XM Islamic Account is a Swap-free trading Islamic accounts for Muslim faith traders on Micro-, Standard-, Ultra Low-, and Shares accounts. XM accounts are ideal as they align with the Islamic Muslim faith and incur no swaps or interest charges on overnight positions.
Min Deposit
USD 5
Regulators
FSC, CySEC, ASIC,
Trading Platform
MT4, MT5
XM Islamic Account – 14 key points quick overview:
Overview
XM has respective regulations and authorization through ASIC, CySEC, and IFSC.
XM offers comprehensive and competitive trading conditions with minimum deposits which start from as little as $5, providing traders with access to a wide variety of financial instruments including:
- Forex
- Commodities
- Cryptocurrency
- Stocks
- Shares
- Indices
- Metals
- Energies, and
- CFDs
XM facilitates the trading of such financial instruments through favorable trading conditions in a choice between three account types, each tailored to cater to traders with differing levels of experience, skills, and knowledge.
These main accounts are:
| 🔎 Account | 💴 Fees, Spreads & Commissions |
| 📉 Standard Account | Minimum deposit of $5, leverage from 1:1 to 1:1000, spreads from as low as 1 pip, and zero commissions. |
| 💰 XM Ultra-Low Account | Minimum deposit of $50, leverage from 1:1 to 1:1000, spreads from 0.6 pips, and zero commissions. |
| 🏦 Shares Account | Minimum deposit of $10,000, no leverage and commissions charges as per the underlying exchange from $1 up to $9. |
XM offers comprehensive and competitive trading conditions, with spreads that are tight, commission-free trading on most accounts, and more than adequate leverage.
Although, traders need to take care when applying such high levels of leverage, as it may increase the risks of losses which may exceed the trader’s initial deposit. Fortunately, XM offers negative balance protection, but despite this, traders can still incur losses that may be equal to the balance of funds in their trading accounts for which XM cannot be held liable.
XM At a Glance
| 🔎Broker | XM |
| Company Information | |
| 📅Year Founded | 2009 |
| 🧑🏻💻Amount of staff | Over 900 |
| 📌Current CEO | Constantinos Cleanthous |
| 🌟Founder/s | Constantinos Cleanthous |
| 👩💻Amount of active traders | Over 10 mil |
| 🌐Publicly Traded (Listed Company) | No |
| Regulation and Security | |
| 🛡️Regulation | CySEC, ASIC, IFSC, DFSA, FCA |
| 🌎Country of regulation | Cyprus, Australia, Belize, Dubai, UK |
| 💻Account Segregation | Yes |
| 🪫Negative balance protection | Yes (for European clients under CySEC regulation) |
| Two-step Authentication | Yes |
| 🔋Investor Protection Schemes | FSCS (up to £85,000) for UK clients under XM UK (regulated by FCA) |
| Account Types and Features | |
| ➕Accounts | Micro, Standard, XM Zero (all come in MT4 & MT5 versions) |
| 💳Institutional Accounts | Yes |
| 👨💼Managed Accounts | Not offered |
| 📇Minor account currencies | USD, EUR, GBP, JPY, etc. |
| 💰Minimum Deposit | From USD 5 |
| Trading Conditions | |
| 🕞Average deposit/withdrawal processing time | 1 business day (may vary) |
| 🪙Fund Withdrawal Fee | $0 |
| 📊Spreads from | 0.8 pips |
| 💸Commissions | No commission on trades (except for stock CFDs) |
| 💱Number of base currencies supported | More than 11 (USD, EUR, GBP, AUD, etc.) |
| 🚀Swap Fees | Overnight financing fees apply |
| 📈Leverage | Up to 1:1000 |
| 📏Margin requirements | As low as 1% |
| ☪️Islamic account (swap-free) | Yes |
| 💻Demo Account | Yes |
| ⌛Order Execution Time | Ultra-fast (average under 1 second) |
| 📆VPS Hosting | Yes (free if minimum requirements met) |
| Trading Instruments | |
| 🧾CFDs-Total Offered | Over 1,000+ |
| 🗠CFD Stock Indices | Major global indices 30+(e.g., S&P 500, FTSE 100) |
| ⚖️CFD Commodities | Popular commodities 15+ (e.g., gold, oil, natural gas) |
| 📜CFD Shares | Yes,600+ Shares of listed companies (exact number depends on regulations) |
| Watchlist | Yes |
| 📱Trade Alerts | Yes |
| 🔄Trading Stocks with GP | Yes |
| 🔄Trading Indices with GP | Yes |
| Swap on Trading Board | Yes |
| Deposits and Withdrawals | |
| 💳Deposit Options | Credit/debit cards, bank transfers, electronic wallets (Skrill, Neteller etc.), regional options |
| 💵Withdrawal Options | Credit/debit cards (limited to amount deposited with them), bank transfers, electronic wallets (subject to original deposit method), regional options |
| 🎁Welcome Bonus | Yes (region dependent) |
