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10 Best Islamic Swap-Free Forex Brokers in Nigeria

The Best 10 Best Islamic Swap-Free Forex Brokers in Nigeria revealed.

This is a complete list of the best licensed Islamic swap-free brokers in Nigeria.

In this in-depth guide you’ll learn:

  • What is Swap-Free?
  • Who are the best Islamic Swap-Free brokers for Nigerians?
  • How to choose the right broker for your trading style?
  • How to begin trading with a shariah-compliant broker?
  • Which halal brokers offer the lowest spreads and minimum deposits?

 

And lots more…

So, if you’re ready to go “all in” as a Muslim trader with the best-tested Islamic swap-free brokers for Nigerians…

Let’s dive right in…

Updated : September 6, 2022

👉 Definition of a swap-free Islamic Account: An Islamic or Swap-free trading account is a trading account allowed by the Islamic Shariah principle where there is no interest applied for an overnight position.

Best Islamic Swap-Free Forex Brokers – Comparison

🏛️ Broker✔️ Islamic Swap-Free Account?☪️ Islamic Account💳 NGN Deposits💰 NGN Deposits Allowed?👉 Open Account
ExnessYesYesYesYesOpen Account
HFMYesYesYesYesOpen Account
AlpariYesYesYesYesOpen Account
XMYesYesYesYesOpen Account
FXTMYesYesYesYesOpen Account
SuperForexYesYesYesYesOpen Account
7B ForexYesNoYesYesOpen Account
TifiaYesYesYesYesOpen Account
Trade NationYesNoYesYesOpen Account
AvaTradeYesYesNoOpen Account

10 Best Islamic Swap-Free Forex Brokers in Nigeria

  1. Exness – Overall, Best Islamic Swap-Free Broker
  2. XM – Best No-Deposit Bonus Forex Broker
  3. HFM – Best Naira (NGN) Account Broker
  4. AvaTrade – Best Options Mobile App 
  5. Alpari – Forex Broker with the Largest Range of Markets
  6. SuperForex – Lowest Initial Deposit Broker
  7. FXTM – Best Copy Trading Broker in Nigeria
  8. Tickmill – Best NDD Broker for Day Traders
  9. LiteFinance – Best ECN Forex Broker in Nigeria
  10. OANDA – Best Trading View Broker for Nigerians

1. Exness

Overall Rating

Min Deposit

USD 10 / 4145 NGN

Regulators

CBCS, CySEC, FCA, FSA, FSC, FSCA

Trading Desk

MT4, MT5, MT4 WebTerminal, mobile (iOS & Android, Exness Trader)

Crypto

Yes

Total Pairs

97

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

 

Overview

👉 Exness is a low-risk and highly trusted CFD and forex broker that offers more than 200 financial instruments. A benefit of Exness is that Nigerian traders can register a live trading account and convert it into an Islamic Account, exempting them from overnight fees.

 

Unique Features

FeatureInformation
⚖️ RegulationFSA, CBCS, FSC, FSC BVI, FSCA, CySEC, FCA
📱 Social Media Platforms• Facebook
• Twitter
• Instagram
• LinkedIn
• YouTube
🏛 CBN Regulation?No
💰 Trading AccountsStandard Account, Standard Cent Account, Raw Spread Account, Zero Account, Pro Account
💻 Trading PlatformMetaTrader 4, MetaTrader 5, Exness Terminal, Exness Trader app
💵 Minimum Deposit (₦)41,000 Naira
📈 Trading AssetsForex, Metals, Crypto, Energies, Indices, Stocks
💰 Nigerian Naira-based Account?Yes
✔️ NGN Deposits Allowed?Yes
💸 Bonuses for Nigerian traders?Yes
📊Minimum spreadFrom 0.0 pips EUR/USD
✔️ Demo AccountYes
☪️ Islamic AccountYes

 

Exness is well-regulated and keeps all client funds in segregated accounts with top-tier institutionsThere is a limited portfolio of financial instruments offered
Nigerian traders can choose between several retail investor accountsExness offers a limited number of payment methods that can be used for deposits and withdrawals
Exness offers an Islamic account conversion with no additional fees charged
Instant deposits and withdrawals are offered
Exness has customer support available 24 hours a day, 7 days a week

 

Trust Score and Nigerian Market Share

👉 Exness has a trust score of 97% and a market share of <5%.

2. XM

Xm.com Logo 1 1024x514 1

Overall Rating

Min Deposit

USD 5 / 2 075 NGN

Regulators

IFSC, CySec, ASIC

Trading Desk

Desktop MT4 and MT5, Mobile MT4 and MT5, XM mobile app, Web platform

Crypto

No

Total Pairs

57

Islamic Account

Yes

Trading Fees

No (Just spread) 

Account Activation Time

24 Hours

 

Overview

👉 XM is a Belize-based forex and CFD broker that is not only well-regulated but popular among Nigerian traders. XM is well-known for its reliable trade execution policy and the broker offers robust trading platforms, an Islamic account, and the benefit that there are no administrative fees or additional commissions charged to offset the absence of overnight fees.

