11 Best Forex Brokers in South Africa with Islamic Accounts
Islamic Finance refers to a specific method through which financing and banking operations are conducted. It is done in such a way that there is compliance with the strict principles of the Islamic or Sharia laws, guided by Islamic economics.
Online trading is seeing an increase in popularity around the world, with more traders emerging in the different financial markets.
Because of this, there has been an increased need for Islamic laws to be applied to the trading industry, allowing Muslim traders who follow the Sharia law access to financial markets, without being subjected to interest of any kind and with contracts settled immediately.
The principle around Islamic trading is to avoid any harmful activities such as investment interest as well as restricting high-risk transactions that prohibit margin and derivatives trading.
This also means that forex brokers who provide halal trading and Islamic accounts are not allowed to apply swap or rollover fees, or any form of interest to overnight positions.
Forex brokers who offer Islamic accounts must ensure that all rules are followed and that risks are minimized in the transactions and contracts. Many forex brokers in South Africa offer the option for an Islamic account, but these 11 are the best in the industry.
IFX Brokers
Features
IFX Brokers is one of the most popular South African forex and CFD brokers in the industry, known not only for its competitive trading conditions and comprehensive trading solutions, but its unique offering that caters for both retail and professional traders.
IFX Brokers also provides Muslim traders who follow the Sharia law with the option of converting their trading account into that of an Islamic or Swap-free account, exempting them from overnight fees or rollover rates, which are prohibited.
Pros and Cons
PROS |
Strict regulation through FSCA |
High leverage up to 1:500 |
Islamic account option offered |
Educational material offered |
Competitive trading conditions |
AvaTrade
Features
AvaTrade is one of the most reputed market maker brokers in the industry which has a strict regulatory framework and authorisation from several regulatory bodies, offering traders from around the world access to a wide range of financial instruments.
AvaTrade is also known for its Halal trading and Islamic account that caters specifically for Muslim traders who follow Sharia Law. AvaTrade requires a minimum deposit of $100 when retail traders register for trading accounts, with the benefit of negative balance protection applied to accounts.
AvaTrade offers the use of popular trading platforms in addition to offering a proprietary trading platform and mobile apps that can be downloaded on iOS and Android devices.
Pros and Cons
PROS |
Strict regulation through multiple regulatory bodies |
Negative balance protection offered |
Islamic trading accounts with special trading conditions provided |
Market maker broker that offers tight spreads |
Zero-commissions charged on trading |
Social trading platforms offered to South African traders |
Hedging and scalping allowed |
Only one account type offered to retail traders |
Variable spreads are not offered |
Plus500
Features
Plus500 is one of the most reputable and popular online brokers in South Africa with regulation through several regulatory bodies, providing South African traders with a safe and secure trading environment.
Plus500 is well-known for its competitive spreads, proprietary trading platform and mobile apps that can be used to trade a wide range of tradable financial instruments including forex, commodities, CFDs, and several others.
Plus500 also offers traders who are of Muslim Faith with Islamic Trading Accounts that exempt these traders from overnight fees, rollover fees, and any other interest.
Pros and Cons
PROS |
Well-regulated by multiple entities |
Multilingual support and website options |
Segregated accounts for client funds |
Trading offered across a wide range of financial markets |
Low trading costs |
Tight spreads and commission-free trading |
Swap-free account option offered |
CONS |
High inactivity fee |
Withdrawal fees charged and strict withdrawal conditions |
Limited payment methods supported |
No choice between accounts or trading platforms |
No desktop version of trading platform |
FXTM
Features
FXTM is one of the most popular and trusted brokers in South Africa, providing traders access to a wide range of financial instruments that can be traded including forex major pairs, minor pairs, and exotic pairs, commodities, stocks, shares, and several others.
FXTM is well known for its tight and variable spreads, low minimum deposit, advanced trading tools, and a choice in trading account types, with the option that Muslim traders can convert their accounts into Islamic trading accounts, except for the Stocks Account, which does not support this option.
FXTM offers ultra-low commissions and high maximum leverage, allowing traders to start trading with small amounts of capital. FXTM also supports the use of powerful trading platforms and a range of different trading styles.
Pros and Cons
PROS |
Well-regulated |
A wide variety of trading instruments offered |
Multiple account types |
Commission-free trading provided on most accounts |
Low minimum deposits form $10 |
CONS |
Inactivity fee charged |
Markets.com
Features
Markets.com is a well-established and well-regulated online broker that accommodates South African traders and many others from around the world. Markets.com is well-known for its award-winning trading platforms, competitive trading conditions and flexible funding options.
Markets.com offers a wide range of financial instruments spread across several financial markets, commission-free trading and Islamic trading accounts for Muslim traders who follow the sharia law.
Pros and Cons
PROS |
Social trading supported |
Choice in trading account types |
Islamic account offered |
Well-regulated |
Advanced trading tools offered |
No deposit fees or withdrawal fees |
CONS |
Inactivity fee charged |
FXPRIMUS
Features
FXPRIMUS is a large and prominent South African, Cyprus, and Vanuatu broker that has the necessary regulation to provide trading solutions to traders from around the world.
FXPRIMUS is a trusted online broker that is focused on client safety and trader education while offering innovative trading technologies, competitive trading conditions, and Islamic trading accounts to traders of the Muslim Faith.
