Capital Index Islamic Account

Capital Index 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 a swap. The fee is not an interest and depends on the direction of the order.

Capital Index at a Glance

Overall Rating

• 3.5/5

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Min Deposit

USD 100

Regulators

CySEC, FCA

Trading Platform

MT4, WebTrader

Crypto

No

Total Pairs

7

Islamic Account

Yes

Trading Fees

Low

Account Activation

24 Hours

Choose your quick section of our Capital Index Islamic Account below.

 Capital Index  Islamic Account – 11 key points quick overview:

1. Capital Index at a Glance
2. Capital Index  Islamic Account – 11 key points quick overview:
3. Capital Index Overview
4. What exactly is an Islamic Account?
5. Which financial activities are restricted and prohibited by Sharia law?
6. What are the steps involved in opening a Capital Index Islamic Account?
7. What are Capital Index’s spread costs on an Islamic Account?
8. What other features does Capital Index’s Islamic Account have?
9. Capital Index Pros and Cons
10. Conclusion
11. Frequently Asked Questions

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

Capital Index Overview

Capital Index is a forex broker with headquarters in Nassau New Providence, Bahamas. The broker serves clients from multiple countries and also has offices in London and Sydney too, from where it offers trading on forex and CFDs as well as spread betting.

Capital Index was founded in 2014 and has expanded into an international brokerage firm under three branded entities: Capital Index (UK) Limited, Sirius Financial Markets Pty Ltd, and Capital Index (Global) Limited.

Capital Index (UK) Limited is authorized by the Financial Conduct Authority (FCA), Sirius Financial Markets Pty Ltd is authorized by the Australian Securities and Investment Commission (ASIC), and Capital Index (Global) Limited is authorized by the Securities Commission of the Bahamas (SCB).

All entities segregate client funds from business capital and the UK branch also offers negative balance protection, so traders are signed up to the Financial Services Compensation Scheme to the tune of £85,000 per client and cannot lose more than their initial deposit.

MetaTrader 4 and WebTrader are provided as trading platforms. All branches of Capital Index including the UK and Global use the MetaTrader 4 (MT4) trading platform which they can access once they have opened an account.

Traders can also access the markets through WebTrader, the desktop version of MT4 that features the same functionality as the original program but with the convenience of trading on any device through any browser.

Capital Index offers a range of assets for trading, including Forex (over 50 forex pairs including majors and minors and 16 exotics), and CFDs (more than 10 indices including the FTSE, plus 5 precious metals and crude oil).

Clients of the UK branch can also place flexible spread bets on the financial markets.

Capital Index announced the launch of a Shariah-compliant trading account in 2016 to attract clients from the Middle East and Africa.

What exactly is a Capital Index Islamic Account?

Islamic accounts, which are in fact swap-free accounts, are compliant with the Sharia law because there is no swap or rollover interest on overnight positions, which is against the Muslim faith.

An Islamic Account may be a standalone account or an account option offered on regular accounts.

Islamic Accounts are often provided by brokers who serve Middle Eastern clients and offer features that are in line with Sharia law, which prohibits the accrual of interest on funds deposited into the account.

Another important feature of an Islamic Account is that transactions must be settled immediately, requiring 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, namely Riba and Gharar. Riba is a concept that refers to increasing or exceeding growth, which forbids interest credited from loans or deposits.

Gharar is an Arabic word associated with uncertainty, deception, and risk, which in modern finance include futures and options contracts, which have dates of delivery in the future.

Which financial activities are restricted and prohibited by Sharia law?

Due to the restrictions and prohibitions on Muslim traders when considering the intricate details involved with trading activities, the following may be affected or prohibited:

Overnight rollovers, because it involves the receiving of swap points on positions that are held open for longer after the trading day has concluded.

Margin deposits and interest, because it involves the accrual of interest on funds that are deposited into the trading account.

Loans are prohibited by Sharia law as per the element of Riba. Followers of the Sharia law are prohibited from having funds transferred by either a bank or other financial institution and involving interest.

Trading on margin results in a trader being liable for paying interest, which also amounts to Riba and is prohibited by Sharia law.

Short sales, which affect mostly shares and involve borrowing and subsequent sale of an asset, are prohibited.

Forward sales are affected. The trading of futures contracts involves the buying and selling of contracts at a future date according to a price agreed upon on the day of entering into such a contract.

What are the steps involved in opening a Capital Index Islamic Account?

Capital Index launched its Shariah-compliant trading account with a view to attracting clients from the Middle East and Africa. The Capital Index Islamic trading account is in strict accordance with Islamic principles and offers followers of the Islamic religion an opportunity to trade the world markets without incurring any Swap or Roll-Over fees on positions held overnight.

The Islamic account may not contain any swap or rollover fees but will still receive all the same benefits as the broker’s most popular ‘Advanced’ trading account. Traders who are eligible for an Islamic Account must complete a live account application and then state that they want to apply for the Islamic option. Capital Index may also require certain additional documents, apart from proof of identity and residential address, before approving an application for an Islamic account.

What are Capital Index’s spread costs on an Islamic Account?

To make up for money lost by not charging overnight fees, a broker like Capital Index usually charges extra fees on Islamic accounts – either in administration fees, wider spreads or additional commissions. New Islamic traders should contact the broker’s customer service team to enquire about any special conditions or extra fees before joining.

What other features does Capital Index’s Islamic Account have?

When making use of the Capital Index Islamic account, traders can expect key features like the following:

Interest is not charged on contracts that are held for more than 24 hours.

Some specific restrictions and limits may apply to the Islamic Account.

Capital Index Pros and Cons

Conclusion

Yes, a Capital Index 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 a swap. The fee is not an interest and depends on the direction of the order.

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Frequently Asked Questions

Trading environment

How many instruments can I trade with Capital Index?

You can trade several different instruments with Capital Index, which include the following:

• Forex – over 50 forex pairs
• CFDs – More than 10 indices
• 5 precious metals and crude oil
• Spread betting – for clients of the UK branch.

Which platforms are supported by Capital Index?

Capital Index provides the following popular trading platforms:

• MT4,
• WebTrader

Does Capital Index offer leverage?

Yes, Capital Index offers maximum leverage of up to 1: 500

What spreads can I expect with Capital Index?

Capital Index offers spreads from 1 pip with the Pro account to 1.4 with the Advanced option. For the tightest spreads of just 0.4 pips, you need an invitation to open a Black account and will need to meet larger deposit and volume requirements.

Does Capital Index charge a commission?

No commission is charged.

Are there additional charges on the Islamic account?

Capital Index does offer an Islamic Account and traders may be charged extra fees on Islamic accounts – either in wider spreads, additional commissions, or administration fees to make up for money that was lost by not charging overnight fees.

Is Capital Index regulated and by whom?

The different brands of Capital Index are regulated by FCA, ASIC, and SCB.

Is Capital Index a recommended forex trading broker for experts and beginners?

Capital Index offers a fair trading environment for most types of traders.

What is the overall rating out of 10 for the Capital Index?

7/10