 

Unique Features

FeatureInformation
⚖️ RegulationFSCA, IFSC, ASIC, CySEC, DFSA
📱 Social Media Platforms• Facebook
• Twitter
• YouTube
• Instagram
• LinkedIn
🏛 CBN Regulation?No
💰 Trading AccountsMicro Account, Standard Account, XM Ultra-Low Account, Shares Account
💻 Trading PlatformMetaTrader 4, MetaTrader 5, XM Mobile App
💵 Minimum Deposit (₦)2,000 Naira
📈 Trading AssetsForex, Cryptocurrencies, Stock CFDs, Commodities, Equity Indices, Precious Metals, Energies, Shares
💰 Nigerian Naira-based Account?No
✔️ NGN Deposits Allowed?Yes
💸 Bonuses for Nigerian traders?Yes
📊Minimum spreadFrom 0.0 pips
✔️ Demo AccountYes
☪️ Islamic AccountYes

 

XM has more than 5 million active clients from around the worldInactivity fees apply
Client fund safety is guaranteed, and XM offers investor protection to Nigerian tradersThere are no fixed spreads offered
XM has won several industry awards since its establishment in 2009
There are no commissions charged on either deposits or withdrawals
XM is a low-cost forex broker with a high trust score

 

Trust Score and Nigerian Market Share

👉 XM has a trust score of 84% and a market share of <5% in Nigeria.

3. HFM

Overall Rating

Min Deposit

USD 5 / 2073 NGN

Regulators

CySEC, FSC, FSCA

Trading Desk

MetaTrader 4 and MetaTrader 5

Crypto

No

Total Pairs

50+

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

Overview

👉 HFM is one of Nigeria’s most popular brokers, with a 2.5%+ market share and local office, HFM offers unique and tailormade solutions to its clients, which includes the option to convert the Micro, Premium, Auto, or the HFcopy account into an Islamic Account.

👉 This provides Nigerian Muslim traders with the versatility they need to add a competitive edge to their trading.

Unique Features

FeatureInformation
⚖️ RegulationFSCA, CySEC, DFSA, FSA, FCA, FSC, CMA
📱 Social Media Platforms• Facebook
• Twitter
• Telegram
• Instagram
YouTube
• LinkedIn
🏛 CBN Regulation?No
💰 Trading AccountsMicro Account, Premium Account, HFcopy Account, Zero Spread Account, Auto Account
💻 Trading PlatformMetaTrader 4 and MetaTrader 5
💵 Minimum Deposit (₦)2,000 Naira
📈 Trading AssetsForex, Precious Metals, Energies, Indices, Shares, Commodities, Cryptocurrencies, Bonds, Stocks DMA, ETFs
💰 Nigerian Naira-based Account?Yes, along with ZAR and USD
✔️ NGN Deposits Allowed?Yes
💸 Bonuses for Nigerian traders?Yes
📊Minimum spreadFrom 0.0 pips
✔️ Demo AccountYes
☪️ Islamic AccountYes
There are tight, competitive spreads from 0.0 pips on EUR/USDHFM only offers a few deposit and withdrawal methods to Nigerians
There is a demo account for beginners who are learning to trade and professional traders who are testing strategies
Nigerian traders can register a trading account in either USD, ZAR, or NGN
Several asset classes can be traded through HFM
Nigerian traders have access to MetaTrader 4 and 5 across desktops, mobile apps, and web-based platforms

Trust Score and Nigerian Market Share

👉 HFM has a trust score of 83% and a Nigerian market share of 2.5%.

4. AvaTrade

Overall Rating

Min Deposit

USD 100 / 41450 NGN

Regulators

ASIC, FSA

Trading Desk

MetaTrader 4, MetaTrader 5, Ava Social, Ava Protect, Trading Central

Crypto

Yes

Total Pairs

55+

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

 

Overview

👉 AvaTrade was established in 2006 and for the past six years the broker has expanded around the globe, infiltrating several regions, including Nigeria, offering traders some of the most competitive trading conditions and the benefit of halal trading across several markets, including:

➡️ Halal Gold and Silver Trading

➡️ Halal Oil Trading

➡️ Halal Indices Trading

➡️ Islamic Forex Trading

 

Unique Features

FeatureInformation
⚖️ RegulationCentral Bank of Ireland (CBI), BVI FSC, ASIC, FSCA, JFSA, FFAJ, ADGM, FRSA, CySEC, ISA
📱 Social Media Platforms• Instagram
• Facebook
• Twitter
• YouTube
🏛 CBN Regulation?No
💰 Trading AccountsRetail Account, Professional Account
💻 Trading PlatformAvaTradeGO, AvaOptions, AvaSocial, MetaTrader 4, MetaTrader 5, DupliTrade, ZuluTrade
💵 Minimum Deposit (₦)41,500 Naira
📈 Trading AssetsForex, Cryptocurrencies, Commodities, Treasuries, Bonds, Indices, Stocks, ETFs, Options, CFDs, Precious Metals
💰 Nigerian Naira-based Account?No
✔️ NGN Deposits Allowed?No
💸 Bonuses for Nigerian traders?Yes
📊Minimum spreadFrom 0.9 pips EUR/USD
✔️ Demo AccountYes
☪️ Islamic AccountYes

