How to Choose an Islamic Forex Broker

Amongst the many different Forex brokers and Forex trading accounts readily available to the Forex trader, there is one specific kind of broker and trading account that sticks out. An Islamic account, offered by an Islamic Forex broker is a really special type of trading account that we do not discover in other trading markets.

An Islamic Forex broker may provide its consumer base the choice of opening an Islamic Forex account, which is naturally not restricted to Muslims just. No Forex broker, not even an Islamic Forex broker can or will ask you your religious beliefs when trading Forex.

What an Forex Islamic account is in easy terms is an interest free, also called 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 over night, the standard broker will charge rollover fees, which are basically the interest the broker pays the bank to leave the trade open overnight.

The thing about these fees is that they are problematic for the Islamic neighborhood. According to the Islamic Shariah law, Muslims are forbidden to take any money in return for their "providing". That means if a Muslim is buying Forex, he/she is not allowed to pay or get any type of interest on their payment. By the way, this is something that exists in the Jewish religion too.

In order to satisfy the needs of the Islamic population and to enable them to trade Forex, the principle of an Forex Islamic account was developed. Anyone can open such an account in theory, but it might not be ideal for everyone. An Islamic Forex account is in truth interest-free however it typically times includes greater spreads or other downsides, all depending upon the Islamic broker,

If you are a trader that leaves trades open overnight regularly and regularly pay high rollover charges, an Islamic account may be the perfect option for you. Once you decide to trade with an Forex Islamic account, the next action is picking the finest Islamic Forex broker for you. The most effective way to do that is to read Forex broker reviews by some of the Web'' s leading sites, and simply 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.