Forex trading is available through a wide range of Forex brokers. However, one kind of Forex account stands out. Islamic Forex brokers offer a trading account which is unique, continue reading?
Islamic Forex brokers may give their customers the choice to open an Islamic Forex account. These accounts are not exclusive to Muslims. Forex brokers, and even Islamic Forex Brokers will not inquire about your faith when you are trading Forex.
A Forex Islamic account, or No Riba Account as it is commonly known is simply an account that does not charge interest. This is how it works. Rollover fees are charged by standard brokers to Forex traders who decide to hold their positions overnight. These rollovers represent the interest they pay to the banks to have the position held overnight.
This is a big problem for Muslims. Islamic Shariah says that Muslims can’t accept any form of payment in exchange for the “giving” they do. A Muslim who invests in Forex is prohibited from receiving or paying any form of interest. In fact, the Jewish tradition also has a similar rule.
Forex Islamic accounts was created in order to satisfy the demands of Muslims and provide them with the opportunity to trade Forex. It is possible to open this account but not everyone will be able to. Islamic Forex accounts do not have interest charges, however, the Islamic brokers may charge higher spreads, or offer other disadvantages.
A Forex Islamic Account might be for you if you regularly leave your trades open and you pay high rolling fees. You will then need to select the Islamic Forex Broker that is best for you. To do so, you can read Forex reviews from the top sites on the Web and eliminate brokers that don’t offer the Forex Islamic account option.