Are you a practicing Muslim, and you wish to trade forex without infringing on the tenets of your faith? If you are a Sharia adherent, you will not want to engage in any economic activity that betrays your religious principles, and you shouldn’t. Fortunately for you, there are Islamic forex brokers that provide Muslim traders with the option to trade with Islamic forex accounts.
Although these types of accounts exist, you need to know that not all forex brokers offer these types of accounts. So before choosing which broker to trade with, you need to evaluate their service features carefully.
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An Islamic Forex account, also called a halal trading account, is unlike conventional trading accounts. This type of account is specially created for believers of Sharia practices. According to Sharia law, interest accruals on finds are prohibited, so these accounts do not incur any type of interest or swap point rollovers on open trades by the time the New York forex market closes.
Another feature with Islamic forex accounts is that trading transactions are settled immediately in trades that have been popularly termed hand-to-hand trading.
Now let us briefly review down of the best Islamic forex brokers online.
First on our list of the best Islamic forex brokers is Forex.com. This broker is one of the best brokers in the world, and they also offer special trading accounts to halal traders. There are up to 80 different currency pairs you can trade with using an Islamic forex account with a minimum trade size of 0.01 pip. Forex.com does not advertise this type of account, but it does exist. It is a great option for beginners and active traders who live by Sharia principles. The maximum leverage for traders in the US is 50:1, while traders in Europe enjoy the leverage of 30:1.
Their interest-free account also accrues a commission of $5 for every $100,000 traded, which is quite low. As for their interface, they have MT4, MT4 Mobile and MT4 VPS.
AvaTrade is another reliable Islamic forex broker worth mentioning. This platform offers a wide spectrum of tradable instruments such as commodities, stocks, indices, forex, and CFDs. One feature many have come to appreciate about AvaTrade is their 24-hour customer service which remains open in different languages. So should you encounter one issue or another, you can be sure to get all the support you need as quickly as possible.
They have easy-to-use interfaces for beginners like WebTrader and AvaTradeGo. For advanced traders, they can use the advanced MT4, MT5, and AvaOptions which all have varying degrees of automated features. With this broker, you don’t need to worry about keeping your trades open overnight in violation of your religious principles. All it takes is a minimum of $200 to open an account with AvaTrade, and you can trade as many as 60 currency pairs.
If you live in the following countries, you can enjoy Swap-free accounts.
Albania- Brunei-Bahrain – Brunei – Darussalam – Algeria – Egypt – Guinea – Indonesia – Jordan and a host of other countries.
eToro is a US-based broker known for its advanced social trading platform. On this platform, you can use your Islamic forex account to trade up to 47 currency pairs. There are hundreds of financial assets on the platform, and this broker offers a special account to traders in adherence to Sharia law. Their Islamic account does not attract interest or settlement for more than hours, and trades in open positions close automatically at the close of the trading day.
eToro will not charge any extra commission or fees for managing your Islamic account, and revenues earned are based strictly on spreads. However, the only downside to investing with this broker is that you will have to invest a minimum of $1000 to activate an Islamic account. Also, you will have to provide extra verification to verify your identity. However, eToro is reliable and dependable. The minimum trade size starts from 0.01 pips.
easyMarkets is another broker that offers Islamic forex accounts to interested traders. Domiciled in the Marshall Islands, this broker offers Islamic accounts with 2 weeks limitations on open trades held overnight. However, such trades do not incur swap and interest charges. easyMarkets accounts are Sharia-compliant, but besides that, they have the same advanced features just like other trading account types.
Islamic traders have access to as many as 200 CFD markets, some of which are Cryptocurrencies, indices, commodities, precious metals, and many more. The maximum leverage ratio for Islamic accounts is 400:1, and the commission fees are quite low. easyMarkets trading tools are advanced but yet, easy to use. Their platform supports MetaTrader4. You also have access to free e-books, webinars, and other training resources to help you brush up your skills.
You can succeed at trading forex without compromising your Islamic beliefs but only if you trade with brokers who offer special Islamic forex accounts. Consider opening an Islamic forex account today and start trading.
Forex trading is permissible under Islamic law, provided the trading account does not accumulate any sort of interest and does not violate the tenets of Sharia.
No, it is not. All trades must be done in person.
No, not all brokers offer Islamic accounts. To find out, you will have to visit the broker’s website to check the list of accounts they offer.
Yes, you can. This type of account has the same access as all other accounts.
They do not keep trades open because doing so could accrue interest, and interest accruals violate Sharia law.