CM Trading offers Islamic swap-free trading options on all 4 of their trading accounts. Swap-free accounts carry no swap charges or rollover interest to traders on positions held overnight, according to research in South Africa.
CM Trading’s Islamic account benefits – at a glance
When making use of the CM Trading Islamic account, traders can expect the following 7 benefits:
| Benefits | |
| ☪️ Interest-free | ✔️ Yes |
| ☪️ Swap-free | ✔️ Yes |
| ☪️ Trade financial instruments | ✔️ Yes |
| ☪️ Financial instruments excluded | ❌ Cryptocurrency and stocks |
| ☪️ Instant execution of trades | ✔️ Yes |
| ☪️ Instant settlement of transactions | ✔️ Yes |
| ☪️ Zero rollover interest on trades | ✔️ Yes |
- ✔️Interest-free trading is allowed
- ✔️Swap fees are not charged
- ✔️Trade financial instruments as you wish
- Financial instruments excluded, cryptocurrencies and stocks
- Instant execution of trades is allowed
- Instant settlement of transactions is available
- Zero rollover interest on trades is available
A Quick Overview of our CM Trading Islamic Account Review:
- ✔️CM Trading’s Islamic account benefits – at a glance
- ✔️A Quick Overview of our CM Trading Islamic Account Review:
- ✔️Which financial activities are restricted and prohibited by Sharia law?
- What is an Islamic Account?
- What are the steps involved in opening a CM Trading Islamic Account?
- What are CM Trading’s spread costs on an Islamic Account?
- Overview of CM Trading
- CM Trading at a glance
- CM Trading Islamic account Pros and Cons
In addition, there may be some restrictions and limits which apply to the Islamic Account.
Before registering an account, traders should ensure that they contact the Middle Eastern support desk to find out more regarding such restrictions and/or limits.
Which financial activities are restricted and prohibited by Sharia law?
Due to the restrictions and prohibitions placed on Muslim traders when considering the intricate details involved with trading activities, the following 6 financial activities are restricted:
| ❌ Restrictions | 📝 Definition |
| ☪️ Overnight rollovers | This involves the incurrence or receiving of swap points on positions that are held open for longer after the trading day has concluded which is prohibited by Sharia law. |
| ☪️ Margin deposits and interest | This involves the accrual of interest on funds that are deposited into the trading account, which is prohibited. |
| ☪️ Loans | When followers of Sharia law have funds transferred by either a bank or other financial institution and it involves interest terms, it is prohibited by Sharia law as per the key element, Riba. |
| ☪️ Margin traded stocks | Stocks that are traded on margin and result in the trader being liable for paying interest, amounts to Riba, since money is borrowed from the broker to buy or sell such equities, and this is prohibited by the Sharia laws. |
| ☪️ Short sales | Affects mostly shares and involves borrowing and subsequent sale of an asset and are prohibited. |
| ☪️ Forward sales | Affects forward contracts as well as the trading of futures contracts and involve the buying and selling of contracts at a future date according to a price agreed upon on the day of entering such a contract. |
- Overnight rollovers – this involves the incurrence or receiving of swap points on positions that are held open for longer after the trading day has concluded which is prohibited by Sharia law.
- Margin deposits and interest – this involves the accrual of interest on funds that are deposited into the trading account, which is prohibited.
- Loans – Followers of Sharia law have funds transferred by either a bank or other financial institution and it involves interest terms, it is prohibited by Sharia law as per the key element, Riba.
- Margin traded stocks – and result in the trader being liable for paying interest, amounts to Riba, since money is borrowed from the broker to buy or sell such equities, and this is prohibited by the Sharia laws.
- Short sales – affects mostly shares and involve borrowing and subsequent sale of an asset and are prohibited.
- Forward sales – affects forward contracts as well as the trading of futures contracts and 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.
Min Deposit USD 300 Regulators FSA, FSCA Trading Platform MT4, PandaTS, Webtrader Crypto Yes Total Pairs 174+ Islamic Account Yes Trading Fees Low Account Activation 24 Hours
What is an Islamic Account?
An Islamic Account, as it is usually offered by most brokers, is often not a standalone account, although some brokers may dedicate one account to be an Islamic or Swap Free account.
