Halal Prop Firms 2026: Islamic-Compliant Proprietary Trading - Complete Guide
For Muslim traders seeking to participate in proprietary trading while adhering to Islamic financial principles, finding halal prop firms is essential. This comprehensive guide covers prop firms offering Shariah-compliant trading accounts, swap-free conditions, and ethical trading practices that align with Islamic finance principles in 2026.
Halal prop firms provide Shariah-compliant trading opportunities for Muslim traders. Source: Unsplash
What Are Halal Prop Firms?
Halal prop firms are proprietary trading companies that offer Shariah-compliant trading accounts for Muslim traders. These firms provide swap-free (Islamic) accounts that eliminate overnight interest charges (riba), which is prohibited in Islamic finance. Halal prop firms ensure trading practices comply with Islamic financial principles while providing funded trading opportunities.
Islamic finance principles require that trading activities avoid riba (interest), gharar (excessive uncertainty), and haram (forbidden) activities. Halal prop firms address these concerns by offering swap-free accounts, transparent profit-sharing arrangements, and ensuring traders can avoid prohibited instruments and practices.
Leading prop firms offering Islamic accounts include FTMO (swap-free accounts upon request), FundedNext (swap-free trading conditions), The5ers (Islamic account options), and MyFundedFX (swap-free accounts available). Compare all options using our prop firm comparison tool or explore forex prop firms for more platform options.
Top Halal Prop Firms 2026
1. FTMO
FTMO offers swap-free (Islamic) accounts upon request for Muslim traders. Their Islamic accounts eliminate overnight interest charges (swaps) while maintaining the same trading rules and profit-sharing arrangements as standard accounts.
FTMO's Islamic accounts are available for both evaluation challenges and funded accounts. Traders can request swap-free conditions when setting up their account, and FTMO will configure the account accordingly. The firm maintains transparent terms and clear profit-sharing arrangements that comply with Islamic finance principles.
FTMO's reputation, transparent rules, and track record of paying traders make them a top choice for Muslim traders seeking halal prop trading opportunities. Contact FTMO support to request Islamic account setup and confirm specific terms for swap-free trading.
2. FundedNext
FundedNext provides swap-free trading conditions for eligible traders seeking Islamic-compliant accounts. Their Islamic accounts eliminate overnight interest charges while maintaining the same evaluation rules and profit-sharing arrangements.
FundedNext's swap-free accounts are available for both Express and standard evaluation models. Contact their support team to request Islamic account setup and confirm specific terms. The firm offers transparent profit-sharing and clear terms that align with Islamic finance principles.
3. The5ers
The5ers offers Islamic account options with modified conditions to comply with Shariah principles. Their unique scaling model works well with Islamic accounts, allowing traders to grow account sizes while maintaining compliance.
The5ers' Islamic accounts eliminate overnight interest charges and provide transparent profit-sharing arrangements. Contact their support team to request Islamic account setup and confirm specific terms for swap-free trading conditions.
4. MyFundedFX
MyFundedFX offers swap-free accounts for traders seeking Islamic-compliant trading. Their flexible evaluation conditions and no-time-limit policy work well with Islamic accounts, allowing traders to complete evaluations at their own pace.
MyFundedFX's Islamic accounts eliminate overnight interest charges while maintaining the same trading rules and profit-sharing arrangements. Contact their support team to request swap-free account setup and confirm specific terms.
5. Other Halal Prop Firms
Several other prop firms offer Islamic account options including SurgeTrader, E8 Markets, and others. When choosing a halal prop firm, verify Islamic account availability, confirm swap-free terms, understand any administration fees, and ensure the firm has transparent profit-sharing arrangements.
Always contact the firm directly to confirm Islamic account availability and specific terms. Some firms may have different conditions for Islamic accounts, so it's important to verify all details before committing.
Prop Firms
Related prop firm resource
What Makes a Prop Firm Halal?
Swap-Free Accounts (No Riba)
The most important requirement for a halal prop firm is offering swap-free accounts that eliminate overnight interest charges (riba). Islamic finance prohibits interest, so halal prop firms must provide accounts without swap charges or replace them with fixed administration fees.
Swap-free accounts ensure that traders don't pay or receive interest on positions held overnight, making trading compliant with Islamic finance principles. Some firms may charge a fixed administration fee instead of swaps, which is generally considered acceptable in Islamic finance.
No Interest-Based Leverage
Halal prop firms should structure leverage without interest-based components. While leverage itself is generally acceptable in Islamic finance if structured properly, the firm should ensure that leverage doesn't involve interest charges or riba-based arrangements.
