In page navigation
- 1. Compare the best Islamic forex brokers in 2023
- 2. What is the best Islamic forex broker?
- 3. Top 5 Islamic forex brokers, reviewed
- 4. What is an Islamic forex broker?
- 5. How do halal forex brokers work?
- 6. How should I choose an Islamic forex broker?
- 7. Should I use an Islamic forex broker?
- 8. Methodology: How did we choose the best halal forex brokers?
- 9. FAQs
Compare the best Islamic forex brokers in 2023
Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
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.
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
We love eToro because it’s an easy place to trade the currency markets. Forex can be intimidating, but eToro strips back the complexity to give you a platform where you can trade 50+ currencies at competitive prices and with up to 30x leverage.
As well as being a broker that offers lots of investor protection, eToro offers a very social trading experience. You can easily see how all the major and minor forex pairs are performing every day, track how investors feel about every one of those currencies, and copy other people’s trade suggestions from your desktop or the eToro app.
The fees: eToro charges a fee on currency CFD trades through the spread. Spreads are variable depending on the currency and start from 1 pip for EUR/USD trades, 1.5 pips for EUR/GBP, and 2 pips for GBP/USD. Overnight and weekend fees apply.
2. Oanda. Best for trading with live market data
1500
No. assets
$10
Minimum deposit
Forex
Platform type
Pros & Cons
Overview
We love Oanda because its user-friendly trading platform has been built for reliability and speed. Oanda is a CFD broker where you can trade over 70 forex markets, including majors and minors. The platform is suitable for all levels of experience, has powerful analysis tools and a wide selection of educational videos.
Oanda is an award-winning broker and integrates with both the Metatrader4 and TradingView platforms. That’s in addition to its fully customisable proprietary mobile and desktop app. Oanda has been operating for over 25 years and holds regulatory licences in the UK, Europe, Asia, and Australia.
The fees: Oanda does not charge any commissions on trading. It makes it money from the Bid/Ask spread which starts at 0.7 pips. Swap charges are applied for keeping positions open overnight and vary depending on size. There is also an admin fee for swap charges starting at 1%. A £10 fee is applied to accounts inactive for 12 months.
3. Capitality. Best for trading like a pro
...
No. assets
...
Minimum deposit
Forex
Platform type
Pros & Cons
Overview
We love Capitality because it gives regular investors the means to trade with pro data and tools. Capitality offers 2100+ financial instruments, including 80 currency pairs.
The Capitality web trading terminal gives you access to live market data, real time quotes, and super-fast trade execution, all without needing to download anything. There’s also a free economic calendar that lets you know when the big financial events happen so you can plan your trades accordingly.
The fees: Capitality charges its fees through the spread. Spreads start from 0.1 pips for major forex pairs but can be significantly higher for minor and exotic pairs.
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
More of the best forex rankings
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 >
Navigation
- 1. Compare the best Islamic forex brokers in 2023
- 2. What is the best Islamic forex broker?
- 3. Top 5 Islamic forex brokers, reviewed
- 4. What is an Islamic forex broker?
- 5. How do halal forex brokers work?
- 6. How should I choose an Islamic forex broker?
- 7. Should I use an Islamic forex broker?
- 8. Methodology: How did we choose the best halal forex brokers?
- 9. FAQs