Are Islamic trading accounts available in the forex market
Islamic trading accounts are also known as “swap free” accounts, and Islamic accounts have a number of differences from regular forex trading accounts.
With Sharia law prohibiting the accrual of interest on funds deposited in the account, no fees are charged or overnight swap points are earned on positions open for more than 24 hours, and they do not receive interest on deposited funds Also, Islamic or Shariah account trading must be conducted without delay , so that the currency must be transferred from one account to another immediately, while also paying the transaction fee at the same time.
Islamic trading accounts in the forex market
Regular forex trading charges interest on trades and this is a problem for some traders because making money or usury is not allowed under Islamic trading accounts.
Moreover, in Islam Gharar, or gambling, is also not permissible Gharar can refer to the volatile conditions in the forex market that make it difficult to predict what might happen with certainty, and thus can be considered similar to gambling.
What types of trading are not allowed in an Islamic account?
These general forex trends are generally not allowed on Islamic or Shariah trading accounts:
- Riba is interest collected from the buyer on different terms.
- A signed undertaking to repay the loan within a limited time, allowing the agent to sell the contract and redeem the loan if the customer cannot reach a certain percentage of the margin.
- Loans Money provided by agents (banks) to clients is settled on multiple interest terms.
- Borrowing and selling assets that a trader does not own for profit.
- Borrow money from a broker to buy shares.
- An agreement to buy or sell an asset at a future date at a price agreed upon today.
How can I open an Islamic account?
Opening Islamic trading accounts has never been easier. The account is designed to support all Islamic decisions related to business and investment.
You can directly contact many of the forex brokers I mentioned above, and contact their support or sales department for assistance in opening a Shariah compliant forex account.
Trading or trading with forex brokers that offer Shariah accounts may have some drawbacks, but almost all of them eliminate deal-laundering on overnight positions, at least for a limited time.
Holding forex trading overnight can be a risky way to trade unless you place protective stop loss orders or have a large reserve balance.
Forex market trading strategy
Also, a day trading strategy that closes positions at 5 PM EST does not require rollovers, so using it in a normal account should not involve usury, but if you are a long-term trader with a large balance and intend to execute overnight trades regularly, use a broker who has time Unlimited position retention.
Here is a list of some of the best forex brokers for Islamic accounts that you can choose for forex trading.
Best forex brokers for sharia trading
Forex in recent years has been widely discussed in different worlds especially in the Arab countries.
It is easy to learn forex trading and very profitable for many people. Anyone who is really interested in learning forex trading properly, making profit is very easy and fast.
However, if you do not really study and think that forex trading is wealth, it is very easy to lose money and lose a lot of your money in an instant.
Forex trading was initially a subject of discussion in various circles, especially Muslim traders.
There are those who believe that this is haram and there are more who believe that it is halal because forex can be learned and the factors that make prices go up and down, there are many reasons, so this is considered legal, because it is not a game like guessing lottery numbers.
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However, although forex trading is halal in terms of how the market operates, it is still considered haram if the incorrect transaction method is in accordance with Islamic law.
Therefore, there are many forex brokerage firms that have followed the recommendations of Islamic trading accounts, and in the Arab countries themselves, there are also many forex brokers who have followed the MUI directive so that forex trading transactions are done properly and according to Islamic law so that their trading is halal.
Who is the best forex broker for Islamic legitimate trading?
If you want to follow Islamic trading accounts so that your forex transactions do not violate the rules of the Islamic religion, there are some of the best forex brokers that allow you to open an Islamic or Shariah trading account as follows.
The brand name InstaForex was created in 2007 and is currently the leading choice of more than 7,000,000 traders around the world.
This forex broker deals with more than 300 trading instruments, including currency pairs, stocks, metals, commodities and cryptocurrencies.
Cent and Standard accounts are in three currencies (US dollar, euro and Russian ruble) and there is no minimum deposit.
With Instaforex, more than 10 ways to deposit and withdraw funds using Visa or MasterCard credit cards, bank transfers, electronic payment systems, bitcoin wallets and other cryptocurrencies.
2. XM Forex
XM Forex Islamic trading accounts are completely different from what other Forex brokers offer.
The difference lies in the fact that unlike most forex companies that charge additional fees by widening the spreads on Islamic accounts, XM does not charge additional fees.
In compliance with Islamic law, merchants of the Islamic faith are prohibited from paying interest however, if the interest expense is converted into a different type of fee, it is still essentially an expense that covers the interest.
3. Forex FBS
FBS is an international forex broker with more than 190 countries trading with FBS Forex Currently, 15.000.000 traders and 410,000 partners have chosen FBS as their preferred forex broker Best IB FX Program Best Forex Broker.
To provide the best customer experience, FBS organizes special seminars and events, provides clients with training materials, advanced trading technology and the latest strategies in the forex market both novice and professional traders will find this session useful.
BDSwiss is one of Europe’s leading financial institutions specialized in forex/CFD trading.
The idea for BDSwiss was born in Kilchberg near Zurich, Switzerland in 2011 where one of the founders lives.
The company was established in 2012 and since then it has provided online trading services to nearly a million clients worldwide.
5. Exness Forex
In recent years, the Exness Group has grown at an impressive rate and is today recognized as a leader in this field.
In December 2019, the brand’s clients had a monthly trading volume of $325.8 billion and the number of active traders worldwide exceeded 72,721.
Today, Exness Group offers a wide range of financial instruments, including currency pairs, metals, cryptocurrencies, energies, indices and stocks.
Exness has also created special interest-free accounts for residents of Islamic countries. In the interest-free accounts, there are no balances/withdrawals/daily losses associated with swaps.
Thus, the client does not get additional income and does not incur additional losses in the interest-free accounts, no swap is credited or withdrawn from the client’s account.
Exness’s forex trading system can identify clients residing in countries where Islam is the dominant religion, and mark their accounts as swap-free.