, swap free accounts are considered acceptable due to the fact that there is no interest applied, and commerce and trading has always been an activity that has been encouraged by Islam

 

So, how is it that a swap free trading account can work without overnight interest?

 

Normally, for positions held overnight the Forex broker will retain a portion of the interest swap as handling charges.

 

In the case of the swap-free account, the broker charges a fixed commission against the trader’s account balance instead of taking a portion of the rollover interest swap.

 

Alternatively, the broker may just increase the spreads on trades on this type of account.

 

The trader will then not be charged any interest or get to earn any interest on his trade, and since no swaps were involved, this type of trading account is called a swap free account.

 

The following are a list of great brokers that offer a swap free or Islamic account.  They are not listed in any particular order or ranking but is just a list of the top 17 brokers with these types of accounts.

Alpari Alpari Alpari

Alpari was established in 1998 and relaunched in 2014. They are based in and regulated by the Financial Services Commission (FSC) of the Republic of Mauritius.

 

Alpari gives their traders access to more than 250 markets in Forex, Stocks, Indices, Metals and Cryptocurrencies.

 

They offer both the MetaTrader 4 and MetaTrader 5 platforms on Desktop, Web and Mobile formats.

 

Both beginner and experienced traders will find a good fit with Alpari with demo accounts and educational resources as well as boasting more than US Dollar 1.3 trillion in trading turnover per year.

Features Features Features

  • Max leverage of 1000:1
  • Over 60 Forex currency pairs and crosses available for trading
  • Choice between ECN and market-maker execution models
  • Regulated by an offshore industry center (FSC Mauritius)

Pros and Cons Pros and Cons Pros and Cons

ProsCons
Demo Accounts and Social TradingLimited educational resources
Great copy trading brokerLack of resource tools
Diverse selection of tradeable assetsHigh fees
Good support in over 30 languagesWithdrawal fees
Low minimum deposit

FXTM FXTM FXTM

FXTM is a licensed and well-regulated broker worldwide, from the UK, South Africa, Belize, Cyprus and Mauritius as examples.  They also boast an impressive list of awards.

 

FXTM was founded in 2012 with offices in major cities like London, Germany, Poland, France, Spain, Italy, Turkey, China, Thailand, South Korea, Malaysia, India and Nigeria. All central operations are directed from FXTM’s five story tower located in Cyprus.

 

FXTM offers tight spreads, trading in all currency pairs as well as a wide range of other financial products and derivatives.

Features Features Features

  • Allows hedging
  • Great selection of educational tools
  • Low stock index CFD fees
  • Spreads as low as 0.1 pip for a standard account
  • 0 pips for ECN based trading accounts

Pros and Cons Pros and Cons Pros and Cons

ProsCons
Low minimum depositInactivity and withdrawal fees
Fantastic Customer ServiceHigh CFD fees
Fast and easy account openingLimited product portfolio
Well-regulated Broker 
Very competitive Forex fees

FP Markets FP Markets FP Markets

FP Markets is an Australian CFD and Forex broker that was founded in 2005 and is regulated by the Australian ASIC and the Cypriot CySEC.

 

They offer MT4, MT5 platforms as well as over 50 Currency Pairs, Gold, Silver, CFDs, Indices, Stocks and Cryptos to trade with.

Features Features Features

  • Leverage is 500:1 when trading currency.
  • Offer Direct Markets Access (DMA)
  • ASIC & CySEC Regulated broker
  • Demo Account for beginning traders
  • 50 plus currency pairings to trade

Pros and Cons Pros and Cons Pros and Cons

ProsCons
Easy and fast account openingLimited product portfolio
Low trading feesHigh CFD fees
Fast execution of tradesHigh minimum deposit
Low Forex feesHigh fee for international bank withdrawal
Good platform options

XM XM XM

XM Global was established in 2017 and offers more than 1000 financial instruments which includes Forex Trading, Stocks CFDs, Commodities CFDs, Equity Indices CFDs, Precious Metals CFDs and Energies CFDs.

