The MetaTrader trading platform can be considered halal, simply because it is only a trading platform. In fact, this platform is just a tool, an interface that allows you to open your orders in the market. Regardless of the nature of the trading account you use, be it a standard account, a pro account or an Islamic account, your orders will be executed in the same way.

Only your broker can define the trading conditions with which you are going to invest, the platform does not alter or modify them in any way. In addition, only the trading account you choose will have an impact on your trading conditions and can become a halal or haram trader. Hence the importance of choosing an Islamic trading account with your broker so you don't have to pay interest rates.

You can learn more about how MetaTrader works or about general trading concepts with our free online courses:. Therefore, Halal Islam Trading is possible for Muslim traders with Admirals' Islamic trading account. Let's now look at some trading strategies to use in your broker's account without swap. Day Trading is one of the three types of trading, along with scalping and swing trading that we will analyse.

This type of strategy consists in opening positions that will be closed during the sessions, that is, before the markets close at the end of the day. The interest of this type of operations during the same session is the fact that the open positions are not kept at night, the payment of swap commissions is avoided and, therefore, the interest rates, even if you are not operating in an Islamic trading account without a swap.

Sometimes a trader opens a position in the morning, with the intention of closing it at the end of the day, but at the end of the session the position is making a profit and the trader anticipates that the movement should continue.

In this case, it may be prudent for him not to close his position and maintain it for a greater benefit. If the trader has an Islamic account, he can take full advantage of this opportunity, but if the trader has a standard account, he will have to give up this potential gain to respect the principles of Islamic finance and not pay interest rates.

Trading in a non-Islamic account also exposes the Islamic trader to the risk of forgetting and falling into a haram trading activity. Like intraday trading, scalping is a trading style. This implies the opening of positions, by the trader, that are destined to close quickly, in a few minutes or even a few seconds.

The goal of a scalper a term that refers to a trader who practices scalping is to open many small positions by earning only a few points in each of them. The advantage of scalping is that, as with intraday trading, as positions are closed quickly there is no interest rate payment, since the position will close after a few seconds or minutes.

Therefore, an Islamic scalper can easily use a standard account and is not limited to the use of an Islamic trading account. On the other hand, as with intraday trading, if the scalper wishes to maintain a position for a longer period of time, and this position is destined to become a long-term position to accumulate more attractive potential benefits, he will have to use an Islamic account, otherwise you will have to cut your position to avoid paying interest.

Swing trading consists of opening positions for several days or even weeks. Therefore, a swing trader that respects the principles of Islamic finance must work with an Islamic account, no matter what, if you want to avoid paying interest. Swing trading is considered the least risky of the three short-term investment approaches, but a swap-free trading account is essential for an Islamic trader.

The main difference between Islamic accounts and basic accounts is that there are no swap commissions. This can be a very important advantage, since you can open long-term positions without running the risk of reducing your profits due to swap commissions. The second great advantage is that the trader will be able to open positions in currency pairs in which swaps costs are generally very high especially in exotic pairs.

The absence of the swap can also be detrimental to the halal forex trader, since it will not be able to benefit from the positive interest payments that are often paid to short positions, along with the benefits of carry trading strategies.

Often, to remain profitable after the elimination of interest, the non-swap broker will charge a fixed administrative fee, as banks do in Islamic finance. It is clear that halal trading will depend partly on your actions and partly on the broker you choose. Whatever your Islamic investment online, whether in stocks or Forex, Admirals offers you an Islamic Halal Trading Account.

Once you have tested the conditions of the broker and practiced in a demo account you can open an Islamic account to start trading. Admirals is a multi-award winning, globally regulated Forex and CFD broker, offering trading on over 8, financial instruments via the world's most popular trading platforms: MetaTrader 4 and MetaTrader 5.

This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer or request for any transaction in financial instruments. Keep in mind that such business analysis is not a reliable indicator for any current or future performance, as circumstances may change over time.

Before making any investment decision, you should seek the advice of independent financial advisors to ensure that you understand the risks. Help center Contact us. Start Trading. Trading Tools MetaTrader Supreme Edition StereoTrader Top! Virtual Private Server Parallels for MAC.

Markets Forex Commodities Indices Stocks ETFs Bonds. Best conditions All trading offers Promo Contract Specifications Margin Requirements Volatility Protection Cashback Welcome Bonus New Premium Program New. Personal Finance New Admirals Wallet. Forex Calendar Trading News Global Market Updates New Premium Analytics Weekly Trading Podcast Fundamental Analysis Market Heat Map Market Sentiment Trading Central. Affiliate Program Introducing Business Partner White Label partnership Refer a friend New.

