The Forex broker industry is overflowing with options. There are many different brokers all trying their hardest to capture the trader’s attention. Then there are some brokers who truly stand out from the crowd and eToro is one of them, especially when it comes to the eToro Islamic account offering.
- + No rollover fees
- + No interest payments of any kind
- + Automatic closing of trades, then reopening
- + $1000 minimum deposit
eToro is best known for its trading platform, which used to offer traders who are just getting started a run and easy game like Forex trading experience. eToro still offers that same environment but they have long evolved into so much more. They now offer an additional trading platform for experts and a very competitive Forex Islamic account.
A little bit about Islamic accounts. Contrary to what the name suggests, you are not required to prove your belief in Islam in order to qualify for an Islamic account. The premise for this type of account might be based on Islamic principles but Islamic accounts are available for anyone who wants to use them.
The basic idea is that based on Shariah law, Muslims are forbidden to take of give interest payments of any kind. This of course becomes an issue when trading Forex. Forex trading has many instances of interest in regular every day trading but the most obvious one, is when a trader leaves a trade open over night and is then required to pay what is known as rollover fees.
The eToro Islamic accounts have no rollover fees whatsoever and trades are closed at 5PM and reopened the next morning with no extra cost to the trader. The eToro Islamic account has no interest payments of any kind including payments based on different trading leverages.
Even trades that are open over 24 hours are not charged interest fees when using an eToro Islamic account.
Opening an Islamic account with eToro is a straight forward and simple process. You open the account and download the platform, deposit a minimum of $1000, then sign the relevant forms in order to convert the account into an Islamic account. Once this is done, eToro has a representative contact you in a timely manner.
In conclusion, if you are a trader who is looking for an interest-fre trading account, opening an Islamic account with eToro might very well be a great option for you.