Page Summary
Trading with foreign currencies (forex) in UAE is popular among Islamic traders in UAE as it is in compliance with Sharia law (Ribba). With the wide range of online brokers (local & offshore) that offer Islamic (swap-free) accounts, it is difficult to choose the ideal option for individual needs.
To guide traders safely through the selection process, we have analyzed, compared and reviewed the different providers and their services in UAE to create a list of top choices. To satisfy the needs of Islamic traders searching for wider spreads and no charges on overnight positions, our assessment considers availability of swap free accounts, trading platforms and features, availability of currency pairs, fees, safety and regulation, deposits and withdrawals and Arabic customer support availability.
This guide compares 82 providers for users to review and find the ideal forex broker for their needs. To help them make an informed decision, a list of the best islamic forex brokers in UAE is shared below.
Best Islamic Forex Brokers In UAE
- AVAtrade– Best Islamic Forex Broker Overall
- Pepperstone – Top Multi-Platform Islamic Forex Broker
- eToro – Ideal Islamic Broker for Beginners
- IC Markets – Great for Day Traders and Scalpers
- FP Markets – Best for High-Frequency and Algo Traders
Top 5 Islamic Account Forex Brokers in UAE Reviewed
The top Islamic forex brokers in UAE are reviewed below, including advantages, disadvantages and key features.
1. AVAtrade – Best Islamic Forex Broker in UAE Overall
Min Deposit: $100
Fees: 4.9
Assets available: 4.9
Total Fees: 0.9 pip
AvaTrade allows Islamic traders 24/7 access to 55 forex pairs and 44 forex options across eight different forex trading platforms and low fixed spreads from 0,9 pips (EUR/USD).
AvaTrades Islamic accounts offer access to the full MetaTrader suite (MT4 and MT5) and a set of proprietary trading platforms available in Arabic language.
Islamic account users are not charged with overnight or rollover fees on open positions up to 5 days. Muslim traders are also not charged with daily swaps – those are transferred into daily administration fees instead.
The Islamic account allows Muslim forex traders to apply different trading techniques such as short selling, scalping, and the use of Expert Advisors, trading bot scripts, and other automated trading software.
AvaTrade Spreads and Commissions on the Islamic Account
AvaTrade charges low, fixed spreads starting at 0,9 pips (EUR/USD). All forex CFD trades are commission-free.
| Broker | AvaTrade | Pepperstone | eToro | IC Markets | FP Markets |
| EUR/USD | 0,9 pips | 0,9 pips | 0,9 pips | 0,3 pips | 1,2 pips |
| USD/JPY | 1,0 pips | 0,7 pips | 0,9 pips | 0,4 pips | 0,65 pips |
| GBP/USD | 1,5 pips | 0,7 pips | 2,0 pips | 0,8 pips | 0,92 pips |
| AUD/USD | 1,1 pips | 0,7 pips | 1,0 pips | 0,6 pips | 0,28 pips |
| Min. Deposit | $100 | $500 | $50 | $200 | $100 |
| Swap Free Account | Yes | Yes | Yes | Yes | Yes |
| Inactivity Fee | Yes | No | Yes | No | No |
| Funding Fee | No | No | Yes | No | No |
AvaTrade Islamic Account Types
Avatrade offers 3 different account types to Islamic traders: Retail, Standard, and Professional. All account types offer demo and Islamic account options and come with different fee structures, leverage conditions, and minimum deposit requirements.
- Retail and Standard Account are the basic account types that allow traders access to all asset classes, including forex, with up to 1:30 leverage.
- Professional Account is the trading account for institutional traders and accredited investors that allows forex trading with up to 1:400 leverage.
- The Demo Account allows traders to practice forex trading with a $100,000 virtual balance.
- The Islamic Swap-free Forex Account charges administration costs instead of spreads (no riba) and allows trading in Halal assets only.
Available Assets
AvaTrades Islamic account offers access to 55 forex currency pairs (major, minor, and exotic pairs) and 44 vanilla forex options. All these assets are available as CFDs only, meaning that traders speculate on the underlying assets without outright owning them.
AvaTrade Trading Platforms
AvaTrade list of platforms include 8 proprietary platforms and is compatible with the full MetaTrader suite (MT4 and MT5) and third-party add-ons like TradingView and Trading Central. Traders can deploy Expert Advisors and other automated trading software on all these platforms.
