Compare the best Islamic forex brokers in 2023

Some brokers let you trade forex in a way that complies with sharia law and Islamic financial principles. This page compares the best Islamic forex brokers to help you choose the right one.
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Updated: Jan 6, 2023
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This page compares the best Islamic forex brokers in 2023, considering factors such as regulation, fees, trading platforms, and customer service. Learn more about the best halal forex brokers in this comprehensive guide.

What is the best Islamic forex broker?

Below you will find a selection of some of the best Islamic forex brokers. Our panel of experts has chosen them; you can get started right away by clicking on the links. Alternatively, scroll down to read reviews about each platform and tips on choosing the right halal FX broker for you.

1
Min. Deposit
$ 10
Promotion
User Score
10
Join the Social Trading revolution. Connect with other traders, discuss trading strategies, and use our patented CopyTrader
eToro is the world’s leading social trading platform, offering a wide array of tools to invest in the capital markets
Largest number of currency pairs to trade
Start Trading
Payment Methods:
Bank Transfer, Credit Card, Debit Card, PayPal, Wire Transfer
Full Regulations:
CySEC, FCA
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.
2
Min. Deposit
$ 10
Promotion
User Score
10
55+ currency pairs available
Trade on a trusted platform
24/7 support via live chats, email or phone call
Start Trading
Payment Methods:
Bitcoin, Credit Card, Debit Card, Visa
Full Regulations:
LonghornFX offers high-leverage trading on a wide variety of assets. Trading with leverage carries a degree of risk which may result in losing more than your investments. Clients should practise risk management to protect themselves from losing more than they can afford when trading with leverage.
3
Min. Deposit
-
Promotion
User Score
9.8
Take a position on major global indices, including US Wall St 30 and France 40
Low spreads and accurate pricing reflecting the underlying market
Comprehensive analysis and new for better decision making
Start Trading
Payment Methods:
Bank Wire, Check, Credit Card
Full Regulations:
CFTC, FCA, IIROC, MAS, NFA
Leveraged trading in foreign currency contracts or other off-exchange products on margin carries a high level of risk and may not be suitable for everyone. We advise you to carefully consider whether trading is appropriate for you in light of your personal circumstances. You may lose more than you invest.

Top 5 Islamic forex brokers, reviewed

1. eToro. Best for beginners, copy-trading & demo-account

1500

No. assets

$10

Minimum deposit

Forex

Platform type

Pros & Cons

Overview

Visit eToro Read Review

2. Oanda. Best for trading with live market data

oanda logo

1500

No. assets

$10

Minimum deposit

Forex

Platform type

Pros & Cons

Overview

Visit Read Review

3. Capitality. Best for trading like a pro

capitality logo

...

No. assets

...

Minimum deposit

Forex

Platform type

Pros & Cons

Overview

What is an Islamic forex broker?

It’s a forex brokerage firm that operates in accordance with the principles of Islamic finance and sharia law. This means that these brokers do not charge or pay interest on trades and offer forex trading services that comply with Islamic law.

The best halal forex brokers offer specially designed accounts that are specifically for Muslim traders. These accounts are usually different compared to traditional services in terms of the fees and charges that are applied, as well as the way that trades are executed. 

How do halal forex brokers work?

Islamic forex brokers work similarly to traditional forex brokers, although there are a few key differences. Both types of brokers allow traders to buy and sell currencies on the foreign exchange market. However, unlike traditional brokers, halal forex brokers do not charge or pay interest on trades, as the charging of interest is prohibited in Islam.

Islamic forex brokers use alternative methods to generate revenue, including charging slightly higher spreads or adding fees such as commissions. Some Islamic forex brokers also offer additional services, such as sharia-compliant financial investments, for which they will charge a fee. 

Overall, Islamic forex brokers generally offer the same range of trading services as traditional platforms. This includes access to real-time price quotes, charts, and mobile apps, among others. 

How should I choose an Islamic forex broker?

There are a few key factors you should consider when choosing an Islamic forex broker, the most important being how well it complies with sharia law. However, there are other features to look out for, which we’ve explained below. 

