Alfa Forex Islamic Account

Alfa-Forex does offer a Islamic account for Muslim faith traders. The Islamic forex trading environment is ideal for traders following strict sharia law with a fixed fee instead of swap. The fee is not an interest and depends on the direction of the order.

Overall Rating

• 3.6/5

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Min Deposit

USD 0

Regulators

CySEC, CBR, SEC, FINRA

Trading Platform

MT4, MT5, Zulutrade

Crypto

Yes

Total Pairs

33

Islamic Account

Yes

Trading Fees

Low

Account Activation

24 Hours

Choose your quick section of our Alfa Forex Islamic Account below.

Alfa-Forex Islamic account – 9 key points quick overview:

1. Alfa-Forex Overview
2. What exactly is an Alfa-Forex Islamic Account?
3. Why is interest discouraged or prohibited by Sharia law?
4. What are the steps involved in opening an Alfa-Forex Islamic Account?
5. What is Alfa-Forex’s spread costs on an Islamic Account?
6. What other features does Alfa-Forex’s Islamic Account have?
7. Alfa-Forex Pros and Cons
8. Conclusion
9. Frequently Asked Questions

Here is our overview of the Alfa Forex Islamic Account as well as the pros and cons as well as features that are offered to traders.

Alfa-Forex Overview

Alfa-Forex was originally established in 2003 in Russia and today is headquartered in Cypress, as part of the Alfa Bank Group. Alfa-Forex has differentiated itself in the market with a proven reputation for providing favourable terms, and excellent customer support. The broker focuses mainly on traders from the European Union, Russia, and the former Soviet states. Alfa-Forex has been recognised by the Fore industry for its beneficial offering, having garnered several awards over its operational history that include The Broker of the Year 2013, The Best CFD Broker 2014, and the Best Forex Bank Broker 2015.

Clients of Alfa-Forex are provided access to a wide range of trading tools and numerous assets. The latter includes popular currency pairs, precious metals, oil, stocks, crude oil, and other instruments. Traders can use numerous strategies and have a wide selection of trading software at their disposal that allows them to execute their most profitable trading, with a comprehensive selection of independent analytical tools also at their disposal. Alfa-Forex is particularly popular for its zero-minimum deposit, while beginner traders to take the advantage of the vast number of educational articles posted in the in-house website.

These articles cover a variety of pertinent trading topics including matters related to fundamental and technical analysis, and are delivered via webinars and events, organized on a regular basis. Detailed information regarding these educational events can be found on the Alfa-Forex events page. Beginner and advanced traders alike will benefit from the broker wide range of market analytics, which include the latest economic news and forecasts from respectable and experienced technical strategists. Offered for free from Alfa-Forex, traders can analyse these industry-subjected articles, or browse through the event calendar and take advantage of many other popular and efficient services.

As noted above, trading with Alfa-Forex is facilitated on a variety of different trading platforms that include ZuluTrade, MetaTrader 4 and MetaTrader 5. With ZuluTrade, users can copy the best trade strategies on the market for enhanced trading profits. The broker’s mobile trading platforms allow for remote trading from any iOS and Android device, with full access to the same functionality as found on the desktop versions. These apps receive the same level of excellent customer service as is provided to traders on the desktop platforms. The broker’s team consists of professional money managers and industry experts, whose expertise is reflected in the numerous positive review which the broker has received to date.

This is further complemented by the broker’s speedy order execution low spreads, bank quotes, market swaps, and high liquidity even during the relevant economic newscast releases. It is also worth noting that Alfa-Forex supports a good range of payment options with a high level of deposit security provided by the broker’s strong regulatory status. As such, the broker is regulated by the highly reputable Cypress Securities and Exchange Commission (CySEC), which requires the provision of segregated bank accounts and participation in a client compensation scheme.

What exactly is an Alfa-Forex Islamic Account?

To better understand Islamic forex trading, it is important to first gain an insight into the guiding principles of Islamic finance.