About Admirals. Why Admirals? Regulation Financial Security Secure your trading account Contact Admirals Company News. Help center. Status Page. Login Register. Top search terms: Create an account, Mobile application, Invest account, Web trader platform. How to trade according to Islamic finance. What is an Islamic Forex Account? How to trade according to Islamic finance Admirals Jun 26, 16 Min read. Table of Contents What is an Islamic Forex account?

The Principles of Halal Forex Trading How to Open an Islamic Forex Account Islamic Trading Account Commissions Is Forex Trading Halal or Haram?

But the fact that actual currency goes from one person to another supports the idea that institutions are trading in currency because of a genuine need, as opposed to pure speculation. But pure speculation is not in my view wrong either.

But that takes me back to retail forex. But if you do want to speculate, then the only way you can do so efficiently is by participating in the retail forex market. The alternative of using Travelex is not viable, as there would be no margin involved and currency movements are tiny from day-to-day. The argument would therefore be, that as a retail trader you can only speculate using retail forex, with a margin account, and as fundamentally currency speculation is halal, trading on a margin account is halal as that is the only way available.

However this is a flawed argument too. Running such a business is halal. So the only thing stopping me from doing the halal business is money. Therefore I can borrow that money. There is also no need for you to speculatively trade forex, which might have otherwise justified things. If however, one could have a forex set-up where a retail punter was given an interest-free loan of £x on an interest free basis from an entity legally distinct from the broker and properly distinct from it, i.

not in the same group , and could use that for trading, then that would be Sharia-compliant. The only way that I could see would be a government profit-free trust set up to lend to Muslim retail forex traders for the purpose of allowing them to trade forex.

But that seems like a rather frivolous use of government currency, and one that no government would ever seriously consider. Please also remember to subscribe to our website if you would like to keep in the loop with more articles like these. Two excellent resources I stumbled across:. Access all our content with a free account Sign Up Already have an account?

Sign in. Sign In to access all our content Sign In Didn't have any account! Sign up. Verify Magic Code. Ibrahim Khan 06 January, 18 17 min read. Brokers are the counterparties The first insightful thing to note in retail forex is that pretty much all the big brokers in this space will act as your direct counterparty. What really is a currency pair? Institutional Forex Market The institutional forex market is made up of large financial institutions, where trades are between such financial institutions as opposed to the broker and you , where margin is not used most of the time , and where the primary driver of these trades is necessity rather than speculation.

And what is the failure rate? It's been seen that the software has caused capital loss in less that. It means that that in 90 to 95 cases it's earned for the user, in regarding 4. Such performance can not be expressed in any term as outstanding, spectacular, very good etc. adjectives fall short to explain it. Fap Turbo utilizes advance algorithms to perform trades that don't need any sort of external input. Once the software is put in, the user is in the least not required to be gift either to observe or to grant any command to it.

All the trading is performed automatically by the software itself. It is like putting your cash in a very bank or trust knowing fully well that you'll receive your interest or dividend cheques for certain. It even has a demo account facility where you can familiarize yourself about the trading and after you are well familiar with the demo account, you'll venture into the live market.

If you're planning to travel for a forex trading software, why not try Fap Turbo? With the performance rate it displayed, you'll worry less and smile happily for your call.

Sign in Recent Site Activity Report Abuse Print Page Powered By Google Sites. Forex Trading Guide. Search this site. A Free Forex Trading Tool Forex Trend Indicator. A Good Metatrader Broker What You Should Do To Succeed In Forex Trading Signals. A Simple Explanation Of Forex Trading.

A Simple Forex Trading Strategy Will Win Out Everytime. A Superior Ai Forex Humanoid Trading System Review. Absolutly The Top Forex Megadroid Settings On The Net. ACC Indicator through Forex.

Advanced Forex Price Action Courses Running with Horses. Advanced Forex Trading Strategies - Updating A Beginner's Strategy. Advantages And Disadvantages Of MetaTrader4 And MetaTrader5 - Make a Decision Wisely.

All Forex Trading Systems Are NOT Created Equal! Almost Anyone Can Participate In Forex Day Trading. Alpari and iforex are renowned names in Forex trading. Alpari Uk - How To Get Monthy Rebate On Your Forex Trading With Alpari. An Honest Elemental Trader Software Review.

Auto Forex trading A bonus Gift over Manual Trading. Automated Forex Trading - Make Big Cash Without Any Complications. Automated Forex Trading System - How to Find the Best and How to Make Big Profits.

