Shariah, the Islamic law, prohibits interest payment. However, the rollover interest is an integral part of forex trading. How can a Muslim forex trader trade currencies without violating the religious law? The answer is to find a forex broker willing to offer an Islamic forex account with no overnight interest.
Islaamic forex accounts are also known as swap-free forex accounts, because, within this kind of account, no swap or roll-over interest will be charged to or incurred on positions that are held overnight. Islamic forex trading is not exclusive to the Muslim community. Islamic forex accounts simply provide a means to trade forex while taking into consideration the Islamic laws.
There are hundreds if not thousands of forex brokers on the web. Many of these brokers offer Islamic accounts but not all are the same. Some have hidden fees, limitations of swap free account period, commissions, widening of spreads etc
We will endeavour to review these brokers and highlight the fine print so that you can make an informed decision choosing your broker