Yes, eToro does offer an Islamic account for Muslim faith traders including a swap-free account. The Islamic forex trading environment is ideal for traders following strict sharia law with a fixed fee instead of swap. The fee is not an interest and depends on the direction of the order.
eToro at a Glance
| Broker's Name | eToro |
| 📍 Headquartered | Limassol, Cyprus |
| 📅 Year Founded | 2006 |
| ⚖️ Regulating Authorities | FCA, ASIC, CySEC |
| 📃 License number: | 109/10 |
| 🌐 Countries not accepted for trade | Afghanistan, Albania, Bahamas, Barbados, Belarus, Bosnia and Herzegovina, Botswana, Brunei, Burundi, Cambodia, Canada, Chad, Congo Republic, Crimea Region, Cuba, the Democratic Republic of the Congo, Ethiopia, Fiji, Ghana, Guinea, Guinea-Bissau, Guyana, Iran, Iraq, Jamaica, Japan, Laos, Libya, Mali, Mauritius, Mongolia, Montenegro, Myanmar, Namibia, Nicaragua, North Korea, North Macedonia, Pakistan, Palau, Samoa, Serbia, Somalia, Sri Lanka, Sudan, Syria, Trinidad and Tobago, Tunisia, Turkey, Uganda, Vanuatu, Yemen, Zimbabwe. |
| 📒 Account Types | Retail Professional |
| ☪️ Islamic account (swap-free) | Yes |
| 👍 Demo Account | Yes |
| 📊 Institutional Accounts | No |
| 📊 Managed Accounts | Yes |
| 📈 Maximum Leverage | 20:1 |
| 💰 Minimum Deposit | 50 USD/ 800 ZAR |
| 💳 Deposit Options | Credit Card (Visa, MasterCard, Diners Club, Maestro), PayPal, Neteller, and Skrill. |
| 💳 Withdrawal Options | Credit Card (Visa, MasterCard, Diners Club, Maestro), PayPal, Neteller, and Skrill. |
| 💻 Platform Types | Proprietary WebTrader |
| 📈 Tradable assets offered | Commodities, Crypto assets, Currencies, Indices, and ETFs. |
| 📱 OS Compatibility | Desktop platform (Windows), Desktop platform (Mac), Web platform Mobile trading: Android, iOS |
| 👨💼 Languages supported on Website | English, Spanish, Italian, Dutch, Russian, Chinese, French, Arabic, Chinese traditional, Polish, German, Norwegian, Portuguese, Swedish, Czech, Malay, Danish, Romanian, Vietnamese, Thai, and Finnish |
| 👥 Customer Support Languages | English, Spanish, Italian, Dutch, Russian, Chinese, French, Arabic, Chinese traditional, Polish, German, Norwegian, Portuguese, Swedish, Czech, Malay, Danish, Romanian, Vietnamese, Thai, and Finnish |
| 📆 Customer Service Hours | 24 hours, five days per week. |
| 📌Open an Account | 👉Click Here |
|---|
Min Deposit
USD 50 in *certain countries
Regulators
FCA, ASIC, CySEC
Trading Platform
Proprietary WebTrader
Crypto
Yes
Total Pairs
0
Islamic Account
Yes
Trading Fees
Low
Account Activation
24 Hours
* Etoro has lowered the amount of the minimum FTD to $ 50 for the following countries: Germany, Austria, Netherlands, Norway, UK, Ireland, Spain, Italy, Sweden, Switzerland.
eToro Islamic Account – Key 11 Point Overview
- ✅What exactly is an Islamic Account?
- ✅What are the steps involved in opening an eToro Islamic Account?
- ✅What exactly is a Swap?
- ✅What are eToro spread costs on an Islamic Account?
- ✅What are eToro’s Maximum Trades/Orders on an Islamic Account?
- What is the minimum deposit amount on eToro’s Islamic Account?
- What other terms and conditions does eToro’s Islamic Account have?
- What are the pros and cons of eToro’s Islamic Account?
- eToro at a Glance
- Conclusion
- Frequently Asked Questions
What exactly is an Islamic Account?
👉 This type of account is offered by various brokers to Muslim traders who believe in the Islamic religion and who follow Sharia law. This type of account is also known as a Swap-Free or a Shariah Forex Account.
👉 This type of account caters for and complies with the Islamic beliefs concerning the prohibition of interest that is charged and is derived from trading activities.
👉 When following this religion, business transactions that require payment on interest by one party to another is prohibited as it is seen as wasteful and exploitive, there should be equal measures of accountability from both parties.
👉 This account is not featured as a standalone account, but instead, traders who open a live account with a broker will have the option of converting their trading account to an Islamic account, provided that the broker provides this service.
Min Deposit
USD 50 in *certain countries
Regulators
FCA, ASIC, CySEC
Trading Platform
Proprietary WebTrader
Crypto
Yes
Total Pairs
0
Islamic Account
Yes
Trading Fees
Low
Account Activation
24 Hours
* Etoro has lowered the amount of the minimum FTD to $ 50 for the following countries: Germany, Austria, Netherlands, Norway, UK, Ireland, Spain, Italy, Sweden, Switzerland.
What are the steps involved in opening an eToro Islamic Account?
In order for Muslim traders to gain access to converting their live account into that of an eToro Islamic Account, Muslim traders can follow these steps:
🟢 Step 1 – Fill in the eToro account registration
Completing the full registration process which involves submitting required information pertaining to personal, and financial details, employment details, and trading experience, among others.
🟢 Step 2 – Verify documentation
Verify the account by submitting the relevant documentation which includes proof of identity and proof of residence.