Automated Forex Trading Systems - 3 Sure Signs Of A Scam. Automatic Forex Trading Software - When Buying Beware of Curve Fitting or Lose. Automatic Forex Trading Systems - Do Metatrader 4 Expert Advisors Really Work. Avafx - How To Get Monthly Rebate On Your Forex Trading With Avafx.

Basic Intro To Foreign Exchange Trading. Be A Successful Forex Trader Through Forex Trading Psychology. Before you commence your Forex trading adventure, make sure you find out about the most effective f. Benefits Of A Multi Screen Set-up During Your Forex Trading Course. Best Automated Forex Trading System - The Turtle Robot A Verified Track Record Of Millions In Profit. Best Forex Broker - How To Get Monthly Cashback From Forex Trading. Best Forex Trading Indicator for Swing Trading.

Best Forex Trading System - This Trading System Makes Big Gains And It's Free! Best Forex Trading System Review - This One Has Made Millions in Audited Profits! Best Strategies in Winning FOREX Trading. Binary Equation Strategy In Forex Trading. Boosting Your Forex Trading Potential by Using Automated Trading. Building a Forex Trading Strategy. Buy Sell Signal Alert Review - Perfect Guide To Understand Forex Trading Signals. Can The Adx Indicator Help Boost Your Forex Trading Profits.

Can you become a Forex Introducing Broker. Can You Make A Living Online With Currency Trading. Can You Trade The Forex Without A Broker. Changing Money To Make Money Some Forex Trading Secrets. Characteristics of the Best Forex System. Choose Forex Training To Discover Forex Trading Techniques Plus Techniques. Choosing The Right Leverage In Forex Trading. Click Your Way to Profits with Forex Trading. Commodity Trading Forex trading Online - On the net Commodity Buying and selling Courses.

Common Currency Pairs in Global Forex Trading - Currency Trading. Common Mistakes Made by Online Forex Trading Beginners. Common Myths About Automated Forex Trading Platforms. Comparing Forex Hitter To Other Forex Trading Softwares.

Cross Currency Forex Trading Pairs - Achieve Amazing Results With Cross Currency Pairs In Forex. Currency Cash Flow Machine - New Forex Trading Product. Currency Meter Change Forex Trading. Currency Pairs List. Currency Swing Trading - An Forex Trading Strategy Perfect For Novice Traders And Triple Digit Gains. Day Trading - Is Forex Easier To Trade Than Stock Market Indices. Deciding On A Forex Trading Platform. Discipline And Forex Trading Psychology Are Key To Trading With Confidence.

Enter the 6-digit magic code we have sent to your email address. Resend Again. I have been meaning to explore further the retail foreign exchange or forex market following my initial thoughts on the topic here and here. However, I believe it is not as clear-cut as I previously thought, and there are some quite complicated concepts to tussle with along the way.

I am going to assume you know the basics of modern retail foreign exchange e. The first insightful thing to note in retail forex is that pretty much all the big brokers in this space will act as your direct counterparty.

Most brokers will have similar terms, which say that they will act as principal i. they will represent just themselves, and not some other client and market-maker i. the y are the market you will be directly trading into. However, brokers will monitor how you do, and if you start improving and making a large percentage of successful trades, then they will still be your counterparty, but they will hedge their positions into the institutional market so that economically they are not exposed to any risk — whatever happens to the trade you placed.

The result is obviously neutral. When you close, they will close. Now the only profit they are making is the brokerage commission they charge for each trade. The second insight I found useful was looking at what equivalent economic activity would be required to replicate the effect of the currency pair. You have simply held an exposure to an amount over a few days, before selling. This means that for those days you will have got paid rollover interest as well. Upon closing the trade you get paid the profit back into whatever currency your account is denominated in with your broker.

Economically, what you have done is you have borrowed JPY from the interbank market and then sold JPY for USD via the broker , and then lent USD back to the interbank market. This means that each day you need to pay the interest on the JPY you borrowed, and each day you get paid interest on the USD you lent out. Eventually you get the USD back and convert it back into JPY, and then give it back to the interbank market where you borrowed it in the first place.

Step by step this looks like:. The two haram transactions in the above economic transaction-pattern are the two interest-bearing loan agreements. Under such an account, you are gaining exposure directly to holding the money not to the interest of holding the currencies. Therefore you are in effect achieving the above economic transaction pattern but without the interest elements. One could therefore argue that such accounts are Sharia compliant.

