Features of Islamic accounts for binary options and Forex

Best Binary Options Brokers: 2020 Ranking
  • Binarium
    Binarium

    Best Choice! The leader in our ranking!
    Perfect for beginners!
    Free Demo Acc + Free Trading Education!

  • Binomo
    Binomo

    Good choice for experienced traders!

Contents

Islamic Forex Trading – Open an Islamic Forex Trading Account.

Islamic Forex Trading

  • It proposes a risk-sharing philosophy wherein the lender must share in the borrower’s risk.
  • The purpose of Islamic finance is to promote economic and social development through specific business practices.

Islamic Forex trading Account needs to conform to Islamic finance principles. The regular Forex accounts charge interests (Riba), which is against the religious beliefs of Islam. For this reason, several Forex Brokers offer their clients to select the ISLAMIC FOREX ACCOUNT while opening an account for Forex trading.

However, all Islamic Forex Brokers are not the same. Their terms of Islamic Forex Accounts differ significantly. You must carefully consider your religious guidelines, your requirements as a trader and a broker’s features before opening an Islamic Forex Trading Account.

Best Islamic Forex Brokers 2020 – Islamic Forex brokers Review

Here is the list of best Islamic Forex Brokers reviewed by us. All these Forex brokers are well-established firms with 10 years or more of service in the market except Q8 Trade. Q8 Trade started its exclusive Islamic Forex trading service in 2020. Q8Trade is specially designed to serve the traders belonging to the Islamic faith. You can trust all these brokers with your investments.

No other broker has more expertise than Q8 Trade in Islamic Forex trading, Q8trade started its service to fulfill the deficiency of a trustworthy Forex broker in the Middle East. Within a short span of time, it has become the most trusted trading platform in the MENA 2020. Check out the Q8 Trade Review.

  • Leading Islamic Forex Broker
  • Has offices in GCC countries
  • Expertise in handling customers belonging Islamic faith
  • MT4 and Web platform
  • Support in Arabic and Engish
  • Micro Account starts at $5 deposit
  • Low spread and leverages to suit your trading style
  • HFCOPY and PAMM Account
  • MT4 and MT5 trading Platform
  • Islamic Account – Yes
  • A minimum deposit of $1
  • Maximum leverage 1:1000
  • Five different accounts types
  • ECN account – Low spreads
  • Bonus deposit – Yes
  • Islamic Account – Yes
  • $100 minimum deposit
  • Web and MT4
  • VIP account
  • 37 international awards
  • Free market analysis
  • Islamic Account – Yes
  • Fixed spreads – fairly low
  • Minimum deposit of $1
  • Flexible leverage of up to 1:3000
  • Five different types Of accounts
  • Low spread
  • MT4 & MT5 Trading Platform
  • Islamic Account – Yes

What is Islamic Forex trading Account? – Swap Free Islamic Account

The Forex trading accounts specifically designed to comply with Islamic principles are known as Islamic Forex Accounts. The Islamic forex accounts ensure that the traders belonging to the Islamic faith engage in forex trading, without breaking the laws of the religion. These Islamic forex trading accounts are also known as swap free trading accounts in the forex market. Sharia law prohibits the accrual of interest on funds deposited in the trading account. Hence the Islamic Accounts must not incur interest or roll over swap for a position that remains opens beyond the New York market i.e 5 pm EST.

The Swap Free trading account or Islamic trading account doesn’t charge any interest or Riba for positions held overnight or more extended periods. The Forex Brokers offering Islamic Forex Account try their best to stay compliant with the Shari’a Law.

Riba

In the Islamic religion, “Riba”, which means making money in the form of interest is not allowed. Taking money as Interest or Making money from money, or “Riba,” is not permitted by Sharia law. Riba is considered as an unjust and exploitative method of making money in business.

Gharar

Gharar is an Arabic word and it roughly translates to “gambling” and is prohibited in Islam. Some Islamic scholars have the opinion that speculating on the forex market by trading currency pairs or CFDs is gambling. Nevertheless, long term and sound investments made in the Forex market, Capital markets, and the Stock market may generally not be considered gambling.

How to select a broker for Islamic trading Account

When selecting a broker to operate your Islamic trading account, one needs to make an analysis carefully. Choosing the account type is important. You should consider the trading conditions and customer service before opening an account. Also one may choose to operate through two different brokers to see which one gives better results. Also sometimes trader is willing to take higher spreads to get better results or even better customer service.
There are several brokers available on the Internet for carrying out Forex trading. You must analyze their terms and conditions for offering the Islamic Forex account. You should check the reputation, popularity and track record of the broker before you put your hard-earned money for trading.

In this world of profit-oriented businesses, it becomes imperative to sustain specific ethical and moral standards. Islamic finance principles adhere to the same. As per the Muslim law, one can not carry out any business and financial contracts which do not adhere to the Islamic principles. The primary feature of Islamic finance is socio-economic and distributive justice. Islamic finance must help in the development and the well being of the Islamic community.

