What is Islamic Forex Trading?Posted by Zandra Faye on February 17th, 2020 While trading in Islam is usually regarded to be haram, it is still viable to trade. The key is to find an Islamic Forex account that gives swap-free trading for traders of the Muslim faith. If you want to make sure that your trading activities are halal, you can ask a religious authority that can take account of your situation. What is an Islamic Forex account? An Islamic Forex account is a halal trading account that is granted to customers who value the Quran and want to invest in the Islamic stock market following the laws of Islamic finance. Islamic trading accounts also recognized as swap-free accounts. It varies in various ways from regular Forex accounts. Traders with Islamic accounts do not give or receive interest rates as Sharia law forbids the collection of interest. Also, transactions in accounts based on Islamic finance must be taken out without obstruction. So, currencies must be carried from one account to another instantly, and transaction charges must also be adjusted at the same time. Only a few swap-free brokers offer Islamic accounts since this type of trading account is less beneficial and the number of users that ask for them is quite short. The laws of Halal Forex Trading Islamic finance has four basic laws:
These four principles do not always go into the Western banking and trading culture. Islamic Accounts have been created to value the laws of Islamic finance. These accounts are granted to clients who want to do halal Forex trading without having to diversify their investment activity from their religious teachings. Overall, these accounts are quite resemblant to traditional trading accounts, just some particular elements have been conformed to match the fundamental principles of Islamic finance. Read What is Islamic Forex account? To know more about Islamic Trading. Like it? Share it! More by this author |