Islamic accounts have the following four main principles:
These four principles do not always fit into the Western banking and trading tradition. Thus special trading accounts, which are commonly referred to as Islamic accounts, have been created to comply with the principles of Islam.
These accounts are offered to clients who wish to trade in the stock market without having to separate their investment activities from their religious principles.
In general, these accounts are very similar to traditional trading accounts. However, some specific elements have been changed to comply with fundamental Islamic principles.
One of the Islamic trading account features is that, unlike other traditional trading accounts, it does not allow the use of swaps. Swap is the interest paid or received by a trader when he or she holds an open position overnight, which is taboo for Muslims who want to trade in the market. The Islamic account excludes swaps so that Muslims can trade the stock exchange or financial market. But what fees do traders with Islamic accounts pay instead? All Muslim clients who use Islamic trading accounts pay margin, commission, and administration fees which are not riba haram.
Our trading terminal is the most widely used trading platform in the world. It is also the most popular trading platform for brokers and CFD trading. Therefore, the compliance of this trading platform with the principles of Sharia is very important for Muslim traders. So, Islam allows our trading platform and the trading carried out in it simply because it is just a tool or interface that allows you to place your orders on a financial market. Regardless of the nature of the trading account you use, be it Standard, Professional, or Islamic, your orders will be executed in the same way. Only your broker can determine your trading conditions. The trading platform does not change or modify them in any way. Only the trading account you choose (Standard or Islamic) will affect your trading conditions.
The main difference between an Islamic and regular trading account is that there are no swaps on an Islamic trading account. This can be a significant advantage as you can take long-term positions without the risk of having your profits eroded by swaps. The second significant advantage of an Islamic trading account is that a trader can open positions in currency pairs where swaps are usually very high.
However, the absence of swaps can also be detrimental to a trader as he or she will not be able to benefit from some trading strategies such as the carry trade.
Please remember that your trading results depend largely on you and only partly on the broker you choose.
BTG Capital offers you a halal Islamic trading account. After you have checked the trading conditions of the broker:
For more detailed information or assistance in opening an Islamic account, you can contact the online support on the BTG Capital website.
If you are already a client of BTG Capital, please contact your account manager for advice and assistance in opening an Islamic account.
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