Best Islamic Forex Brokers in UAE 2023

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This guide breaks down the best forex brokers in UAE offering Islamic (swap free) accounts. All of the online brokers on our list allow trading in compliance to Shariah law, but have a slightly different offer.

Below is a detailed analysis and comparison of the top 5 Islamic forex brokers in UAE considering: trading platforms and features, availability of currency pairs, fees, safety and regulation, deposits and withdrawals and Arabic customer support availability. 

Best Islamic Account Forex Brokers In UAE

  • Avatrade – Best Islamic Forex Broker in UAE Overall
  • Pepperstone – Best Multi-Platform Islamic Forex Broker
  • eToro – Best Islamic Broker for Beginners
  • IC Markets – Best for Day Traders and Scalpers
  • FP Markets – Best for High-Frequency and Algo Traders

Key Features of The Top Islamic Forex Brokers Compared

BrokerAvg. Spread (EUR/USD)Number of Forex PairsMin. DepositBest For
AvaTrade0,9 pip59$100Low fixed spreads
Pepperstone0,9 pip60$500Multi-platform availability
eToro0,9 pip49$200Beginners
IC Markets0,0 pip61$200Day traders and scalpers
FP Markets1,2 pip60$100High-Frequencyy and algorithmic traders

Top 5 Islamic Account Forex Brokers in UAE Reviewed

The section below breaks down the top Islamic forex brokers in UAE including their advantages, disadvantages and key features.

01. AvaTrade: Best Islamic Forex Broker in UAE Overall

avatrade-rating

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. 

BrokerAvaTradePepperstoneeToroIC MarketsFP Markets
EUR/USD0,9 pips0,9 pips0,9 pips0,3 pips1,2 pips
USD/JPY1,0 pips0,7 pips0,9 pips0,4 pips0,65 pips
GBP/USD1,5 pips0,7 pips2,0 pips0,8 pips0,92 pips
AUD/USD1,1 pips0,7 pips1,0 pips0,6 pips0,28 pips
Min. Deposit$100$500$50$200$100
Swap Free AccountYesYesYesYesYes
Inactivity FeeYesNoYesNoNo
Funding FeeNoNoYesNoNo

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. 

WebTrader: The standard proprietary AvaTrade trading platform accessible directly from your browser without having to download any software

AvaTradeGo: The proprietary mobile trading app available on both iOS and Android devices that has the same functionalities as the desktop trading platform.

MetaTrader 4 & MetaTrader 5: The most popular forex trading platforms globally that offer a wide range of technical analysis tools, support multiple order types, and automated trading software integrations

Mac Trading: AvaTrade’s proprietary trading platform for MAC users 

AvaSocial: Avatrade’s proprietary social trading platform that allows traders to follow and copy positions and portfolios of other traders.

ZuluTrade & DupliTrade: Third-party trading platforms that allow users to copy trades and portfolios from experienced traders

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


02. Pepperstone: Best Multi-Platform Islamic Forex Broker

pepperstone-rating

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. 

spread

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


03. eToro – Best Islamic Forex Broker for Beginners

etoro-rating

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


04. IC Markets: Best Islamic Account for Day Traders and Scalpers

ic-markets-rating

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.

FeaturesStandardRaw SpreadRaw Spread cTraderIslamic 
Minimum Deposit$200$200$200$200
Spreads0,6 pips, $0 commission0,0 pips, $3,50 commission0,0 pips, $3 commission0,0 pips, $3,50 commission
SwapsYesYesYesNo
Max. Leverage30:1 or 500:130:1 or 500:130:1 or 500:130:1 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


05. FP Markets: Best Islamic Account for High-Frequency and Algo Traders

fp-markets-rating

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.

Web Trading Platform – Allows Muslim forex traders to trade directly from any browser on any device with an active internet connection (no download required).

MetaTrader 4 Trading Platform – Enables traders to use Expert Advisors (EAs) and take advantage of FP Market’s lightning-fast order execution speed and deep forex liquidity. 

MetaTrader 5 Trading Platform – Provides traders with a technologically advanced multi-asset trading platform specifically designed for professional forex and CFD trading. Available on both Windows and Mac. 

Mobile Trading App – Is the feature-packed mobile trading platform that reassembles both desktop trading platforms in look and feel, available on both Android and iOS devices.

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


How Business24-7 Selected The Best Forex Broker in UAE Offering Islamic Accounts?

To get our list of top forex brokers in UAE offering Islamic accounts we have analysed 98 online forex brokers available in UAE and compared their offering across 8 categories. Beside Islamic account availability we have also considered:

  • Availability of forex currency pairs
  • Availability of swap free accounts
  • Spread and commission charges
  • Trading platforms and features
  • Availability of customer support in Arabic

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, Islamic accounts charge margins, commissions, and administrative fees, which are not interest-based and  therefore not considered Haram. 

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.


Methodology

The mission of Business24-7 is to provide comprehensive, unbiased ratings and reviews of the best forex brokers. User experience, the mobile experience, customer service, costs and fees, security, the quality of trade executions, the products available on their platforms are all part of our six-month evaluation of a brokers platform.

The rating scale was based on thousands of data points that have been weighted into the scoring system. Brokerages were also required to fill out a multi-point survey regarding every aspect of their platform. In-person demonstrations and evaluations were provided by the majority of the online brokers we reviewed. Stefan Grasic, along with our team of industry experts, conducted our reviews and developed this methodology for ranking what form is used in online investing.

Disclaimer: By trading with securities you are taking a high degree of risk. You can loose all of your investment money. You should start trading only if you are aware of this risk. Business24-7 is not providing any investment advice, we only help you find the best broker based on your needs and preferences. Business24-7 is free for everyone, but earns commission from some of the brokers. We get commission with no additional cost for you.

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Stefan Grasic (Dipl.-Jur) is the World Wide Director of research for 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 Crypto, Forex and general investment researcher advising blockchain companies at their start up level. He keeps fit by mountain biking, surfing, skiing and lots of other adrenaline sports.

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