The recent trend has offered great support to forex trading. If you are willing to make a profit, then you should join the forex market as soon as possible. Certainly, the profit-making strategies with the involvement of interest rates restrict some of the communities (religions) to join forex. In this case, one can open forex Islamic account and start with interest-free trading. This trading account is also termed as ‘swap free trading account’.
Among several forex brokers, you can find Islamic brokers who support to open forex Islamic accounts. This stands out to be a great concept of profit making by Islamic people. Although Islamic account does not mean that it is only for Muslims, anyone who is willing to prohibit interest rates can choose. In addition, no one will ask you about your religion. It is the sole choice of individuals to choose the type of trading accounts.
Forex Islamic account:
Simply, these accounts are mostly preferred by those who are not interested in taking an interest. This is the reason it is also called as Riba trading account. According to the principals of a few communities, these people forbid to take or give interest rates. This is the reason that forex market has offered such an alluring scheme that does not charge interest rates before/ during/ after trading.
For example, if traders open their position and leave it for the whole day without a close, then next day these traders have to pay interest due to holding the position. This is because the exchange rate between two currencies gets exchanged due to the fluctuation in the market.
Traders who do not have Islamic forex accounts have to give interest in the currency pairs for long (purchased) and brokers will charge interest for a short position (sold). Instead, if you have swap free accounts, then reliable forex brokers will rollover this position. This means your open position will go to the next day value, and this process is called swapping. Here, forex broker will sell/ buy the currency pairs and buy/ sell it back for next day value to make a trade.
Is it reliable?
Most of the people are looking for forex Islamic account opening. Although brokers allow traders to perform the account opening process with a considerable higher amount of spreads, it has some significant importance. Once you have decided to do trade, you should opt for swap-free accounts. It will be a perfect solution to reach the next level of profit-making with ease. Perhaps, these accounts offer reliable support and have great value; you just need to choose reliable forex broker to fulfill your requirements.
It will be better to remove all your doubts at the time you are filling the forex Islamic account opening form. Do you know how to trade? If not, then it will not be a problem. Forex broker will help in understanding different concepts of forex trading with the use of online video tutorials. What do you think?
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.