Islamic Trading Accounts

Islamic Forex Trading Accounts

Swap Fees will not be credited or debited (on selected products) on Tradefex Islamic Trading accounts for traders of Islamic faith

Islamic Accounts

What is an Islamic Forex Account and how to trade in accordance with Islamic Finance?

Also known as a swap-free accounts, Islamic accounts are ideally suited to muslim clients as they are in line with Islamic law in that they incur no swaps or interest charges on overnight positions. Instead, the account holder is charged an administration fee on positions which is deducted from the balance of the account.

Trading in Islam can be considered to be haram but it is still possible to trade if you find an Islamic Forex Account which provides swap-free trading and which has been designed for forex traders who cannot pay or receive swaps or rollover interest on overnight positions due to their religious beliefs, in line with Sharia Law.

In order to open an Islamic Forex Account, a client must first open a MetaTrader 4 or MetaTrader 5 (MT4/MT5) Platform account and then request for it to be converted into an Islamic Account. We do not offer Swap Free accounts on IRESS, only MT4/MT5.

Islamic Account Types

Islamic Account Types

Trade Forex and access the markets on the World's most Powerful Trading Platform

MetaTrader 4 Islamic Account

Experience the future of day trading with a range of powerful new features

Demo Islamic Account

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What Islamic Account Types
Does Tradefex Offer?

The swap-free account option is available on both our Raw and Standard account types on the MT4 and MT5 trading platforms.

An Islamic client can trade all the instruments available on the platforms.

Minimum Opening Balance

$100 USDor
equivalent

Spreads

From 1.0 pips

Instruments

60+ FX pairs, metals, indices, commodities

Maximum Leverage

500:1

Execution

ECN-Pricing

Commission per Lot

Zero

Minimum Trade Size

0.01 Lot

EA’s

Yes

Mobile App

Yes

VPS Available

Yes

Minimum Opening Balance

$100 USD or
equivalent

Spreads

From 1.0 pips

Instruments

60+ FX pairs, metals, indices, commodities

Maximum Leverage

500:1

Execution

ECN-Pricing

Commission per Lot

USD $3 per 100,000

Minimum Trade Size

0.01 Lot

EA’s

Yes

Mobile App

Yes

VPS Available

Yes

What Can You Trade with an Islamic Account?

Islamic Accounts at Tradefex allow to
start trading the following financial instruments:

Forex

if you are interested in trading forex, try your hand at currency trading on +60 pairs

Commodities

Gold, oil,
silver

Indices

12 to trade on global indices

Share

Shares trade 54 share CFDs on global stock markets

Cryptocurrencies

Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin

About Halal Forex Trading - Halal Trading
with Islamic Forex Accounts

Islamic finance is guided by four basic principles:

1 | Prohibition of gambling

According to Islam, gambling is prohibited but trading forex and other financial instruments can be considered an educated game of chance which involves the buying and selling of assets based on forex market analysis and using a variety of concepts and trading strategies.

2 | Prohibition of payment and receipt of any interest rate (Riba)

Usually, when a trader holds open positions at the close of a trading session, Tradefex charges a swap commission linked to an interest rate which is in turn related to the fact that traders receive an indirect loan through leverage. This leverage usually results in profit for the forex broker and therefore why a standard trading account is classified as haram given it includes interest payment whereas an Islamic trading account would be halal as it does not feature payment of these swap interest rates and therefore satisfies the riba threshold.

3 | Risk and benefits distribution

One of the principal concerns about trading is the element of shared risk. Interest ensures a reward for the lender and the borrower is the one who incurs the risk. Excessive or a high level of risk (gharar) is prohibited in the same way that excessive gambling is. Financial activity must also be seen to promote social and economic activity and justice as well as happiness. With an Islamic trading account, all interest charges are waived.

4 | Immediate Exchange or "Hand in Hand"

Now that interest rates not being applicable, the next item to consider is that trading is only permitted if it is "hand in hand". In times gone by this meant face-to-face but in the modern world and with the advent of online trading and e-commerce, which involves an almost instantaneous transaction between broker and trader executed in seconds, is considered halal under Shariah and is therefore permissable.

Key Features of the Tradefex Islamic Forex Account:

Key Features of the Tradefex Islamic Forex Account:

Similarly excellent trading conditions, services and features as Tradefex trading accounts; the only difference being the elimination of non-Shariah compliant interest charges

Stable, secure and intuitive leading trading platforms with no re quotes, nor any hidden charges

Fast execution under 40 milliseconds^

Free and unlimited access to Metatrader 4 trading platforms including WebTrader, and Android and iOS platforms

Compatible with a variety of trading strategies including Scalping, Swing Trading and Day trading.

Advantages of Islamic Accounts

Please note that Islamic account status will not apply on the pairs not listed above including certain exotic pairs and our Share CFDs and swaps will be charged/credited as a normal account. If you do not wish to receive any swap credit/charges on these symbols you should ensure that all open positions are closed before end of day 00:00 platform time. Tradefex reserves the right to update the administration charges from time to time, any amendments to the charges will be notified to clients via the Tradefex website. Islamic Accounts will not debit or credit swap charge or swap credits when holding positions overnight. Apart from these differences, Swap Free Accounts will have the same trading conditions and terms as a regular MetaTrader 4 or MetaTrader 5 Platform Account.

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