 

AvaTrade caters specifically to the unique needs of Muslim tradersThere are no variable spreads offered
There is a dedicated selection of financial markets that Muslim traders can tradeThere are inactivity fees applied as well as currency conversion fees
There is a demo account that can be used to test strategies, and practice trading
There are no additional charges on the Islamic Account
Professional traders can employ advanced technical indicators and access powerful research tools and resources
There is a large range of financial instruments offered

 

Trust Score and Nigerian Market Share

👉 AvaTrade has a high trust score of 96% and a market share of <5% in Nigeria.

5. Alpari

 

Overall Rating

Min Deposit

USD 100 / 41450 NGN

Regulators

FSC

Trading Desk

MetaTrader 4

Crypto

Yes

Total Pairs

48

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

 

Overview

👉 Alpari has been around since 1998 and while it was first established in Russia, the broker expanded across the globe and even set an office up in Nigeria, where it started offering tailormade solutions to Nigerian traders.

 

👉 Part of the comprehensive trading solutions offered includes the option to convert the following live trading accounts into an Islamic option:

➡️ Standard Account (MetaTrader 4)

➡️ Forex Micro Account (MetaTrader 4)

➡️ Forex ECN Account (Only on MetaTrader 4)

➡️ Forex Pro Account

 

Unique Features

FeatureInformation
⚖️ RegulationFinancial Services Commission Mauritius (FSC)
📱 Social Media Platforms• Facebook
• Twitter
• Instagram
🏛 CBN Regulation?No
💰 Trading AccountsForex Standard Account (MT4), Forex Micro Account (MT4),
Forex ECN Account (MT4/5), Forex Pro Account (MT4)
💻 Trading PlatformMetaTrader 4 and 5
💵 Minimum Deposit (₦)1,000 Naira
📈 Trading AssetsForex Majors, Forex Minors, Forex Exotics, Forex RUB, Spot Metals, Spot Commodities, Stock Trading, Spot Indices
💰 Nigerian Naira-based Account?Yes
✔️ NGN Deposits Allowed?Yes
💸 Bonuses for Nigerian traders?Yes
📊Minimum spreadFrom 0.4
✔️ Demo AccountYes
☪️ Islamic AccountYes

 

✔️ Pros❌ Cons
Alpari is one of the best brokers in Nigeria with a market share of over 14%There is a limited selection of financial assets that can be traded
Advanced traders have access to AutoChartist, news from FxWirePro, and several additional toolsThere are no fixed spread accounts offered
There are dynamic trading accounts that satisfy the trading needs of several types of traders
Alpari offers MetaTrader 4 and 5 across devices
Alpari has won several awards in the years that the broker has been offering trading services

 

Trust Score and Nigerian Market Share

👉 Alpari has a trust score of 95% and an overall market share of more than 14%.

6. SuperForex

Overall Rating

Min Deposit

USD 1 / 415 NGN 

Regulators

IFSC

Trading Desk

Metatrader 4

Crypto

Yes

Total Pairs

300

Islamic Account

No

Trading Fees

Low

Account Activation Time

24 Hours

on SuperForex’s website

 

Overview

👉 SuperForex is a Belize-based broker that is well-known for its eleven trading accounts, three of which are dedicated Islamic Accounts that feature halal conditions for Muslim Nigerian traders.

 

👉 In addition, SuperForex is known to have a large list of local deposit and withdrawal options that cater for Nigerians. There is also MetaTrader 4 mobile and the SuperForex App that offers a flexible way to trade while on the move.

 

Unique Features

FeatureInformation
⚖️ RegulationNone
📱 Social Media Platforms• Telegram
• Instagram
• Facebook
• YouTube
• Twitter
• LinkedIn
• Pinterest
🏛 CBN Regulation?No
💰 Trading AccountsStandard Account, Swap-Free Account, No Spread Account, Micro Cent Account, Profi STP Account, Crypto Account, ECN Standard Account, ECN Standard Mini Account, ECN Swap-Free Account, ECN Swap-Free Mini Account, ECN Crypto Account
💻 Trading PlatformMetaTrader 4, SuperForex App
💵 Minimum Deposit (₦)400 Naira
📈 Trading AssetsForex, Precious Metals, Stocks, Indices, Cryptocurrencies, Commodities, Energies, ETFs, Futures, CFDs
💰 Nigerian Naira-based Account?Yes
✔️ NGN Deposits Allowed?Yes
💸 Bonuses for Nigerian traders?Yes
📊Minimum spreadFrom 0.0 pips
✔️ Demo AccountYes
☪️ Islamic AccountYes

 

✔️ Pros❌ Cons
There are three Islamic accounts for Nigerian traders to choose from according to their trading needs and objectivesMetaTrader 5 is not offered
The accounts can be registered with Naira as the base currencyThere are only a few advanced trading tools offered to experienced traders
There is a demo account for beginners to practice their trading
There are local deposit and withdrawal methods offered

 

Trust Score and Nigerian Market Share

👉 SuperForex has a trust score of 87% and a market share of <5%.

