XM Islamic Account is a Swap-free trading Islamic account 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: $5
- 📈 Leverage: Up to 1:1000
- 🏦 Regulators: ASIC, CySEC, IFSC, DFSA, FCA
XM Islamic Account – key points, quick overview:
Overview
- XM.com is a leading online global broker founded in 2009 and headquartered in Cyprus. It also operates in South Africa.
- XM.com has grown to become a large and well-established international investment firm and a true industry leader, with more than 2,500,000 clients from 196 countries.
- XM.com is a leading broker in the foreign exchange market. The company accepts traders from
What exactly is an Islamic Account?
- An Islamic Account caters specifically to Muslim traders who strictly follow Sharia law.
- The law prevents its followers from paying any type of interest, such as overnight fees, which is considered wasteful or exploitative.
- Overnight fees are charged should traders hold positions open for longer after the concluded trading day.
- XM offers the option of an Islamic Account on all of the account types offered.
- 💰 Min Deposit: $5
- 📈 Leverage: Up to 1:1000
- 🏦 Regulators: ASIC, CySEC, IFSC, DFSA, FCA
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 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.
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 greatly affected:
| 💠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: $5
- 📈 Leverage: Up to 1:1000
- 🏦 Regulators: ASIC, CySEC, IFSC, DFSA, FCA
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 sent.
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 are XM spread costs on an Islamic Account?
- XM’s spreads vary from 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 exempt from normal trading conditions, such as spreads that do not generate interest, and thus, Muslim traders are still subject to such trading fees.
- 💰 Min Deposit: $5
- 📈 Leverage: Up to 1:1000
- 🏦 Regulators: ASIC, CySEC, IFSC, DFSA, FCA
Despite converting the live trading account, regardless of the type of account, to that of an Islamic Account, Muslim traders are subjected to the set minimum required deposit amount, which is fixed for each trading account, and can be viewed as follows:
| 🔎 Accounts | 📉 Standard Account | 📊 XM Ultra Low Account | 📈 Shares Account |
| 💵 Minimum Deposit (USD/$) | $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 |
| 📝Sign up | 👉 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 include:
- 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.
🏆 10 Best Forex Brokers in South Africa
| Rank | Broker | Broker Review | Regulators | Minimum Deposit | Visit Broker |
|---|---|---|---|---|---|
| 🥇 |  | Read Review | ASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSA | $100 |  |
| 🥈 |  | Read Review | FSCA, FCA, DFSA, FSA, CMA | $0 | |
| 🥉 |  | Read Review | CySEC, MWALI, FSCA | $25 | |
| 4 |  | Read Review | ASIC, CySEC, FSA, SCB | $200 | |
| 5 |  | Read Review | FSA, FSCA | $250 | |
| 6 |  | Read Review | FSA, FSC, FSCA, ASIC, CMA | $20 | |
| 7 |  | Read Review | FSC, FSCA | $50 | |
| 8 |  | Read Review | ASIC, CySEC, FSCA, FSA, FSC, CMA | $100 | |
| 9 | | Read Review | ASIC, CySEC, IFSC, DFSA, FCA | $5 | |
| 10 |  | Read Review | FSA, CySEC, FSCA, FSC | $10 | |
XM Customer Reviews
- Customers view XM positively by rating it highly on various online platforms, and the traders mention that the company has faster execution, competitive spreads, and high-quality customer support.
- Customers value opportunities provided by a diverse product offering and the MetaTrader terminals in particular.
- Other educational materials, like webinars and tutorials, are also often positively mentioned when it comes to trader skills.
