When an investor decides to open a Forex trading account, he or she can select from an array of styles. Some accounts, for example, are designed for minimal risk and allow the investor to initially deposit just a small amount, but others are intended for account-holders who have had an investment portfolio for decades. One type of account that is becoming increasingly popular is an Islamic Forex trading account. This is largely because these accounts are the only type of Forex trading in which Muslims can engage.
Typically, people who opt to open an Islamic Forex trading account will be advised by a Muslim broker. This is useful since the broker completely grasps the religious necessity for these particular accounts. Keep in mind, though, that while these accounts are intended to help Muslims obey their religious laws, persons of any faith can open one. No Forex broker, even one who specializes in Islamic Forex trading, will ever ask you your religion or question why you want to open this sort of account.
In its simplest terms, an Islamic Forex trading account is completely interest free. The reason for this is that Islamic religious beliefs dictate that no Muslim is allowed to earn interest from any accounts. That is, Muslims are forbidden by their religion to accept any monetary compensation when they give or invest in a cause. Interest, therefore, is not religiously acceptable.
Conventional Forex trading requires the investor to pay something known as a rollover fee if he or she leaves an account open while a particular market is closed. Rollover fees are essentially the interest that is required to be paid by the broker to leave the account open during off-hours. These costs, though, go against Islamic law. Islamic Forex trading accounts were created to bypass rollover fees, allowing Muslims to engage in this type of investing.
As mentioned above, even those outside of the Islamic faith can open one of these accounts. Even though this type of account is essential for those who subscribe to Islam, it may not be the best option for everyone. The fact that there are no rollover fees does cause some downsides to exist. For instance, these accounts sometimes have a higher initial investment requirement or greater spreads than traditional Forex accounts. If, though, you are a Forex investor who often pays expensive rollover fees, an Islamic trading account might be an excellent option for you.
If you choose to proceed with opening an Islamic Forex trading account, you will need to find a Muslim broker who specializes in this type of account. As you should before embarking on any new professional relationship, it is important to meet with multiple potential brokers before settling on one. Once you find a broker with whom you feel comfortable, you can open your new Islamic Forex trading account.
Typically, people who opt to open an Islamic Forex trading account will be advised by a Muslim broker. This is useful since the broker completely grasps the religious necessity for these particular accounts. Keep in mind, though, that while these accounts are intended to help Muslims obey their religious laws, persons of any faith can open one. No Forex broker, even one who specializes in Islamic Forex trading, will ever ask you your religion or question why you want to open this sort of account.
In its simplest terms, an Islamic Forex trading account is completely interest free. The reason for this is that Islamic religious beliefs dictate that no Muslim is allowed to earn interest from any accounts. That is, Muslims are forbidden by their religion to accept any monetary compensation when they give or invest in a cause. Interest, therefore, is not religiously acceptable.
Conventional Forex trading requires the investor to pay something known as a rollover fee if he or she leaves an account open while a particular market is closed. Rollover fees are essentially the interest that is required to be paid by the broker to leave the account open during off-hours. These costs, though, go against Islamic law. Islamic Forex trading accounts were created to bypass rollover fees, allowing Muslims to engage in this type of investing.
As mentioned above, even those outside of the Islamic faith can open one of these accounts. Even though this type of account is essential for those who subscribe to Islam, it may not be the best option for everyone. The fact that there are no rollover fees does cause some downsides to exist. For instance, these accounts sometimes have a higher initial investment requirement or greater spreads than traditional Forex accounts. If, though, you are a Forex investor who often pays expensive rollover fees, an Islamic trading account might be an excellent option for you.
If you choose to proceed with opening an Islamic Forex trading account, you will need to find a Muslim broker who specializes in this type of account. As you should before embarking on any new professional relationship, it is important to meet with multiple potential brokers before settling on one. Once you find a broker with whom you feel comfortable, you can open your new Islamic Forex trading account.
Islamic Forex Accounts: The Basics
4/
5
Oleh
rikixy' Site