The Marketsforu Islamic trading account is offered to traders who cannot receive or pay Overnight Swaps on forex currency pairs for religious reasons. The trading account is compliant with Sharia law, enabling traders to take advantage of Marketsforu’s cutting edge trading technology and deep liquidity.
Islamic Account Features
We offer Islamic STP Accounts to traders who require a No Swap setup. Due to the costs of providing the account, please note that spreads may be widened in order to compensate for the risk we take in traders who may hold long-term positions in this account type.
We offer these accounts on a case-by-case basis. Please speak to a customer service representative to arrange for signup.
What is a Swap?
Keeping positions opened for over 24 hours entails a special fee called a swap. An overnight Swap, sometimes referred as a rollover fee, is the cost of keeping a position open overnight. It derives from the broker’s selling the position at day’s end to a 3rd party (usually a liquidity provider) and then re-buying it the next day.
Because a Swap can be seen as a type of interest, a fee for the service the broker is providing you, it creates a problem for Muslim traders following Sharia law, which forbids certain financial transactions, primarily those accumulating interest.
To solve this issue, brokers offer their Islamic finance investors an ‘Islamic account’. This account type is similar to a regular one, with one key difference; it is not subjected to any special fees or interest, which sits well with the finance principles of Sharia law.
The Sharia law dictates that the lender must share in the borrower’s risk. In non-Islamic accounts, the risk falls exclusively on the lender. In Islamic eyes, this is considered exploitative and wasteful.
Marketsforu is fully committed to providing its traders with a variety of trading solutions to fit their needs and wants.
Note! Marketsforu is not a legislative institution; therefore do not take this Islamic Account definition as permission to trade. Please verify all trading is in accordance with your beliefs.