AvaTrade Customer Service
AvaTrade’s customer service is available 24/7 in English and Arabic via email, live, chat, phone, or WhatsApp. AvaTrade’s support staff is professional and responsive.
Key Features for Muslim Forex Traders:
- Great selection of forex currency pairs: 55 forex pairs and 44 forex options
- Low average spreads: starting at 0,9 pips on EUR/USD
- Multiple trading platforms: proprietary trading platforms, MT4, MT5, TradingView, ZuluTrade, DupliTrade, MacTrading
- Islamic swap-free accounts: fully compliant with Sharia Law
- Maximum leverage: 1:30 for retail traders and 1:400 for professional and institutional traders
- Micro lot trading: yes
- Recommended experience level: average to advanced
- Supported trading strategies: automated trading, short selling, scalping, hedging, swing trading
Read the full AvaTrade review
71% of retail CFD accounts lose money
2. Pepperstone – Best Multi-Platform Islamic Forex Broker
Min Deposit: $200
Fees: 4.9
Assets available: 4.8
Total Fees:
Peppersone is an Islamic forex broker that offers access to 6 different trading platforms and over 60 major, minor, and exotic forex currency pairs. Their list of trading platforms include the full MetaTrader suite (MT4 and MT5), cTrader, TradingView, and Capitalise.ai. The broker additionally supports advanced trading features such as VPS hosting, Autochartist and Smart Trader Tools.
Pepperstone Islamic trading accounts allow clients to keep forex positions open without having to pay overnight fees or daily swaps. The average spreads on those accounts are wider than on regular accounts. The Islamic account allows trading with up to 30:1 leverage and the usage of different trading strategies including short selling and scalping.
Pepperstone users can choose between 3 different account types: Limited-risk CFD account, Razer, and Standard CFD account which all can be converted to Islamic swap-free accounts for free.
Pepperstone Spreads and Fees On Islamic Accounts
Pepperstone charges a low spread of 0,9 pips ( EUR/USD) on the Islamic account.
The cTrader and TradingView commissions are fixed and set at $6 per round traded lot.
There are no inactivity or funding fees on Pepperstone, but currency conversion fees apply when depositing AED into your account. Compared to other brokers, Pepperstone’s spreads and fees are low.
Pepperstone Islamic Account Types
Pepperstone offers 2 main account types: Standard and Razor. Both account types can be converted into an Islamic account and offer up to 30:1 leverage and access to a free demo version. Here is a break down of both account types:
- The Razor account offers lower spreads and fixed commissions and is ideal for scalpers and algorithmic traders
- The Standard account is meant for beginner traders that don’t use Expert Advisors, APIs or other forms of automated trading software
Pepperstone Platforms
Pepperstone’s list of platforms include a proprietary web-based trading platform and app and third-party platforms such as TradingView, MetaTrader 4 and 5, and cTrader. All trading platforms offer simple and advanced forex trading features and risk management tools like stop losses, take profits, and trailing stop losses.
Pepperstone Customer Service
The Pepperstone customer service is 24/7 available in both English and Arabic via live chat and WhatsApp. The support staff always responds quickly and in an adequate manner, making Pepperstone one of the more user-friendly brokers.
Key Features For Muslim Forex Traders:
- Great selection of forex currency pairs: 49 forex pairs
- Low average spreads: starting at 0,9 pips on EUR/USD
- Multiple trading platforms: proprietary trading platforms, MT4, MT5, TradingView, cTrader, Capitalise.ai
- Islamic swap-free accounts: fully compliant with Sharia Law
- Maximum leverage: 1:30
- Micro lot trading: yes
- Recommended experience level: experienced
- Supported trading strategies: automated trading, short selling, scalping, hedging, swing trading
Read the full Pepperstone UAE review
74-89% of retail CFD accounts lose money
3. eToro – Best Islamic Forex Broker for Beginners
Min Deposit: $200
Fees: 4.8
Assets available: 4.8
Total Fees:
77% 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. eToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. OTC Derivatives are speculative and leveraged. Not suitable for all investors. See PDS and TMD. Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
eToro is an Islamic beginner-friendly forex broker that allows users to trade on 49 major currency pairs. The broker features intuitive trading platform, beginner friendly trading features, a great education section and the world’s largest social/copy trading community. For this reason, eToro is a popular Islamic forex broker for beginner and casual forex traders.
eToro Islamic Account Spreads and Fees
eToro charges low fixed spreads from 0.9 pips (EUR/USD), and variable overnight fees on forex and forex CFD trades, ranging from $0,0004082 to $0,000079.
eToro doesn’t charge overnight fees on Islamic swap-free accounts, but charge administration fees. This means that eToro doesn’t charge Riba and is compliant with Sharia Law.
eToro Islamic Account Types
eToro offers two main account types: Retail and Professional. Both account types offer Islamic swap-free account options and enable users to trade forex with up to 20:1 leverage. Below we will outline the different eToro account types.