🟢Step 3 – Fund the current trading account by paying the minimum deposit of $1000/R16 000 ZAR.
🟢Step 4- As soon as the trader has funded their account, they can apply for an Islamic account by contacting eToro Customer Service.
What exactly is a Swap?
👉 Should a trader have a position that is currently open particularly on the Forex market for a period of time that exceeds 24 hours, they will be subjected to overnight fees, which are also known as swap-fees or rollover fees.
👉 These fees act as a kind of interest rate. Having to pay such a fee or an interest rate, goes against the Shariah law as Muslims are prohibited from performing such financial transactions, including transactions that result in the accumulation of interest.
👉 To accommodate traders of the Muslim faith, that follow the Shariah Law, brokers offer the option of an Islamic Account, or a Swap-Free account so that they would not be exempted from being able to conduct trading activities that are against their religion.
👉 The principle behind the Shariah Law is that both the lender and the borrower share the same risk and with non-Islamic accounts, the risk only falls on the lender which is seen by the Shariah Law as exploitation and waste.
What is eToro spread costs on an Islamic Account?
💳 eToro’s spreads start from 3 pips when trading the EUR/USD/ZAR Forex currency pair.
💳 Traders who have an Islamic Account are not exempted from trading fees apart from overnight fees, thus the spread list and commissions charged will remain the same as with all other brokers who are not of the Muslim faith.
What are eToro’s Maximum Trades/Orders on an Islamic Account?
👉 To promote responsible trading, eToro has a maximum number of units that are permitted per position per financial instrument along with a certain amount of leverage based on a leverage tier per financial instrument.
👉 As far as can be discerned from the eToro website, these maximum trades or orders can only be viewed once a trader opens a position as these maximum orders depend on the net exposure of the eToro account.
Min Deposit
USD 50 in *certain countries
Regulators
FCA, ASIC, CySEC
Trading Platform
Proprietary WebTrader
Crypto
Yes
Total Pairs
0
Islamic Account
Yes
Trading Fees
Low
Account Activation
24 Hours
* Etoro has lowered the amount of the minimum FTD to $ 50 for the following countries: Germany, Austria, Netherlands, Norway, UK, Ireland, Spain, Italy, Sweden, Switzerland.
What is the minimum deposit amount on eToro’s Islamic Account?
💳 The minimum deposit amount on the eToro Islamic Account is $1,000/R16 000 ZAR.
💳 Traders will first have to complete the registration of a live account before they can request the conversion of their account to that of an Islamic account whereby, they will be exempted from paying an overnight fee should positions stay open for longer than 24 hours.
What other terms and conditions does eToro’s Islamic Account have?
👉 eToro provides traders in possession of an Islamic Account need to acknowledge the following terms and conditions:
- When buying or selling, it must be done immediately without any delay
- Currencies must be transferred from the account of the seller to that of the buyer, with the same applicable vice versa.
- Costs pertaining to trades must be paid immediately and without delay.
- There will not be any interest that is charged on trades, should there be any usurious interest, the contract will become invalid, void, and Haram.
What are the pros and cons of eToro’s Islamic Account?
☪️️ Through the provision of an Islamic Account, brokers like eToro ensure that Muslim traders who follow the Shariah Law are able to trade Forex financial instruments as well as futures without having to pay any overnight fees pertaining to open positions overnight.
☪️️ While complying with the Shariah Law, Islamic Account holders can enter into trades without having to worry about losing their positions before the trading day ends.
☪️️ eToro does not charge any interests on contracts that last longer than 24 hours – there is a zero rollover interest that is applied consistently. eToro furthermore does not charge any additional rollover commissions for contracts that remain open for longer than 24 hours.
☪️️ Muslim traders who open an Islamic Account with eToro will not be subjected to any commissions or fees pertaining to account management. Revenues are obtained strictly from the spreads.
☪️️ In addition, Muslim traders who make use of eToro’s Islamic Account will be provided with leverage that is free of interest.
Conclusion
eToro exists as a social trading brokerage firm that places its focus on the provision of Copy-trading services and takes pride in being the world’s best social trading platform in the way it offers investment opportunities in both stocks and digital currencies (cryptocurrencies).
You might also like: eToro Account Types
You might also like: eToro Demo Account
You might also like: eToro Fees and Spreads
You might also like: eToro Minimum Deposit
You might also like: eToro Sign up Bonus
Frequently Asked Questions
What is the difference between a demo and live trading account?
A demo account provides the trader with a practice account that can be used to practice trading in a risk free environment.
Demo accounts are often suited for beginners who need to build up experience with trading as well as advanced traders who would like to test their trading strategies and explore the offering of a broker before registering a live account.
Does eToro offer a demo account?
Yes.
Can I convert my demo account to a live trading account with eToro?
There is no need to convert.
Traders are provided with one account that has the option of being ‘live’ or ‘virtual’.
Which live trading accounts does eToro offer?
eToro only has the option of opening a retail account along with an account which caters specifically for professional traders.
What are the available deposit currencies for a live trading account?
- AUD
- EUR
- USD
- GBP
- RUB, and more.
Min Deposit
USD 50 in *certain countries
Regulators
FCA, ASIC, CySEC
Trading Platform
Proprietary WebTrader
Crypto
Yes
Total Pairs
0
Islamic Account
Yes
Trading Fees
Low
Account Activation
24 Hours
* Etoro has lowered the amount of the minimum FTD to $ 50 for the following countries: Germany, Austria, Netherlands, Norway, UK, Ireland, Spain, Italy, Sweden, Switzerland.
Top 4 Brokers
