Islamic Accounts Compared: Alpari, XM, and AvaTrade

In forex trading, many Muslim traders seek accounts that comply with Islamic finance principles, which prohibit interest (riba). To accommodate this, many brokers offer "Islamic accounts" or "swap-free accounts." These accounts are designed to eliminate overnight interest charges while maintaining access to global financial markets. In this article, we provide a detailed comparison between the Islamic accounts offered by three well-known brokers: Alpari, XM, and AvaTrade.

 What Is an Islamic Forex Account?

An Islamic Forex account, often called a swap-free account, adheres to Sharia law. The core feature is the absence of swap or rollover interest on overnight positions. Instead of charging or paying interest, some brokers may apply fixed administrative fees or adjust their spreads to remain compliant while covering operational costs.

These accounts are ideal for traders who wish to trade in harmony with their religious beliefs while still accessing modern trading tools and platforms like MetaTrader.

 Alpari Islamic Account

Alpari offers an Islamic trading account option upon request. Here are its main features:

•        Activation: Traders must manually request the Islamic account through Alpari's support system after account registration.

•        Available Platforms: MT4 and MT5

•        Swap-Free Coverage: Not all instruments are swap-free. Major forex pairs are usually included, but some exotic pairs or commodities may incur fees after a set number of days.

•        Additional Fees: Alpari may apply extra charges or widened spreads on certain instruments to offset the lack of swap.

•        Duration: Swap-free status may be time-limited for specific instruments. Traders should monitor updates regularly.

 XM Islamic Account

XM provides Islamic accounts tailored for Muslim traders, with transparent conditions and no hidden fees. Key highlights include:

•        Automatic Access: XM offers swap-free accounts by request, and approval is generally quick for traders from eligible countries.

•        Platforms: MT4 and MT5 support

•        Fair Policy: XM explicitly states that there are no additional charges in place of swap, and it does not profit from Islamic account conditions.

•        Instruments Supported: Most instruments, including major, minor, and some CFDs, qualify for swap-free status.

•        Limitations: In some cases, prolonged holding of certain positions may lead to policy changes or removal of swap-free status.

 AvaTrade Islamic Account

AvaTrade, one of the SMARTT partner brokers, offers a fully compliant Islamic account option that meets strict Sharia principles:

•        Request-Based Activation: After signing up, traders can apply for an Islamic account directly through their dashboard or by contacting support.

•        Full Swap Removal: No swap or interest is charged on any trade. This includes long-term holdings of forex pairs and commodities.

•        No Hidden Fees: AvaTrade maintains transparency and avoids disguised costs, offering fair trading conditions.

•        Regulatory Oversight: AvaTrade is fully licensed in several jurisdictions, adding an extra layer of trust.

•        Instrument Flexibility: Most assets in the AvaTrade platform, including forex, gold, oil, and indices, are available for Islamic accounts.

 Comparison Table

 Which Account Is Right for You?

If you are an intraday trader or hold positions for short durations, all three brokers may serve your needs well. However, if you're looking to hold positions longer-term (especially in assets like gold or forex pairs), AvaTrade's full removal of swaps and transparent fee structure might be more suitable. XM provides a balance between transparency and accessibility, while Alpari offers flexibility with certain trade-offs.

The choice depends on your trading style, religious adherence, and preferred asset classes.

 SMARTT and Islamic Trading Compatibility

At SMARTT, we understand the importance of faith-aligned trading. Our fully automated trading robot is designed to work seamlessly with Islamic accounts. Since we only partner with licensed brokers, our users can choose from options that offer swap-free conditions compliant with Sharia law.

You can view our current list of regulated broker partners and licensing details on our broker license page.

To explore how SMARTT can help you trade professionally and ethically, visit our homepage. Our team is always ready to assist you on your journey to confident and compliant trading.