7. FXTM

Overall Rating

Min Deposit

USD 10 / 4145 NGN

Regulators

CySec, FSCA 

Trading Desk

MetaTrader 4 and MetaTrader 5

Crypto

Yes

Total Pairs

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

 

Overview

👉 FXTM is a well-regulated and reputable Cyprus-based ECN and STP broker that has been operating for over 11 years. A unique feature of FXTM is the local offices that the broker occupies in Nigeria, in addition to its low minimum deposit requirement, range of accounts, and selection of trading platforms.

 

👉 Another benefit is that FXTM offers all three trading accounts that can be converted into an Islamic account, giving Muslim Nigerian traders the freedom to choose an account that suits their needs perfectly.

 

Unique Features

FeatureInformation
⚖️ RegulationCySEC, FSCA, FCA, FSC Mauritius
📱 Social Media Platforms• Facebook
• Twitter
• LinkedIn
• Instagram
• YouTube
• Telegram
🏛 CBN Regulation?No
💰 Trading AccountsMicro Account, Advantage Account, Advantage Plus Account
💻 Trading PlatformMetaTrader 4, MetaTrader 5, FXTM Trader
💵 Minimum Deposit (₦)10,000 Naira
📈 Trading AssetsPrecious Metals, Stock Trading, Stock CFDs, Indices, Forex Indices, Forex Currency Pairs, Commodities, Stock Baskets
💰 Nigerian Naira-based Account?Yes
✔️ NGN Deposits Allowed?Yes
💸 Bonuses for Nigerian traders?Yes
📊Minimum spreadFrom 0.0 pips
✔️ Demo AccountYes
☪️ Islamic AccountYes

 

✔️ Pros❌ Cons
FXTM is a popular and multi-regulated trading providerThere are inactivity fees that will be applied if the trading account goes dormant
FXTM offers its clients quick deposit and withdrawal methods with short processing times
There are no deposit fees charged
There are several educational materials offered
FXTM offers dedicated, local support in multiple languages

 

Trust Score and Nigerian Market Share

👉 FXTM has a trust score of 93% and an overall market share of over 9.6% in Nigeria.

8. Tickmill

Overall Rating

Min Deposit

USD 100 / 41450 NGN

Regulators

CySEC, FCA, FSA, FSCA, Labuan FSA

Trading Desk

Meta Trader 4

Crypto

Yes

Total Pairs

62

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

 

Overview

👉 Tickmill is an award-winning ECN broker and the trading arm of Tickmill Group of Companies, an entity that is regulated around the globe. Tickmill is a powerful brand that has more than 350,000 registered retail investors.

 

👉 Tickmill was created by traders for traders and this broker offers unparalleled solutions like a fully automated and No-Desk Dealing (NDD) broker, with the guarantee that there are no requotes. In addition, Tickmill allows Muslim Nigerian traders access to convert all three retail investor accounts into Islamic accounts.

 

👉 Tickmill is extremely methodical about the process of converting a live account to an Islamic account and traders must follow a strict procedure for verification and approval, which is according to the broker’s discretion.

 

Unique Features

FeatureInformation
⚖️ RegulationSeychelles FSA, FCA, CySEC, Labuan FSA, FSCA
📱 Social Media Platforms• Facebook
• Twitter
• LinkedIn
• YouTube
• Instagram
• Telegram
🏛 CBN Regulation?No
💰 Trading AccountsPro Account, Classic Account, VIP Account
💻 Trading PlatformMetaTrader 4, MetaTrader 5
💵 Minimum Deposit (₦)41,500 Naira
📈 Trading AssetsForex, Stock Indices, Energies, Precious Metals, Bonds, Cryptocurrencies
💰 Nigerian Naira-based Account?No
✔️ NGN Deposits Allowed?No, only USD, GBP, EUR, IDR, CNY, VND, or RUB
💸 Bonuses for Nigerian traders?Yes
📊Minimum spreadFrom 0.0 pips
✔️ Demo AccountYes
☪️ Islamic AccountYes

 

✔️ Pros❌ Cons
Tickmill offers robust trading platforms and innovative mobile tradingCurrency conversion fees will apply for Naira deposits
Tickmill has a very high trust score and is known for its competitive trading conditionsThere are no fixed spread accounts offered
There are several convenient funding options available including Skrill, Neteller, and othersThe spreads are not the tightest
Advanced traders can use a range of tools including FIX API, AutoChartist, VPS, and others

 

Trust Score and Nigerian Market Share

👉 Tickmill has a trust score of 81% and an overall market share of <5% in Nigeria.