 

XM is regulated by the International Financial Services Commission. They off over 55 currency pairs for Forex trading.

 

XM offers 2 trading platforms which are accessible from both real and demo accounts; both MetaTrader 4 and MetaTrader 5, the most widely used platforms in trading.

 

They are an award winning firm with some of their recent awards being: Best FX Service Provider for 2023 awarded by City of Wealth Management Awards 2023; Best Customer Service Global 2019 awarded by Capital Finance International Magazine; Best Market Research and Education Global 2019 awarded by Capital Finance International Magazine; and Best FX Service Provider awarded by City of London Wealth Management Awards 2019.

Features Features Features

  • Allows scalping
  • Offers negative balance protection
  • Used by over 70,000 traders
  • Offers Negative Balance Protection
  • Allows Hedging

Pros and Cons Pros and Cons Pros and Cons

ProsCons
Low withdrawal feesInactivity fee
Easy and fast account openingAverage Forex fees
No withdrawal fee 
Low min deposit 
Great educational tools and resources 
 

GO Markets GO Markets GO Markets

GO Markets, established, in 2006, is one of the leading and trusted Australian regulated brokers and was established in 2006.  They have offices in Melbourne, London, Taipei and Hong Kong.

GO Markets currently offers more than 350 tradeable CFD instruments including Forex, Shares, Indices and Commodities and Cryptocurrencies.

Features Features Features

  • Allows hedging
  • Allows scalping
  • Offers STP
  • Regulated by ASIC
  • Offers Negative Balance Protection
  • Used by over 10,000 traders

Pros and Cons Pros and Cons Pros and Cons

ProsCons
Ultra-fast trade executionsOnly two account types available
Innovative technologyClients from many jurisdictions not accepted
Great trading and analysis toolsNot available in the US
Highly regulated brokerLimited range of instruments
  
  
 

AvaTrade AvaTrade AvaTrade

AvaTrade was founded in 2006 with headquarters in Dublin, Ireland. They also have offices around the world, located in Japan, Australia, Ireland, and the British Virgin Islands with sales offices also in Paris, Milan, Madrid, Mongolia, Beijing, Nigeria, Santiago, and Johannesburg.

AvaTrade offers more than 250 instruments which include major Stock Indices, Cryptocurrencies, Commodities, Bonds, Individual Shares and ETFs as well as more than 60 Currency Pairs.

They are highly regulated in Europe, the British Virgin Islands, Australia, Japan, and South Africa.

Features Features Features

  • EA compatibility and Automated trading platforms
  • Segregated accounts for increased security
  • MetaTrader 4, MetaTrader 5 and AvaTradeGO on multiple devices
  • Competitive spreads offering
  • Trading websites in more than 20 languages

Pros and Cons Pros and Cons Pros and Cons

ProsCons
Easy and fast account openingLimited research tools
Great educational toolsPoor support telephonically
No withdrawal feeAdministration fee
Free deposit and withdrawal optionsInactivity fee
Low trading fees

Exness Exness Exness

The Exness Group, founded in 2008, is a St. Petersburg, Russia based brokerage firm.

 

They offer access to more than 120 financial instruments to trade across which include Forex, Crypto, Stocks and Indices. In Forex they offer 120 currency pairs to choose from.

 

The Exness Group has a monthly trading volume of more than US Dollar 180 billion, as well as 15,000 new accounts opened each month, with more than 80,000 active traders.

 

They have licences from the UK Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC) and the Financial Services Authority (FSA) of Seychelles.

 

Exness’s website is available in 23 different languages including English, Chinese, Russian, Vietnamese, Farsi, Hindi, Urdu, Tamil, Thai, Bengali, Indonesian, and Malay with 24/5 customer support in 13 languages.

