The Islamic trading is being introduced targeting the Muslim traders. The trading market is open for 24 hours and the market involves interest for every trade they do. Each and every client’s accounts will include interest so it’s obvious that Muslims cannot involve in it. The Forex market makes sure that the Muslims desire to trade is also being met, so they have introduced the interest-free accounts to the Muslim community. In Islamic accounts the Riba is not involved throughout the contract. In the foreign exchange market, the rollover fees are being involved so the Muslims have the problem in trading because roll over fees completely involves the interest.
The definition for Islamic account
The Islamic accounts, in Forex market do not include the swap or roll over fees, will not be included in the overnight trading. The Islamic account holders are entitled to trade during a time period which will not involve interest and they must do buying and selling immediately, therefore, usurious interest will not be involved. Also, the clients without the total price, they can trade by using leverage so it allows them to trade without involving the interest. Whatsoever, to make things clear for you as Muslim traders you should adhere to the following such as instant buying and selling, the currency traded should be registered in trading accounts of both the party (buyer and seller), there should not be any time delay, and also, no interest should be included.
The advantages of Islamic Forex accounts
The Swap free accounts have opened the way to the Islamic Forex traders, there are many benefits associated with the Swap free accounts. The Islamic accounts are advantageous to the brokers as well. The advantages include there is no interest involved in trades which exceeds settlement for 24 hours, there is no rollover interest involved, there are no additional fees or charges charged, and there is no management fees or commission in order to manage the Islamic accounts. If you are trading the Forex market and if you are a Muslim you do not have o worry about being neglected since the market offers the Islamic Forex accounts for you. Not only that the Islamic Forex accounts offer many advantages for you.
How to open an Islamic account
If you are a Muslim and if you do need to open an Islamic Forex account you can do it easily since you have the swap-free option. You can also pick a broker to open an Islamic account.
Summary: Obviously, Foreign exchange market is the hardest for Islamic jurisprudence. In accordance with Islamic rule, the transaction should be hand to hand transaction. If the transactions meet the Islamic rulings then it is okay for the Muslims to carry out the trading. There are many advantages in opening an Islamic Forex account so you would have understood that Forex market not only provides an ability to trade but also many advantages along with that. The Foreign exchange is the crucial market and if you are intelligent enough then you can become the successful trader.