9. LiteFinance

LiteFinance Overview

Overview

👉 LiteFinance, previously known as LiteForex, has been in operation since 2005 and it offers some of the best liquidity across several global financial markets.

 

👉 LiteFinance is one of the most active forex and CFD brokers in the market that has a host of offices around the world, including Nigeria, Kyrgyzstan, Nicaragua, Vietnam, Thailand, Philippines, Ghana, Myanmar, India, Nigeria, Indonesia, Tanzania, Kenya, Afghanistan, and Uganda, and Limassol.

 

Unique Features

FeatureInformation
⚖️ RegulationCySEC
📱 Social Media Platforms• Facebook
• Twitter
• Instagram
• LinkedIn
• YouTube
• Telegram
🏛 CBN Regulation?No
💰 Trading AccountsECN Account, Classic Account
💻 Trading PlatformMetaTrader 4, MetaTrader 5, LiteFinance Mobile Trading App
💵 Minimum Deposit (₦)20,700 Naira
📈 Trading AssetsForex, Precious Metals, Oil, Global Stock Indexes, CFD NYSE, CFD NASDAQ, CFD EURONEXT, CFD LONDON LSE, CFD XETRA, Cryptocurrencies
💰 Nigerian Naira-based Account?No
✔️ NGN Deposits Allowed?Yes
💸 Bonuses for Nigerian traders?Yes
📊Minimum spreadFrom 0.0
✔️ Demo AccountYes
☪️ Islamic AccountYes

 

✔️ Pros❌ Cons
LiteFinance has a large presence in Nigeria, with four offices in the countryFree VPS is not available
There is a selection of trading platforms offeredCommission charges are not the lowest
Multilingual support is offered to Nigerian traders locallyThere is a limited range of financial instruments offered
LiteFinance offers an ECN account with competitive trading conditions
There is a large range of research tools offered

 

Trust Score and Nigerian Market Share

👉 LiteFinance has a trust score of 76% and a market share of <5%.

10. OANDA

Overall Rating

Min Deposit

USD 0 / 0 NGN

Regulators

ASIC, BVI, CFTC, FCA, FFAJ, FSC, IIROC, MAS, NFA

Trading Desk

Metatrader 4 and Metatrader 5

Crypto

Yes

Total Pairs

45

Islamic Account

No

Trading Fees

Low

Account Activation Time

24 Hours

on Oanda’s website

 

Overview

👉 OANDA is a popular broker and trading platform that was established in 1996 by a team of professional traders. OANDA is well-regulated by the likes of IIROC, ASIC, CFTC, NFA, FCA, FFAJ, MAS, and MFSA, giving Nigerians the confidence that they are dealing with a reputable entity.

 

👉 One of the best features of OANDA is that the broker offers an Islamic Swap-Free account that can be registered, offering unique trading conditions and features to Muslim Nigerian traders.

 

Unique Features

FeatureInformation
⚖️ RegulationIIROC, ASIC, CFTC, NFA, FCA, FFAJ, MAS, MFSA
📱 Social Media Platforms• Facebook
• Twitter
• LinkedIn
• YouTube
🏛 CBN Regulation?No
💰 Trading AccountsStandard Account, Core Account, Swap-Free Account
💻 Trading PlatformMetaTrader 4, OANDA Platform, TradingView
💵 Minimum Deposit (₦)0 Naira
📈 Trading AssetsIndex CFDs, Forex, Metals, Commodity CFDs, Bonds CFDs, Precious Metals, Real-time Rates
💰 Nigerian Naira-based Account?No
✔️ NGN Deposits Allowed?Yes
💸 Bonuses for Nigerian traders?Yes
📊Minimum spreadFrom 0.1 pips
✔️ Demo AccountYes
☪️ Islamic AccountYes

 

✔️ Pros❌ Cons
OANDA has an award-winning proprietary trading platformThere is an inactivity fee on dormant accounts
There is a dedicated account for Muslim tradersThere are no fixed spreads
Negative balance protection is automatically applied to the retail accounts
There are no deposit fees charged
There is a large selection of educational materials

 

Trust Score and Nigerian Market Share

👉 OANDA has a trust score of 91% and a market share of <5%.

Overview

👉 Islamic or Swap-Free trading is also known as Halal trading, which is a special consideration that is made for those who respect the Quran and who want to participate in financial instrument trading, while simultaneously following the principles of Islamic Finance.

