Islamic forex accounts are a specific category of forex trading accounts also known as interest free or swap free forex accounts.
Islamic forex trading accounts permit clients of Islamic religion to trade on interest free accounts (SWAP free or Roll Over fee) with no extra charge or penalty for the ability to trade in adherence with Islamic religious principles. Clients can open and close positions at any time within the Maps IG Meta trader 4 system without being constrained to holding them for a defined period
Some common Islamic forex trading account conditions include:
No Riba Policy
Clients benefiting from the Maps IG No Riba policy may hold positions for an undetermined time at the original opening price until they are closed and no charges will occur. Maps IG may revoke the ‘No Riba’ policy in case of abuse with a 48 hour notice by email.
Musharaka or commonly called joint venture
This refers to a partnership or joint venture for a specific business with a profit motive, whereby the distribution of profits will be apportioned according to an agreed ratio. In the event of losses, both parties will share the losses on the basis of the agreed ratio.
Hibah (Gift or Donation)
The term ‘hibah’ refers to gifts awarded voluntarily in return for a loan given. Maps IG will select different organizations in order to enable investors to donate a percentage of their profits to them.
At Maps IG, we offer clients the possibility to choose Islamic Forex Trading conditions for any of our Forex account types including Mini, Standard or Premium accounts, regardless of base currency or leverage offered. Islamic trading accounts may also be used for Managed forex accounts, as the only determining factor is the religion of the client that the trading account belongs to Maps IG enables its clients to trade with no swap charges and with no other additional charges, spread or hidden fees, simply fair and ethical trading conditions for all.
The Islamic Accounts offered by Maps IG are not the same as the Islamic Accounts generally offered by other Forex companies. They differ based on the fact that Maps IG offers SWAP free accounts with no other additional charges, whereas most other companies transfer this fee by widening the spread on Islamic Accounts. In order to abide by Islamic religious beliefs, one must not pay interest but if that interest charge is transferred to a different type of fee, it is basically still a charge to cover the interest. This is also referred to as a SWAP fee in disguise. Maps IG does not do this, again demonstrating that Maps IG offers fair and ethical trading conditions.
To open an Islamic Forex account with Maps IG simply click here