To this end, Islamic finance differs significantly from conventional finance in that it is guided by a set of ethics rather than by purely profit motive. As such, two principles guide Islamic finance as below:

The first principle is a risk sharing philosophy between the lender and borrower. According to Islamic principles, interest is unethical, as it guarantees a reward for the lender, while the borrower must incur all the risk. This, according to Islamic finance, can lead to exploitative practices.

The second principle is that financial activity must promote social and economic wellbeing. The purpose of finance in Islam is to promote happiness and contentment in this earthly life. Finance is just one part of life and society.

With these guiding principles, the fundamental feature of Islamic finance is to encourage socio-economic justice.  It is for this reason that interest (or riba) is prohibited. Excessive risk (or gharar) is also prohibited, as is excessive gambling or speculation.

Why is interest discouraged or prohibited by Sharia law?

Interest is any pre-agreed fee paid over and above the principal amount, whether it is a personal or commercial loan. Charging interest, according to Sharia law, or making money from money, is unlawful. The major reasons for its condemnation include:

Riba promotes negative growth. It may increase money quantitatively, but essentially, there is no primal progression in social wealth.

Riba disgraces the human spirit. It effectively promotes a culture that places undue significance on that which is monetary, while disregarding that which is human.

Riba is essentially seen as the unlawful acquisition of property.

When entrenched, Riba corrupts society.

Riba is, for all intents and purposes, unjust. While it creates money for the lender, it is extremely oppressive towards the borrower.

What are the steps involved in opening an Alfa-Forex Islamic Account?

Traders who wish to open an Islamic Account should apply directly to the accounts department via the email address supplied on the broker’s website. From here, you will be required to provide supporting documents that prove your religious status.

What is Alfa-Forex’s spread costs on an Islamic Account?

The spread cost on the Islamic Account will be the same as that for the standard account, with average spreads starting at 0.7 pips for the EUR/USD.

What other features does Alfa-Forex’s Islamic Account have?

The Alfa-Forex Islamic account’s trading features will be defined by your selected trading platform.

Those trading with the MetaTrader 4 platform will have the following features:

Those trading with the MetaTrader 5 platform will have the following features:

Those trading with the ZuluTrade platform will have the following features:

Overall Rating

• 3.6/5

Read Review

OPEN AN ACCOUNT

Min Deposit

USD 0

Regulators

CySEC, CBR, SEC, FINRA

Trading Platform

MT4, MT5, Zulutrade

Crypto

Yes

Total Pairs

33

Islamic Account

Yes

Trading Fees

Low

Account Activation

24 Hours

Alfa-Forex Pros and Cons

Conclusion

Yes, a Alfa Forex Islamic account for Muslim faith traders including a swap-free account is offered. The Islamic forex trading environment is ideal for traders following strict sharia law with a fixed fee instead of swap. The fee is not an interest and depends on the direction of the order.

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Frequently Asked Questions

How many instruments can I trade with Alfa-Forex?

Alfa-Forex offers traders a wide range of asset classes which consist of the following:

• Forex
• Metals
• Commodities
• Indices
• Stocks
• CFDs

Which platforms are supported by Alfa-Forex?

MetaTrader 4, MetaTrader 5, and ZuluTrade.

Does Alfa-Forex offer leverage?

Yes. Traders within the EEA will be able to apply for a maximum leverage of 1:30 as per ESMA regulations. Traders elsewhere and professional traders can apply for a maximum leverage of 1:200.

What spreads can I expect with Alfa-Forex?

Alfa-Forex charges standard spreads that start at 0.7 pips for EUR/USD.

Does Alfa-Forex charge commission?

No. Alfa-Forex appears to offer trading which is free of commissions.

Are there additional charges on the Islamic account?

No.

Is Alfa-Forex regulated?

Yes. Alfa-Forex is regulated by the Cypress Securities and Exchange Commission (CySEC), which requires that brokers have special protocols in place to ensure the protection of client funds.

These include the storing of client funds in segregated accounts with top-tier banks as part of the anti-money laundering policy which prevents misappropriation on the broker’s part.

Furthermore, Alfa-Forex participates in a client compensation scheme, whereby clients will be covered for their deposits in the unlikely event of broker insolvency.