Islamic Account (Swap-Free)
Islamic Swap Free Account trading has opened up opportunities to all people regardless of race and creed. As Muslims have joined the trade, companies involved in currency trading notably brokers saw it fit to offer services that would benefit them as well. Just like any regular trader, they have the right to manage their own accounts or open a managed Islamic account in trading currencies and other financial instruments including the sukuk or securities that offers fixed return on investments. And that`s how the Islamic forex trading accounts came to be.
Islamic accounts are also called swap free forex trading accounts. They are sometimes referred to as Shariah forex accounts to signify that they are in accordance with the Islamic religious law. This type of account is especially intended to Muslims as swaps go against their religious beliefs.
With an Islamic account, no swaps or roll over charges will be applied to trading positions overnight. In other words, an Islamic forex trading account is free from interest or swap charges and features zero up-front commissions without additional charges per trade.The Shariah lawThe Shariah law guides Muslims in how they should lead their lives. Shariah actually means "way" or "path to the water source." The law is based on Islamic principles which Muslims are expected to follow in the various aspect of their daily living from economics, banking, business and politics to family, hygiene and social issues.
When it concerns banking and finance, the Shariah law forbids all forms of interest. Muslims usually do business via risk sharing and only in legal practices. In an investment, for example, the bank and the customer share the risk on agreed terms and divide the profits or losses. Lending with interest is also not allowed in Islam. For instance, an Islamic bank is not allowed to lend to other banks at an interest. Trading currencies and bonds bearing interest is also not permissible.
About the Sukuk
Sukuk refers to a financial certificate that is similar to a bond. These securities are based on the Islamic law which does not permit the charging of interest. Their greatest benefit is seen in transforming the future cash flow of an asset into present cash flow.
Assets worldwide that comply with the Shariah law are valued at $500 billion growing at more than 10 percent annually. It is estimated that 20 percent of banking customers in the Asia and the Gulf opt for an Islamic financial product more than a traditional one.
Islamic accounts are also called swap free forex trading accounts. They are sometimes referred to as Shariah forex accounts to signify that they are in accordance with the Islamic religious law. This type of account is especially intended to Muslims as swaps go against their religious beliefs.
With an Islamic account, no swaps or roll over charges will be applied to trading positions overnight. In other words, an Islamic forex trading account is free from interest or swap charges and features zero up-front commissions without additional charges per trade.The Shariah lawThe Shariah law guides Muslims in how they should lead their lives. Shariah actually means "way" or "path to the water source." The law is based on Islamic principles which Muslims are expected to follow in the various aspect of their daily living from economics, banking, business and politics to family, hygiene and social issues.
When it concerns banking and finance, the Shariah law forbids all forms of interest. Muslims usually do business via risk sharing and only in legal practices. In an investment, for example, the bank and the customer share the risk on agreed terms and divide the profits or losses. Lending with interest is also not allowed in Islam. For instance, an Islamic bank is not allowed to lend to other banks at an interest. Trading currencies and bonds bearing interest is also not permissible.
About the Sukuk
Sukuk refers to a financial certificate that is similar to a bond. These securities are based on the Islamic law which does not permit the charging of interest. Their greatest benefit is seen in transforming the future cash flow of an asset into present cash flow.
Assets worldwide that comply with the Shariah law are valued at $500 billion growing at more than 10 percent annually. It is estimated that 20 percent of banking customers in the Asia and the Gulf opt for an Islamic financial product more than a traditional one.