Most prop firms use margin-based leverage rather than interest-based loans, which is generally acceptable in Islamic finance. However, it's important to verify that the leverage structure doesn't involve prohibited interest components.
Ethical Trading Practices
Halal prop firms should ensure traders can avoid haram (forbidden) industries and instruments. This includes avoiding stocks of companies involved in alcohol, gambling, pork, and other prohibited activities according to Islamic principles.
While most forex prop firms focus on currency pairs (which are generally acceptable), traders should be mindful of any restrictions and ensure their trading activities align with Islamic principles. Some firms may have specific guidelines for ethical trading.
Clear Profit Sharing
Halal prop firms must provide transparent and clear profit-sharing arrangements. The profit split should be clearly defined, fair, and free from hidden interest charges or prohibited elements. Transparency is essential in Islamic finance.
Most prop firms offer profit splits of 70-90%, which is generally acceptable in Islamic finance as long as the arrangement is transparent and doesn't involve prohibited elements. The profit-sharing should be based on actual trading performance, not interest.
How Swap-Free Accounts Work
Swap-free (Islamic) accounts eliminate overnight interest charges (swaps) that are normally applied to positions held overnight in standard trading accounts. In Islamic finance, interest (riba) is prohibited, so swap-free accounts ensure trading compliance with Shariah principles.
How Swap-Free Accounts Differ from Standard Accounts:
- No Overnight Interest: Swap-free accounts don't charge or pay interest on positions held overnight, eliminating riba concerns
- Fixed Administration Fees: Some firms may charge a fixed administration fee instead of swaps, which is generally acceptable in Islamic finance
- Same Trading Rules: Swap-free accounts typically have the same trading rules (profit targets, drawdown limits, etc.) as standard accounts
- Same Profit Splits: Profit-sharing arrangements remain the same, typically 70-90% to the trader
- Same Evaluation Process: The evaluation challenge process is identical, requiring the same profit targets and rule compliance
Important Considerations:
- Always request written confirmation of swap-free conditions from the prop firm
- Understand how the firm handles overnight positions and any administration fees
- Verify there are no hidden interest charges or prohibited elements
- Some firms may have slightly different terms for Islamic accounts, so confirm all details
- Consult with a qualified Shariah scholar if you have specific concerns about compliance
Most major prop firms offer swap-free accounts upon request, but terms may vary. Always contact the firm directly to confirm Islamic account availability, specific terms, and any administration fees before starting an evaluation.
Considerations for Muslim Traders
1. Request Written Confirmation
Always request written confirmation of swap-free conditions from the prop firm. This ensures you have documentation of the Islamic account terms and can verify compliance. Verbal assurances aren't sufficient—get everything in writing.
Written confirmation should clearly state that the account is swap-free, explain any administration fees (if applicable), and confirm that no interest charges will be applied. Keep this documentation for your records.
2. Understand Overnight Position Handling
Understand how the prop firm handles overnight positions in swap-free accounts. Some firms may charge fixed administration fees instead of swaps, while others may have no overnight charges at all. Clarify this before starting an evaluation.
Fixed administration fees are generally acceptable in Islamic finance as they're not interest-based. However, ensure the fee structure is transparent and reasonable. Avoid firms that charge excessive fees or have unclear terms.
3. Verify No Hidden Interest Charges
Verify that there are no hidden interest charges or prohibited elements in the account structure. Review all terms carefully, check for any interest-based components, and ensure the firm is transparent about all fees and charges.
If you discover any hidden interest charges or unclear terms, contact the firm for clarification. If they can't provide satisfactory answers, consider choosing a different firm with clearer Islamic account terms.
4. Consult with Shariah Scholar
If you're uncertain about whether a prop firm's Islamic account is truly halal, consult with a qualified Shariah scholar. Islamic scholars can provide guidance on specific situations and help you determine if a particular arrangement complies with Islamic finance principles.
Different scholars may have different opinions on certain aspects of Islamic finance, so it's important to consult with someone you trust and who understands both Islamic finance principles and modern trading practices.
5. Avoid Haram Instruments
Ensure you avoid trading haram (forbidden) instruments and industries. While most forex prop firms focus on currency pairs (which are generally acceptable), be mindful of any restrictions and ensure your trading activities align with Islamic principles.
If a prop firm offers trading in stocks or other instruments, avoid companies involved in prohibited industries (alcohol, gambling, pork, etc.). Stick to currency pairs and other acceptable instruments to maintain compliance.
Are Prop Firm Profits Halal?
Prop firm profits can be halal if certain conditions are met. However, this is a complex question that may have different answers depending on the specific situation and the opinion of Islamic scholars. Here are the key considerations:
Conditions for Halal Prop Firm Profits:
- Swap-Free Account: The trading account must be swap-free (no riba/interest charges)
- Avoid Haram Instruments: You must avoid trading haram instruments (alcohol, gambling stocks, etc.)