Features Features Features

  • Very cool user friendly and modern website
  • Tight spreads from 0.1 pips
  • No hidden commissions or fees
  • Instant withdrawal of funds
  • Client funds kept in segregated accounts
  • Tight spreads
  • Copy trading system

Pros and Cons Pros and Cons Pros and Cons

ProsCons
Customer support in many languagesInactivity and withdrawal fees
Commission free tradingHigh CFD fees
Access to Forex ECN tradingNot available in the US
120 Currency pairs to trade from 
Offshore regulation

HFM HFM HFM

HFM is a Cyprus based broker that was founded in 2010. It has several global satellite offices in Dubai, South Africa and offshore entities in St Vincent and the Grenadines.

The company was listed as on the Top 100 Companies by World Finance Magazine and they received the award for Business Excellence in 2015.

Users can access 150+ trading instruments across Forex, Commodities, Indices, Shares, Bonds and Cryptocurrency CFDs over 6 core trading accounts. Commission-free trading for Forex pairs is offered on every account.

Features Features Features

  • Known for great technology
  • Numerous industry awards garnered
  • Great range of markets
  • Regulated by ASIC, CySEC, FCA
  • Offers Negative Balance Protection
  • Additional Civil Liability Insurance
  • Lots of premium MetaTrader tools offered
  •  

Pros and Cons Pros and Cons Pros and Cons

ProsCons
Fast, easy, fully digital account openingOnly Forex and CFD products
Low minimum depositTwo of their entities are unregulated
Commission free accounts availableOnly 56 shares available
Low Forex fees 
Competitive spreads

eToro eToro eToro

eToro is a brokerage firm based in Tel Aviv, Israel and founded in 2007.  eToro made its name on its social investing platform that allows users to copy the trades of other investors.

 

In fact, in the eToro social community, traders can become “leaders” and earn from leading other traders that follow and copy their trades.

 

The firm started off as a broker that only offered Forex trading and has since expanded its product offerings to include Cryptocurrencies, Commodities, Stocks and Market Indices and now boast more than 10 million users in 140 countries worldwide

Features Features Features

  • Premier Social trading/Copy trading platform and community
  • Huge cryptocurrency offering
  • Robust charting
  • 10 million traders worldwide
  • Offers access to 15 cryptocurrencies
  • Free stock and ETF trading in Europe

Pros and Cons Pros and Cons Pros and Cons

ProsCons
Fully digital account openingWithdrawing money is slow and costly
Low CFD feesHigh Forex fees
No deposit feeOnly one account base currency used
Service is fastWithdrawal fee
Low minimum initial deposit No streaming news

XTB XTB XTB

XTB, founded in 2002, has offices in more than 13 countries including the UK, Poland, Germany, France and Turkey with headquarters based in London and Warsaw.

 

They offer CFD, Crypto and Forex trading.

 

XTB has a great range of financial instruments for both its standard and pro account types.

Features Features Features

  • Award winning platform
  • Lots of educational materials offered
  • Regulated by top-tier FCA
  • Fully digital account opening and trading
  • Offers Negative Balance Protection

Pros and Cons Pros and Cons Pros and Cons

ProsCons
Easy and fast account openingLimited product portfolio
Free and easy deposit and withdrawalPoor email support
Low trading feesHigh fee for stock CFD
No withdrawal fee 
Low Forex and stock index CFD fees

AxiTrader AxiTrader AxiTrader

AxiTrader is an Australian based company founded in 2007. They also have offices in London, which were opened in 2012.

They offer more than 40,000 registered traders in over 100 countries and boasts a monthly client trading volume of around US Dollar 100 billion.

Features Features Features

  • Allows hedging
  • Low spreads starting from 0.0 pips
  • Allows scalping
  • Strong leverage up to 400:1
  • Wide range of Forex Markets
  • Award winning customer service

Pros and Cons Pros and Cons Pros and Cons

ProsCons
No Deposit and withdrawal feesOnly offers Forex and CFDs
Fully digital account openingLimited research tools
No inactivity feesSlow email support
Low Forex fees 
No minimum deposit

IC Markets IC Markets IC Markets

International Capital Markets Pty Ltd (IC Markets) was founded in 2007 with a team of financial professionals who had the vision to bridge the gap existing between retail and institutional clients.

 

One of the ways they do this is by being an ECN broker, which means that there is a no-dealing-desk.

