A Complete Guide to Islamic Forex Account

islamic forex account

“Gold for gold, silver for silver, wheat for wheat, barley for barley, date for date, salt for salt, must be equal on both sides and hand to hand, whoever pays more or demands more indulges in Riba” is a popular saying in Islam. To elucidate, when two commodities are exchanged with each other, the two rules must be strictly followed as per islamic principles. First, the commodities must be exchanged on the spot. Second, the quantities should be equal.

Since Islamic principles prohibit the charging of interest (riba) on financial transactions, many traders who wish to trade in compliance with these principles opt for Islamic Forex accounts. These accounts, also known as “swap-free” or “no-riba” accounts, offer a different way of trading where the focus is on risk-sharing and fairness, rather than interest charges. In this article, you will be provided with all the information you need before starting to trade an Islamic forex account.

What is Islamic Forex Account?

An Islamic forex trading account is a type of account that is offered by some forex brokers for Muslim traders who wish to trade in compliance with the principles of Islamic finance. These accounts use a system of “no-riba” or “swap-free” trading, where the trader is not charged or credited overnight interest on positions held open. This means that any profits or losses are based solely on the movement of the currency pair being traded, rather than any interest charges. These accounts are also known as “Islamic trading accounts” or “Shariah-compliant accounts. Learn More