How to Choose an Islamic Forex Broker
Among the many various Forex brokers and Forex trading accounts readily available to the Forex trader, there is one particular type of broker and trading account that sticks out. An Islamic account, offered by an Islamic Forex broker is a really unique type of trading account that we do not discover in other trading markets.
An Islamic Forex broker may provide its customer base the alternative of opening an Islamic Forex account, which is naturally not restricted to Muslims only. No Forex broker, not even an Islamic Forex broker can or will ask you your religious beliefs when trading Forex.
What an Forex Islamic account remains in simple terms is an interest free, likewise understood as a No Riba trading account. So how does this all work? For instance, if a Forex trader chooses to leave his/her trading positions open over night, the basic broker will charge rollover costs, which are generally the interest the broker pays the bank to leave the trade open overnight.
The important things about these costs is that they are problematic for the Islamic community. According to the Islamic Shariah law, Muslims are forbidden to take any money in return for their "giving". That means if a Muslim is investing in Forex, he/she is not enabled to pay or receive any kind of interest on their payment. By the way, this is something that exists in the Jewish religious beliefs too.
In order to fulfill the needs of the Islamic population and to enable them to trade Forex, the concept of an Forex Islamic account was invented. Anyone can open such an account in theory, however it might not be ideal for everyone. An Islamic Forex account remains in reality interest-free but it oftentimes features greater spreads or other disadvantages, all depending upon the Islamic broker,
If you are a trader that leaves trades open over night regularly and regularly pay high rollover charges, an Islamic account may be the ideal option for you. Once you decide to trade with an Forex Islamic account, the next action is picking the best Islamic Forex broker for you. The most reliable way to do that is to check out Forex broker evaluations by some of the Web'' s leading sites, and merely filter out all brokers that do not have the alternative to trade with a Forex Islamic account.
If you're looking to open an Islamic Forex account, then by all means click here to get started now.