 

This also means IC Markets offer tight spreads in its offering of 63 Forex pairs and 41 CFDs on Indices, Metals, Cryptocurrencies and Futures

 

IC Markets is regulated by the Australian Financial Services License (AFSL) and with the Australian Securities and Investment Commission (ASIC) in 2009.

 

IC Markets offers several trading platforms to choose from including MetaTrader4 (MT4) and MetaTrader 5 (MT5), as well as the suite of cTrader platforms.

Features Features Features

  • High level web security
  • Great variety of Educational materials
  • Selection of sophisticated trading platforms
  • Low min deposit
  • True ECN broker with institutional grade liquidity
  • Wide range of tradeable products
  • Good customer service with 24/7 support

Pros and Cons Pros and Cons Pros and Cons

ProsCons
Easy and fast account openingNo investor protection
Low Forex feesOnly Forex, CFD, and crypto trading
Free deposit and withdrawalLack of research tools
Low Forex fees 
 

FXCM FXCM FXCM

FXCM is a UK-based broker that also have offices in the UK, Germany, Australia, France, Italy, Greece, Hong Kong, and South Africa with affiliated offices in Canada and Israel.

 

FXCM was founded in 1999, and it has grown to be one of the leading providers of online trading and is known for fast trade executions and advanced and innovative technology.

 

Users can trade on FXCM’s proprietary Trading Station platform for Desktop, Web and Mobile, as well as on MetaTrader 4, NinjaTrader and ZuluTrade.

 

The broker also offers access to other platforms such as QuantConnect, MotiveWave, AlgoTerminal, Sierra Chart and others as well.

Features Features Features

  • A huge offering of platforms including their proprietary Trading Station
  • Wide range of tradeable markets, research and educational resources
  • Top notch charting and technical analysis tools
  • Great technical research tools
  • High quality educational tools

Pros and Cons Pros and Cons Pros and Cons

ProsCons
Low Stock and ETF feesLimited product portfolio
Fast and easy account openingPoor mobile platform
Low trading feesHigh AUD/USD trading fee
No withdrawal fee 
Excellent charting and tech analysis tools

FxPro FxPro FxPro

FxPro UK was founded in 2006 and is a subsidiary of FxPro Group Limited.

They boast over 870,000 client accounts in 173 countries and are regulated by the FCA and CySEC, and FSB (FSCA).

FxPro offer incredible execution speeds, with an average execution time of less than 11.06 milliseconds and it processes approximately 7 000 orders per second.

They also boast over 70 international and UK awards in total to date which include:

  • International Investor Magazine, 2019, Most Reliable Broker of the Year
  • Online Personal Wealth Awards, 2019, Best FX provider of the Year
  • Best Tablet Application 2019, Online Personal Wealth Awards
  • Global Forex Awards, 2019, Best European Value Broker of the Year
  • Global Forex Awards, 2019, Best Global Forex Introducing Broker Programme,
  • Best MetaTrader Broker 2019, ForexBrokers com
  • Best in Class of Commissions & Fees, ForexBrokers com
  • 5-stars MetaTrader Broker 2019, ForexBrokers com

Features Features Features

  • No dealing desk and very fast execution of trade speeds
  • Company capital in excess of 1 million British Pounds
  • Incredibly fast execution speeds
  • No dealing desk
  • Winner of Multiple awards

Pros and Cons Pros and Cons Pros and Cons

ProsCons
Wide selection of market instrumentsNo investor protection
Segregated accountsDoesn’t offer its services in all countries
Highly regulated 
Range of account types 
Little to zero commissions charged

ThinkMarkets ThinkMarkets ThinkMarkets

ThinkMarkets, an online Forex and CFD brokerage firm, was founded in 2010 and is based in London.

 

They also have offices in the Asia-Pacific, Middle East, North Africa, Europe and in South America.

 

ThinkMarkets keep the funds of clients in segregated accounts with top-tier banks such as Barclays, National Australia Bank as well as the Commonwealth Bank of Australia which prohibits the use of client funds for any reason.

