Halal broker is an Islamic trading company that takes care of Muslim forex traders, allows them to open accounts without interest overnight (Riba), and provides them with Riba-free trading accounts. These companies are very suitable for Muslim traders in Arab and Islamic countries
The Halal broker provides an Islamic trading account to avoid doing business in violation of Islamic law. Where there are no Riba interests or commissions when opening trading contracts for a period of one or two days or even a month, or no matter how long the trading contracts are opened, unlike the normal forex account that calculates daily interests the longer the contracts open.
If you want to choose the best halal trading broker, there are some important factors to consider.
Regulations are important to all traders when choosing the best Islamic trading company. Regulations will direct and restrict brokers on how to manage accounts.
Some brokers will only allow you a limited amount of time during which you can trade without interest. These are known as no-swap or no-swap periods. The Halal broker will allow unlimited trading without interest.
What is an Islamic trading account?
An Islamic trading account is an account that is free of interest in all its forms, regardless of the term of the contract. Here we mean usurious interests, those interests that the trader pays in exchange for leaving the position open for the next day or a longer period.
The problem with ordinary trading accounts lies in paying a usurious value to the broker in financial transactions. Therefore, the forbidden Riba in Islam is the basis for trading in these accounts. Riba in online trading mainly arises from rollovers imposed on trades that remain open for the next day.
Here arises the problem of usurious interests in violation of the provisions of Islamic law. If a trader opens a position and more than 24 hours have passed without closing it before 5 PM New York time, that position will be rolled over for the next day. At that point, an extension fee is applied to the transaction, and these fees are considered Riba.
Many may think that the solution to this problem is to close the position before the end of the day so that no interest or swaps are charged. But this method can also cost you a lot due to the shortening of the transaction time and the spread of the spread (price difference).
Therefore, the ideal solution for traders who want to follow the teachings of Islamic law is to open an Islamic account that is free of any Riba interests. In this account, the Halal broker closes the position at 5 PM New York time, so the trader avoids paying any interest and the broker bears the cost of the spread for the new contract as well.
In an Islamic trading account, the broker pays the spread commission on behalf of the trader for opening new trades, and the trader does not incur any additional fees even if the trade is not renewed for the next day.
The difference between the Islamic account and the regular account lies in the Riba interest imposed on the regular account, which is considered a violation of Islamic law. The Islamic trading account is free from any form of usurious transactions and will not pay any additional fees for overnight trades or any other fees for reopening positions the next day.
Islamic trading account features
- Completely free from any usurious transactions or interest.
- Elimination of overnight fees on transactions of more than 24 hours
- There is no delay in trading, but trading continues during the official market sessions.
- All Islamic account transactions comply with the provisions of Islamic Sharia.
- Transactions depend on the credibility and transparency that the trader is looking for in today’s markets.
- Long-term deals without the risk of lowering your profits, and this is due to the absence of swap commissions.
At Halal Trading Brokers, we introduce you to the best Halal trading brokers that offer Islamic trading accounts that are free of any interest. You will enjoy the ease of complete control of your account in terms of depositing funds, selecting and executing trades, fast order execution, and withdrawing profits to your account within 24-48 hours.
Contact us so that you can open an Islamic account free of interest with a Halal broker who follows the teachings of Islamic law in his daily transactions. We will provide you with a group of Halal brokers so you can choose the one that best suits your skills and experience in the market, with an Islamic account free of any Riba interests or additional fees.
The Islamic trading account has become a real opportunity for traders who are committed to the teachings of Islamic Sharia to make profits without any usurious interests. Trade now on a variety of financial assets that help you make a profit within the conditions of Islamic Halal trading.
With Halal recommended brokers on our site, you will enjoy the same benefits as in a regular trading account but without any interest in your trading transactions. Our support team will guide you on the best Halal trading methods with an Islamic broker that does not charge any overnight fees or extra interest on the trading account.