| 🔎Aspect | 🔖Customer Feedback |
| 📞Customer Support | Highly praised for being responsive and helpful. |
| ⚡Execution Speed | Fast execution speeds are appreciated by traders. |
| 📉Spreads | Competitive spreads are a key positive point. |
| 📱Platform Usability | MetaTrader platforms are user-friendly and popular. |
| 📚Educational Resources | Webinars and tutorials are helpful for improving trading knowledge. |
| 💳Withdrawal Process | Some users mention slower withdrawals compared to expectations. |
| 🔒Regulation & Reliability | Strongly regulated with a reliable overall experience. |
| 🏦Account Offerings | A wide variety of account types to suit different traders. |
Customers Ratings
| 🌐 Platform | 📝 Feedback Summary | ⭐ Rating |
 | XM is recognized for its competitive spreads and efficient customer service. However, some traders have reported concerns about account verification delays and withdrawal processes. | ⭐⭐⭐⭐ (4.2/5) |
 | Positive feedback highlights XM's attractive spreads and rapid execution speeds. Conversely, there are concerns about the platform's reliability, with reports of account access issues and delayed responses from account managers. | ⭐⭐☆☆ (2/5) |
 | XM has collected 261 reviews with an average score of 4.75, indicating a high level of customer satisfaction. | ⭐⭐⭐⭐ (4.2/5) |
 | XM has a TrustIndex rating of 7.3 based on user reviews, suggesting a generally positive reputation among customers. | ⭐⭐⭐☆ (3/5) |
XM At a Glance
| Company Information | |
| 📅Year Founded | 2009 |
| 🧑🏻💻Amount of staff | Over 450 |
| 👩💻Amount of active traders | Over 5 million |
| 🌐Publicly Traded (Listed Company) | No |
| Regulation and Security | |
| 🛡️Regulation | CySEC (Cyprus): Trading Point of Financial Instruments Ltd provides services in the EEA. ASIC (Australia): Trading Point of Financial Instruments Pty Ltd (AFSL 443670) oversees Australian operations. FCA (UK): XM UK provides regulated services in the UK. DFSA (Dubai): Trading Point MENA Limited covers Middle East clients. IFSC/FSC (Belize): XM Global Limited services international clients. |
| 🌎Country of regulation | Cyprus, Australia, UK, Belize, Dubai |
| 💻Account Segregation | Yes |
| 🪫Negative balance protection | Yes |
| 🔋Investor Protection Schemes | Yes, through regulatory bodies |
| Account Types and Features | |
| 💳Institutional Accounts | No |
| 👨💼Managed Accounts | No |
| 📇Minor account currencies | EUR, GBP, AUD, CHF, JPY, HUF, PLN |
| 💰Minimum Deposit | $5 USD |
| Trading Conditions | |
| 🕞Average deposit/withdrawal processing time | 1-3 business days |
| 🪙Fund Withdrawal Fee | None |
| 📊Spreads from | 0.6 pips on major currency pairs |
| 💸Commissions | None on standard accounts |
| 💱Number of base currencies supported | 11 |
| 🚀Swap Fees | Applicable |
| 📈Leverage | Up to 30:1 |
| 📏Margin requirements | Variable based on asset and leverage |
| ☪️Islamic account (swap-free) | Yes |
| 💻Demo Account | Yes |
| ⌛Order Execution Time | Average of 1 second |
| 📆VPS Hosting | Yes |
| Trading Instruments | |
| 🧾CFDs-Total Offered | Over 1,000 |
| 🗠CFD Stock Indices | Yes |
| ⚖️CFD Commodities | Yes |
| 📜CFD Shares | Yes |
| Deposits and Withdrawals | |
| 💳Deposit Options | Bank Transfer, Credit/Debit Cards, Skrill, Neteller, PayPal, others |
| 💵Withdrawal Options | Bank Transfer, Credit/Debit Cards, Skrill, Neteller, PayPal, others |
| Trading Platforms and Tools | |
| 💻Trading Platforms | MetaTrader 4, MetaTrader 5, XM WebTrader, XM Mobile App |
| 👩💻OS Compatibility | Web-based (All major browsers), Windows, macOS, iOS, Android |
| 🖥️Forex trading tools | Trading signals, market analysis tools, Expert Advisors (EAs) |
| Customer Support | |
| 🗣️Live chat availability | Yes |
| 📱Customer Support email address | [email protected] |
| 📞Customer Support Contact Number | +357 25029933 |
| 👾Social media Platforms | Facebook, Twitter, LinkedIn, YouTube |
| 🗣️Languages supported on Website | Over 20 languages, including English, Spanish, Chinese, Arabic, more |
| Educational Resources and Support | |
| 🖺Forex course | Yes |
| 🧏♀️Webinars | Yes |
| 📚Educational Resources | XM Education, Video tutorials, Market analysis |
| Partnerships and Programs | |
| 🪪Affiliate program? | Yes |
| 👨🏫Amount of partners | Not publicly disclosed |
| 📋IB Program | Yes |
| 🏃♂️➡️Do they sponsor any notable events or teams? | Yes, various sports sponsorships, including Formula 1 and rugby teams |
| 🪙Rebate program | Yes |
| 📝Sign up | 👉 Open Account |
Pros and Cons
| ✔️Pros | ❌Cons |
| Strict regulation | No US Clients |
| Competitive trading conditions | Fixed spread accounts not offered |
| Negative balance protection offered |
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.
You might also like:
XM Demo Account – Step by Step
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 are payable up-front when converting a live XM trading account to an Islamic account. Commissions payable are those indicated to which all traders are subject when trading on a shares account.
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.
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