eToro Islamic Account

Written by Wikitoro Team

Reviewed by Nadav Zelver

Looking for a trading platform that respects your religious principles? You’re in the right place.

If you’re checking what eToro offers for traders who follow Islamic finance rules, this page will give you the clarity you need, without the jargon.

I’ve been through the process myself. Opened the account. Tested the features. Reviewed the fine print. And what follows is a no-nonsense summary of how the eToro Islamic Account works, and what makes it different.

What is an Islamic Account on eToro?

Let’s start with the basics.

The eToro Islamic Account is built specifically for traders who follow Sharia law. That means no interest (known as Riba), no hidden swap fees, and no violations of Islamic finance principles.

Unlike standard accounts, where overnight positions might earn or cost interest, this one strips that out completely. You're left with a product that keeps your trades active, without triggering compliance issues.

It’s a tailored setup. One designed to let you trade with peace of mind, knowing the structure aligns with your values.

Financial Transactions Prohibited Under Sharia Law

Why does eToro offer a dedicated Islamic Account for Muslim traders?

Because certain financial activities are strictly off-limits under Sharia Law. And a standard trading account won’t cut it.

Here’s what’s not allowed:

• Interest-Based Loans: Any loan that charges interest is non-compliant.
• Margin Trading: Borrowing money to boost trade size and potential gains? That’s out.
• Overnight Rollovers: Holding positions past market close that trigger interest charges? Also not allowed.
• Margin Deposits with Interest: Earning or paying interest on margin deposits violates Sharia principles.
• Short and Forward Sales: These speculative strategies fall outside Islamic financial ethics.

No Interest. No Commissions. No Problem.

Islamic Accounts on eToro are designed to respect these guidelines. That means no interest fees on trades left open overnight. Instead, a fixed admin fee applies.

Here’s what really matters:

In standard forex accounts, if you leave a trade open past 5:00 pm New York time, it rolls over and racks up interest. This is called “Riba,” and it’s considered Haram under Islamic law.

With an Islamic Account, it works differently.

There are no rollover fees, even if you keep the trade open for days or weeks. No weekend charges either. Hold your position as long as you like because here’s no interest coming your way.

Real-Time Trade Execution

Here’s where it gets important: when money moves between bank accounts (or in the case of forex, when currency is exchanged), religious scholars consider this a physical transfer. It counts as a real exchange under Islamic law.

The main point is that Sharia-compliant trading requires that deals are settled instantly, and that any costs involved are handled at the moment of transaction. That’s not a suggestion. It’s a formal requirement based on fatwas issued by Islamic scholars.

eToro meets this head-on. Their trading platform executes currency trades in real time, with no delays. Which means the timing and structure align with Islamic finance principles.

eToro: Halal or Not?

It’s a question a lot of Muslim traders ask: Is eToro halal?

Here’s the answer.

eToro offers an Islamic account. It’s structured specifically to follow Sharia guidelines: no interest, no overnight fees, and all trading done with immediate settlement.

That makes eToro a viable option for halal trading. If you’re looking to trade while staying aligned with Islamic financial practices, their Islamic account is built for exactly that.

Adherence to Sharia Law

Is eToro Sharia compliant or not? It’s a question that comes up often, especially among Muslim traders looking to stay aligned with their values while investing.

The short answer: yes. eToro offers an Islamic account designed specifically to comply with Sharia principles. That means no interest, no hidden fees, and no compromises when it comes to faith-based financial ethics.

Features of the eToro Islamic Account

If you're considering whether the Islamic account fits your trading style, here’s a quick breakdown of what it offers:

• Leverage Trading (up to 1:30) – Gives you access to more market exposure without stepping outside Sharia rules.
• Spreads from 3 pips – Particularly on major pairs like EUR/USD, offering a competitive edge in forex trading.
• Zero Commission – No commission on trades. What you see is what you pay.

This setup is tailored for traders who want access to global markets while staying within the framework of Islamic finance. Straightforward, transparent, and built with compliance in mind.

eToro Access for Traders in Muslim Countries

Trading with eToro in UAE

If you're based in the UAE, you're good to go. eToro accounts are open to residents with no special restrictions in place.

While eToro doesn’t currently operate physical offices in Saudi Arabia and isn’t licensed by the Capital Market Authority (CMA), it’s making moves in the UAE. The platform has secured an in-principle approval from the Abu Dhabi Global Market (ADGM) to act as a crypto broker. It’s a primary step toward expanding its footprint across the Middle East.

Supported Muslim Countries

eToro is available in several countries with large Muslim populations. Here are a few where traders can access the platform without issues:

• Bangladesh
• France
• UAE

Countries with Restricted Access

That said, some countries with significant Muslim populations are currently off-limits due to regulatory hurdles. These include:

How eToro Makes Money: It’s All About the Spread

Let’s clear something up, fast.

If you’re wondering how eToro earns revenue from Islamic trading accounts without breaking Sharia rules (no interest, no exceptions), here’s your answer:

Spreads. That’s it.

Spreads refer to the small difference between the buy and sell prices of assets like currency pairs. eToro doesn’t charge overnight fees or interest on Islamic accounts. No hidden fees, no management charges. Only the spread. So the model stays compliant and transparent.

What Can You Trade on an Islamic Account?

Alright, so you’ve confirmed eToro offers an Islamic account. But what exactly can you trade?

From what I’ve seen, the product lineup is broad. You can access:

• Forex pairs
• Stocks
• Commodities

Here’s where it gets more complex:

• Forex trading is halal when there’s no leverage and the exchange happens immediately. If there’s riba (interest) through borrowing or delays? That’s haram.
• Stock trading depends entirely on what the company does. If the business is halal (no gambling, no alcohol, no forbidden sectors), it’s usually fine. If not, steer clear.

The main takeaway here is that eToro gives you access. But it’s your responsibility to assess whether a trade aligns with Islamic finance principles. When in doubt, I suggest that you talk to a qualified scholar or financial advisor with Islamic finance expertise. Better safe than sorry.

Proof of Religion Requirement

eToro’s Islamic account is designed specifically for Muslim traders, but there’s one thing you need before you can access it: verified proof of religion.

This document should come from an officially recognized Islamic organization in your country or region. It confirms your eligibility and helps eToro align the account with Shariah principles: no swap fees, no interest-based charges, no compromises.

Steps to Open an Islamic Account

Wondering how to switch your eToro account to Islamic? Here’s the process, step by step:

1. Create Your eToro Account
   Sign up with your email, pick a username, and set your password.
2. Verify Your Profile
   Fill out your details and upload a couple of documents: proof of ID (POI) and proof of address (POA).
3. Make Your First Deposit
   Fund your account with at least $1,000 using any of eToro’s accepted payment methods.
4. Request the Islamic Account
   Reach out to eToro’s customer service team and ask to switch to an Islamic account. Once your documents are reviewed and approved, your account will be updated. You’ll get a confirmation when the process is complete.

That’s it. If you’re a Muslim trader looking to stay compliant with religious guidelines, this is the setup you need. I suggest that you keep an eye on eToro’s help center or updates. They sometimes revise requirements or features tied to Islamic accounts, and you’ll want to stay ahead of those changes.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.

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