Muslim Forex Brokers

You have heard that forex trading can be a profitable investment.
You have heard that a Muslim who observes Shari’a law or Islamic finance rules can have a forex trading account and practice their faith, in good conscience.
You would like to know more.

1. Do you understand the basics of Islamic trading?
2. Are you a practicing Muslim who obeys Shari’a or Islamic law?
3. If so, you might find this article very informative.

What is Islamic Forex Trading?

Forex trading is trading in currencies for profit while following Islamic rules on finance.
Forex is short for “foreign exchange”. More specifically, it's foreign currency exchange.
It's the process of converting or exchanging one currency for a different currency. The reasons for this exchange vary. But here is one reason that supplies an elementary explanation of why people would want to trade national currencies and how it's done.

Let's say that you're in a country that does not accept the currency you brought with you from your own country. In other words, your dollars may make your rich where you come from, but they won't buy you anything where you are now! For example: You can't spend Bahamian dollars in the United States.

You can't spend Mexican pesos in the U.S. You can't spend the Japanese in the U.S. Those foreign currencies have no value in the USA. You can not go in a store and purchase a product. You can not go in a restaurant and order a meal. So you have to go to a foreign currency exchange (a cashier's office probably located in an American bank) and trade or exchange those colorful paper notes with the face of Queen Elizabeth or Benito Juárez or FUKUZAWA Yukichi for U.S. dollars with pictures of dead presidents that you can spend!

That's basically the forex process in a nutshell.

What About Islamic Forex Trading Online?

There is actually an online global marketplace where you can trade national currencies (such as GBP, US Dollar, Yen, Euro, etc.). Many people engage in online forex trading. They don't have to physically take their currency to a bank. They don't even have toleave their country. They can just open an online trading account with a reputable company that has the technological tools and start trading. If you use these search terms “where to open online forex trading account”, the results will display various platforms. Some companies require minimum deposits to open an account (anywhere from $10,000 to $100,000). Some companies service clients worldwide. Do your research (or get sound advice from a finance professional) and pick the one that works best for you.

Through your account you can trade currencies in what's called exchange rate pairs. The most common pairing is: EUR/USD, i.e. the Euro dollar against the U.S. Dollar. If you watch or keep up with business or financial news reports you will note they have a segment in the program that specifically reports on the currencies of the world. They recommend trading or exchange strategies, discuss top stories or current events that impact the currency markets, and talk about anything and everything that is relevant to forex trading. Do a generic search “business news forex”.

 

Can Everybody Engage in Forex Trading?

Not every country allows forex. There are some countries that ban it or restrict it. As of 2020, the countries which ban forex are: Belgium, Bosnia Herzegovina, France, Israel, Malaysia, North Korea, countries which enforce Shari’a, e.g. Pakistan, and India. This list of course is subject to change depending on what each government's administration decides is in the best interests of the citizens. Note that the government of India does allow its citizens to engage in certain forex markets so long as they follow established by the SEBI (Securities and Exchange Board of India).

In the United States, forex trading ~ online or offline ~ is perfectly legal. The US Commodity Futures Trading Commission (CFTC) and the US National Futures Association (NFA) publish the “rules of the game” and they regulate! There are no restrictions based on religion unless you happen to be a Muslim who strictly observes Shari’a or Islamic law. The secular laws of the country won't prevent you from engaging in forex trading. However the rules of Islamic finance might.

 

What are Islamic Forex Trading Accounts?

Islamic Forex Trading accounts or ḥalāl forex trading account, also referred to as ‘no swap accounts’, allow Muslims to engage in online forex trading without violating Shari’a law.

Traders of the Islamic faith can find information on how to set up an online forex trading account by visiting one of our listed brokers below.

 

Picking a Islamic Forex Account

The information supplied in the aforementioned article is very detailed.

• It outlines what Sharia law expressly prohibits;
• It cautions or advises that not all brokers are reputable and follow the religious guidelines (even though they say they do);
• It provides a list of forex brokers that offer Islamic Forex Trading accounts for you to choose from.

For each broker listed there are details on deposit requirements, and whether the trading platform is desktop, a mobile-app or web-based.

This article is intended to serve as an introduction to forex trading and specifically, Islamic Forex Trading Accounts. Below please find additional reading and reference materials to help you continue your education.

We've collected thousands of datapoints and written a guide to help you find the best Islamic Trading Accounts for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best islamic trading accounts below.

 

Reputable Swap Free Islamic Trading Accounts Checklist

There are a number of important factors to consider when picking an online Islamic Trading Accounts trading brokerage.

• Check your Swap Free Islamic Trading Accounts has a history of at least 2 years.
• Check your Swap Free Islamic Trading Accounts has a reasonable sized customer support of at least 15.
• Does the Swap Free Islamic Trading Accounts fall under regulation from a jurisdiction that can hold a broker responsible for its misgivings; or at best play an arbitration role in case of bigger disputes.
• Check your Swap Free Islamic Trading Accounts has the ability to get deposits and withdrawals processed within 2 to 3 days. This is important when withdrawing funds.
• Does your Swap Free Islamic Trading Accounts have an international presence in multiple countries. This includes local seminar presentations and training.
• Make sure your Swap Free Islamic Trading Accounts can hire people from various locations in the world who can better communicate in your local language.

Top 6 Islamic Trading Brokers of 2020 compared

Here are the top Islamic Trading Accounts.
Compare Islamic Trading Accounts min deposits, regulation, headquarters, benefits, funding methods and fees side by side.

All brokers below are islamic trading accounts. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more islamic trading accounts that accept islamic trading accounts clients.