i have some friends that they have islamic beliefs and they are currently trading with some of the brokers that michael77 mentioned above. however, they all noticed that in order to have an islamic account they have some sort of restrictions in their accounts. For example, some brokers automatically close the positions before the end of the day and they re-open for the following day. this means that the clients pay the spread instead of the swaps. some other brokers, they have a limit on the time they allow the positions to remain open. i also noticed that the spreads in some of these brokers are higher due to the swap free option. In essence, they didnât find a broker that offers the swap free option and at the same time it allows clients to trade with the same conditions as the rest of their clients
Thereâs always one. Companies are really very good in hiding this. They may it appear that everything is for the customers but they are not. At the end of the day, itâs business.
I am going to open a live Islamic account with them in the next week and what I think there is no catch trading with this broker. They have won best Islamic broker award too. I will update my live account status once I have my account set up.
Look at youâŚgoing live!! Nice. I remember reading this quote a few days ago that says: [I]The secret of getting ahead is getting started[/I] ~ Mark Twain⌠I think this will fit you as you go and test the real water
Good post guysâŚ
Now, iâm trading in Lite Forex broker. Iâve traded there since 2009 and i like this broker because they never against us to make money thereâŚ
Yes I did! and I reply back to you a long time ago. I thought you get it because one of my suggestion is for you to test it in live account. hmmâŚthats weird.
Make sure you read first the terms and conditions. They may claim that they offer an Islamic account but that doesnât restrict them to start charging swaps at any time. As for the award, It doesnât say anything. How can you say that someone is the best Islamic Broker? Did they open an account with all Brokers and they compare the conditions and then they decided that liquid has the best Islamic conditions? I donât think so.
Looks like I made a blunder. I sent you a very long reply but I think I just wrote it and forgot to send and maybe I closed the browser window maybe! I was waiting for the reply back but then I thought you were maybe busy lol and in fact I forgot to send you in the first place. I checked my sent pm but its not there so I made a mess! Anyways I am writing another one lol.
Thanks for this thread,for long I have been waiting to donate some paragraphs in appreciation of the FX, it is really a decentralised market.Truly having Islamic accounts in the FX is a nice thing indicating the spiritual tolerance of the market. In allowing turbans into the market, it shows it is truly not a western affair. Some (not all)Islamic brokers could be so nice that I wonder if they are expecting some virgins in paradise for their financial decency. Despite being a global market and a religious concoction, some Islamic traders still feel regulated by Prophet Mohammed and are really honest. However some very recommended Islamic brokers include AvaFX, AvaTrade, LiteForex. They are appreciably reliable. Insha Allah.
Good thread.
Iâm not exactly muslim myself but Iâve taken note some of Islamâs viewpoints including finance.
Seeing as all the religions have something to say about riba I think it shows that it should at least be considered.
Since starting trading Iâve wanted to take much longer positions and this incurs significant costs through a brokerage account with the rollover fees. Hence the interest in Islamic options.
The difficulty is the very opaque nature of each broker conditions of each Islamic account. There is [I]nowhere [/I]that shows how each broker recovers the cost of no interest so we can make an informed decision.
Islam was founded around trading in mecca so itâs not unusual to see the discussion against around the subject.
I think what can help is viewing things with as business risk. Think of it this way - if you take out a standard mortgage there is always that risk that something happens to you, you canât keep up with the interest and you then lose everything. Variable rate should be assessed from that viewpoint. Simply avoiding interest is a simple way to avoid the problem.
What we also have here is a reminder of the margin call and leverage rates. If youâre using leverage then surely youâre still taking that risk which has been advised as a bad idea by religions?
Perhaps itâs all academic since forex is [I]currently [/I]about papermoney which in itself is considered bad news. Limit yourself to CFDs?
The majority of the strongest banks in the world right now are all in muslim countries. Clearly it pays to take note.
Thanks a lot guys for your suggestions. The broker âLqdmarkets.comâ which I talked about in previous posts suddenly stopped giving Islamic accounts. I was just about to open my live account with them in a couple of days but I got a phone call from them that they need me to invest at least 100,000 USD if I need the no swap facility. Which I found a lame excuse. They should have tell me straight that they are no more offering Islamic accounts.
Anyways, I finally got a NDD STP regulated broker (fxnet.com) who offered me an Islamic account (No swaps). I had to fill a form with attached proof of my religion. Their only condition is that there must be activity on my account. In other words they will revoke the âno swapâ facility if I abuse the account by just opening a couple of trades and letting them open forever without opening new trades. Which is fair as I understand. I opened my account on 17 December and so far no swaps charged and a couple of my positions remained open for like 15 days but at the same time I was trading other positions and open and closing positions on daily basis.
So thanks once again fellas for your input. This is my first live account. I hope I ll get success in Forex!