If you have just entered the world of foreign exchange trading or about to enter it soon and looking for information on Islamic forex accounts, this piece of information will help gain a clear and complete understanding about Islamic forex accounts.
Islamic forex accounts, which are also known as No Riba accounts and Shariah forex accounts, are accounts that are based on the religious beliefs of the Islamic community. It is important to note that under the Muslim laws, every one should give and not expect anything in return. Moreover, no one is allowed to pay or receive interest of any kind within the economic industry. In the world of forex trading, Islamic foreign exchange accounts or No Riba accounts or Shariah foreign exchange accounts are accounts in which clients do not pay any interest on open positions. Also known as Swap free forex account, Islamic forex accounts are created for meeting the needs of the Islamic forex trading community.
One needs to be a Muslim to open an Islamic foreign exchange account. It is important to note that all interest-based fees are waived in forex Islamic accounts and one example of an interest payment could be a rollover fee in the context of forex trading, which is a payment made when a foreign exchange trader leaves positions open overnight.
One of the biggest advantages associated with an Islamic forex trading account is that it offers a better return on investment, compared to treasury bonds or other instruments in the financial market. These accounts are further characterized by zero upfront commissions without any additional charge per trade.
If you are thinking about opening a forex Islamic account, it is very important for you to note that these accounts are often characterized by higher minimum investments or lower leverage. Moreover, these accounts are only for members of the Muslim community. These accounts prove extremely useful for Muslim traders who want to leave forex trade positions open overnight without worrying about the rollover fees.
In short, Islamic accounts (also known as swap free forex trading accounts) are meant for the Muslim forex trading community only and these accounts are characterized by no swaps or rollover charges on foreign exchange trade positions left open overnight.