| Trading Platforms and Tools | |
| 🔧Stop-loss Instrument | Yes |
| 💻Trading Platforms | MT4 (MetaTrader 4), MT5 (MetaTrader 5), XM WebTrader |
| 👩💻OS Compatibility | Windows, Mac, Android, iOS |
| 🖥️Forex trading tools | Technical indicators Market analysis tools Auto trading (Expert Advisors - MT4 only) Algorithmic trading (limited - MT5 only) Trading calculators Economic calendar Sentiment analysis (limited) |
| Customer Support | |
| 🗣️Live chat availability | Yes, 24/5 |
| 📱Customer Support email address | support@xm.com |
| 📞Customer Support Contact Number | 35725029933 |
| 🗣️Languages supported on Website | 30+English, Malay, Chinese (Simplified & Traditional), Greek, Hungarian, Russian, Indonesian, French, Italian, Swedish |
| Educational Resources and Support | |
| 📍Beginner Trader Friendly UX | Yes |
| 🖺Forex course | Yes, XM offers a forex course for beginners. |
| 🧏♀️Webinars | Yes |
| 📚Educational Resources | Yes, XM provides a library of educational resources including articles, videos, and glossaries. |
| Partnerships and Programs | |
| 🪪Affiliate program? | Yes |
| 👨🏫Amount of partners | 10000+ |
| 📋IB Program | Yes |
| 🏃♂️➡️Do they sponsor any notable events or teams? | Yes, XM sponsors various events and teams |
| 🪙Rebate program | May offer occasional rebate promotions, check their website for current offers |
| 🗞Community Forum | No |
| Official Website and Social Media | |
| 📧Official Website Address | www.xm.com |
| 📱Official Facebook Page | Yes |
| 📱Official Twitter Page | Yes |
| 📱Official YouTube Channel | Yes |
| 📱Official LinkedIn Page | Yes |
| 📱Official Instagram Page | Yes |
| South African Trader Specific Information | |
| Does XM Accept South African Traders? | Yes, XM accepts South African traders. They have a dedicated South African branch, XM ZA (Pty) Ltd, which is authorized by the Financial Sector Conduct Authority (FSCA) with authorization number 49976. |
| Is XM regulated by the South African regulatory body (FSCA)? | Yes, For South African clients, XM operates under the regulation of the FSCA through their South African branch, XM ZA (Pty) Ltd. This ensures adherence to local regulations for client protection. |
| Does XM offer an Affiliate Program for South African Traders? | Yes, XM offers an affiliate program for South African traders. You can find more information about it on the XM ZA website or by contacting their support team. |
| Does XM allow opening trading accounts in ZAR (South African Rand)? | Yes, XM allows opening trading accounts in ZAR (South African Rand). This makes it convenient for South African traders to deposit, trade, and withdraw funds without currency conversion fees. |
| 👉Open Account | 👉Open Account |
What exactly is an Islamic Account?
An Islamic Account, for the greater part as offered by most brokers, is not a standalone account, although some brokers dedicate one account to being an Islamic or Swap Free account, in most cases, this is an option offered by especially Forex brokers.
Islamic Accounts are also provided by brokers who serve Middle Eastern clients along with clients from other jurisdictions and offer certain features that are in line with the Sharia law, which prohibits the accrual of interest on funds deposited into the account.
The other important feature of an Islamic Account is that transactions must be settled immediately, requiring that currencies be transferred from one account to the other right after the transaction has been completed and therefore paid for in full. View XM’s Sign-up Bonus.
There are two key elements of Islamic law that relate specifically to trading accounts, these elements are:
- Riba, and
- Gharar
Riba is the prohibition of generating money from money, which in this case specifically refers to an interest, which is not allowed according to Sharia law. This type of interest is seen as both unjust and exploitive gains pertaining to trade or business.
Gharar can simply be defined as the act of gambling, which is strictly prohibited by Sharia law. In addition, the Arabic word also suggests an element that surrounds a certain level of deception through hazardous sales or risky investments.
According to Gharar, the speculation involved with price movements of Forex and CFDs is considered gambling, which refers back to deception, hazardous sales, and risky investments.
Which financial activities are restricted and prohibited by Sharia law?