- Retail Account – is the basic account that allows users to trade forex pairs, forex CFDs, and other assets like stocks, commodities, and cryptocurrencies with up to 20:1 leverage.
- Professional Account – is the account for professional and institutional traders that allows forex trading with up to 500:1 leverage. The minimum deposit required to open this account type is $10,000.
- Islamic Swap-free Account – is the swap-free and Sharia-compliant account for Muslim forex traders.
eToro Assets
eToro offers forex traders access to 49 forex currency pairs, including all major, minor, and exotic pairs. All forex pairs are available both as real assets and as underlying assets in the form of CFDs.
eToro Trading Platforms
eToro’s list of trading platforms include a proprietary web-based trading platform (eToro WebTrader) and the mobile eToro app. Both platforms are intuitively designed and beginner-friendly.
eToro Customer Service
eToro’s customer service is available in 16 languages, including English and Arabic. Support is available 24/7 by email, live chat, and phone, even during weekends and holidays.
Key Features For Muslim Forex Traders
- Great selection of forex currency pairs: 49 different forex pairs and forex CFDs, including all major, minor, and exotic currency pairs.
- Competitive spreads: starting at 0,9 pips on EUR/USD
- Social/Copy Trading Options: CopyTrader
- High maximum leverage: 20:1 for retail traders and 500:1 for professional and institutional traders
- Regulated by multiple tier-1 regulators: eToro is regulated by the FCA, ASIC, CYSEC, and ADGM
- Islamic swap-free account available: yes
- Micro lot trading offered: no
- Recommended experience level: Beginner
- Supported trading strategies: social or copy trading
Read the full eToro UAE review
77% 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. eToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. OTC Derivatives are speculative and leveraged. Not suitable for all investors. See PDS and TMD. Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
4. IC Markets – Best Islamic Account for Day Traders and Scalpers
Min Deposit: $200
Fees: 4.7
Assets available: 3.6
Total Fees:
IC Markets guarantees fast and reliable order execution across all trading platforms including MetaTrader 4 and 5. They also offer deep liquidity, spreads from 0,0 pips, and access to 61 forex pairs, which makes them a great choice for Islamic day traders and scalpers.
IC Markets Islamic Account Spreads and Fees
IC Markets charges a low spread of 0.1 pip (EUR/USD) plus a $3,50 commission per lot per side on the Raw Spread account.
IC Markets charges competitive spread of 0,6 pips (EUR/USD) on forex and forex CFDs on their standard account.
IC Markets charges additional forex trading fees in the form of overnight fees, which are calculated on a per-currency basis on a standard size of 1,0 lots (100,000 base units). IC Markets doesn’t charge deposit, withdrawal, or inactivity fees, making it one of the cheapest forex brokers for Muslim traders in UAE.
IC Markets Islamic Account Types
IC Markets allows Islamic traders to choose between three main account types: Standard, Raw Spread, and Raw Spread cTrader. All account types are available for retail and professional traders and have different fee structures and maximum leverage ratios.
They also offer free demo account and Islamic swap-free options.
| Features | Standard | Raw Spread | Raw Spread cTrader | Islamic |
| Minimum Deposit | $200 | $200 | $200 | $200 |
| Spreads | 0,6 pips, $0 commission | 0,0 pips, $3,50 commission | 0,0 pips, $3 commission | 0,0 pips, $3,50 commission |
| Swaps | Yes | Yes | Yes | No |
| Max. Leverage | 30:1 or 500:1 | 30:1 or 500:1 | 30:1 or 500:1 | 30:1 or 500:1 |
IC Markets Assets
IC Markets supports over 61 forex pairs, 25 indices, 2,100 stock CFDs, 100 futures, 12 commodities, and 10 cryptocurrencies.
IC Markets Trading Platforms
IC Markets’ list of platforms include a proprietary WebTrader and mobile apps, third-party platforms such as MetaTrader 4, MetaTrader 5, cTrader, and automated trading extensions like Myfxbook AutoTrade and ZuluTrade.