However the problem with this analysis is that the broker is the one who is extending that liquidity and also brokering the exchange. Islamically, you are not allowed such a contract where what is actually happening is you have two contracts in one. Ask yourself this: would the broker give you the interest-free loan if you were not going to use that broker for your trade?

But that is trying have your cake and eating it. Either a we say a currency pair is a synthetic product not analogous to any real-life economic activity, or b it is analogous to real-life economic activity.

If it is a synthetic product not related to real-life economic activity then it is best characterised as just like any other zero-sum derivative e. a CFD and is ipso facto impermissible. The second approach to finding a solution is to take a purposive approach.

That is, to provide instant access to the currency market in a cheap and efficient way. Under this analysis, if forex is just a modern, better, way of going to Travelex, then we should overlook any modern developments as wrinkles, rather than anything that fundamentally changes the nature of the activity.

Thus the fact that the broker is often the counterparty to the trade and that the trade is on margin, should be overlooked. However, this could arguably be a quirk of the international financial plumbing we have in place today as well as an increasingly globalised world. The institutional forex market is made up of large financial institutions, where trades are between such financial institutions as opposed to the broker and you , where margin is not used most of the time , and where the primary driver of these trades is necessity rather than speculation.

For example, companies will need to transfer £m into dollars or yen in order to complete a transaction, and in order to do that, they go through the institutional forex market. Yet other companies will need to hedge their currency risk though these are separate topics in themselves.

Under this characterisation of the industry, institutional forex trading looks Sharia compliant to me for three primary reasons:. In Islamic law, currency trading should be hand-to-hand, and on-spot, and therefore should not be delayed for 1 or 2 days as is standard in the industry.

Banks have established debtor-creditor agreements between themselves, rather like margin accounts that retail traders will have with their broker, so one could argue that this is a form of margin. However, this need not concern the institutional participant for two reasons. But the fact that actual currency goes from one person to another supports the idea that institutions are trading in currency because of a genuine need, as opposed to pure speculation.

But pure speculation is not in my view wrong either. But that takes me back to retail forex. But if you do want to speculate, then the only way you can do so efficiently is by participating in the retail forex market. The alternative of using Travelex is not viable, as there would be no margin involved and currency movements are tiny from day-to-day.

The argument would therefore be, that as a retail trader you can only speculate using retail forex, with a margin account, and as fundamentally currency speculation is halal, trading on a margin account is halal as that is the only way available. However this is a flawed argument too. Running such a business is halal. So the only thing stopping me from doing the halal business is money. Therefore I can borrow that money. There is also no need for you to speculatively trade forex, which might have otherwise justified things.

If however, one could have a forex set-up where a retail punter was given an interest-free loan of £x on an interest free basis from an entity legally distinct from the broker and properly distinct from it, i. not in the same group , and could use that for trading, then that would be Sharia-compliant. The only way that I could see would be a government profit-free trust set up to lend to Muslim retail forex traders for the purpose of allowing them to trade forex.

But that seems like a rather frivolous use of government currency, and one that no government would ever seriously consider. Please also remember to subscribe to our website if you would like to keep in the loop with more articles like these. Two excellent resources I stumbled across:. Access all our content with a free account Sign Up Already have an account?

Sign in. Sign In to access all our content Sign In Didn't have any account! Sign up. Verify Magic Code. Ibrahim Khan 06 January, 18 17 min read. Brokers are the counterparties The first insightful thing to note in retail forex is that pretty much all the big brokers in this space will act as your direct counterparty.

What really is a currency pair? Institutional Forex Market The institutional forex market is made up of large financial institutions, where trades are between such financial institutions as opposed to the broker and you , where margin is not used most of the time , and where the primary driver of these trades is necessity rather than speculation. I look forward to hearing your thoughts on this, particularly if you disagree with me!

Ibrahim Khan. Related Articles. Ibrahim Khan 08 January, 15 7 min read. When we start talking about Islamic Finance we often do so with a cynical smile, a world-weary roll of the eyes at the Ibrahim Khan 31 May, 21 10 min read.

Ibrahim Khan 31 May, 21 1 min read. Often we all get absorbed by the day-to-day hustle and bustle of life and overlook our relationship and connection with Allah Subscribe to our latest impartial analysis, deals and Islamic financial podcast.

Diverse Your Portfolio To Include Forex Trading. Advanced Forex Trading Strategies - Updating A Beginner's Strategy. Start Trading. With a quarter of the Muslim world and the development of online trading, the issue of the stock market in Islam is increasingly raised. What really is a currency pair? They include but are not limited to:.

Categories:

• Forex
• Binary Options
• Binary Options online
• Forex Brokers
• Forex Bitcoin