In many cases, the swap-free account is offered as an option by especially Forex brokers.
Islamic Accounts are more often provided by brokers who serve Middle Eastern clients along with clients from other jurisdictions, hence it offers certain features that are in line with Sharia law which prohibits the accrual of interest on funds deposited into an account.
The other important feature on 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 being paid for in full.
There are two key elements of the Islamic law that relate specifically to trading accounts, these elements are Riba and Gharar.
According to Islam, if one would exchange the same set of goods/currencies with various values it would be considered Riba (unjustified interest) and unlawful. Furthermore, currency exchange may be done under the same contract at the time it was signed, in other words, a hand-to-hand exchange, which is allowed.
Riba is the prohibition of generating money from money, which in this case specifically refers to interest and is not allowed according to Sharia law. This type of interest is seen as both unjust and exploitive gains pertaining to trade or business.
The word Gharar means uncertainty, hazards, or risk. In Islamic finance, Gharar is prohibited because it runs counter to the notion of certainty and openness in business dealings.
What are the steps involved in opening a CM Trading Islamic Account?
Traders who are eligible for an Islamic Account must usually first complete a live account application and can then apply for the Islamic Account. There may be more documents, apart from proof of identity and residential address, that CM Trading may require before approving an application for an Islamic account.
Follow these 3 steps to open a CM Trading Islamic swap-free account:
1. Step 1 – Register a new account click here, this will open up a new screen where you will get access to register your new account.
2. Step 2 – Fill out the form with all your necessary details. This info will include details such as your first name, last name, email address, and mobile number. Remember to accept the T&C’s.
3. Step 3 – Choose your account type, in this case, the Islamic swap-free account. If you wish to practice trading then choose a Demo account, or you can start trading by immediately choosing your account type.
Funds must be transferred in the same currency as the bank account to which they are sending them. Should this not be done, traders may be subjected to currency conversion fees. Make a deposit to activate your account.
What are CM Trading’s spread costs on an Islamic Account?
Traders may expect extra fees on Islamic accounts – are either in wider spreads, additional commissions, or administration fees to make up for money that they lose with not charging overnight fees.
New Islamic traders should enquire about these special conditions or extra fees before joining, because it is often overlooked or not indicated on the account features pages
Overview of CM Trading
CM Trading is a brand name used by Blackstone Marketing SA(PTY)LTD and is one of the largest brokers in South Africa.
CM Trading is based in Johannesburg, and is regulated as a financial institution by the local Financial Services Board (FSB) of South Africa and is registered with the FSCA website as Blackstone Marketing SA (PTY) LTD.
CM Trading delivers secured trading through their own SSL security systems while clients’ funds are held in segregated accounts.
The broker provides state-of-the-art trading platforms that enable traders to trade Forex, Index, and Commodities, including Cryptocurrencies.
CM Trading provides MT4 along with Sirix, and a copy trading platform CopyKat for best copying practices to learn about trading.
CM Trading has accumulated many awards during its years of service to traders, including being a finalist at the 17th Annual Business Awards Ceremony. They have won several other awards for excellent services, including being named the Best Financial Broker for 3 years in a row and Best Performing Broker in Africa for 2017.
More accolades include that Fastest Withdrawal (2018), Fastest growing Financial Broker Middle East for 2018, Best Education in Africa for 2018, Best Forex Broker in Africa for 2018 and Best Financial Broker in Africa for 2019.
