What is an Islamic Forex Account?
The Muslim faith (Shariah law) forbids followers from earning interest on givings.
When literally applied, this law has an impact on to forex trading. Typically, any open positions that are not closed at the end of the day attract an interest.
To address this issue, many forex brokers have started offering Islamic forex trading accounts. These accounts do not accrue any interest on open positions that are held overnight. This type of trading is commonly referred to as No Riba Trading.
With such type of an account, Islamic traders can open as much positions as they want and hold them for an indefinite period of time without worrying that the positions would attract Rollover fee/interest.
I have taken the time to analyze various Islamic forex accounts so that you can see at a quick glance the forex broker that suits you best. I keep updating this page with new brokers who offer Islamic forex accounts. Make sure that you check it from time to time.
Regardless of the type of account you are opening, it is important that you do your due diligence before trusting your money with a forex broker. You should also analyze the type of services and trading conditions that the broker avails. sometimes, beginner forex traders prefer to open accounts with at least two brokers in order to gauge which platform will work best for them.
It is also important to note that many forex brokers will never allow you to run a normal account alongside an Islamic account.
Before you pick your Islamic forex broker from the list I have provided, make sure you have read a few reviews on the best forex brokers in Kenya and decide which one will best work for you. I personally recommend XM and Easy-Forex for the No Riba Trading accounts.
List of Brokers Offering Islamic Forex Accounts
|Broker Name||Min. Deposit||Spreads(EUR/USD)||Upgrade toIslamic Account||Max. Leverage|
|Easy Forex||$200||From 1.8 Pips||Yes||1:200|
|Iron FX||$500||From 1.7 Pips||Yes||1:500|
|Social Trading||$1000||2 Pips||Yes||1:400|