In Islam, every single thing has to be done with proper rules and regulations. A business should not involve interest in any situation if it does then it’s breaching the rules of Islam. So let us come to the point, Forex trading is something popular these days, and it usually involves interest. Since Muslim community is being involved in forex trading, the interest-free accounts have been introduced. The ‘swap free trading accounts’ which is another name for Islamic accounts are being offered by many brokers. These brokers will support you in order to open the swap trading accounts. Muslims will be able to and are making profits by trading the Forex market. Only Muslims are eligible to open the swap-free accounts.
According to Muslims, it is forbidden obtain interest, but not every Muslims are following the sharia law. So those who do not want to involve interest in their career will consider the interest free accounts. The interest is not charged with the entire trading. If you want to make it clear, here is an example, if the traders who are non-Muslims, open a position and leave it open for the entire day then for the next day the traders have to pay an amount i.e. the interest for holding the position. The reason for this is the fluctuation of the exchange rate of the currencies in the Forex market. So in accordance with Islamic rules, the swap free accounts will not involve this interest rate. The brokers will rollover the open position; actually, the open position will move to the next day’s value.
The swap accounts are great but selecting a reliable broker seems to be kind of hard. But if you search thoroughly then finding a reliable broker will not be as hard as you assumed. These swap free accounts are reliable and it has a great value but only if you find a good broker you will be able to trade it easily. You should be thorough regarding the Islamic Forex accounts if so dealing with it will not take long.
Actually, selecting the trading strategy which is suitable for you is based on the individual preference. As Muslims, you might be living a disciplined life because you are practicing the religion and Islam teaches a person to be disciplined so when selecting the suitable strategy to make a decision by analyzing completely.
Summary- Islam is a religion where people are considered equal and there are no ups and downs in a society. Which means equality is the important thing in the religion of Islam. Regarding trading Forex, it’s important to consider the swap-free accounts if you are a Muslim. The reason is taking or giving interest is a burden for one party so the transaction is not biased. By trading swap-free accounts you will be able to adhere to Islamic rules. So trades like a Muslim trader and we assure you success.
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