HotForex complies with regulators and offers Islamic Forex account to traders of the Islamic faith. It also gives you free trading resources to help you make a better trading decision. HotForex offers you free Autochartist and Premium trader tools which can give you advantages in placing a successful trade. It can assist you in deciding on placing a trade. Open an account with HotForex now!

Islamic Forex accounts – Why is it important?

It is important that your day to day life should match with your religious beliefs, it gives you peace of mind. So when it comes to Forex trading, it should comply with your religious principles.

Best Binary Options Brokers: 2020 Ranking
  • Binarium
    Binarium

    Best Choice! The leader in our ranking!
    Perfect for beginners!
    Free Demo Acc + Free Trading Education!

  • Binomo
    Binomo

    Good choice for experienced traders!

An Islamic Forex account, provided through an Islamic Forex broker is a unique kind of trading accounts which we don’t find with all brokers. The opening of an Islamic account is not restricted to Muslims traders only.

The traders of Islamic faith can open Islamic Forex Trading Account. These traders cannot receive or pay swaps (interests) for religious reasons. To enable many Muslims to take advantage of the Foreign Exchange markets benefits, many brokers made it possible for Muslims to trade in Forex with the help of Islamic Forex trading accounts. These specific accounts called Islamic Forex accounts. These are compliant with Sharia law enabling traders of Islamic faith to take advantage of Forex trading. These accounts offer NO SWAP for trades that remain open overnight. These brokers also have dedicated staffs for support and trading experts fluent in Arabic as well as the intricacies of Shariah law.

The only determining factor to the Islamic account is that the trader should be of the Islamic religion. These accounts are offered for all account types regardless of base currency or leverage offered. The brokers verify the trader before they provide them an Islamic Forex trading account.

Modern-day trading has gone a long way from traditional trading of goods and commodities, which were physically exchanged while doing business. Early traders of Muslim faith used to cross vast oceans and lands to trade all over the world. They were liked all over because their methods of trading are truthful, principled and dictated by the teachings of their faith. This tradition continues to this day.

Is Forex trading Halal in Islam?

The Islamic Forex trading community is divided on whether Forex trading is Halal or Haram. Making money by trading Forex is allowed because an individual has the right to improve his financial condition. Some Islamic Scholars agree that Forex trading adhering to Islamic principles can be considered as Halal, while some forbid it entirely.
To ensure that your Islamic Forex trading account is Halal, choose a Forex broker, who performs operations approved and permitted by Shari’a Supervisory Boards (SSB). The Islamic Forex accounts facilitate practitioners of Islam to engage in Forex trading, without breaking the laws of the religion.

We don’t have enough expertise or authority to advise you whether Forex trading is Halal or Haram, or is it allowed under Islamic principles. Hence seek appropriate guidance if you have any doubt as it involves religious sentiments.

Compare Brokers With Islamic Accounts

For our islamic accounts comparison, we found 16 brokers that are suitable and accept traders from Russian Federation.

We found 16 broker accounts (out of 147) that are suitable for Islamic Accounts.

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About XTB

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

75% of retail investor accounts lose money when trading CFDs with this provider.

Read our in-depth XTB review

AvaTrade

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About AvaTrade

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

71% of retail investor accounts lose money when trading CFDs with this provider.

XM Group

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About XM Group

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

71.6% of retail investors lose money when trading spread bets and CFDs with this provider.

Forex.com

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About Forex.com

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

69% of retail investor accounts lose money when trading CFDs with this provider

Axitrader

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About Axitrader

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

68.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

EasyMarkets

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About EasyMarkets

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

83% of retail investor accounts lose money when trading CFDs with this provider.

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About GKFX

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

81.75% of retail investor accounts lose money when trading spread bets and CFDs with this provider.

Read our in-depth GKFX review

ThinkMarkets

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About ThinkMarkets

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

Losses can exceed deposits

Trade.com

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About Trade.com

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

71.36% of retail investor accounts lose money when trading CFDs with this provider.

ForexTime

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About ForexTime

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data.

The Ultimate Guide to

Islamic Trading Accounts

What is an Islamic trading account?

Also known as a “swap free” account, Islamic accounts have a number of differences from regular forex trading accounts. With Sharia Law forbidding the accrual of interest on funds deposited in an account, traders with Islamic Accounts do not incur or receive rollover swap points on positions open for longer than 24 hours, and they earn no interest on deposited funds. Also, Islamic Account trades must be made with no delay, so currencies must be transferred from one account to another immediately, with transaction costs also paid at the same time.

Who is an Islamic trading account for?

Regular forex trading accounts charge interest on certain trades, which can be a problem for some traders as making money from money, or Riba, is not permissible under Sharia law. Additionally, in Islam Gharar, or gambling, is also not permitted. Gharar can refer to the volatile conditions in the forex market which make it difficult to predict with certainty what is likely to happen, and can therefore be considered akin to gambling.

What types of trades are not allowed in Islamic accounts?

