Checklist
Halal broker criteria: a 10-point checklist
Short answer
A broker is halal for a Muslim trader when the account charges no swap and no margin interest, no fee scales with holding time, trades settle in real assets or at the spot rate, client funds are segregated, and the firm holds a verifiable licence. A "swap-free" label alone is not enough — the contract terms decide.
Read our methodology and editorial policy.
Key facts
Figures checked
- Checks in this framework
- 10
- Non-negotiable checks
- 4No swap, no renamed swap, no margin interest, real settlement
- Governing standard
- AAOIFI Shariah Standard No. 1 (Sarf)
- Shariah board required
- NoHelpful evidence, not a condition
- Time-limited swap-free
- FailsCompliance must not expire
- Mixed-offering brokers
- PermittedIf your own account and trades are clean
The ten checks
1. No overnight swap
Positions held past rollover must incur zero interest credit or debit — verify on a live account statement, not the marketing page.
2. No renamed swap
Reject any 'administration fee' that scales with the number of nights held. A fixed, time-independent fee is a service charge; a per-night charge is riba.
3. No margin interest
Leverage must be free of financing cost. Any interest on borrowed exposure invalidates the account.
4. Real settlement
Spot forex must settle same-session at the spot rate; equities must give you the shares. Contracts that only reference a price fail ownership (qabd).
5. Instrument list you can keep clean
The broker should let you avoid conventional options, futures, bonds and binary products — not force them into the same account.
6. Islamic account by default, not on request
Where swap-free is a permanent account type rather than a revocable perk, compliance does not depend on you remembering to renew it.
7. No time-limited swap-free window
Some brokers make swap-free free for 5-30 days and then start charging. Treat a countdown as non-compliant.
8. Segregated client funds
Client money held in segregated accounts at tier-1 banks, separate from company operating funds.
9. Recognised regulation and real KYC
A named licence number with a regulator you can verify, plus identity verification — anonymity is a red flag for both fraud and Shariah traceability.
10. Transparent, published fee schedule
Spreads, commissions, withdrawal and inactivity fees stated up front so you can confirm none of them are interest in disguise.
Account types compared
| Account type | Swap | Time-based fee | Verdict |
|---|---|---|---|
| Permanent Islamic / swap-free | None | None | Passes |
| Swap-free with daily admin fee | None | Per night held | Fails |
| Time-limited swap-free (5-30 days) | Resumes after window | After window | Fails |
| Standard CFD / margin account | Charged | Financing cost | Fails |
| Cash equity account, screened stocks | n/a | None | Passes |
Reviewed September 1, 2026.
Frequently asked
What makes a broker halal?
A broker is acceptable when its account charges no interest or swap, its instruments transfer real ownership or settle at spot, its fees are fixed service charges rather than time-based financing, client funds are segregated, and it is licensed by a recognised regulator.
Are Islamic accounts really halal?
Only if the swap is removed rather than renamed. Some brokers replace overnight swap with a fixed daily administration fee that grows with holding time — that is interest under another label and fails the test.
Does the broker need a Shariah board?
A Shariah supervisory board or an independent Shariah certificate is strong evidence, but it is not required. What matters is that the contract terms themselves contain no interest and that the instruments you trade are ownable assets.
Is a regulated broker automatically halal?
No. Regulation protects your money, not your compliance. A tightly regulated broker can still offer only interest-bearing CFD accounts, and an unregulated broker with swap-free terms still exposes you to counterparty risk. Both checks are needed.
Can Muslims use brokers that also offer haram products?
Yes. Most scholars permit using a mixed-offering broker provided your own account and trades are compliant, in the same way a Muslim may bank at an institution that offers products they do not use.
See the criteria applied
Read our LiquidBrokers review scored against this checklist, the five Shariah trading rules, or the swap-free account checklist.