Islamic forex trading accounts are quite different from other types of accounts. These are swap free and interest free FX and cryptocurrency markets trading accounts which satisfy the Islamic Shariah law. According to this law, those who belong to the Islamic religion are not allowed to earn interests from the money that they give. Hence, this law was literally applied in the world of forex and binary trading and so Islamic trading account was born, something which is pretty unique in itself. Today, there are many brokers such as 4XFX [4XFX.com] that have introduced this form of account in their portal to encourage Islamic traders explore the magic of trading without going against their law or religion.
Important Terms and Conditions of Islamic Trading Account
Opening an Islamic trading account is not that easy, there are many terms and norms that you have to satisfy in order to stand eligible to be the owner of an Islamic forex trading account. Some of these terms and conditions are
The trader enrolling for the Islamic forex trading account must belong to Islamic religion, and if he/she stands to violate this law then their account gets terminated from any forex broker.
The supportive features that are given to Islamic accounts is same as other forms of accounts and this is independent upon the base currencies or leverages the trader wants to use.
If the broker gets suspicious about the forex account then they can delete your account anytime that they want under strict rules and regulations.
The 4XFX Islamic forex trading accounts should never be used for carry trade/arbitration or any form of strategy which gives the traders benefit out of the exchange of currencies being made.
Frequently Asked Questions about Islamic Forex Trading Account
Since, Islamic forex trading account is something that might sound quite confusing for traders there are many questions that might arise in their mind. Some of these questions are- What exactly are Islamic trading accounts? An Islamic forex account is nothing but a simple account minus the interest fees; this was specifically designed to follow the Islamic religion law. So, why does the law forbid interest? This is yet another common question which many people have in their mind. Shariah law states that Islamic people should never give or get interest, was created because Muslims have a common belief that nothing should be given with an idea of having something in return.
Another question is that – What sorts of fees are waived with 4XFX Islamic forex trading account? All the fees are which are based on interest are waived off for Islamic forex trading account. For instance, traders who use other form of account have to pay rollover fees when they want to leave their trading overnight, but those who use rollover from Islamic forex trading account do not have to pay anything for it.
The fourth important question is that are there any drawbacks of a 4XFX Islamic Trading Account? There are some major disadvantages associated with these forms of account. Here, the trader has to pay lower leverage or higher minimum investment, other than that Islamic forex trading accounts are only for those people who belong to the Islamic religion. So are there any advantages of Islamic forex trading account? Yes, there is one big advantage of these accounts which can be cherished by Islamic people and i.e. they can often leave their trading positions overnight without having to pay for it. This is the reason why Islamic accounts are considered to be the best option for those Islamic traders who tend to leave their positions again and again overnight. In addition to that, there are few brokers who offer “Hiba” a gift or free loan only to Islamic forex trading account.
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