Islamic Trading Accounts
Online trading platforms operate 24 hours a day, and allow people to choose from a large variety of instruments – foreign exchange, commodities, shares, bonds, ETFs, currency options and more. Some of the positions opened by traders are done for day trading – positions opened for a few hours. Other traders, however, employ trades with a longer scope, and wish to keep their positions opened for more than 24 hours.
How to open an Islamic account in 3 simple steps:
- Verify your account by sending all the relevant documentation.
- Fund your current trading account.
- After you’ve funded your account, you can apply for an Islamic account, which operates under the Sharia Law. The request will then be forwarded to the relevant department for review and approval. Requests are usually processed within 1-2 business days.
Open an Islamic Account with us today!
What is a Swap?
The event of leaving open positions on the foreign exchange market for more than 24 hours requires the payment of special fees, called SWAPs. These fees are a kind of interest rate and, therefore, they are problematic for Muslim traders who follow Shariah Law as it prohibits certain financial transactions including those which include the accumulation of interest.
Because a Swap can be seen as a type of interest, a fee for the service the broker is providing you, it creates a problem for Muslim traders following Sharia law, which forbids certain financial transactions, primarily those accumulating interest.
To solve this issue, brokers offer their Islamic finance investors an ‘Islamic account’. This account type is similar to a regular one, with one key difference; it is not subjected to any special fees or interest, which sits well with the finance principles of Sharia law.
The Sharia law dictates that the lender must share in the borrower’s risk. In non-Islamic accounts, the risk falls exclusively on the lender. In Islamic eyes, this is considered exploitative and wasteful.
AvaTrade is fully committed to providing its traders with a variety of trading solutions to fit their needs and wants.
Gold and Silver Trading
AvaTrade offers access to the Islamic halal trading of gold and silver. True Islamic gold and silver trading must have physical support in gold and silver. AvaTrade offers those wishing to trade on Gold and Silver a trading account that complies with Shariah rules.
Discover Islamic oil trading with AvaTrade today. The price of oil on the AvaTrade MT4 platform is tied to the price of oil futures traded on futures markets around the world.
Trade oil without accumulating positive or negative swaps with AvaTrade. Enter the volatile oil trading markets with AvaTrade.
Instantly access the world’s most liquid stock indices on your AvaTrade Islamic trading account. Stock market indices directly linked to global stock markets without accumulation of swaps. Pay only the bid-ask spreads on your AvaTrade Islamic trading account.
Islamic Forex Trading
AvaTrade has introduced its Islamic trading account, fully in line with Islam rules. Customers with an Islamic trading account will not be charged daily swaps. The swap fees are fully replaced in the MT4 platform by daily administration fees on all Forex trading products.
AvaTrade has been your trading partner for more than 10 years and wants all its customers to be able to exercise their trading passion and grow their capital, while respecting their belief and the rules of Islam.
Note! AvaTrade is not a legislative institution; therefore do not take this Islamic Account definition as permission to trade. Please verify all trading is in accordance with your beliefs.
*Cryptocurrency trading is not available on Islamic accounts, to trade cryptocurrencies clients must give up their ‘Islamic account’ privileges and be subject to special fees or interest.
*Certain FX instruments (ZAR, TRY, RUB, MXN pairs) are not available on Islamic accounts, to trade these pairs, clients must give up their ‘Islamic account’ privileges and be subject to fees or interest
*Islamic accounts are subjected to an increase spread on FX pairs
Open an Islamic Account with us today!