Islamic Forex Account
The advantage of an Islamic Forex account
According to 'Shariah' law, the Islamic law, Muslims are not allowed to profit from any kind of interest. This law also prohibits Muslim Forex brokers from earning interest via Forex trading. The only way that Muslims can trade Forex is by interest-free Forex trading and for that reason many Islamic accounts provide the opportunity to trade Forex interest-free, which is not available in any other way.
Trading Forex interest-free is known as 'No Riba Forex'. The name 'Swap-free accounts' is also used to describe interest-free trading as it signifies that no swap or rollover interest is taken on overnight positions. Sometimes in order to make a profit and still abide to Islamic law, Forex brokers substitute the interest fee with a different fee which covers the interest rate while still staying within the boundaries of the law. This method of billing is known as swap-free in disguise and is considered to be unethical and dishonest.
Making the transition to an Islamic account is easy and many Islamic accounts will kindly help you make the transition. The chart below lists our top choices for Islamic accounts along with some information to help you decide which one is best for you. Once you decide to upgrade to an Islamic Forex account, any one of these brokers will help you make a smooth and quick transition.
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Our Personal Advice
The key to any kind of successful Forex trading is to trade responsibly and intelligently. Making rash, uncalculated decision is not the way to make a profit from Forex trading. In order to make the right choices you must understand the characteristics of your account and use them to your advantage. If you decide to make the transition to an Islamic Forex account make sure you understand the meaning of these two terms:
- No Riba- No Riba means that the regular fees that have to do with interest are not charged as they are opposed to Islamic law.
- Swap Free Forex Account – A swap free Forex account is an account where rollover fees are not charged. Rollover fees are fees charged for a position that is left open overnight and are charged in typical accounts.
Use this information to choose the Islamic account that is right for you and start trading interest-free!
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