Islamic Trading Accounts
Online trading platforms allow you to access the CFD markets 24 hours a day, and give you access to a variety of instruments – foreign exchange, commodities, shares, bonds, ETFs, currency options and more. Some traders engage in day trading, which means keeping positions open for a few hours or less.
Other traders, however, employ trades with a longer scope and keep their positions open for more than 24 hours. When you keep a position open overnight, you will need to pay a rollover fee.
This kind of fee goes against Riba principles of Sharia law. For that reason, we offer an Islamic account to be used by our Islamic clients, such accounts may keep positions open for a maximum of 5 days without incurring the rollover fee. Positions open for longer than 5 days will incur the fee.
How to open an Islamic account in 3 simple steps:
- Verify your account by sending all the relevant documentation.
- Fund your current trading account.
- After you’ve funded your account, you can apply for an Islamic account, which operates under the Sharia Law. The request will then be forwarded to the relevant department for review and approval. Requests are usually processed within 1-2 business days.
To solve this issue, brokers like Today Markets offer a special ‘Islamic account’. This account type is similar to a regular one, with one key difference; it is not subjected to any special fees or interest, which sits well with the finance principles of Sharia law.
The Sharia law dictates that the lender must share in the borrower’s risk. In non-Islamic accounts, the risk falls exclusively on the lender. In Islamic eyes, this is considered exploitative and wasteful. Today Markets is fully committed to providing its traders with a variety of trading solutions to fit their needs and personal requirements.
What is a Swap?
The event of leaving open positions on the foreign exchange market for more than 24 hours requires the payment of special fees, called SWAPs.
These fees are a kind of interest rate and, therefore, they are problematic for Muslim traders who follow Sharia Law, which prohibits certain financial transactions including those which include the accumulation of interest.
As a Swap can be seen as a type of interest, a fee for the service the broker is providing you it creates a problem for Muslim traders following Sharia law.
Halal Gold and Silver Trading
Today Markets offers access to the Islamic halal trading of gold and silver. True Islamic gold and silver trading must have physical support in gold and silver. Today Markets offers those wishing to trade on Gold and Silver a trading account that complies with Shariah rules.
Halal Oil Trading
Discover Islamic oil trading with Today Markets today. The price of oil on the Today Markets trading platforms is tied to the price of oil futures traded on futures markets around the world. Trade oil without accumulating positive or negative swaps with Today Markets. Enter the volatile oil trading markets with Today Markets.
Halal Indices Trading
Instantly access the world’s most liquid stock indices on your Today Markets Islamic trading account. Stock market indices directly linked to global stock markets without accumulation of swaps. Pay only the bid-ask spreads on your Today Markets Islamic trading account.
Islamic Forex Trading
Today Markets has introduced its Islamic trading account, fully in line with Islamic rules. Customers with an Islamic trading account will not be charged daily swaps.
The swap fees are fully transferred within the MT4 platform into daily administration fees on all Forex trading products. Come experience a transparent Forex trading environment with and trade on a wide range of currency pairs such as EUR/USD, as well as indices, bonds, ETFs, stocks or commodities.
We offer our clients a solid, secure product, which respects their principles and follows the rules of Islam.
Note! Today Markets is not a legislative institution; therefore do not take this Islamic Account definition as permission to trade. Please verify all trading is in accordance with your beliefs.
*Cryptocurrency trading is not available on Islamic accounts, to trade cryptocurrencies clients must give up their ‘Islamic account’ privileges and be subject to special fees or interest.
*Certain FX instruments (ZAR, TRY, RUB, MXN pairs) are not available on Islamic accounts, to trade these pairs, clients must give up their ‘Islamic account’ privileges and be subject to fees or interest.
*Islamic accounts are subjected to an increase spread on FX pairs.