Fundamentals of Islamic Trading Accounts Explained

Islamic Trading Accounts 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. Markets.com has introduced its Islamic trading account, fully in line with Islamic rules. Customers with an Islamic trading account will not be charged daily swaps.

Islamic Trading Accounts explanation

Online trading platforms provide 24-hour access to CFD markets and a wide range of instruments, including forex, commodities, shares, bonds, ETFs, and currency options. While some traders focus on day trading—closing positions within a few hours—others hold positions for longer periods, often exceeding 24 hours. However, when positions are kept open overnight, an overnight fee is typically charged, which conflicts with the Riba principles of Sharia law.

For example, the event of leaving open positions on the foreign exchange market for more than 24 hours requires the payment of special fees. These fees are a kind of interest rate and, therefore, they are problematic for Muslim traders who follow Sharia Law, which prohibits certain financial transactions including those which include the accumulation of interest. As 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.

Sharia law mandates that lenders must share in the risk taken by borrowers. In conventional, non-Islamic accounts, the risk is borne solely by the borrower, which is viewed as exploitative and unjust under Islamic principles.

Markets.com offers an Islamic trading account

Markets.com is dedicated to offering a range of trading solutions tailored to meet the diverse needs and personal requirements of its traders, including options that align with Islamic finance principles. To accommodate our Islamic clients, we offer an Islamic trading account. These accounts allow positions to remain open without incurring the overnight fee.

Markets.com has introduced the Islamic trading account, designed in full compliance with Islamic law. Clients with an Islamic account are exempt from daily swap charges, with these fees replaced by daily administration fees across all products. Experience a transparent Forex trading environment, offering a wide selection of currency pairs, as well as indices, bonds, ETFs, stocks, and commodities. We provide our clients with a secure, reliable product that respects their principles and adheres to the rules of Islam.

When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.