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Islamic forex accounts: Islamic Forex Account Swap Free Account

currency exchange

They include RM10 million in up-paid capital and adjusted net capital of RM500,000, which is an estimated $2.5 million and $125,000, respectively. One of the best advantages of Islamic accounts is that those who are Sharia compliant can trade without going against their beliefs. Also, without any swap fees, traders can go a long time without being required to make any interest payment.

XTB only offers trading on its award-winning trading platform, xStation 5. Intuitive, powerful, and fast, xStation 5 introduces sentiment data directly into the platform, so traders can view the percentage of clients who are long or short, and on which instruments. It also offers powerful charting tools, one-click trading, and real-time performance statistics.

The platform is known for its user-friendly interface and social trading features, which allow traders to follow and copy the trades of other successful traders. Bank Negara Malaysia, the country’s central bank, directly regulates Forex brokers and issued guidelines on cryptocurrencies, an asset class enjoying increased popularity, especially among younger retail traders. It is legal for Malaysians to trade with offshore brokers, as long as they are compliant with domestic laws.


If a position at Axiory is open overnight, a commission is charged instead of a typical swap. The commissions and holding period are subject to change according to market conditions and when necessary. Finally, forex trading has an advantage over other markets in terms of short-selling. Islam prohibits short selling — borrowing an asset while betting on its price decline. But currencies trade as a pair so selling a currency doesn’t have to involve borrowing any asset or interest element.

Its influence stretches far beyond the spiritual element and sometimes deep into established business practices. Currency exchange is a fundamental part of international business, and the only way it works is through currency trading. The forex-related prohibited activities include charging interest and gambling. While Islamic forex accounts operate without charging interest, the gambling factor is partially up to the traders themselves. Consider an FBS Islamic account, which allows you to trade on the standard terms without interest fees.

Tickmill – Lowest Commission ECN/STP Broker

Some Forex brokers will widen their spreads on Islamic accounts to compensate for the missed revenue that would otherwise have been generated by collecting interest. Another practice, but is far rarer, is that some Forex brokers charge an up-front commission on trades instead of widening the spreads. Trading Station is FXCM’s proprietary platform with powerful analytical tools for advanced charting and an intuitive interface for ease of use. Other features of Trading Station include micro-lot trading, custom indicators, strategy optimisation, and strategy backtesting. Ninja Trader is aimed at more experienced traders, and is popular among traders who want to engage in auto trading. FXCM also offers support for several specialty platforms that allow algorithmic trading.

Rollover interest is a form of interest that can be credited or debited from yourForex trading account, and thus it is prohibited by Islamic financial regulations. So, Islamic Forex accounts are swap-free accounts where no overnight interest is credited or debited. Most traders want an Islamic Forex account because they comply with the Shari’ah prohibition on Riba or the accumulation of interest. Some brokers try to compensate for the missed revenue that would otherwise have been generated by collecting interest, so we always look for limitations on trading opportunities, additional fees, and widened spreads.

FBS Islamic account conditions for traders of the Muslim faith

The AvaTradeGo app offers forex traders an intuitive and sophisticated trading experience, with spreads as low as 0.9 pips on the EUR/USD for Islamic accounts. AvaTradeGo features an advanced dashboard, with intuitive management tools, clear charts, zoom for details, and a Market Trends feature to monitor trading trends within the AvaTrade community. The AvaProtect tool is also available in the mobile app, allowing traders to purchase loss protection for a time.

Today, many brokers around the world are keen to offer Islamic Forex accounts for those who want to comply with Sharia law. This article will help you choose the best Islamic Forex broker for you and shine some light on the criteria you should be using as you make your choice. The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.

In addition to providing helpful educational resources, TMGM offers exceptional customer service in various languages, 24/7 accessibility, strong security measures and a range of competitively-priced products. In compliance with Sharia law, eToro offers several features that may appeal to Muslim traders. Some notable ones include zero interest on settlement for more than 24 hours, zero commission on rollovers and consistent zero rollover interest.

