Choosing a Forex broker is something every new trader has to do at one point or another. This can be tricky if you do not know where to look or how to filter our the Forex scams out there. If you are looking to open an Islamic Forex account, finding an Islamic Forex broker is no easier.
What do I mean when I say Islamic Forex broker? To understand the meaning of an Islamic Forex account, you need to know some basic laws of Islam, also known as Sharia law. Among many other laws, one of the most fundamental laws when it comes to doing business with Muslims is the prohibition for a Muslim to take interest of any kind.
The Islamic religion believes that anything given or taken should be free of interest, which would indicate that the reasons behind the transaction were not pure. What this means when it comes to an Islamic Forex account is that rollover fees, for example, are strictly prohibited.
What are rollover fees? Forex trades, in theory, are supposed to be closed at the end of every trading day. If a trader leaves his positions open overnight, they need to pay rollover fees, which are interest payments that are generated when a position is left open overnight. Based on Sharia law, this type of payment is forbidden, and therefore Islamic Forex accounts are free of rollover fees.
To find an Islamic Forex broker, simply see their website or description of their service and see if they offer support for Islamic Forex account. Look into the broker at hand and verify that they have a presence in the social media, which would also indicate that they have the Islamic account in mind.
Finding an Islamic Forex broker is really no different than looking for a regular Forex broker. Some things you should look out for include good customer support, a competitive Forex trading platform and spreads, top trading features, and most importantly, positive reviews from past users. Once you have identified all those factors in a Forex broker, see if the broker supports Islamic Forex accounts, and you got yourself a winner.