Islamic Account

Trading in Islam is often considered haraam, which is why RoyalFx offers an Islamic trading account to enable Muslims to trade Forex.

This article focuses on the different types of markets, according to Islamic traditions, solutions for halal Islamic trading and answers to the questions: “what is an Islamic Forex account?” and “is forex trading halal?”

Please be aware that this site is not a religious authority on Islamic trading. If you want to be sure that your trading activities are halal, you can consult with a religious leader who can take into account your personal situation.

What is an Islamic account?

 

The Islamic account is a halal trading account that is offered to clients who respect the Quran and wish to invest in the Islamic stock market in accordance with the principles of the Islamic faith.
Islamic trading accounts, also known as swap-free accounts, are somewhat different from regular Forex accounts.

➤ Since the Islamic Sharia prohibits the accumulation of interest, traders with Islamic accounts do not pay commissions and do not receive additional profit from interest rates. In addition, transactions on Islamic accounts must be executed immediately, so currencies must be immediately transferred from one account to another, and transaction costs must also be paid at the same time.

Although halal Forex investment is not a financial innovation, there are not many halal brokers that offer swap-free Islamic accounts like the Admirals broker.

This type of trading account is usually not advertised by brokers, as sometimes Islamic accounts are less profitable for them, and the number of clients who request them is quite limited. However, Admirals offers its Muslim clients the opportunity to open an Islamic trading account.

Open Islamic Account

 

Islamic Trading Account: Halal Trading Principles
Islamic financial transactions have four main principles:

• Prohibition on the use of any interest rates (Riba)
• Instant execution of trade orders
• Gambling ban
• Distribution of risks and profits
• These four principles do not always fit into the Western banking and trading tradition, and special trading accounts have been created to comply with the principles of Islam, which are commonly referred to as “Islamic accounts”.

These accounts are offered to clients who wish to trade Forex without having to separate their investment activities from their religious principles.
In general, these accounts are very similar to traditional trading accounts, but some elements have been specially adapted to comply with fundamental Islamic principles.