How to Select an Islamic Forex Broker

Among the many various Forex brokers and Forex trading accounts readily available to the Forex trader, there is one particular kind of broker and trading account that stands out. An Islamic account, provided by an Islamic Forex broker is a really unique type of trading account that we do not find in other trading markets.

An Islamic Forex broker might offer its consumer base the option of opening an Islamic Forex account, which is of course not limited to Muslims only. No Forex broker, not even an Islamic Forex broker can or will ask you your religion when trading Forex.

What an Forex Islamic account is in basic terms is an interest free, also referred to as a No Riba trading account. So how does this all work? For example, if a Forex trader chooses to leave his/her trading positions open overnight, the standard broker will charge rollover costs, which are essentially the interest the broker pays the bank to leave the trade open overnight.

The important things about these costs is that they are problematic for the Islamic neighborhood. According to the Islamic Shariah law, Muslims are prohibited to take any cash in return for their "offering". That implies if a Muslim is buying Forex, he/she is not allowed to pay or get any type of interest on their payment. By the method, this is something that exists in the Jewish religious beliefs also.

In order to fulfill the needs of the Islamic population and to allow them to trade Forex, the principle of an Forex Islamic account was created. Anyone can open such an account in theory, but it may not be ideal for everybody. An Islamic Forex account remains in fact interest-free however it often times comes with higher spreads or other down sides, all depending on the Islamic broker,

If you are a trader that leaves trades open over night on a routine basis and regularly pay high rollover costs, an Islamic account might be the perfect option for you. Once you choose to trade with an Forex Islamic account, the next step is choosing the very best Islamic Forex broker for you. The most reliable method to do that is to check out Forex broker reviews by some of the Web'' s leading websites, and just filter out all brokers that do not have the choice to trade with a Forex Islamic account.

If you're looking to open an Islamic Forex account, then by all means click here to get started now.