Islamic accounts can be opened in AUD, EUR, GBP, and USD and all three major trading platforms are supported . While no swaps are charged on this account any position that is held for more than 10 days will be charged an admin fee of 50 USD per lot. Currently, the XBTFX Metatrader 5 platform only supports Islamic trading accounts usingTether as a base trading account currency. With a verified account you can deposit, withdraw, and trade your Islamic Forex account using Tether. 76.46% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider. HYCM is a leading forex broker offering access to over 69 currency pairs and various other trading options such as leverage, stocks, ETFs and commodities.

Islamic accounts at AvaTrade are not charged swap fees or a commission, as is common with other Islamic accounts, but instead, the spread will be marked up to cover overnight fees. Our Islamic accounts offer superior execution over our state of the are trading infrastructure that simultaneously powers our ECN and Standard accounts types. Islamic accounts do not pay or earn swap interest on all instruments in the XBTFX MT5 platform, including cryptocurrency pairs.

By offering leveraged trading through borrowed funds, brokers make a sizeable portion of their income by charging swap interest. Because charging interest is not allowed in Islamic finance, they have to find some other compensation to make it up by setting a wider spread. Whether you’re trying to navigate platform features, depend on reliable platform features or ask a question, Pepperstone delivers. A swap free account in Forex means that you will not be charged or paid swap interest if you decide to keep a trade position open overnight. You will be charged the difference, more or less, another way, most likely by commission.

Pepperstone – Best ECN Islamic Account

Many international Forex brokers offer Islamic accounts, catering to Muslim traders and claiming compliance with Sharia law. Islamic accounts remain swap-free, but Forex brokers substitute the costs via means acceptable under Sharia law, like increased spreads or fixed commissions. AvaTrade does not offer cryptocurrency trading in their Islamic accounts, however they do offer traditional fiat currency, or forex, trading. It has been determined by Muslim scholars that forex trading is halal, as long as the trading adheres to several principles, all of which are included in the conditions of our Islamic accounts. Currency exchange and profiting from currency exchange is allowed under Sharia Law because any individual has the right to pursue activities that allow them to improve their financial condition.

Pay only the bid-ask spreads on your AvaTrade Islamic trading account. AvaTrade offers access to the Islamic halal trading of gold and silver. True Islamic gold and silver trading must have physical support in gold and silver. AvaTrade offers those wishing to trade on Gold and Silver a trading account that complies with Shariah rules. Trade 62 currency pairs, including majors, minors and exotics, with ultra-low spreads and fast execution.

Best Islamic Forex Accounts

Try to thoroughly research and compare different options to find the best Islamic forex account that meets your needs and complies with your personal beliefs. In addition to these account structures, Islamic forex accounts may also offer additional features that are designed to comply with Islamic principles. These variations can include ḥalāl investments and avoiding specific industries considered haram or prohibited. AvaTrade’s trading environment allows traders to choose between several powerful options such as WebTrader, AvaTradeGO, MetaTrader 4, MetaTrader 5 and AvaOptions.

Instead, most brokers opt for a flat financing charge rate, also known as a commission, that depends on the currency pair. While popular pairs such as USD/JPY might have a low commission, exotic ones like EUR/ZAR might be 10 times more expensive. Review the terms and conditions of the broker’s Islamic account, including time restrictions on the no-swap period, required deposits, dealing spreads and maximum leverage ratios. The broker offers a wide range of forex currency pairs and uses the popular MetaTrader 4 platform, as well as a proprietary advanced trading platform and mobile app. Forex brokers usually grant Islamic accounts on request without further checks.

Spot opportunities, trade and manage your positions from a full suite of mobile and tablet apps. Here, we review the top seven Islamic forex accounts and what to look out for in an Islamic forex account. The Riba principle is broken by any trading on margin because margin involves the loan of money at interest given out by a lender who seeks benefit. Even if it has 0% interest, it still arguably may be a loan where the broker seeks benefit .

FOREX.com offers an Islamic account option, although it is not prominently advertised on the website. This account, known as an interest-free account, allows for rollovers without incurring interest charges. However, FOREX.com does reserve the right to apply processing fees to these accounts based on a review of overnight positions.

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