Due to the restrictions and certain prohibitions placed on Muslim traders when considering the intricate details involved with trading activities, the following is affected greatly:
| 💠Financial Activities restricted & prohibited by Sharia law | 📈 Description |
| Overnight rollovers | incurrence or receiving of swap points on positions that are held open for longer after the trading day has concluded at the New York close at 5 PM EST |
| Margin deposits and interest | the accrual of interest on funds that are deposited into the trading account |
| Loans | when followers of the Sharia law have funds transferred by either a bank or other financial institution and it involves interest terms |
| Trading on margin | stocks that are traded on margin result in the trader being liable for paying interest |
| Short sales | affects mostly shares and involves borrowing and subsequent sale of an asset |
| Forward sales | affects forward contracts as well as the trading of futures contracts which involves the buying and selling of contracts at a future date according to a price agreed upon on the day of entering such a contract |
Min Deposit
USD 5
Regulators
FSC, CySEC, ASIC,
Trading Platform
MT4, MT5
Steps to open an XM Islamic Account?
Step 1: Click on the Open an Account Button
Click the Green “Open an Account” button on the XM webpage.
Step 2: Complete your details.
An online registration form must be completed to register a Live or Demo Trading account. Once the registration is approved, an email notification will be received.
Step 3: Confirm your Email
Verify your email address before you can start training.
Step 4: Log in to the account and convert
Once this has been completed, traders can log into their member’s area and access the request to have their live trading account converted into that of an Islamic Account.
Once the request has been received by the relevant department, the trading account will receive swap-free status and the trader will be notified via email.
*Traders need to acknowledge that XM reserves the right to revoke any request to have the live trading account converted into an Islamic or Swap-Free Account to avoid and eliminate the chance of abusive usage of this account option.
What exactly is a Swap?
A swap can be defined simply as an agreement into which two parties enter which relates to exchange sequences of cash flows over a set period of time normally at the time the contract is initiated.
During this, there is at least one of the series of cash flows that is subjected to a random and uncertain variable that involves an interest rate, a foreign exchange rate, an equity price, or that of a commodity price.
When trading Forex, for instance, there is a limited amount of time in which traders have to close open positions before a certain market closes at a specified time. Should the position remain open, this will attract an overnight or rollover fee, which is a type of interest.
As previously mentioned, Muslim traders who follow the Sharia law are, amidst other activities, prohibited from paying such 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.
XM offers Muslim traders the option of converting their live trading account, regardless of the type, to that of an Islamic or Swap Free account to accommodate these prohibitions along with any other restrictions placed on traders due to this law.
What are XM spread costs on an Islamic Account?
| 🔎 Accounts | 🥈 Standard Account | 🥉 Ultra Low ZERO Account | 🏅 Shares Account |
| 🌎 Client country | EEA Australia Other countries | EAA | Non-EEA and non-Australian clients |
| 💴 Base Currency Options | USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, RUB, SGD, ZAR | EUR, USD, GBP, AUD, ZAR, SGD | USD |
| 📈 Contract Size | 1 Lot = 100,000 | Standard Ultra: 1 Lot = 100,000 Micro Ultra: 1 Lot = 1,000 | 1 share |
| 📉 Leverage | 1:1 to 1:1000($5 – $20,000) 1:1 to 1:200 ($20,001 - $100,000) 1:1 to 1:100 ($100,001 +) | 1:1 to 1:1000($5 – $20,000) 1:1 to 1:200 ($20,001 – $100,000) 1:1 to 1:100 ($100,001 +) | No Leverage |
| 📊 Negative balance protection | ✅Yes | ✅Yes | ✅Yes |
| 💹 Spread on all majors | As Low as 1 Pip | As Low as 0.6 Pips | As per the underlying exchange |
| 💶 Commission | None | None | ✅Yes |
| 📌 Maximum open/pending orders per client | 300 Positions | 300 Positions | 50 Positions |
| 📍 Minimum trade volume | 0.01 Lots | Standard Ultra: 0.01 Lots Micro Ultra: 0.1 Lots | 1 Lot |
| 🚩 Lot restriction per ticket | 50 Lots | Standard Ultra: 50 Lots Micro Ultra: 100 Lots | Depending on each share |
| ↪️ Hedging allowed | ✅Yes | ✅Yes | None |
| ☪️ Islamic Account | Optional | Optional | Yes |
| 💷 Minimum Deposit | USD 5 / ZAR 90 | USD 5 / ZAR 90 | USD 10,000 / ZAR 180986 |
| 🚀Open an Account | 👉 Open Account | 👉 Open Account | 👉 Open Account |
XM’s spreads vary from between 0.0 pips on the XM Ultra-Low Account and 1 pip on both the Micro and Standard Accounts, with spreads on the Shares Account subject to the underlying exchange.