IC Markets Customer Service
IC Markets customer support is available 24/7 by email, live chat, and phone in 16 languages, including English and Arabic. The IC Markets website also contains an extensive network of FAQ pages.
IC Markets Key Features for Muslim Forex Traders:
- Great selection of forex currency pairs: 61 forex pairs and forex CFDs
- Competitive spreads: starting at 0,0 pips on EUR/USD
- Multiple trading platforms: proprietary, MetaTrader 4, MetaTrader 5, cTrader, ZuluTrade, Myfxbook
- High maximum leverage: of up to 30:1 for retail traders and 500:1 for professional and institutional traders
- Regulated by multiple tier-1 regulators: FCA, FSA, ASIC, CySEC
- Islamic swap-free account: yes
- Micro lot trading: yes
- Recommended experience level: Average
- Supported trading strategies: day trading, scalping, swing trading
Read full IC Markets review
73.59% of retail CFD accounts lose money
5. FP Markets – Best Islamic Account for High-Frequency and Algo Traders
Min Deposit: 0
Fees: 5.0
Assets available: 3.1
Total Fees:
With its Equinix NY4 facility server cluster, institutional-grade liquidity, dealing desk and requotes, FP markets provide ideal conditions for scalping and Expert Advisors. This makes FP markets our top-rated Islamic forex broker for high-frequency and algorithmic traders in UAE.
FP Markets Islamic Account Spreads and Commissions
FP markets offers low, competitive spreads starting at 0,1 pips on the major currency pairs like EUR/USD on its standard account.
FP Markets Islamic Account Types
FP Markets offers 2 account types: the Standard and the RAW ECN Account. Both account can be converted to Islamic MetaTrader 4 or Islamic MetaTrader 5 accounts. The maximum leverage on all accounts is 500:1, even for retail traders.
FP Markets Assets
FP markets offers access to over 10,000 financial instruments, including 60 forex pairs.
FP Markets Trading Platforms
FP markets’ list of trading platforms include its proprietary web, mobile, and desktop trading platforms, the full MetaTrader suite (4 and 5), and MAM/PAMM accounts.
FP Markets Customer Service
FP Markets customer support is available 24/7 by email, live chat, and phone in English, Arabic. The broker is also active on social media such as Facebook, Twitter, LinkedIn, and Instagram.
FP Markets Key Features for Islamic Forex Traders:
- Great selection of forex currency pairs: 60 forex pairs and forex CFDs
- Low spreads: starting at 0,0 pips on ECN accounts
- Multiple trading platforms: Proprietary WebTrader and mobile trading app, MetaTrader 4, MetaTrader 5, Autochartist
- Regulated by multiple tier-1 regulators – FCA, CFTC
- Islamic swap-free account: yes
- Micro lot trading: yes
- Recommended experience level: Average
- Supported trading strategies: algorithmic trading, expert advisors, bot integration, scalping, day trading, hedging, short-selling
Read the full FP Markets review
75.31% of retail CFD accounts lose money
How To Choose The Ideal Forex Broker in UAE Offering Islamic Accounts?
Criteria to consider to select the ideal forex brokers in UAE with Islamic (swap-free) account are listed below.
- Availability of forex currency pairs
- Availability of swap free accounts
- Spread and commission charges
- Trading platforms and features
- Availability of customer support in Arabic
Top Islamic Forex Brokers Compared
Key features of the highest rated Islamic forex brokers in UAE are compared in the table below.
| Broker | Nr. of Forex Pairs | Spreads on EUR/USD | Maximum Leverage | Available Trading Platforms | Available Trading Tools | Regulators | Minimum Deposits |
|---|---|---|---|---|---|---|---|
| AvaTrade | 50+ | 0.9 pips | 400:1 | MetaTrader 4, MetaTrader 5, AvaTradeGo, AvaOptions | AutoChartist, DupliTrade, ZuluTrade | Central Bank of Ireland, ASIC, FSA, FFAJ, FSCA | $100 |
| Pepperstone | 180+ | 0.13 pips | 500:1 | MetaTrader 4, MetaTrader 5, cTrader | AutoChartist, Smart Trader Tools | FCA, ASIC, DFSA, SCB | $200 |
| eToro | 47 | 1 pip | 30:1 (EU), 400:1 (non-EU) | eToro Platform, eToro Mobile | Social Trading, CopyTrading | CySEC, FCA, ASIC | $200 |
| IC Markets | 60+ | 0.1 pips | 500:1 | MetaTrader 4, MetaTrader 5, cTrader | AutoChartist, VPS, API Trading | ASIC, CySEC, FSA | $200 |
| FP Markets | 60+ | 0.1 pips | 500:1 | MetaTrader 4, MetaTrader 5, IRESS | VPS, AutoChartist, MAM/PAMM | ASIC, CySEC | $100 |
Again, please note that the above data are approximations and the actual parameters might
What Are Islamic Forex Accounts?