These common forex trends are not generally permitted within Islamic trading accounts:

  • Riba – interest that is charged from the buyer under different conditions.
  • Pledge – a signed commitment agreeing to pay back a loan within a limited time, with the agent permitted to sell out the contract and recover the loan if the customer is unable to reach the specific percentage of the margin.
  • Loans – money given by an agent (bank) to the customer on some settled terms of interest.
  • Short selling – borrowing and selling an asset the trader does not own for profit.
  • Trading on margin – borrowing money from a broker to purchase stock.
  • Forwards sales – an agreement to buy or sell an asset at a future time on a price agreed today.

How can I open an Islamic account?

Opening an Islamic forex account is now easier than ever. With the Islamic banking sector as growing by an average of 19.7% a year, there is now an increasing number of brokers offering Islamic forex account services. The accounts are designed in the support of all the Islamic rulings on business and investments.

Why Choose XTB
For Islamic Accounts?

XTB scored best in our review of the top brokers for islamic accounts, which takes into account 120+ factors across eight categories. Here are some areas where XTB scored highly in:

  • 16+ years in business
  • Offers 1,500+ instruments
  • A range of platform inc. MT4, Mirror Trader, Web Trader, Tablet & Mobile apps
  • 24/7 customer service
  • Tight spreads from 0.20pips
  • Used by 230,000+ traders.
  • Offers demo account
  • 3 languages

XTB offers three ways to tradeForex, CFDs, Social Trading. If you wanted to trade GOLD

The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.

XTB have a AAA trust score. This is largely down to them being regulated by Financial Conduct Authority, segregating client funds, being segregating client funds, being established for over 16

Trust Score comparison

XTB AvaTrade XM Group
Trust Score AAA AAA B
Established in 2002 2006 2009
Regulated by Financial Conduct Authority Central Bank of Ireland, ASIC, IIROC, FSA, FSB, UAE and BVI IFSC, CySEC, and ASIC
Uses tier 1 banks
Company Type Private Private Private
Segregates client funds

A Comparison of XTB vs. AvaTrade vs. XM Group

Want to see how XTB stacks up against AvaTrade and XM Group? We’ve compared their spreads, features, and key information below.

Features of Islamic accounts for binary options and Forex

IQ OPTION is one of the best binary options brokers in the industry. It has gained the trust of thousands of traders with excellence in trading services, and customer service. You can avail a wide range of payment methods for trading with IQ Option. IQ Option offers same-day fund withdrawal to all its VIP clients. You can speak to your account manager about an Islamic Trading Account. They will certainly guide you about this. IQ Option offers a relatively high payout to traders, even higher payout to VIP traders. The traders get a payout of up to 91%* for successful trades, which is an excellent offer from such reputed and established broker. Traders can open VIP account by depositing $3000 or more.

IQ Option is one of the most popular brokers with the highest payout in the market. It has several funding methods for fast deposit and withdrawal of funds. The traders following the Islamic faith can open the IQ Option Islamic account and trade while complying with the Islamic beliefs.

Does IQ Option provide Islamic Trading Account?

IQ Option offers such special accounts to clients from countries in the Middle East such as the United Arab Emirates, Saudi Arabia, Kuwait, and Qatar. If you are looking for an Islamic Account with IQ Option, you can discuss the same with your account manager right away.

IQ Option Features

IQ Option is a global financial broker offering its award winning trading features to the traders. You need not deposit any fund to try these features. A free demo trading account can help you try all the features of IQ Option and its trading platform.

  • Contact: Call back, Email and Telephonic
  • Languages: English, Russian, Turkish, German, Spanish, Portuguese, Chinese, Swedish, Korean, French, Italian, Arabic, Indonesian
  • Trading Platform: Most advanced platform
  • Minimum: 1st Deposit $10
  • Minimum Account Size: 10
  • Minimum Trade: Amount of $1
  • Bonus: No Bonus due to regulatory requirements.
  • Payout: up to 91%*
  • Free Demo Account: Yes
  • Registered address: Hinds Building, Kingstown, St. Vincent and the Grenadines
  • Commission Info: No commission
  • Deposit Methods: Credit Card, Wire Transfer, Skrill, Qiwi, WebMoney, CashU, iDeal, Fasapay, Neteller, Boleto
  • Withdrawal Methods: Credit Card, Wire Transfer, Skrill, Qiwi, WebMoney, CashU, iDeal, Fasapay, Neteller, Boleto
  • Number of Assets: More than 500 Assets
  • Types of Assets: Stocks, Commodities, Indices, and Forex
  • Islamic Traders: Accepted
  • Mobile Trading: Yes
Best Binary Options Brokers: 2020 Ranking
  • Binarium
    Binarium

    Best Choice! The leader in our ranking!
    Perfect for beginners!
    Free Demo Acc + Free Trading Education!

  • Binomo
    Binomo

    Good choice for experienced traders!

Like this post? Please share to your friends:
Binary Options Trading Education
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: