Forex trading is now more popular than it has ever been around the world. Each day millions of people of different regions, beliefs, and ages enter the forex trading world out of pure interest. The total daily traded volume for the forex market has crossed the $4 trillion mark and this number keeps on increasing as more retail forex traders join the bandwagon to find a consistent means of earnings during these uncertain times. For this reason, several traders in India including Islamic traders participate in forex trading to potentially profit from it through the best swap free forex broker in India.
Similarly, people living in Islamic countries observing Sharia law are only allowed to use a swap free forex broker to trade forex legally.
Prohibitions According to the Sharia Law
Sharia law is a set of rules taken into account from the holy book of the Qur’an which Muslims have to follow throughout their lives. Many people trade forex because the principles of foreign exchange do not go against the Sharia laws but Islamic traders are prohibited from accepting any sort of interest. A swap fee is a type of interest that is charged to traders leaving a position open for more than 24 hours. That is why swap free forex brokers in India exist to allow Islamic traders to trade forex in a way that is “Halal.” Swap free forex brokers remove swap fees in the following ways:
- Some swap free forex brokers apply pre-determined fees or commissions on Islamic trading account to maintain long-term overnight positions.
- Most forex brokers simply offer Islamic forex trading for people compliant with Sharia which removes swap fees out of the picture.
- Other forex brokers allow only a specific amount of time to trade without swap fees. But only the best swap free forex broker in India offers unlimited swap free trading.
The advantage of swap free forex brokers is that they allow Islamic traders to trade Halal financial instruments (such as stocks that of companies that are not forbidden in Sharia) in a Halal way.
The following section comprises a detailed list of the best swap free forex brokers in India that cater to Islamic traders.
7 Best Swap Free Forex Brokers in India
1. AvaTrade
Since its establishment in 2006 in Ireland, AvaTrade has now emerged as a famous forex broker known globally for allowing its clients a choice of fixed or floating spread. AvaTrade is properly regulated by legitimate regulatory agencies making it a safe place to trade legally.
Features:
- The maximum leverage that AvaTrade offers its clients goes up to 400:1.
- The low minimum deposits make this broker one of the primary choices of new as well as seasoned forex traders in India.
- AvaTrade’s Islamic account is complete without daily swap fees, customised trading tools, and in-depth educational resources.
Visit AvaTrade to know more.
2. FXPro
FXPro is a global forex broker which has won several awards in the past few years that makes it a dependable broker that utilises everyone’s favourite and an industry-standard trading platform, MetaTrader 4 and MetaTrader 5 including cTrader for copy trading.
Features:
- FXPro does offer swap free forex trading accounts for those who need them for religious purposes. But the fees could be applied once on particular assets that have been opened for a specific number of days.
- An Islamic trader needs to request a swap free account by sending an application to FXPro back-office department. Details about the swap free account are available through customer support.
- On swap free accounts, users can trade many currency pairs, spot indices, metals, and shares on floating spreads.
Visit FxPro to know more.
3. XM
XM is one of the best forex brokers that also supports Islamic accounts for Muslim forex traders in India. Popular as a MetaTrader broker, XM offers its clients a complete suite of MetaTrader trading platforms which also includes some upgraded features.
Features:
- Islamic accounts opened with the XM brokers do not incur rollover interests on positions held overnight making it completely swap free for those following the Muslim faith.
- XM offers an easy 3-step module for opening an Islamic account with a swap-free functionality that includes no spread widening and a dedicated client account manager to help clients 24/5.
- Maximum leverage allotted to XM Islamic accounts are close to 1:888 with guaranteed market execution in real-time.
Visit XM to know more.
4. BDSwiss
BDSwiss is a well-known and highly regulated forex broker that offers Halal accounts or Islamic trading account for people following Sharia law. It is based in Zurich, Switzerland which is probably why most Indian investors choose to trade with this versatile broker.
Features:
- BDSwiss offers its clients performance, choices in assets, and a significant amount of educational resources to help them achieve more through forex trading.
- Risks associated with using their platform are shared on the official website which makes it quite a transparent broker which is safe to work with.
- BDSwiss platform supports both ECN and STP trading with an in-house web trader platform developed by BDSwiss.
- Islamic traders of BDSwiss can use its mobile app to check their trades or make new strategies irrespective of where they are. The app supports most Android and iOS devices to allow a seamless trading experience for all clients.
Visit BDSwiss to know more.
5. HotForex
Winning several awards in the past has made HotForex a reputed name in the forex industry. This forex and commodity broker has been serving both retail and institutional clients with its high-performance trading platform since 2010.
Features:
- Supported trading platforms on HotForex include MT4, MT5, Currencx, Copytrading, and Mirror trading.
- Islamic account holders can trade forex as well as CFDs on cryptocurrencies, shares, indices, and metals without commission using HotForex on floating spreads.
- HotForex Islamic accounts remove swap or rollover charges holding positions overnight.
- Demo account on HotForex allows traders to gain trading experience by testing market strategies amidst real market conditions with a considerable amount of virtual opening balance.
Visit HotForex to know more.
6. eToro
eToro has been functional since the early days of retail forex and it is now considered a pioneering forex broker with a brilliant track record. Islamic traders in India should confirm about eToro’s regulatory status before opening an account.
Features:
- This market maker type forex broker places no rollover interest or commissions on Islamic traders whose contracts last longer than 24 hours. eToro is said to waive account management fees as well.
- Islamic traders enjoy interest-free leverage on their Islamic accounts using eToro.
- The quality of asset selection, choice of cryptocurrencies, and availability of crypto wallets on Android and iOS devices make eToro people’s preferable broker.
Visit eToro to know more.
7. Markets.com
Markets.com is a renowned forex broker based in the U.K. which is a subsidiary of a publicly listed and FTSE 250 constituent company Playtech Plc. Markets.com is secure, trustworthy, and a highly competitive forex broker that serves traders with Marketsx and through Marketsi.
Features:
- It is headquartered in South Africa but holds an authorisation from four top regulators around the world namely FCA. ASIC, FSC, and FSCA.
- This broker accepts both forex as well as equity traders with a definitive range of assets collection. Forex traders have a choice of 67 currency pairs on Markets.com.
- Markets.com supports a personalised financial live stream service called the XRay, MT4, and MT5 trading platform.
- On their website, traders find expertly developed research materials and educational content to explain to beginners how to use Markets.com and its trading tools.
Visit Markets.com to know more.