Islamic forex accounts are trading accounts that allow Islamic traders to trade according to Sharia Law. These types of accounts are swap-free accounts, which means that they don’t charge or pay out interest (Riba). Transactions on Islamic accounts are processed without delay and transaction fees are paid instantly.
What Are The Key Features of Islamic Forex Trading Accounts?
The most common features of Islamic forex trading accounts include no interest charges on overnight positions and wider spreads.
What Is The Difference Between Islamic and Regular Trading Accounts?
The key differences between Islamic forex trading accounts and regular accounts are:
- Islamic accounts don’t charge or receive swaps on overnight positions
- Islamic trading accounts have wider spreads than regular trading accounts
- Islamic trading accounts don’t allow trading on emerging market currencies or cryptocurrencies
- Islamic accounts back commodity trades (like silver and gold) with physical assets.
Are There Any Commissions Charged on Islamic Forex Accounts?
Yes, Muslim traders pay margins, commissions, and administrative fees, which are not interest-based and, therefore, not considered Haram.
Conclusion
With the variety of swap-free brokers, it is tough to compare and evaluate their service to find the ideal option. To make the right choice for individual needs, traders need to gather important information and evaluate them considering certain parameters.
In this guide we have done the hassle for our readers reviewing and evaluating the top choices for different types of traders and trading goals. The results of our analysis of the best Islamic forex brokers in UAE are summed up in the table below.
| Broker | Avg. Spread (EUR/USD) | Number of Forex Pairs | Min. Deposit | Best For |
| AvaTrade | 0,9 pip | 59 | $100 | Low fixed spreads |
| Pepperstone | 0,9 pip | 60 | $200 | Multi-platform availability |
| eToro | 0,9 pip | 49 | $200 | Beginners |
| IC Markets | 0,0 pip | 61 | $200 | Day traders and scalpers |
| FP Markets | 1,2 pip | 60 | $0 | High-Frequency and algorithmic traders |
FAQ
Do Islamic accounts allow the usage of stop loss and take profit orders?
Yes, Islamic accounts have no restrictions on the use of stop-loss or take-profit orders. It would make no sense for brokers to place restrictions on these order types as it would hurt their revenue.
Is Forex Trading Halal?
Yes, forex trading is halal as long as the trader follows Sharia principles like not accepting interest and staying away from investments like cryptocurrencies. Sharia Law states that currency exchange and profiting from it is allowed when it improves one’s financial conditions.
What Is a Swap
A swap refers to the fees payable when a trader leaves a position open on the foreign exchange market for longer than 24 hours. Swaps are a form of interest or riba and are forbidden according to Sharia law.
Can anyone open an Islamic trading account?
Yes, anyone can open an Islamic trading account. In some cases, you have to manually request the customer service of your broker to convert your regular trading account to a swap-free one.
Is MetaTrader available in Islamic accounts?
Yes, MetaTrader is a trading platform and not an account type. It is possible to trade swap-free on MetaTrader with brokers that offer both Islamic accounts and MetaTrader.
Are there any extra fees on Islamic accounts compared to non-Islamic accounts?
Brokers commonly charge higher spreads on Islamic accounts to get compensated for the lack of swap charges.
Is it possible to convert swap-free accounts to regular accounts?
Yes, online brokers can convert Islamic accounts to regular accounts based on users request.
How do trading conditions on Islamic accounts differ from trading conditions on regular accounts?
Islamic forex trading accounts charge no interest, no overnight fees (swaps), do not allow gambling including hedging, require immediate transactions, and have higher spreads.
Disclaimer
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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.
Stefan Grasic (Dipl.-Jur) is the owner of Business24-7 and has considerable experience in the financial and investment niche, but also enjoys writing articles for the general readership. Stefan is an active stock, CFD, crypto and general investment researcher, advising blockchain companies such as Blockbird, GoCrypto, Hive Terminal at their start up level. Stefan began trading in 2010 as a college student. Money was tight,…