Forex islam

Forex Halal | Find the best FX Brokers for Islamic accounts


forex islam

Feb 11,  · An Islamic account, also known as a swap-free account, is a trading account that incurs no interest charges or swaps on overnight positions to comply with the Islamic Shariah principles/5(69). With Islamic trading, Forex Trades should take effect immediately and it is seen as a natural part of commerce that is allowed by the Islamic law. Muslims must trade with chart-based analysis or fundamental analysis this will make Forex trading permissible by Shariah Fxigor. rows · Islamic Forex Broker. This is why brokers have come up with a solution: Islamic, or swap .

Understanding The Theory and Practice of Islamic Forex Trading | Finance Magnates

Islamic forex trading will increasingly be in demand. Before we understand Islamic forex trading we need to acquaint ourselves, albeit briefly, with Islamic finance. Islamic finance The theory and practice of finance according to Islamic principles is called Islamic finance. Islamic principles determine the objectives and the operations of Islamic finance, forex islam. According to the Islamic view, a non-Islamic, interest-based loan guarantees a return to the lender but the burden of risk falls disproportionately onto the borrower.

This unequal distribution of risk where the borrower bears more than the lender is exploitative, socially unproductive and economically wasteful. Secondly, the purpose of Islamic finance is to promote economic and social development, through specific business practices.

Accordingly, the objective of Islamic finance is also the well being of people in this life and in life Hereafter. Islamic finance must contribute to the development and the good of the Islamic community. Not surprisingly, therefore, the fundamental feature of Islamic finance is socio-economic and distributive justice.

Basic prohibitions in Islamic finance are: 1 Interest or riba. Making money from forex islam is not Islamically acceptable and interest based transactions forex islam a sin. Interest is any predetermined payment over and above the actual amount of principal of loans and debts, forex islam, regardless of whether interest is charged on commercial or personal loans. Islam allows only one kind of loan and that is the interest free loan or the qard al Hassan good loan.

Islamic scholars propose five reasons for prohibiting interest or riba. Interest is unjust. The generally accepted arguments are that earning money through interest involves no self-exertion by the lender, and causes oppression to the borrower.

Forex islam corrupts society. Interest implies the unlawful taking of property. Interest leads to negative growth. While riba increases money in quantitative terms, it does not generate growth in social wealth, forex islam. Interest demeans and diminishes the human personality. Charging interest affects a culture negatively by distancing that which is human and focusing on that which is monetary. Of course, there is a widely understood argument that interest carries benefits.

Islamic Forex Trading Accordingly, forex trading must also conform to Islamic finance principles. In other words, there is no interest in a spot currency or foreign exchange transaction. The problem arises when one payment is deferred, or delayed, as in a loan transaction, forex islam, foreign exchange forward or futures contract, or currency swap. The marketplace currently offers swap-free forex trading accounts allowing clients to trade in any currency pair, forex islam, carry it overnight and not have any reward or withdrawal.

The result of trading then depends only on currency rate movements for that period. SSBs review forex islam endorse not only the products and services but also all relevant documents pertaining to the products and services, forex islam.

SSBs review financial transactions and services to ensure they do not involve interest especially in a forex islam way and also that they do not carry excessive risk. In the second installment of this series on Islamic finance, I shall look in greater detail at risk or gharar, as it relates to currency and commodity trading.


Swap-free Forex Islamic Accounts


forex islam


Forex Trading - Halal or Haram Fatwa. For a long time, retail Forex brokers reflected the market practice of paying or charging to the trader the interest differential between the two components of any currency pair whose position remains open overnight. Eventually, most Forex brokers responded to market forces (and pressure from Islamic traders) Author: Team. Islamic Forex accounts, or Swap-free accounts, are an optional trading account type which allows Forex traders to keep in compliance with the principles of Sharia law. According to the Islamic law, or the Sharia law, interest paid on all loans of money is prohibited. Under Sharia law, this is also called Riba, or usury. About Forex Islamic Accounts. Forex Islamic accounts are also known as swap-free accounts as they imply no swap or rollover interest on overnight positions, which is against Islamic faith. We offer our Islamic accounts to clients following the Muslim faith.