 

They are heavily regulated and authorized by two of the strictest and most demanding regulatory and authorization entities within the UK and in Australia, namely the FCA and the ASIC as well as the FSCS (FSB) in South Africa, providing a good layer of protection.

Features Features Features

  • Segregates client funds
  • Highly regulated
  • Diverse technical research tools
  • Over 10,000 traders
  • Tightest possible spreads

Pros and Cons Pros and Cons Pros and Cons

ProsCons
Low minimum depositNo fixed spread accounts
Advanced trading programsNo web-based trading platform
Commission free accountsCommission charged for two account types
VPS service 
 

Forex.com Forex.com Forex.com

Forex.com was established in 2001 and is the brand name of GAIN Capital, which is listed on the New York Stock Exchange, and is a global FX and CFD brokerage firm.

 

Forex.com is regulated by the Financial Conduct Authority (FCA) in the UK or the US Commodity Futures Trading Commission (CFTC).

 

Forex.com has garnered many awards and in 2023 it has earned Best in Class (top 7) awards for numerous categories including Offering of Investments, Commissions & Fees, Education, Professional Trading, Crypto Trading, Ease of Use, and Overall.

 

They offer over 4,500 CFD instruments to trade with and they allow access to over 180 markets which include Forex Pairs, Stocks, Indices, Cryptocurrencies and Commodities.

Features Features Features

  • Over 40,000 traders
  • Regulated by several authorities
  • Diverse technical research tools
  • TradingView charts built into platform
  • Great mobile and desktop functionality

Pros and Cons Pros and Cons Pros and Cons

ProsCons
Great variety of currency pairsLimited product portfolio
Fast and easy account openingHigh stock CFD fees
Fast execution of tradesHigher spreads than some brokers
Low Forex feesNo negative balance protection
No withdrawal feesInactivity fee

Conclusion Conclusion Conclusion

Forex trading has experienced explosive growth all over the world, and this includes many countries which are primarily Muslim.

There are complications for those of the Islamic faith to trade as earlier discussed.

Brokers have recognized the demand in the Muslim population and in order to gain clients within the Islamic community, many of them have introduced accounts with No Swaps in order to make Forex trading halal.

Just make sure to research a broker thoroughly and make sure you understand what their particular swap free accounts offer, and how they make their profit instead of the normal overnight rollover.

Trading with a Forex Broker that offers Swap free accounts, isn’t necessarily cut and dry, however in this list of the 17 Best swap free (Islamic) Forex Accounts and brokers, you now have an excellent starting place to research the best Forex broker for your needs.

Frequently Frequently Frequently Asked Questions

What is a swap-free Islamic Forex account?

A swap-free Islamic Forex account is a type of trading account that complies with Shariah law, which prohibits the payment and receipt of interest or usury. This account does not charge or pay swap or rollover fees for holding positions overnight.

How does a swap-free Islamic Forex account work?

In a swap-free Islamic Forex account, the broker will not charge or pay any swap or rollover fees for holding positions overnight. Instead, the broker may charge a fixed commission or markup on the spread to cover the cost of holding positions overnight.

Who can use a swap-free Islamic Forex account?

Swap-free Islamic Forex accounts are available to traders who follow the Islamic faith and wish to comply with Shariah law. These accounts are popular in countries where the majority of the population is Muslim, such as Saudi Arabia, Malaysia, and the United Arab Emirates.

What are the advantages of using a swap-free Islamic Forex account?

The main advantage of using a swap-free Islamic Forex account is that it allows traders to comply with Shariah law and avoid paying or receiving interest or usury. This account is also suitable for traders who prefer to hold positions overnight without incurring any additional fees.

Are there any limitations to using a swap-free Islamic Forex account?

One limitation of using a swap-free Islamic Forex account is that the broker may charge a higher spread or commission to cover the cost of holding positions overnight. Traders should also be aware that some brokers may require a higher minimum deposit or impose additional restrictions on trading in these accounts. It is important to carefully review the broker’s terms and conditions before opening a swap-free Islamic Forex account.

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