An Islamic trading account is an account that is free of interest in all its forms, regardless of the contract term. Here we mean Riba interests, those interests that the trader pays in exchange for leaving the trade open for the next day or a longer period.
Here appears the problem of overnight charges in violation of the rules of Islamic law. Because the overnight commission is associated with Riba’s interest, according to what many believe. If a trader opens a position and more than 24 hours have passed without closing it before 5 pm New York time, this position will enter the rollover process for the next day. An extension fee is applied to the deal and these fees are considered Riba interests.
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 overnight fees are charged. But this method can also cost you a lot due to the shortening of the transaction time and the size of the spread.
Therefore, the ideal solution for traders who wish 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 deal at 5 PM New York time, thus, the trader avoids paying any interest and the broker bears the cost of the price difference for the new contract as well.
Islamic Trading Account
An Islamic trading account is an account in which online trading transactions are carried out by the Islamic Sharia. The transactions in this type of account are carried out without any Riba fees or interest.
The problem of ordinary trading accounts lies in paying a Riba value to the broker in financial transactions. Thus, Riba, which is Haram in Islam, is the basis for trading in these accounts. The Riba in online trading mainly arises from the rollover which is imposed on the trades which remain open for the next day. Trading through contracts for difference is prohibited if the Riba interest is applied in this way.
In an Islamic trading account, the broker pays the spread commission on behalf of the trader to open new trades, and no additional fees are charged to the trader even if the deal is not rolled over to the next day.
The difference between the Islamic account and the regular account lies in the Riba interest that is imposed on the regular account, which is considered a violation of Islamic law. The Islamic trading account is free from any form of Riba transactions and will not pay any additional fees for overnight positions or any other fees for reopening the positions on the next day.
Features of an Islamic trading account
- Completely free from any Riba transactions or interest.
- There is no delay in trades, but trading continues during the official market sessions.
- All Islamic account transactions comply with the rules of Islamic Sharia.
- Transactions are based on the credibility and transparency that the trader is looking for in today’s markets.
- Long-term trades with little risk.
At Halal Trading Brokers, we guide you to the best halal trading brokers that offer Islamic trading accounts that are free of any Riba interests. You will easily have complete control over your account in terms of funding, tracking of trades, speed of order execution, and withdrawal of profits.
Get an Islamic account with us and start trading without fear of the various Riba transactions imposed by today’s trading brokers. Choose with us a reliable broker that provides you with trading in financial products approved by Islamic Sharia and in an Islamic account that is 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 law to make a profit away from Riba. Trade now on a variety of financial assets that help you to make a profit within the conditions of Islamic halal trading.
With the Halal brokers recommended by Halal Trading Brokers, you will enjoy the same benefits of regular trading accounts but without any Riba interest in your trading transactions. Our support team will guide you to the best halal trading methods with an Islamic broker that does not charge any overnight fees or additional interest on the trading account.