FXPrimus also offers tight spreads and guarantees rapid trade executions through powerful trading platforms available on desktops, the web, and mobile devices.
Pros and Cons
PROS |
Well-regulated |
Negative balance protection offered |
Commission-free trading on some accounts |
ECN Accounts offered |
Demo Account offered and Islamic Option available |
CONS |
VIP Account necessary to gain access to the best trading conditions |
Fixed spread accounts not offered |
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Exness
Features
Exness is a well-regulated and trusted forex broker that offers competitive variable spreads and access to a wide range of tradable assets from currency pairs to indices, stocks, indices, commodities, and several other financial markets.
South African forex traders have access to a wide range of trading solutions and the ability to register a trading account with a low minimum deposit requirement. Exness caters for beginner forex traders as well as professional and institutional clients.
Apart from a range of assets, Exness also offers the perfect solutions for traders of Islamic Faith, ensuring that these traders are exempted from overnight fees, rollover fees, and any other interest which is prohibited.
Pros and Cons
PROS |
Global broker which is well-regulated |
Negative balance protection offered |
MetaTrader 4 and MetaTrader 5 offered along with social trading capabilities |
Reasonable minimum deposit requirement |
More than adequate leverage offered |
Demo Account provided |
Islamic Account option for those of Islamic faith |
CONS |
Accounts are not multi-currency |
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HotForex
Features
HotForex is the trading arm of HF Markets and is a multi-regulated, reputable online broker that provides a wide range of assets that can be traded through powerful platforms, including a social trading platform.
As an international broker, HotForex offers its competitive trading solutions to traders from around the world, facilitating the trade in currency markets, the stock market, the cryptocurrency market, and several others. Apart from its selection of assets, HotForex also offers flexible funding methods such as bank transfer, wire transfer, debit/credit card, and several others.
Pros and Cons
PROS |
Well-regulated through top-tier regulatory entities |
Strong international presence |
Competitive trading conditions |
Powerful forex trading platforms offered |
Islamic Account option and Demo accounts offered |
Reasonable trading conditions offered |
Variety of financial instruments offered |
CONS |
Fixed spreads not offered |
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IG
Features
IG is a popular international broker that has regulation and authorization through entities around the world, providing retail traders and institutional investors with the opportunity to participate in a range of asset classes and financial markets.
IG offers competitive trading conditions, a range of educational tools, technical analysis tools, sentiment indicators, and a variety of other tools that traders can use to direct their trading decisions.
Traders who keep their positions open overnight can expect competitive swap fees unless they have an Islamic trading account, exempting them from this type of interest.
Pros and Cons
PROS |
More than 17,000 instruments offered |
Tight spreads, low commissions, and reliable trade execution speeds |
Free trading signals |
Social trading platform offered |
IG academy with educational tools |
Free deposits and withdrawals |
Islamic Swap-free accounts offered |
CONS |
Inactivity fee charged |
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XM
Features
XM is a well-regulated and multi-award-winning broker with more than 2.5 million registered traders from around the world, including South Africa. XM is popular for offering no-requotes, tight and competitive spreads, fast trade execution, and low commissions.
XM also applies negative balance protection to all retail accounts and offers a choice in trading platforms including mobile apps, social trading platforms, and more. With XM, traders can trade more than 1,000 different instruments using the broker’s competitive trading conditions.
Pros and Cons
PROS |
Well-regulated |
Global presence |
Multi-award-winning international broker |
Flexible funding methods |
Wide range of trading strategies allowed |
Dedicated customer support |
CONS |
Fixed spreads not offered |
Inactivity fees charged |
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Vantage FX
Features
Vantage FX is a well-regulated and popular STP and ECN broker that has a global presence. Vantage FX offers flexible trading accounts and caters for a variety of traders from retail, Islamic, professionals, and institutional clients.
Vantage FX is well-known for its award-winning customer service, range of useful trading tools, educational resources, and convenient funding methods for deposits as well as withdrawals.
Vantage FX has transparent trading costs and ensures that client funds are protected by keeping funds in segregated accounts with top-tier financial institutions.
Pros and Cons
PROS |
ECN and STP broker |
More than 300 CFD trading instruments |
Commission-free trading offered |
Pro-Trader tools offered |
Social trading platforms provided |
CONS |
Fixed spreads are not offered |
FREQUENTLY ASKED QUESTIONS
What is a swap-free Islamic account in forex?
Swaps are fees credited/debited on open positions when they are kept for longer than 24 hours. This type of interest is not allowed for traders of the Islamic faith. A swap-free Islamic account is one where overnight positions can be held without swap fees being applied.
Are South African online trading platforms safe?
Many are safe, but many are provided by unregulated brokers and must be avoided.
Is forex trading taxable in South Africa?
Yes, and the rate at which taxes are deducted will depend on the income. Capital gains tax of between 18% and 40% is charged on forex earnings.
What are the South African brokers' commissions and fees?
This will depend on the broker’s offering. Brokers charge spreads, commissions, swap fees, and other trading and non-trading fees.
How do I verify a forex broker's regulations in South Africa?
You can visit the official website for the Financial Sector Conduct Authority (FSCA) and search for the broker’s name on the registry that contains all brokers regulated by FSCA in South Africa.