Seeing that the Islamic Account is not provided as a standalone account, Muslim traders are not exempted from normal trading conditions such as spreads that do not generate interest, and thus Muslim traders are still subjected to such trading fees.
Min Deposit
USD 5
Regulators
FSC, CySEC, ASIC,
Trading Platform
MT4, MT5
What are XM’s Maximum Trades/Orders on an Islamic Account?
The general Order Execution Policy dictates that the maximum positions that may be held open at a single time are 50 on the Shares Account and 200 on all others. Other than this, there are no maximum trades or orders indicated when trading through XM.
What is the minimum deposit amount on XM’s Islamic Account?
The minimum deposit amount on a Micro or Standard Account is $10, despite the option of converting the account to that of an Islamic Account, Muslim traders are held by the same requirements pertaining to minimum deposits.
Despite converting the live trading account, regardless of the type of account, to that of an Islamic Account, Muslim traders are subjected to the set minimum required deposit amount which is fixed for each trading account, and can be viewed as follows:
| 🔎 Accounts | 📉 Standard Account | 📊 XM Ultra Low Account | 📈 Shares Account |
| 💵 Minimum Deposit (USD/$) | $5/R90 | $5/R90 | $10 000/R180 135,60 |
| 💰 Deposit Fees | No Fee | No Fee | No Fee |
| 📈 Withdrawal Fees | No Fee | No Fee | No Fee |
| 🔎 Deposit Methods | Credit/Debit Card, Bank Wire, Skrill, Neteller, Perfect Money, FasaPay, WebMoney, UnionPay | Credit/Debit Card, Bank Wire, Skrill, Neteller, Perfect Money, FasaPay, WebMoney, UnionPay | Credit/Debit Card, Bank Wire, Skrill, Neteller, Perfect Money, FasaPay, WebMoney, UnionPay |
| 👉 Open an Account | 👉 Open Account | 👉 Open Account | 👉 Open Account |
What other features does XM’s Islamic Account have?
Despite the fact that the Islamic Account provided by XM is not a standalone account, and it has the same features as other accounts, there are however additional features applied to this account which includes:
- Zero interest or swap charges are applied to overnight positions.
- Zero spread widening, spreads are fixed.
- No commission charges up-front.
- There is no time limit tied to how long positions are held.
Customer Reviews
🥇 Good Experience.
I have had a good experience with this broker thus far.
No problem with withdrawals or deposits as they let you withdraw back to the bank account you used to deposit with. In addition, they offer the best and the fastest customer support.
🥈 Best Broker (Bonuses, Withdraws, Costs and Support)
XM is a good broker in terms of withdrawals, customer support, and bonuses. However, they could improve on their spreads, otherwise everything else is fantastic.
🥉 Good for Starters
One of the best brokers to start your forex journey. I think most newbies have tried this broker due to their heavy marketing. So far they have honored all my profit withdrawals without any problems. Customer support is very good and the platform is good too.
Pros and Cons
| ✔️Pros | ❌Cons |
| Strict regulation | No US Clients |
| Competitive trading conditions | Fixed spread accounts not offered |
| Negative balance protection offered |
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Conclusion
XM’s Islamic Account is an ideal model of an online trading platform meant to cater to Islamic traders as it offers the possibility for the Islamic trader to trade without having to pay or receive interest on overnight positions. There are no hidden charges or fees involved whatsoever. XM is transparent and fair.
Frequently Asked Questions
Does XM Offer an Islamic Account to Muslim Traders from South Africa?
Yes, an Islamic swap-free account is available for traders of the Muslim faith in South Africa.
What are the features of an XM Islamic account?
No swap charges/interest on overnight positions, no up-front commissions charged, no widening of spread, no hidden costs, no requotes, positions not time-restricted.
What is an Islamic account?
Trading accounts based on Islamic principles and where interest does not apply to positions held open for longer than a trading day after the trading day has ended.
What is a swap-free account?
Also known as an Islamic account. Swap-free means there is no swap or rollover interest on overnight positions as this goes against Muslim law.
Do all brokers offer Islamic accounts?
No, only brokers who serve Middle Eastern clients & clients from other jurisdictions who trade in accordance with Sharia law offer Islamic accounts.
Is there any commission payable on the XM Islamic account?
No extra commissions is payable up-front when converting a live XM trading account to an Islamic account. Commissions payable are those indicated to which all traders are subjected to when trading on a shares account.
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