Alternative Sharia Forex accounts for Muslim traders
At present there are many ways that can be done to invest money and benefit from investments made. There are investments in the form of gold, property, land, stocks up to forex or foreign exchange. The number of available investment choices often makes you confused isn’t it? But of the many ways to invest, forex trading is one that is quite popular and in demand by the public. For you Muslim traders who are still in doubt about forex law in Islam, the Islamic forex account is the most appropriate choice to answer your doubts.
Forex trading is an activity related to buying and selling different currencies. In this type of trading, people usually buy a number of currencies and pay for it using other currencies. The capital needed in forex trading is also not as big as the investment needs in other fields. One financial option that can be resolved in forex trading is an upcoming transaction, where both parties agree to exchange currencies at a predetermined time in the future with the agreed exchange rates.
Future transactions may also be carried out as a “swap”, where both parties exchange currencies for a specified period of time and return (reverse) them at the end of that time period. In “swap”, however, there is a certain amount of interest that must be paid. Of course this condition is contrary to the teachings of Islam where a person is not allowed to pay or receive interest for or from other people. Meanwhile, forex trading is always open to anyone regardless of their beliefs or background.
The good news, at this time several forex broker websites have introduced new regulations to meet the needs of Muslim traders related to financial law in Islam.This new regulation comes in the form of a free “swap” forex account or better known as a sharia forex account, wherein this user can use the forex service features without having to deal with “swap” and interest.
General Features of Sharia Forex Accounts
Depending on the provision of services, the Islamic forex account has different features. However, as said above, this type of account will generally not allow users to pay interest that can occur in a particular transaction. There are several forex brokers that offer accounts like this, but for those of you who want to use this service must know about the features of this sharia forex account itself.Regarding the main purpose, there are several forex brokers that free their clients from interest charges. But instead the broker will widen the spread or move interest to other costs. So in general, this account is actually the same as any other ordinary account and is not fully a good sign for the start of your trading.Another advantage of the Islamic forex account is that currency exchange can be held as long as desired by the user or client.
How to register?
For you Muslim traders or non-Muslim traders who intend to register for a Sharia forex account, you don’t need to worry anymore. This is because currently there are enough forex brokers that provide this service to meet market demand. Of course for those of you who want to register, you should look for a trusted and credible forex broker. For registration problems and requirements, each forex broker may not be the same. Therefore, before making a decision, you should do a little research. Not only in forex trading, but this preventive step also applies in other fields.
Well, that was information about forex law in Islam and sharia forex account which was successfully summarized by Forex Online . May be useful!