Islamic account for forex trading
The trading of currencies and metals in the forex market lasts 24 hours, and at 5 o’clock New York time, deals are fixed for more than 24 hours, and interest is generated in the company’s regular accounts every 24 hours (the company pays or takes interest).
How to open an Islamic account in 3 simple steps:
1.Verify your account by sending all relevant documents.
2.Fund your existing trading account.
3.After you have funded your account, you can apply for an Islamic account, which operates under Islamic law. The application will then be sent to the relevant department for review and approval. Orders are usually processed within 1-2 business days.
Open an Islamic trading account today with trustpointwealth and enjoy the privileges of an award-winning broker
The castling process is the biggest part of the legal problem. Some believe that the rollover commission is associated with usurious interest, because the currency interest rate is included in the calculation of this commission. Others do not see that it is a usurious interest, but rather a commission in return for the service of extending the life of the commercial contract. What is an Islamic account for forex trading? The Islamic account for forex trading is that account that is free of usurious interest in all its forms, regardless of the term of the contract concluded between the two parties. Here, what we mean by usurious interest is the interest that the trader pays to the bank in return for leaving the account open for the next day or for the period he wants.
A position in the forex trading market may require time to close. If the trader opens a deal more than 24 hours have passed and this deal is not closed before five o’clock New York time, then this deal is fixed and entered into the rollover process automatically. Consequently, extension fees are formed on them, which are in fact usurious interest imposed on the deal that has been opened for a day or more. This is known as the rollover rate or commission.
Here the problem lies in the non-compliance of trading operations with Islamic law. Because these trades are tied to usurious benefits that are forbidden by Islamic law. This interest is included in the calculation of this commission, as Sharia forbids a Muslim to take or pay any interest in return for the trades that he performs. So how can a Muslim trader get rid of this problem? What is the working mechanism of the Islamic account in Forex? How the Islamic account works for forex trading Rollover benefits, as mentioned earlier, are a problem in forex trading, so how can we overcome this problem?
The first thing that comes to your mind to solve this problem is to close the deal before the end of the day, and thus no usurious interest is calculated and the deal does not enter into the rollover process. However, this mechanism may cost you a lot. Each new deal will cost you time and a new commission (spread). The ideal solution for the trader is through creating an Islamic account to be able to trade without any restrictions or concerns
This account is free of any usurious interest. Where the broker closes deals at exactly five o’clock New York time and immediately after that opens the contract. Thus, interest is avoided, and the broker in this case bears the cost of the spread for the new contract instead of its clients. Some brokers may take care of what is called the rollover commission, no matter how long the deal is, but within certain conditions that are agreed upon in advance. And this is the responsibility and account of the company and prepared by it, and the bank has nothing to do with it, as it never benefits from it.
The difference between rollover and spread benefits
A forex broker is defined as the broker who provides you with trading services, whether by providing trading programs such as Metatrader, forex news, technical and technical analysis of the market, customer services, and other services. Of course, this broker works in return for a commission paid by the client in exchange for the services he receives.
This commission is defined as the spread, which is the difference between the selling price and the purchase price. The bank has absolutely nothing to do with it, unlike the rollover price that is the bank’s share. Another term is the term “trading commission”. It is a fixed commission that is paid once on services provided by the company for the benefit of Islamic account holders. Such as the service of linking the client’s account to Islamic programs or to provide Islamic account programs for forex trading.
Finally, trustpointwealth provides the Islamic account service for forex trading for those who want to trade in accordance with Islamic law If you are one of the traders who usually keep their accounts open until the next day and often have to pay high rollover fees, then an Islamic Forex trading account may be the ideal solution for you. When you decide to trade with an Islamic account, the next step is to choose the best forex brokers that offer Islamic accounts. The best way to do this is by reading the forex broker reviews available on some of the leading websites. And then you filter out brokers who do not have options for Islamic accounts for forex trading.
* Trading digital currencies such as Bitcoin, Bitcoin Cash, Ethereum, etc. is not available on Islamic accounts. In order to trade digital currencies, customers must give up the privileges of an “Islamic account” and be subject to special fees or benefits. * Some foreign currency pairs (ZAR, TRY, RUB, MXN) are not available in Islamic accounts, in order to be able to trade on these pairs, clients must abandon the Islamic account which will subject them to overnight fees or interest Islamic accounts are subject to spread leading for foreign currency pairs
