Also known as swap-free accounts, Islamic accounts are ideally suited to Muslim clients as they are in line with Islamic law in that they incur no swaps or interest charges on overnight positions. Instead, the account holder is charged an administration fee on positions which is deducted from the balance of the account.
Trading in Islam can be considered to be haram but it is still possible to trade if you find an Islamic Forex Account which provides swap-free trading and which has been designed for forex traders who cannot pay or receive swaps or rollover interest on overnight positions due to their religious beliefs, in line with Sharia Law.
Steps to open an Islamic Forex Account:
Open a MetaTrader 4 or MetaTrader 5 (MT4/MT5) trading account
Email the account number to and request for it to be converted to Islamic
Wait for a confirmation from our Onboarding team
* We do not offer Swap-Free accounts on IRESS platform.
* PROFX Markets reserves the right to request additional documentation in order to offer the swap-free privilege to an account. If the religion is not mentioned on your ID document, we may require proof of faith in the form of a letter from your mosque confirming your religion.
If you want to be sure that your trading activities are halal, you can consult a religious authority that can take into account your personal situation.
Islamic Account Types
Demo Islamic Account
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Islamic finance is guided by four basic principles:
According to Islam, gambling is prohibited but trading forex and other financial instruments can be considered an educated game of chance which involves the buying and selling of assets based on forex market analysis and using a variety of concepts and trading strategies.
Usually, when a trader holds open positions at the close of a trading session, PROFX Markets charges a swap commission linked to an interest rate which is in turn related to the fact that traders receive an indirect loan through leverage. This leverage usually results in profit for the forex broker and therefore why a standard trading account is classified as haram given it includes interest payment whereas an Islamic trading account would be halal as it does not feature payment of these swap interest rates and therefore satisfies the riba threshold.
One of the principal concerns about trading is the element of shared risk. Interest ensures a reward for the lender and the borrower is the one who incurs the risk. Excessive or a high level of risk (gharar) is prohibited in the same way that excessive gambling is. The financial activity must also be seen to promote social and economic activity and justice as well as happiness. With an Islamic trading account, all interest charges are waived.
Now that interest rates not being applicable, the next item to consider is that trading is only permitted if it is “hand in hand”. In times gone by this meant face-to-face but in the modern world and with the advent of online trading and e-commerce, which involves an almost instantaneous transaction between broker and trader executed in seconds, is considered halal under Shariah and is therefore permissible.
Advantages of Islamic Accounts
Sometimes a trader opens a position in the morning, with the intention of closing it at the end of the day, but at the end of the session the position is making a profit and the trader anticipates that the movement should continue. When trading on selected pairs (Outlined below) with 10 days swap-free you can keep the position open for longer without administration fees eating into your profit. Also trading in a non-Islamic account also exposes the Islamic trader to the risk of forgetting and falling into a haram trading activity.