 

Top 10 Brokers in Nigeria

Broker

Rating

Regulators

Min Deposit

Leverage

Sign Up Bonus

Spreads

Website

1

9/10

FSCA, FSA, CySEC, FCA, CBCS, FSC (BVI), FSC

$10

1:Unlimited

10%

0.1 pips

2

8/10

ASIC, FSA

$100

1:400

40 USD

0.91 pips

3

8/10

FSA, FCA, CySEC, FSCA

$100

1:20

30 USD

0.07 pips

4

8.7/10

CySEC, FSC, CFTC

$5

1:500

30 USD

1 pips

5

8.5/10

FSA, FSCA

$100

1:200

20 USD

0.9 pips

6

8.4/10

FSA, CySec

$1

1:3000

30 USD

0.3 pips

7

8.3/10

IFSC, CySEC

$100

1:3000

100 USD

0 pips

8

8.2/10

FSC, IFSC, MFSC

$10

1:400

50%

0.4 pips

9

8.1/10

IIROC, ASIC, CFTC, NFA, FCA, FFAJ, MAS, MFSA

$0

1:200

1000 USD

0.2 pips

10

8/10

CySec, FSC, FSA, BaFin, NFA

$100

1:200

30%

1.5 pips

Top 10 Brokers

Broker

Deposit

Leverage

Website

1

$10

1:Unlimited

2

$100

1:400

3

$100

1:30

4

$5

1:500

5

$100

1:200

6

$100

1:3000

7

$100

1:3000

8

$10

1:400

9

$0

1:200

10

$100

1:200

 

👉 Islamic Accounts are offered to most Middle-Eastern countries along with others that present a high Muslim demographic, and because Nigeria has a large population of Muslims, most forex brokers accept traders from Nigeria and offer them the option of an Islamic Account.

Understanding Sharia and Forex Trading

Understanding Sharia and Forex Trading

👉 An alternative to traditional banking that adhered to Sharia (Islamic law) was sought in the late 20th century by the Islamic banking and finance movement.

 

👉 By adhering to Sharia, it forbade the use of haram (forbidden) products and services including pork and alcohol and defined Riba (usury) as any interest paid on any loans of money it made. There is a ban on excessive risk, also known as Bayu al-Gharar, and gambling, which is referred to as Maisir.

 

👉 Not only could this not be used, but most Muslim scholars have also prohibited numerous popular financial instruments and activities seen in the traditional financial markets because of their association with Maisir or Gharar, meaning “interest-bearing,” which includes:

➡️ Margin Trading

➡️ Day Trading

➡️ Short-Selling

➡️ Financial Derivatives consisting of Forwards, Futures, Options, and Swaps

 

👉 However, the Islamic financial sector has not been deterred by this. Even though they carry a high degree of risk, they are argued as having important economic roles. Among other things, they are employed in a wide range of financial activities, and they encourage employee productivity and creativity.

 

👉 There is a solution for Islamic Traders in the form of Islamic or Swap-Free trading accounts and securities.

What is an Islamic Account for Nigerian Muslim Traders?

Islamic Account for Nigerian Muslim Traders

👉 Islamic trading accounts, also known as swap-free accounts, vary from ordinary Forex accounts in several respects. Islamic accounts do not pay or receive interest rates since Sharia law bans the accrual of interest.

👉 Transactions in Islamic accounts must be completed instantly, therefore currencies must be moved from one account to another and transaction expenses must also be paid simultaneously.

👉 Most forex and CFD brokers who provide Islamic accounts typically do not charge any additional commissions on Islamic accounts to offset the absence of overnight fees.

👉 However, brokers seldom advertise this form of trading account since it might be less lucrative for them and because there are only a few Muslim customers who request this account, except those in Islamic regions. Nigerian traders fall within an active Muslim region, which means that traders can access Islamic accounts from brokers who offer the option.

What are the restrictions implied by Sharia Law?

Restrictions implied by Sharia Law

👉 The following are adversely impacted by the many limitations and prohibitions imposed on Muslim merchants when considering the numerous and nuanced aspects involved in commercial activities:

➡️ It is forbidden under Sharia law to incur or receive swap points on positions that remain open after the New York closure at 5 PM EST on the trading day.

➡️ It is illegal to accrue interest on monies placed into a trading account while using margin deposits and interest.

➡️ Islamic Sharia law prohibits Muslims from taking out loans from banks or other financial institutions that charge interest because of the fundamental principle of Riba.

➡️ As money is borrowed from the broker to purchase or sell equities on margin, the trader is responsible for interest, which amounts to Riba, and this is banned by Sharia law.

➡️ Short sales — a practice that includes borrowing an asset and then selling it and is thus illegal.

➡️ Buying and selling contracts at a future date according to a price agreed upon when such a contract is entered into impacts both forward contracts and the trading of futures contracts.

What can Nigerian Muslims trade when they use an Islamic Account?

Islamic Account

👉 There are several markets you can trade with a broker like Admiral Markets, including Forex, CFDs on indices, equities, and raw commodities. You can even trade in more exotic markets like CFDs on cryptocurrencies, bonds, and exchange-traded funds.

👉 The right of a Muslim investor to engage in Islamic trading while adhering to the rules of Sharia law is a legitimate concern for any Muslim investment.

👉 In addition, Muslim Nigerian traders must note that bonds and futures are the only financial markets that are not halal.

👉 Treasury notes are known as bonds, and a fixed interest rate is established at the time of the bond’s issue. No matter how much the bond’s value rises and falls in the market, investors will always get a certain proportion of their initial investment back in exchange for their investment.

