Islamic Trading Accounts: The What and How
Masari Capital would like to state that traders should research extensively before following any information given hereby. Please read our Risk Disclosure for more information.
- What are Islamic Trading Accounts
- Who can use them
Islamic Trading Accounts Your Questions Answered
Islamic Account, the Impact of Law on Trading Central to Islamic finance is the understanding that all money matters are subject to the Sharia, or the Islamic law.
The Sharia has many rules and commandments that affect a Muslim’s daily life and when it comes to money, contracts and finance, the Law makes no exception. Muslims are required to follow a well-defined set of principles and regulations. Islamic finance is based on moral values such as transparency and social responsibility.
The Sharia states that Muslims are to treat money as having no intrinsic value, rather it should be seen simply as a means of exchange. For Muslims to ensure they do not break any law when dealing with money and commerce, they need to base their actions on the instructions laid out in the Qur’an and Sunnah. Rightful acts are of course halal (permissible), while haram (forbidden) is considered unfaithful.
When it comes to financing, Muslims are required to follow a few conditions so their actions could be halal. Sharia law does not allow charging or receiving interest (riba). According to Islamic authorities, Muslims are allowed to trade and exchange currencies, stocks, and other assets provided they do not profit from interest or pay interest. Buying and selling a product for a profit is permitted.
Can a practicing Muslim then open a trading account?
Yes, but under an important condition. The account should be swap-free. Swap-free accounts, also called interest-free accounts, do not have swap fees but rather use a different charging mechanism therefore making the trading account and activity halal as there is no interest involved. The consistent zero rollover interest on contracts lasting longer than 24 hours defines swap-free trading, or halal trading, and makes it possible for traders of the Islamic faith to open both short and long positions in every market including forex, CFDs on equities, commodities, and cryptocurrencies.
What is an Islamic Account?
An Islamic Account is a swap fee-free Trading Account offering the ability to trade in compliance with Sharia Law.
Who can open an Islamic Account?
All of our clients are able to create an Islamic Account with Masari Capital.
Please note: You will still be subject to commission fees, standard spreads, and any other standard fees.
Which currencies can I use?
You can only open USD ($) accounts.
What are the Islamic Account charges/overnight cost?
When you see a charge or overnight cost on your Trade history, this would mean that you have left the position open past end of day server time.