5 Best Forex Brokers For Islamic Sharia Trading – Forex in recent years has been very hotly discussed in various parts of the world and especially in Indonesia. Trading in foreign currencies is easy to learn and for many people very much profitable. Anyone really interested in learn forex trading correctly, to get profit is very easy and fast. However, if you don’t really study and think that forex trading is a fortune then it is very easy for you to lose and lose a lot of your money in an instant.
Forex trading was initially a debate in various circles, especially Muslim traders. There are most who think this is haram and there are a large number of them who think it is halal. Because forex can be studied and the factors that make the price go up and down there are many reasons, this is considered halal, because it is not a game like guessing lottery numbers. There are many possible indicators that cause market price changes.
However, even though forex trading is halal in terms of how the market works, it is still considered haram if the transaction method is incorrect and according to the Sharia. Therefore, there are several forex broker companies that have followed sharia trading recommendations and in Indonesia there are also many forex broker who have followed MUI’s directions so that this forex trading transaction can run properly and in accordance with sharia so that it is lawful to trade.
Best Forex Broker For Islamic Sharia Trading
If you are a Muslim who wants to follow Islamic sharia trading so that your forex trading transactions do not violate the rules of the Islamic religion, there are some of the best forex brokers that allow you to open an Islamic or sharia trading account like the following.
The brand name InstaForex was created in 2007 and is currently the main choice of more than 7,000,000 traders worldwide. This forex broker handles 300+ trading instruments, including currency pairs, stocks, metals, commodities and cryptocurrencies. Cent and standard accounts are in three currencies (USD, EUR and RUB) and there is no minimum deposit.
With Instaforex more than 10 ways to deposit and withdraw money using: Visa or MasterCard credit cards, bank transfers, electronic payment systems, bitcoin wallets and other cryptocurrencies. Forex trading at InstaForex using modern trading platforms for PCs and smartphones: forex trading application and WebTrader.
This Russian-based forex company has long been known in Indonesia and many traders from Indonesia trade with Instaforex. Apart from that, an interesting thing is that Instaforex also offers Muslim users to open swap-free Islamic accounts. Which of course will attract Muslim traders to trade forex at InstaForex.
2. XM Forex
XM Forex with more than 3,500,000 clients since its inception in 2009, XM has grown into a large and well-established international investment company and has become a true industry leader. XM is currently built by more than 450 professionals with long experience in the financial industry.
The Islamic Islamic Sharia XM forex account is very different from those generally offered by other forex brokers. The difference lies in the fact that unlike most forex companies which reimburse additional fees by expanding spreads on Islamic accounts, XM does not charge any additional fees.
To comply with Islamic religious law, traders of Islamic faith are prohibited from paying interest. However, if interest expense is transferred to a different type of expense, it is still basically an expense that includes interest. This is also known as swap-free in disguise. XM strongly opposes these practices as they are against the conditions of fair and ethical trading.
3. FBS Forex
FBS is an international forex broker with more than 190 countries that trades with FBS Forex. Currently, 15,000,000 traders and 410,000 partners have chosen FBS as their preferred Forex brokerage company. FBS was founded in 2009 and has since received many international awards: Best IB FX Program, Best Indonesian FX Broker and many more.
In order to provide the best customer experience, FBS organizes special seminars and events, providing clients with training materials, the latest trading technology and the latest strategies on the Forex market. Both beginners and professional traders will find this session useful.
FBS values client diversity and understands that different customer categories have different demands. Especially for Muslim traders, the FBS forex broker provides swap-free accounts also known as Islamic or Sharia forex accounts, which do not conflict with the teachings of Islamic law.
BDSwiss is one of Europe’s leading financial institutions specializing in Forex / CFD trading. BDSwiss idea was born in Kilchberg close to Zurich, Switzerland in 2011 where one of the founders lives. The business was founded in 2012 and since then has provided online trading services to nearly one million clients worldwide. We pride ourselves in providing the best trading conditions, the best platforms and unmatched support. Today BDSwiss is part of a worldwide operating group with its parent in Zug, Switzerland.
BDSwiss like other forex brokers, also offers swap-free accounts. Please note that free swap is only valid for 10 calendar days. Therefore, exchanging free accounts that hold open positions for more than 10 calendar days, will be credited or debited accordingly.
Islamic accounts allow swap-free trading according to Sharia Law, which means traders can trade on Islamic accounts without being charged overnight fees. The Company’s Islamic Account is only available to Islamic religious traders and is solely requested based on religious beliefs.
5. Exness Forex
In recent years the Exness Group has grown at an impressive rate, and is recognized today as an industry leader. As of December 2019, the monthly trading volume of brand clients reached 325.8 billion USD and active traders worldwide surpassed 72,721. Currently the Exness Group offers a wide range of financial instruments, including currency pairs, metals, cryptocurrencies, energies, indices and stocks.
Exness has also created special swap-free accounts for residents of Islamic countries. On swap-free accounts there are no daily credits / withdrawals / losses associated with swap operations. Thus, the client receives no additional income and does not suffer additional losses. On swap-free accounts, no swap is credited to or withdrawn from the client’s account.
The Exness forex system can identify which clients are residents of countries where Islam is the dominant religion, and mark their accounts as swap free.
What is an Islamic Trading account?
An Islamic trading account is also known as a “Free Swap” account, an Islamic account has a number of differences from a regular Forex Trading account. With Sharia Law which prohibits accrual of interest on funds deposited in an account, traders with Islamic or Sharia accounts are not subject to or receive rollover swap points on positions opened for more than 24 hours, and they do not earn interest on funds deposited. Also, Islamic or Sharia Account Trading must be carried out without delay, so currencies must be immediately transferred from one account to another, with transaction fees being also paid at the same time.
Who is the Islamic Trading account for?
Regular forex trading accounts charge interest on certain trades, which can be a problem for some traders because making money from money, or usury, is not permitted under Islamic law. Moreover, 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 might happen, and therefore can be considered akin to gambling.
What types of trading are not allowed on Islamic accounts?
These common forex trends are generally not permitted in Islamic or Sharia trading accounts:
- Usury – interest charged from buyers in different circumstances.
- Pledge or Pledge– a signed commitment to repay the loan within a limited time, with the agent being allowed to sell the contract and recover the loan if the customer cannot achieve a certain percentage of the margin.
- Loan or Loans – money given by an agent (bank) to a customer over several periods of settled interest.
- Short selling – borrow and sell assets that traders do not have for profit.
- Trading on margin – borrow money from a broker to buy shares.
- Sales forward or Forward Sales – an agreement to buy or sell an asset in the future at the price agreed upon today.
How can I open an Islamic account?
Opening an Islamic forex account is now easier than ever. With the Islamic banking sector growing by an average of 19.7% per year, there is now an increasing number of brokers offering Islamic forex account services. The account is designed to support all Islamic decisions regarding business and investment.
You can directly contact some of the forex brokers that I have mentioned above, and contact the support or sales department to help open an Islamic forex account for you.
Trading or trading at a forex broker that provides Islamic Islamic accounts may have some disadvantages but almost all of them eliminate rollover swaps on overnight positions, at least for a limited time. Holding foreign exchange trades overnight can be a risky way to trade unless you place a protective stop-loss order or have a large reserve balance.
Also, a day trading strategy that closes positions at 5pm. EST does not require rollover, so using it on a regular account should not involve Riba, but if you are a long-term, large-balance trend trader who intends to run overnight positions regularly then use a broker with unlimited time to hold positions. And that’s a list of the best forex brokers for Islamic or Islamic accounts that you can choose for forex trading. Hopefully this article is useful and have a good trading luck. 🙂