- Transparent Profit Sharing: The profit-sharing arrangement must be transparent and fair, without hidden interest components
- Ethical Firm Operations: The firm should operate ethically and avoid prohibited activities
- No Excessive Uncertainty (Gharar): The trading arrangement should not involve excessive uncertainty or gambling-like elements
Potential Concerns:
- Some scholars may have concerns about leverage and margin trading
- Evaluation challenges may be viewed as having gambling-like elements by some scholars
- Profit-sharing arrangements need to be clearly structured and transparent
- Firm operations and business practices must align with Islamic principles
Recommendation: Consult with a qualified Shariah scholar who understands both Islamic finance principles and modern trading practices. They can provide guidance specific to your situation and help you determine if prop trading profits are halal for you. Different scholars may have different opinions, so it's important to seek guidance from someone you trust.
How to Request Islamic Accounts
Step 1: Contact Prop Firm Support
Contact the prop firm's support team to inquire about Islamic account availability. Most firms offer swap-free accounts but may not advertise them prominently, so you'll need to request them specifically.
Use the firm's support email, live chat, or contact form to request Islamic account information. Be clear that you're looking for swap-free (Islamic) account options.
Step 2: Request Written Confirmation
Request written confirmation of swap-free conditions, including details about any administration fees, overnight position handling, and all account terms. This documentation is essential for verifying compliance.
Written confirmation should clearly state that the account is swap-free, explain any fees, and confirm that no interest charges will be applied. Keep this documentation for your records.
Step 3: Review Terms Carefully
Review all terms carefully to ensure they comply with Islamic finance principles. Check for any hidden interest charges, verify fee structures, and ensure the profit-sharing arrangement is transparent and fair.
If you have any concerns or questions about the terms, contact the firm for clarification. Don't proceed until you're confident the account structure is compliant with your understanding of Islamic finance principles.
Step 4: Consult Scholar if Needed
If you're uncertain about compliance, consult with a qualified Shariah scholar. They can review the terms and provide guidance on whether the arrangement is halal according to Islamic finance principles.
Different scholars may have different opinions, so it's important to consult with someone you trust and who understands both Islamic finance principles and modern trading practices.
Step 5: Set Up Account
Once you're satisfied with the terms and have written confirmation, proceed with setting up your Islamic account. Ensure the account is configured as swap-free and verify all settings are correct.
Monitor your account to ensure no interest charges are applied. If you notice any issues, contact support immediately to resolve them. Keep all documentation and correspondence for your records.
Frequently Asked Questions
Do halal prop firms have different rules?
Halal prop firms typically have the same trading rules (profit targets, drawdown limits, etc.) as regular prop firms, but they offer swap-free accounts instead of standard accounts. Some firms may have slightly different conditions for Islamic accounts, such as fixed administration fees instead of swaps, but the core evaluation and trading rules remain the same.
How do swap-free accounts work with prop firms?
Swap-free accounts with prop firms eliminate overnight interest charges (swaps) that are normally applied to positions held overnight. Instead of paying or receiving interest, swap-free accounts may charge a fixed administration fee or have no overnight charges at all. This makes trading compliant with Islamic finance principles that prohibit riba (interest).
Are all prop firms halal?
Not all prop firms are halal. A prop firm is halal only if it offers swap-free (Islamic) accounts that eliminate interest charges. Most major prop firms offer Islamic accounts upon request, but you need to specifically request them and verify the terms. Always confirm swap-free conditions and consult with a Shariah scholar if you have concerns.
Can I trade forex with halal prop firms?
Yes, you can trade forex with halal prop firms using swap-free accounts. Currency pairs are generally acceptable in Islamic finance, and most halal prop firms focus on forex trading. However, ensure you're using a swap-free account and avoid any prohibited practices. Consult with a Shariah scholar if you have specific concerns about forex trading compliance.
Do halal prop firms charge fees?
Halal prop firms may charge evaluation fees, administration fees (instead of swaps), and other standard fees. However, they should not charge interest-based fees. Fixed administration fees are generally acceptable in Islamic finance, but always verify all fees and charges before committing. Review terms carefully and request written confirmation of all fees.
What should I look for in a halal prop firm?
When choosing a halal prop firm, look for: swap-free account availability, written confirmation of Islamic account terms, transparent profit-sharing arrangements, no hidden interest charges, ethical firm operations, and a track record of honoring Islamic account terms. Always verify terms directly with the firm and consult with a Shariah scholar if needed.