Islamic Trading Accounts

Islamic Accounts

What is an Islamic Forex Account and how to trade in accordance with Islamic Finance?

Also known as swap-free accounts, Islamic accounts are ideally suited to Muslim clients as they are in line with Islamic law in that they incur no swaps or interest charges on overnight positions. Instead, the account holder is charged an administration fee on positions which is deducted from the balance of the account.

Trading in Islam can be considered to be haram but it is still possible to trade if you find an Islamic Forex Account which provides swap-free trading and which has been designed for forex traders who cannot pay or receive swaps or rollover interest on overnight positions due to their religious beliefs, in line with Sharia Law.

Steps to open an Islamic Forex Account:
Open a MetaTrader 4 or MetaTrader 5 (MT4/MT5) trading account
Email the account number to and request for it to be converted to Islamic
Wait for a confirmation from our Onboarding team

* We do not offer Swap-Free accounts on IRESS platform.
* PROFX Markets reserves the right to request additional documentation in order to offer the swap-free privilege to an account. If the religion is not mentioned on your ID document, we may require proof of faith in the form of a letter from your mosque confirming your religion.

If you want to be sure that your trading activities are halal, you can consult a religious authority that can take into account your personal situation.

Islamic Account Types

MetaTrader 4 Islamic Account

Trade Forex and access the markets on the World’s Most Powerful
Trading Platform

OPEN MT4 ACCOUNT

MetaTrader 5 Islamic Account

Experience the future of day trading with a range of powerful new
features

OPEN MT5 ACCOUNT

Demo Islamic Account

Practice trading today

TRY A DEMO

About Halal Forex Trading – Halal Trading with Islamic Forex Accounts

Islamic finance is guided by four basic principles:

1 | Prohibition of gambling

According to Islam, gambling is prohibited but trading forex and other financial instruments can be considered an educated game of chance which involves the buying and selling of assets based on forex market analysis and using a variety of concepts and trading strategies.

2 | Prohibition of payment and receipt of any interest rate (Riba)

Usually, when a trader holds open positions at the close of a trading session, PROFX Markets charges a swap commission linked to an interest rate which is in turn related to the fact that traders receive an indirect loan through leverage. This leverage usually results in profit for the forex broker and therefore why a standard trading account is classified as haram given it includes interest payment whereas an Islamic trading account would be halal as it does not feature payment of these swap interest rates and therefore satisfies the riba threshold.

3 | Risk and benefits distribution

One of the principal concerns about trading is the element of shared risk. Interest ensures a reward for the lender and the borrower is the one who incurs the risk. Excessive or a high level of risk (gharar) is prohibited in the same way that excessive gambling is. The financial activity must also be seen to promote social and economic activity and justice as well as happiness. With an Islamic trading account, all interest charges are waived.

4 | Immediate Exchange or “Hand in Hand”

Now that interest rates not being applicable, the next item to consider is that trading is only permitted if it is “hand in hand”. In times gone by this meant face-to-face but in the modern world and with the advent of online trading and e-commerce, which involves an almost instantaneous transaction between broker and trader executed in seconds, is considered halal under Shariah and is therefore permissible.

Key Features of the PROFX Markets Islamic Forex Account:

Zero-interest/swap charges on selected pairs
Similarly excellent trading conditions, services, and features as PROFX Markets trading accounts; the only difference being the elimination of non-Shariah compliant interest charges
Stable, secure, and intuitive leading trading platforms with no re-quotes, nor any hidden charges
Fast execution under 40 milliseconds^
Free and unlimited access to MetaTrader 4 and MetaTrader 5 trading platforms including WebTrader, and Android and iOS platforms
Compatible with a variety of trading strategies including Scalping, Swing Trading, and Day trading.

Advantages of Islamic Accounts

Sometimes a trader opens a position in the morning, with the intention of closing it at the end of the day, but at the end of the session the position is making a profit and the trader anticipates that the movement should continue. When trading on selected pairs (Outlined below) with 10 days swap-free you can keep the position open for longer without administration fees eating into your profit. Also trading in a non-Islamic account also exposes the Islamic trader to the risk of forgetting and falling into a haram trading activity.