👉 Even if you do not get any interest from CFDs, the value of interest rates is the root of the spread, hence bonds might be deemed haram since they are based on a fixed interest rate. Investing in this asset would be like taking advantage of an interest rate, therefore making this investment attractive.

👉 Because of the postponed nature of the exchange of instruments after the “signing” of the buy or sale agreement, futures transactions are also deemed haram, and they will not be settled right away.

👉 It is important to note that standard Forex currency pairings do not operate any differently from typical Islamic cryptocurrency pairs since there are not any specifically designed for Islamic financial transactions.

👉 Because they are measured against the dollar or another currency, their value fluctuates exclusively because of market forces.

👉 Halal cryptocurrencies can be considered in the context of Islamic finance since they are not reliant on interest rates, either directly or indirectly. In addition, if security is either a precious metal or agricultural goods, or raw materials, they are halal as well.

The Best Halal Trading Platform for Nigerians – MetaTrader 4

Best Halal Trading Platform

👉 One of the most popular trading platforms is MetaTrader. In addition, it is the most widely used platform for trading Forex and CFDs online. Questioning whether it adheres to Islamic financial principles is natural and an important factor for Nigerian Muslim traders

👉 MetaTrader is halal since it is only a trading platform, and nothing more than just that, it is merely an interface that enables you to place orders on the market.

👉 If you use a normal, pro, or Islamic trading account, your trades will subsequently be executed in the same manner. Regardless of the kind of account you use. Trading conditions may only be set by your broker, and the platform does not have any influence on this.

👉 The only way to determine whether you are a halal or haram trader depends on the trading account you use. Therefore, you must choose an Islamic trading account with your broker to avoid paying interest.

The Best Islamic Swap-Free Forex Brokers in Nigeria

Islamic Swap-Free Forex Brokers

👉 Investing in forex may be either halal or haram, depending on the investor’s motivations and actions. Using an Islamic trading account and a good trading strategy is halal. For this reason, we have hand-picked the following forex brokers for Islamic traders in Nigeria.

👉 This “10 Best” is a comprehensive study of the FX market done by our staff in March 2022. This article has guided more than 350 new traders in Nigeria in making informed trading decisions.

👉 To verify that all data is current, our forex research team double-checked it on the broker’s official website and datasheet. The newest information on the trading offers of each broker was also confirmed by contacting their online live chat support.

👉 The criteria for the list were based on seven parameters that most Nigerian Traders consider when selecting a broker:

  1. Best Customer Support
  2. Lowest Spreads and Commissions
  3. Regulation
  4. Variety of trading instruments
  5. Highest leverage
  6. Negative reviews by their clients
  7. Minimum Deposit to start trading

👉 Based on the results of the case study, we examined the trading data we had and selected the best forex brokers based on that evaluation. For your convenience, we have provided the information in a scannable format.

➡️ Exness

➡️ XM

➡️ HFM 

➡️ AvaTrade

➡️ Alpari

➡️ SuperForex

➡️ FXTM

➡️ Tickmill

➡️ LiteFinance

➡️ OANDA 

How to choose a forex broker

How to choose a forex broker

👉 Nigerian traders must evaluate the following components of a forex broker to decide whether the broker is suited to their unique trading objectives and/or needs.

Regulations and Licenses

Regulations and Licenses

👉 This is the first important component that traders must thoroughly evaluate. Reputable brokers are regulated by market regulators such as FCA, ASIC, CySEC, FSCA, and others. Nigerians must beware when dealing with brokers that only have offshore regulations such as FSA, SVG BVI, FSC, and others.

Account Features

Account Features

👉 Account Features include leverage trading and margin requirement, commissions and spreads, initial deposit, additional features on retail investor accounts, and so on.

Deposits and Withdrawals

Deposits And Withdrawals

👉 Nigerians must evaluate the payment options available, the processing times on withdrawal requests, deposit currencies offered, the withdrawal fee, deposit fees, and minimum withdrawal limits among other trading and non-trading fees.

Range of Markets

Range of Markets

👉 The range of markets offered refers to the number and range of tradable instruments that the broker offers. Nigerians must consider what they wish to trade and what is available.

Customer Support

Customer Support

👉 Customer Support is another crucial factor and Nigerians must check the availability of support (trading hours), the quality of support, and the promptness with which the customer support team responds to queries.

Trading Platform

Trading Platform

👉 A trading platform is the Nigerian trader’s portal to the financial markets. Traders must ensure that the trading platform has the necessary technical indicators, fundamental analysis, technical analysis, economic calendar, charting, newsfeed, and other tools they may need.

Education and Research

Education and Research

👉 Education and Research come in handy to both novice traders and experienced investors. Education includes some of the following:

➡️ eBooks

➡️ Trading guides

➡️ Trading knowledge on leveraged products

➡️ A risk warning on complex instruments

➡️ Educational videos

👉 Research can include some of the following:

➡️ Trading tools

➡️ Commentary

➡️ Status of International Markets

➡️ Price movements

➡️ Market sentiments

➡️ Whether there is a volatile market

➡️ Exchange Rates

➡️ Expert opinions and several other resources can help experienced traders make informed trading decisions.

