If you are in the need of learning Islamic way of trading I bet your success is in near future. It does not mean that the Muslims are the perfect traders but they have the best mindset to trade. But how come ONLY they have the best mindset to trade? Islam has the rituals or obligations which should be performed on daily basis, which is indeed a reason for the best mindset for trading. The daily obligations they perform do help them to have their mind in a clearer and attentive state (not all the Muslims do this even though they must). Yes, back to the point in the trading market it’s hard to keep your focus or mind at one place if you cannot do that you will not be able to make the right decision. The forex market will change time to time and it can be a good change or a bad change but the trader should be able to take up any change. In such situation, a Muslim trader will not give just because he or she witnessed a bad change. Islam teaches them to rise beyond the inabilities. If you are sensing a bad change, make use of it, learn from it. So that is why it’s said the Islamic traders are one step forward than the others. (Not everyone)
How do the Islamic forex trading work
Normally, in Islamic law (sharia law) the businesses let it be any kinds of businesses it should be done or carried out in a proper manner. The proper manner of doing it is without affecting the either parties. The Islamic philosophy is to do trading in a way that it benefits the community, and there are many successful Muslim traders in the world. The Islamic law prohibits interest so there are forex Islamic accounts which are specifically created for Muslims. In this kind of accounts, the interest charges will not be included. Another factor related Muslim traders are that they should not get addicted to anything so there are some non-Muslim traders (there can be ‘Muslims’ too) who are addicted to trading. The aftermath of being addicted is that the trader would have made continuous profits and when all of a sudden he or she faces losses it will lead him or her for psychological defects. So to avoid such cases Islam has advised Muslims to avoid being addicted.
What is included in Islamic forex trading
There are many issues regarding mt4 but the forex market has solved the problems. There are Islamic forex accounts which do not violate the laws of Islam. The forex Islamic accounts are called ‘swap account’ which is specially made for Muslims. The swap accounts are increasing in demand and the way it works is that you can trade currencies and pay no interest which is the ideal need of Muslims. It is good if you could search information and learn about swap accounts so you will understand the importance of it. not only the importance but also there can be accounts which violate the principle of Islam so to be on the safe side you can have your own research.
How can you interconnect the sharia law and forex trading
If you have no idea how the sharia law and forex trading works then you should understand it now. I will help you by explaining it in clear-cut form. The Islamic laws are executed for the satisfaction of the people in the life of this world and hereafter (Muslim’s belief). Yes, the sharia laws describe laws related to finance that is where the interest is being prohibited. Actually, in Islamic point of view, the interest will create more burdens to one party so it will not satisfy both the parties in the business or trading. To overcome such issues the forex trading introduced the swap accounts which does not include the ‘interest’. Sometimes there can be negative views from the non-Muslims but still, this type of account is created for Muslims to trade without an involvement of interest. Especially, these types of accounts are regulated with the framework of sharia law. This is the way that sharia law and forex trading works in the trading market.
Terms for the Islamic forex account holders
Every account will carry terms and conditions likewise the Islamic forex accounts also have certain terms to be followed. The account holder must be a Muslim in order to open up an Islamic forex account this is the major requirement for the Islamic forex account. The Islamic traders are one step ahead because of their disciplinary lifestyle; they have the knowledge and ability to work accordingly it doesn’t mean that the non- Muslims are any less.
What are the benefits of Islamic forex accounts
There are many benefits associated with Islamic forex accounts; you should definitely know the benefits of such account if you are planning to open one of it. First of all, the Islamic forex accounts are very different from the normal forex accounts. There are no additional charges such as interest in the Islamic forex accounts which can be one of the advantages. There will not be any up-front costs, hidden costs, or any other costs associated. You will be able to trade on any platforms. So imagine the benefits of opening an Islamic forex accounts.
Summary- as mentioned in the top of the article the Islamic traders are one step ahead not because of anything else but because of the Islamic teachings. It does not mean that non-Muslims are not good traders they definitely are. The forex trading has ways to solve issues so they had created the swap free account which is uniquely accessible to the Muslims. So the Muslim community will be able to trade the forex market by abiding by rules and regulations of Islam. Basically, the mt4 articles are targeted for Muslim traders to make them aware of the forex trading.