Ahlan wa sahlan and As-salamu alaykum, Fair Forex offers Islamic accounts (also known as swap-free accounts) for clients who cannot earn or pay interest due to their religious beliefs.
The swap free option is available on our Raw Spread Account, Standard Account and Pro Account.
Our swap-free accounts, incur no swaps or interest charges on overnight positions. Instead you are charged an administration fee on the positions which is deducted from the account balance AND are 100% Halal and Sharia Compliant.
|Islamic Raw Spread Account||Islamic Standard Account||Islamic Pro Account|
|Start Now||Start Now||Start Now|
|Trading Model||True ECN||True ECN||True ECN|
|100% Shariah Compliant||Yes||Yes||Yes|
|Spread||from 0.0 pips||from 0.8 pips||from 0.0 pips|
|Commission (round turn) PER 1.0 LOT||$6||$0||$5|
|Min lot size||0.01||0.01||0.1|
|Max lot size||500||500||1000|
|Forex||47 Pairs||47 Pairs||47 Pairs|
Gambling is prohibited in the Islamic religion, which is why many people hesitate before diving into foreign exchange trading. At Fair Forex, our Islamic forex brokers understand this concern. We would like to point out that forex trading is a financial investment based on data and market analysis. It is not a gambling game.
Foreign exchange trading is essentially a process of buying and selling currencies, where profitability rests on the initial asset’s price. It isn’t gambling because the broker or trader uses financial trends and analysis to predict the outcome. You can rest assured that it isn’t haram.
A majority of trading activities are still considered as haram in the Muslim faith. Our Islam foreign exchange brokers use Islamic finance principles for halal forex trading. These principles include:
Sharia law prohibits interest payments (riba), which the religion considers as an exploitative practice that increases a lender’s profitability at the expense of the borrower — in this case, it’s the liquidity provider and the trader.
Sharia law also prohibits maisir, which refers to any form of gambling or speculation. It implies that Islamic financial institutions cannot transact based on a game of chance. Our brokers don’t play this game. They stick to data.
People of the Muslim faith might hesitate to participate in forex trading because Islamic finance principles discourage transactions that involve risk (gharar) or uncertainty. However, foreign exchange forecasts take away that risk.
These principles essentially follow Sharia law. However, we are in not in any way a religious authority. Please feel free to consult with your religious elders if you want further assurance that our foreign exchange trading services and your individual situation are halal.
Islamic finance principles don’t always align with Western banking practices and the financial trading system. And as the world’s fairest broker, we’ve taken it upon ourselves to establish Islamic forex trading services to bridge the gap between your trading investment activity and religious principles.
Our Islamic forex brokers generally operate like traditional brokers on our team. We simply modify some elements to align with the fundamental finance principles of the Muslim faith.
Islamic forex accounts are halal trading accounts that prohibit the accumulation, collection and payment of interest rates. They are also called swap-free accounts. Unlike traditional trading accounts, they don’t generate any swap interest or commission rates from the currency swap.
In addition to the lack of interest, all transactions on Islamic forex accounts are paid for and transferred immediately. These accounts are admittedly less profitable for brokers, but rest assured that we have your best interests in mind regardless.
Electric Communications Network (ECN) changed the way foreign exchange brokers operate. ECN is the purest form of brokerage because it provides an interactive network where traders can find the best available prices at any given time. It opens the doors to a wide selection of bids and offers from banking institutions, hedge funds and high-frequency traders.
This is an attractive prospect for many, but the Islamic community might think twice about the trade. Muslim investors might ask, “Is ECN forex trading halal or haram?”
Simply put, forex trading is a Sharia law-compatible opportunity to buy and sell different currencies. You’re investing in an asset and you gain profit if its value increases. Alternatively, you incur a loss if the asset’s value decreases. Brokers can determine this based on forex forecasts and data analysis. That being said, forex trading is generally halal.
Islamic trade accounts and traditional accounts are similar in many ways. For an account to be halal, however, it should follow Islamic finance principles. There also shouldn’t be any swap commissions on the broker’s part. Our team at Fair Forex understands this, so we modify our brokerage services to match your needs. You can now tap into ECN and start maximising your financial investments.
Keep in mind that halal forex trading is a collaborative effort between you and your broker. Trust us to look after your account and practice halal methods of investment. Get started today.
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*This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.
**Risk Warning: Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a degree of risk to your capital. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary seek independent advice