There are only a handful of safe and reliable forex/CFD providers that offer Islamic accounts for traders.
If you are a Muslim, you have probably tried everything to find a reliable broker who supports forex Islamic trading and that complies with the Muslim faith laws and conditions of no swap or rollover interest on overnight positions.
Want to know more about Forex Islamic accounts?
Now at XM, you can open a Forex Islamic account in 3 easy steps, all you have to do is:
- Open and fund an account.
- Go to the Members Area, login and validate your account./li>
- Request an Islamic account which operates under the Sharia Law.
Your trading account will then receive swap-free status as soon as the department at XM receives your request which usually takes 1-2 business days to process, you will be notified by email.
There is one important issue…
If XM detects any sort or form of abuse, XM reserves the right to revoke the swap-free status.
All you need to do now is start trading!
Why trade with XM?
There are numerous benefits such as:
- They are 100% Shariah Compliant
- A position can be held with no time limit
- Overnight positions have no interest/swap charges
- Zero up-front commissions
- No spread widening
- Instant access to all the trading platforms
- No re-quotes
- 100% real-time market execution, with leverage of up to 888:1
- Dedicated support from a Client account manager 24/5
You will discover that XM’s Islamic trading accounts operate 24 hours a day with a big variety of instruments to choose from, such as:
- Foreign exchange
That’s not all…
You also have another great option – AvaTrade.
A recipient of many prestigious awards, they also offer Islamic trading accounts that are fully in line with Islam rules,with numerous trading solutions to fit all your needs and wants.
Check this out!
By trading with an Islamic account at AvaTrade, you are not subjected to special fees or interest which are in accordance with the finance principles of Sharia law.
Let’s get to the point
Here are some benefits of trading with AvaTrade:
- Access to a wide variety of currency pairs like the EU/USD, bonds, indices, ETFs, commodities and stocks.
- Trading of gold and silver that is in compliance with Shariah rules.
- Trade Islamic oil on AvaTrade MT4 platform you will discover that the price of oil futures that are traded on futures markets around the globe.
- Access to the most liquid stock indices that are linked directly to stock markets around the world, without accumulation of swaps and you only pay the bid-ask spreads.
- Trade FX instruments, however, certain instruments are not available on Islamic accounts.
Be warned: If you wish to trade ZAR, TRY, RUB and MXN pairs you will need to give up your Islamic account and be subject to fees or interest. It should be noted that Islamic accounts are subjected to an increase on FX currency pairs.
- If you wish to trade cryptocurrencies, holders of Islamic accounts will have to give up Islamic account privileges and be subject to interest or special fees.
But wait, that’s not all!
eToro, the world’s leading social network provider also offers Islamic accounts that are in accordance with Shariah laws.
Their unique and innovative platform is widely popular amongst traders.
A game changer
Their platform features CopyTrader where you can copy other successful trader’s portfolios which gives you the opportunity to trade like a pro even if you are a novice trader.
That’s not all…
The platform comes with numerous advanced trading tools and features plus they offer some great perks like a free demo account with virtual money, education programs with videos, webinars, ebooks and more.
You will be able to interact, discuss trading strategies, post comments with others in the eToro community.
With an Islamic account at eToro, you have plenty of benefits such as:
- No interest on contracts lasting longer than 24 hours – zero rollover interest consistently.
- No additional rollover commissions for contracts lasting longer than 24 hours.
- No commissions or fees for account management. (Revenues at eToro come strictly from spreads (the difference between the buy and sell prices of an instrument).
- An eToro Islamic account has interest-free leverage.
Are you ready to open an Islamic account?
Three easy steps will have you trading in no time. Here is all you have to do:
- Register for a real account.
- Invest a minimum of $1,000 USD.
- Contact customer service who easily available via live chat, email or phone.
They will require identification documents to complete your account verification.
*66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
But wait there is another great option to trade swap-free: Pepperstone!
Pepperstone enjoys a high reputation as an online Forex/CFD broker amongst traders and is headquartered in Australia.
Also a recipient of many awards, they are regulated by the Australian Securities and Investments Commission (ASIC) and the Financial Conduct Authority (FCA).
They offer traders a huge variety of platforms to choose from, 11 in total, all of which come with Smart Trader Tools: The MetaTrader 4 has the standard MetaTrader 4 for Windows, MetaTrader 4 for Mac, MetaTrader 5, WebTrader and mobile applications for devices running on iPhone, Android and iPad or Tablet.
They offer over 70 tradable assets that Islamic account holders can access for swap free trading which is interest-free in accordance with Islamic law.
Take a look at some additional swap free benefits that Pepperstone offers Islamic account holders that you can take advantage of:
Spread type: Standard account
Average EURUSD spread: 1.0 – 1.2 pips
Min/max trade size: 0.01 lots / 100 lots
Account base currencies available: AUD, EUR, GBP, USD
Scalping allowed: Yes
EAs allowed: Yes
Hedging allowed: Yes
All in all…
You have some great choices of online Forex/CFD brokers to trade Islamic accounts for swap free: XM, eToro, Pepperstone, and AvaTrade.
In short, Islamic accounts have no Riba (no exploitive gains that are made in trade or business under Islamic law and no interest charged on loans).
Several decisions and fatwas have been issued with decrees and conditions for trading currencies which are:
- Immediate buying and selling without delay.
- Currencies need to be transferred from the account of the seller to that of the buyer and vice versa.
Cost of the trade should be paid without delay.
- Zero interest on trades. In the case that there is any usurious interest, the contract will be invalid, void and Haram.