Compliance with sharia law

Before starting with an Islamic forex broker, you should ensure that it complies with sharia law. Some forex brokers claim they are compliant but offer many services that are open to interpretation. Take the time to read the relevant sections of trading terms and conditions. 

Regulatory status

Choose an Islamic forex broker that is regulated by a well-renowned regulator such as the Financial Conduct Authority (FCA) in the UK or CySEC in Europe. A reputable regulatory authority ensures that the broker is required to adhere to certain rules and regulations.

Verification level

Some halal forex brokers require you to prove you are Muslim before opening a swap-free account. Although this is not always necessary with every broker, you should ensure that you have the relevant documentation when choosing an account. This often includes a letter from a Mosque confirming your religion. 

Low fees

Make sure you take the time to compare the fees and charges of different Islamic forex brokers to find the best deal. Charges include spreads, commissions, and account maintenance fees. Check out our reviews above for more information. 

Website and support languages

If you’re located in a non-English speaking country, or English isn’t your first language, you should look to use a broker that offers its website and customer service in a language you are familiar with. For users of Islamic accounts, this tends to include Arabic or Urdu. 

Trading platforms

Find a broker that offers trading platforms that are easy to use and has additional features or tools. This could include real-time price quotes, technical indicators, or access to a live financial news feed. 

Reputation

Read reviews from other traders to understand the broker’s reputation in the industry. A broker with a good reputation is more likely to offer a high-quality service. You can also find out how compliant with Islamic financial principles a broker is from other Islamic account users. 

Should I use an Islamic forex broker?

Whether or not you should use an Islamic forex broker depends on your personal beliefs and financial goals. If you are Muslim and want to participate in forex trading in a way that complies with sharia law, then an Islamic forex broker is a good choice. 

On the other hand, if you are not Muslim and are not concerned about Islamic financial principles, then a halal forex broker probably isn’t the best fit for you. A traditional brokerage account offering a wider range of services and accessibility may be the best option. 

Ultimately, whether or not you use an Islamic forex broker will depend on your financial goals and your commitment to following religious laws. Islamic forex brokers offer many of the same features as traditional platforms and offer Muslim traders an avenue to trade FX without compromising their religious beliefs. 

What are the risks of using an Islamic forex broker?

As with all types of trading or investing. , there are certain risks associated with using an Islamic forex broker. Below we’ve summarised a few key benefits and risks of halal forex brokers. 

Benefits

  • You can trade the largest financial market in the world in a way that complies with your faith. 
  • Swap-free accounts ensure you will pay zero interest on FX trades.
  • Many Islamic forex brokers let you start trading with very little money.

Risks

What are the fees for using an Islamic forex broker?

Each Islamic forex broker will have its own fee schedule, usually consisting of commissions and spreads. Some halal forex brokers may charge a commission on each trade, while others may offer commission-free trading but have wider spreads (the difference between the buy and sell price). 

Other than trading fees, some Islamic forex brokers have other charges, including account maintenance costs, inactivity fees, and fees for withdrawing money from your account. Before registering an account, it is important to carefully review a broker’s fee schedule to ensure you are aware of all fees and charges. 

Methodology: How did we choose the best halal forex brokers?

Our expert panel consists of forex traders with decades of experience behind them. They conducted extensive research and testing of all of the services involved. Testing means we have signed up, created an account, deposited and withdrawn money, and placed at least one trade.

In addition to the testing process, we have researched all of the platforms online. Together, those criteria combined to produce a series of ranking factors which have been used to produce a final list of Islamic forex brokers.

None of the services listed on this page has influenced the order in any way. We may make an affiliate commission if you sign up and trade on an app using one of the links above. Learn more about how we make money by reading our reviews process.

FAQs

What is a swap-free forex trading account?
Is forex trading haram?
Can non-Muslims use an Islamic forex broker?
What do I require to open an Islamic forex broker account?
What is the best Islamic forex broker?
How can I ensure that an Islamic forex broker fully complies with sharia law?

Sources & references
Risk disclaimer

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

Prash Raval
Financial Writer
When not researching stocks or trading, Prash can be found either on the golf course, walking his dog or teaching his son how to kick a… read more.