The Islamic religion generally prohibits the use of interest in the business. To satisfy the required conduct in business for Muslim forex traders, brokers today have been compelled to create a special type of account known as Islamic accounts. This type of account does not charge any interest for holding trades overnight in the form of swaps.
This work will therefore help understand the meaning of Islamic Accounts and how it is different from the other accounts offered by the brokers. You will also find in this work the list of brokers that provide Islamic Accounts in case you are desirous to create your Islamic Accounts for trading to suit your religious standards for business.
What are Islamic Accounts
Islamic accounts are special types of forex trading accounts created to suit the Quran practices which prohibit the use of interest in trading. It is a halal account designed to be interest-free for Muslims who wish to trade forex to do so without breaking the practice of their religion. Islamic accounts are swap-free and differ from the other types of accounts.
How to create an Islamic Accounts
Opening Islamic Accounts is very similar to opening any other type of account. The only difference is that the trader will have to select the Islamic Account as his account type after filling his details on the registration form.
Step-by-step guide on how to create the Islamic accounts
Select a broker offering the Islamic accounts: Not all brokers today have provided the Islamic accounts on their platforms. Hence, the trader needs to choose from the list of brokers who have the Islamic accounts on their platforms. We have further provided the list of brokers offering the Islamic accounts to make it easy for you to choose your preferred broker.
- Fill out the registration form: Once you have identified a broker offering the Islamic Accounts, then you need to create an account by filling the registration form provided on their website to enable you to trade on their platforms. Here you will have to fill in your identification details such as: name, phone, email, address, etc.
- Select the Islamic account as account type: While filling out the registration form on the broker’s website, the trader needs to select the Islamic account as the account type when he gets to choose from the account option.
- Submit your identity verification documents: Brokers often require their clients to upload their identity verification documents such as government-issued ID CARD, Proof of address, and Citizenship ID. The trader is expected to upload these required documents to get his account approved for trading.
- Fund your account: The last step after one’s account has been approved is to fund the account to begin trading. There are always multiple funding options provided by the broker for making deposits and withdrawals on their platforms. The trader is to choose from the list the method that is most convenient for him to do so.
List of brokers offering the Islamic Accounts
- Hantec Markets
- IC Markets
Who can use the Islamic accounts?
The Islamic accounts have been designed for Muslims whose religious observances prohibit the use of interest in trading. However, there are no restrictions on traders who still wish to use the Islamic accounts rather than the usual standard accounts.
Advantages of using the Islamic accounts
- It is swap-free
- It is a halal account for Muslim traders
- Makes it possible for traders to hold their negative trades for long till they return to profits
- Helps traders to maximize their profits and eliminate extra charges.