The Best Forex Brokers in Nigeria

Best Forex Brokers

👉 The brokers that we covered on this list offer the best Islamic Trading accounts. Of these brokers, we have further identified the forex brokers that offer additional services and solutions to Nigerian traders.

Best TradingView Broker in Nigeria

TradingView Broker

👉 Only a few Nigerian brokers offer access to TradingView and OANDA is our best option because of its competitive trading conditions and dedicated Swap-Free account for Muslim Traders.

Best ECN Forex Broker for Nigeria

ECN Forex Broker

👉 LiteFinance is the best ECN broker on our list with a dedicated account, competitive trading conditions, and some of the best liquidity that is sourced from Tier-1 Liquidity Providers.

Best Options Mobile App

Options Mobile App

👉 AvaOptions is the best Options trading mobile app for Nigerian options traders who need a competitive edge, a range of markets, and a reliable trading partner.

Best Copy-Trading Broker

Copy-Trading Broker

👉 FXTM offers a vast range of comprehensive trading solutions including social trading and copy trading opportunities. This is an ideal option for beginner Nigerian traders, allowing them to experience the markets hands-on by copying the trades of professional traders.

Best NDD Broker for Day Traders

Broker for Day Traders

👉 Tickmill is a reputable and well-regulated broker and the best No-Dealing Desk (NDD) broker on the list. In addition, Tickmill also offers a plethora of trading tools for advanced traders who need that competitive edge.

Forex Broker in Nigeria with the Lowest Initial Deposit

Lowest Initial Deposit

👉 SuperForex not only offers eleven trading accounts but offers an initial deposit that starts from 400 Naira and high leverage up to 1:2000, allowing Nigerian traders to start trading with small amounts of capital.

Forex Broker with the Largest Range of Markets in Nigeria

Largest Range of Markets

👉 Alpari offers Nigerian traders a wide selection of financial assets across several asset classes including Forex Majors, Forex Minors, Forex Exotics, Forex RUB, Spot Metals, Spot Commodities, Stock Trading, and Spot Indices.

Best Naira Account Broker

Naira Account Broker

👉 We chose HFM for its range of account options and the benefit that Nigerians can use the Naira as their base account currency on these accounts. This provides Nigerian traders with the advantage that they need, and it exempts them from currency conversion fees.

Best No-Deposit Bonus Forex Broker in Nigeria

Best No-Deposit Bonus Forex Broker

👉 XM offers Nigerian traders a $30 no-deposit bonus when they register an account. This gives them credit that they can use to trade financial markets risk-free and to withdraw the profits that they make on this bonus.

Best Broker with 24/7 Customer Support in Nigeria

Best Customer Support

👉 Exness is one of the best Naira-account brokers in addition to being an overall trustworthy and versatile forex and CFD trading provider. In addition, Exness’ dedicated customer support team is available 24 hours a day, 7 days a week to offer prompt and informative assistance on a broad range of topics.

FAQ

What is a swap?

When traders leave positions open for more than 24 hours, they are either credited or debited a special fee known as a swap, rollover, overnight fee, or a swap fee. This is a type of interest rate, and they are prohibited by Sharia law.

 

What makes an Islamic Forex Trading Account Different?

When Muslim Nigerians trade using an Islamic Account, their trading is considered halal under Sharia law because the account honours the rules of Islamic financing. This means that overnight positions on an Islamic Account are not debited or credited with swaps. However, there may be additional admin fees or commissions that are charged to offset the absence of swaps.

 

What can I trade using an Islamic Account?

You can trade a wide range of markets including forex, CFDs on Indices, CFDs on Stocks, CFDs on Raw Materials, Precious Metals, and several others.

 

Are all Islamic Accounts in Nigeria regulated?

Financial regulations are not applied on the account level but at the broker level, which means that the forex broker that provides the account must be regulated. Not all forex brokers who offer an Islamic account are regulated, and Nigerian traders need to confirm the validity of the forex broker before they register an Islamic account.

 

Are there different spread charges on the Islamic Account?

Spreads can be wider on Islamic Accounts to offset the absence of overnight fees.

 

Will Islamic trading affect my leverage ratios?

Leverage refers to the ratio of funds to the size of the credit from the broker. Leverage is based on a loan from the broker and unless the broker provides zero-interest leverage, it might mean that you cannot access leverage. In addition, it may also mean that there could be leverage restrictions on Islamic accounts to ensure that the trading account remains halal.

Conclusion

👉 Now it is your turn to participate:

➡️ Which broker from this list do you intend to test out?

➡️ What was the determining factor in your decision to engage with a certain broker?

➡️ Was it because of the minimum deposit or because of leverage?

 

👉 Regardless, please share your thoughts in the comments below.

Addendum/Disclosure:

👉 No matter how diligently we strive to maintain accuracy, the forex market is a volatile environment that may change at any time, even if the information supplied is correct at the time of going live.

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