Is Islamic Forex Halal or Haram?
There is an continuous debate between different Muslim scientist about the permissibility of Forex trading. Like other Islamic debates, there are split opinions and some believe it is OK while others forbid it completely due to the interest found in certain Forex fees. In order for Forex trading to be Halal, below conditions must exist:
• The sale and purchase is carried out on the spot and without a delay
• The currency of the transaction must be transferred to the accounts of the two sides
• The complete sum of money for the transaction is paid with no installments
Why does Shariah law forbid interest?
Shariah law, which is Islamic law, forbids giving or taking interest of any kind. The reason behind this prohibition is the belief that Muslims should give for the sake of giving and not in order to get something in return. It is for this reason that Forex Islamic accounts, which are interest free, were created.
What is an Islamic Forex Account / Swap Free ?
An Islamic Forex account is a regular Forex trading without interest fees. According to Islamic Law, it is forbidden to take or give interest of any kind and Islamic Forex accounts were designed to meet that requirement. An general part of Forex trading is paying different kinds of interest fees such as Rollover fees to hold an position overnight. For example Islamic Forex accounts don’t have all these fees it’s usually called Swap-Free Forex accounts.
What broker for Forex
After look of lot, you need to be aware of false Forex account usually traps:
Widen spread (Broker put higher spread for theses account)
Commission, broker let the same spread but add a transaction for each trade
Different, low service
I’m actually testing several Forex broker, will do review, but so far found an interesting one:
AzuraMarkets offer through real forex account, it’s a regulated Forex Broker in New Zealand. Their spread are ok, client service very good, the only cons it’s that they don’t have arab site view, but according to them it will come soon.
To obtain a Forex Islamic with them you just have to fill a request, then open regular account and they will transform your forex trading without Swap.
Other broker review coming soon