Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data.
The Ultimate Guide to
How to Find the Best Islamic Trading Accounts
What is an Islamic trading account?
Also known as “swap free” accounts, 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 a whole estimated to grow by an average of 19.7% a year to 2018, there are now a growing number of brokers and companies which are offering Islamic forex account services. The accounts are designed in the support of all the Islamic rulings on business and investments.
Why Choose ThinkMarkets For Islamic Accounts?
ThinkMarkets 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 ThinkMarkets scored highly in:
8+ years in business
Offers 50+ instruments
A range of platform inc. MT4, Mac, Web Trader, Tablet & Mobile apps
24/7 customer service
Tight spreads from 0.10pips
Used by 0+ traders.
Offers demo account
2 languages
ThinkMarkets offers two ways to tradeForex, CFDs.
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.
ThinkMarkets have a B
trust score, which is good. This is largely down to them being regulated by Financial Conduct Authority and ASIC, segregating client funds, being
segregating client funds, being established for over 8
Want to see how ThinkMarkets? We’ve compared their spreads, features, and key information below.
Spread & fee comparsion
The spreads below are illustrative. For more accurate pricing information, click on the names of the brokers at the top of the table to open their websites in a new tab.
