Avatrade is a broker that offers its customers the option of opening an Islamic account. These accounts are regulated by Shariah law and do not charge overnight interest or fees.
To qualify for a swap-free account, traders must provide a government-issued identification document with a photo and name. Additionally, they must be a resident of the country where they live.
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Swap-free accounts
Islamic Forex trading accounts are aimed at traders who follow Islam and comply with Sharia law. They avoid all interest rates, including swap fees. These accounts can also be used for scalping, which involves short-term hypothesizing various markets, such as ETFs, stocks, currencies, and cryptocurrencies. However, this type of trading must be done through a swap-free account to ensure no positions are left open overnight.
RoboForex offers a particular account type for Muslim clients called the “Swap-Free” account. Instead of charging or debiting a client for an overnight position on a currency pair, the account captures a fixed commission. This fee depends on the trading instrument and volume of open trades. The broker also provides a special Extended Swap-free status for certain accounts opened by customers from non-Islamic countries. To qualify for this status, the client must trade a certain amount within the day and have fewer overnight positions.
Leverage
Avatrade offers several trading platforms, allowing traders to trade Forex, commodities, and shares. The broker also allows traders to use leverage of up to 1:400, depending on the type of account and financial instrument.
Leverage can be essential for enhancing a trading strategy, but it is not recommended for all traders. Traders should know the risks associated with power and seek expert advice before trading with any brokerage firm.
Some brokers offer Islamic accounts to accommodate Muslim traders. These accounts are not as flexible as a traditional broker account, but they allow traders to avoid interest charges that violate Sharia law. For example, ThinkMarkets has a swap-free history that does not charge interest on overnight positions. The account, however, has a 2-week holding period, which may be a problem for traders using long-term strategies. On the other hand, FP Markets offers a 10-night hold period for positions.
Trading platforms
AvaTrade offers traders several different trading platforms. These include MetaTrader 4, WebTrader, MT5, and cTrader. The broker also provides traders with access to global market indices. This makes it easy for traders to implement short-term strategies that don’t require 2-week holding periods.
Traders who follow Sharia law cannot pay or receive interest (or riba) on their forex trading positions. This is why some brokers offer Islamic accounts that allow you to trade without accruing any riba. These accounts are ideal for traders who follow a strict Islamic lifestyle.
Some brokers also charge a flat fee instead of overnight rollovers. This can help you save money on your trading costs and avoid riba. FP markets, for example, set a fixed price of $1 per night on all FTSE 100 and DAX positions held overnight. This is much cheaper than the average riba charged by most brokers.
Customer support
If you are a Muslim trader, finding a broker that offers an Islamic trading account is essential. This is also known as a swap-free account, allowing you to trade within the parameters of Sharia law. Many brokers advertise this option on their website, but if you don’t see it, you can contact customer support and ask them to customize a standard account for your needs.
AvaTrade offers an Islamic trading account that adheres to all of the regulations set by Shariah law. You can trade various instruments on this account, including forex, cryptocurrencies, commodities, bonds, stocks, and treasuries. The platform also offers a variety of social and duplicate trading systems like DupliTrade and ZuluTrade, which can help you learn to trade effectively. In addition, AvaTrade offers maximum leverage of 1:400. This leverage makes it possible to increase your profits significantly. Additionally, AvaTrade is a UK-regulated broker with strict KYC (know your customer) rules.
