AMarkets Islamic Account

AMarkets Islamic account is offered for Muslim faith traders including a swap-free account. The Islamic forex trading environment is ideal for traders following strict sharia law with a fixed fee instead of a swap.

AMarkets at a Glance

Overall Rating

• 3.4/5

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Min Deposit

USD 100

Regulators

MISA, FSA, FSC, The Financial Commission

Trading Platform

MT4, MT5

Crypto

Yes

Total Pairs

0

Islamic Account

Yes

Trading Fees

Low

Account Activation

24 Hours

Choose your quick section of our AMarkets Islamic Account below.

AMarkets  Islamic Account – 9 key points quick overview:

1. AMarkets at a Glance
2. AMarkets  Islamic Account – 9 key points quick overview:
3. AMarkets – Overview
4. What exactly is an AMarkets Islamic Account?
5. Which financial activities are restricted and prohibited by Sharia law?
6. What are the steps involved in opening an AMarkets Islamic Account?
7. AMarkets Pros and Cons
8. Conclusion
9. Frequently Asked Questions

Here is our overview of the AMarkets Islamic Account as well as the features that are offered, for Islamic traders.

AMarkets – Overview

AMarkets was established in 2007 and its headquarters in St Vincent and the Grenadines. The broker is regulated by FSA SVG and offers traders comprehensive trading solutions. Traders have the option to trade on a wide variety of financial instruments, such as forex, indices, Shares, Metals, Cryptocurrencies, Bonds, and Commodities. Trading is offered on the popular and powerful MetaTrader 4 and MetaTrader 5 platforms.AMarkets is primarily focused on offering broker services in CIS countries such as Asia and Europe.

Being an offshore broke with corresponding regulation does not always offer the same high standard of protection that brokers, who are well-regulated by strict regulatory entities. However, funds are kept in segregated accounts and AMarkets offer decent trading conditions to its trader.

The broker aims to provide high-quality services along with dedicated support to both traders and partners.AMarkets has won some awards through the years it has been in operation. This includes the award won in 2019 for the Fastest Growing Forex Broker in the Middle East, which was won at the Egypt Invest Expo. In 2011 it won the Investment Expo and Best Educational Program at Show FX. Customers from over 63 countries are not accepted as clients at AMarkets.

What exactly is an AMarkets Islamic Account?

An Islamic Account is not a standalone account, although some brokers dedicate one account to being an Islamic or Swap Free account. This is, however, not the case with AMarkets.This account type is mostly provided by brokers who serve Middle Eastern clients along with clients from other jurisdictions.

It offers certain features that are in line with Sharia law, which prohibits the accumulation of interest on funds deposited into the account. The other important feature of an Islamic Account is that transactions must be settled immediately. This means that currencies be transferred from one account to the other right after the transaction has been completed and therefore paid for in full.

There are two key elements of Islamic law that relate specifically to trading accounts, these elements are:

Riba

Gharar

Riba is the prohibition of generating money from money, which in this case specifically refers to an interest, which is not allowed according to the Sharia law. This type of interest is seen as both unjust and exploitive gains pertaining to trade or business.

Which financial activities are restricted and prohibited by Sharia law?

Due to the restrictions and certain prohibitions placed on Muslim traders when considering the intricate details involved with trading activities, the following is affected greatly:

• Overnight rollovers – which involve the incurrence or receiving of swap points on positions that are held open for longer after the trading day has concluded at the New York close at 5 PM EST which is prohibited by the Sharia law.

• Trading on margin – stocks that are traded on margin result in the trader being liable for paying interest, which amounts to Riba, as money is borrowed from the broker to buy or sell such equities, and which is prohibited by the Sharia law.

• Loans – when followers of the Sharia law have funds transferred by either a bank or other financial institution and it involves interest terms, this is prohibited by the Sharia law as per the key element, Riba.

• Margin deposits and interest – which involves the accrual of interest on funds which are deposited into the trading account, which is prohibited.

• Short sales – which affects mostly shares and involves borrowing and subsequent sale of an asset, which is prohibited.

• Forward sales – which affects forward contracts as well as the trading of futures contracts which involves the buying and selling of contracts at a future date according to a price agreed upon on the day of entering such a contract.

What are the steps involved in opening an AMarkets Islamic Account?

Islamic Swap-Free accounts is only offered to clients of Islamic faith and it is subjected to AMarkets’ approval.

Traders need to first register for either a standard, fixed or ECN account and complete the KYC process. To then qualify for an Islamic Account option, traders must provide proof of their religious affiliation which has been validated by a Muslim religious authority.

What are AMarkets’ spread costs on an Islamic Account?

Spreads that start from 0.3 pips can be expected when using the Islamic account with AMarkets.

What other features does AMarkets’ Islamic Account have?

When making use of the AMarkets Islamic account, traders can expect the following key features:

Spreads start from 0.3 pips.

Ultra-fast and accurate order execution.

No overnight commissions or swaps on forex instruments.

Access to more than 250 financial instruments.

Traders also have access to standard features as indicated on the different live account types, depending on the type of account the trader chooses to convert to an Islamic account. Traders also need to acknowledge that the Islamic account can only be applied to forex trading and that they will not be considered for bonuses or promotions. Traders who hold Islamic Accounts with AMarkets are not charged additional fees relating to wider spreads, higher commissions, or administration fees to offset the absence of overnight fees.

Before requesting conversion to an Islamic Account, traders must ensure that they read, and understand the AMarkets Islamic Trading Account Use Agreement and that they meet the requirements.

AMarkets Pros and Cons

Conclusion

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

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Frequently Asked Questions

Trading environment

How many instruments can I trade with AMarkets?

You can trade the following financial instruments:

• Forex
• Indices
• Stocks
• Metals
• Cryptocurrencies
• Bonds
• Commodities

Which platforms are supported by AMarkets?

MetaTrader 4 and MetaTrader 5.

Does AMarkets offer leverage?

Yes. Leverage of up to 1:1000.

What spreads can I expect with AMarkets?

You can expect wide spreads on the different accounts, namely from 1.3 pips on the Standard account, from 3 pips (fixed) on the Fixed account and 0 pips (floating) on the ECN account.

For Muslim traders using the Islamic account, spreads start from 0.3 pips.

Does AMarkets charge commission?

Yes. Commissions from $2.5/€2.5 are charged per 1 lot on the ECN account.

Are there additional charges on the Islamic account?

Not that can be seen from AMarkets’ website.

Is AMarkets regulated?

Yes. AMarkets is regulated by FSA SVG.

Is AMarkets a recommended forex trading broker for experts and beginners?

Yes. AMarkets offers a trading environment for both beginners and expert traders.

What is the overall rating out of 10 for AMarkets?

7/10.