CM Trading at a glance
| Broker's Name | CM Trading |
| 🏛️ Headquartered | Johannesburg, South Africa |
| 📅 Year Founded | 2011 |
| ⚖️ Regulating Authorities | FSCA, FSA |
| 🌐 Countries not accepted for trade | Not indicated |
| ☪️ Islamic account (swap-free) | Yes |
| 👍 Demo Account | Yes |
| 📊 Institutional Accounts | Yes |
| 📊 Managed Accounts | Yes |
| 📈 Maximum Leverage | 1:200 |
| 💰 Minimum Deposit | $100 / ZAR R1 600 |
| 💳 Deposit Options | Visa card , MasterCard, Bank Wire, EFT, OZOW, Skrill, Neteller, Mpesa, Local Mobile Money, Cryptocurrencies |
| 💳 Withdrawal Options | Visa card, MasterCard, Bank Wire, OZOW, Skrill, Neteller, Mpesa, Local Mobile Money, Cryptocurrencies |
| 💻 Platform Types | MT4, PandaTS, Webtrader |
| 📱 OS Compatibility | Desktop platforms (Windows, Mac), Web platform, Mobile: Android, iOS |
| 📈 Tradable assets offered | Currencies, Cryptocurrencies: (Bitcoin, Litecoin, Ethereum), CFDs: (Gold, Silver, Other) Precious Metals, Stocks, Stock Indexes, Oil, and Other Commodities |
| 👨💼 Languages supported on Website | English Arabic and Spanish. |
| 👥 Customer Support Languages | English Arabic and Spanish. |
| 📆 Customer Service Hours | Weekdays 8am – 9pm, Sunday 9am – 1pm |
CM Trading Islamic account Pros and Cons
| ✔️ Pros | ❌ Cons |
| Established in 2011 | Does not offer VPS |
| Islamic accounts available | Limited range of instruments |
| Minimum deposit from $100 / ZAR R1600 | |
| Regulated by FSCA and FSB | |
| Segregates client funds from own funds |
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Frequently Asked Questions
Does CM Trading have an Islamic Account?
CM Trading does have an Islamic swap-free trading option on all 4 of their trading account types.
What financial instruments can I trade with CM Trading Islamic account?
You can trade any financial instrument with the Islamic account, except for cryptocurrencies and stocks.
Are there additional charges on the Islamic account?
Some brokers charge extra fees on Islamic accounts – are either in wider spreads, additional commissions, or administration fees to make up for money that they lose with not charging overnight fees.
New Islamic traders should enquire about these special conditions or extra fees before joining, because it is often overlooked or not indicated on the account features pages.
Trading environment
How many instruments can I trade with CM Trading?
You can trade several different instruments with CM Trading, which include the following:
- Currencies: (50+)
- Cryptocurrencies: (4) Bitcoin, Litecoin, Ethereum
- CFD: (95+) Gold, Silver, Other Precious Metals, Stocks, Stock Indexes, Oil, Other Commodities
Which platforms are supported by CM Trading?
CM Trading provides the following popular trading platforms:
- MT4
- Sirix
- CopyKat
Does CM Trading offer leverage?
Yes, CM Trading offers maximum leverage of up to 1: 200.
What spreads can I expect with CM Trading?
CM Trading offers different spreads on its various accounts, starting from 0.9 pips.
Does CM Trade charge commission?
Yes.
Is CM Trading regulated and by whom?
CM Trading is regulated by the Financial Services Board (FSB) and FSCA in South Africa.
Is CM Trading a recommended forex trading broker for experts and beginners?
CM Trading offers the best trading environment for most types of traders.
What is the overall rating out of 10 for CM Trading?
8/10.
Accounts
What is the difference between a demo and a live trading account?
A demo account as is offered by broker companies like CM Trading is usually funded with virtual money and gives a prospective customer the opportunity to experiment with the company’s trading platforms and its features.
Does CM Trading offer a demo account?
Yes, a demo version of every account type can be opened.
Can I convert my demo account to a live trading account with CM Trading?
This is not clear from the information on the company homepage.
Which live trading accounts does CM Trading offer?
- Bronze Account
- Silver Account
- Gold Account
- Premium Account.
- Islamic Account
What are the available deposit currencies for a live trading account?
USD and EUR.
Deposits and withdrawals
What is the minimum deposit required to open an account with CM Trading?
$100 / ZAR R1 600
How do you make a deposit and withdraw money with CM Trading?
CM Trading offers the following deposit and withdrawal methods:
- Visa card
- MasterCard
- Bank Wire
- EFT
- OZOW
- Skrill
- Neteller
- Mpesa
- Local Mobile Money
- Cryptocurrencies, all major cryptocurrencies
Does CM Trading charge withdrawal fees?
Yes, more information can be obtained from the company’s customer service team.
How long does it take to make a withdrawal?
Withdrawals take two to three business days but depending on bank services it may take several days longer for the money to be available in a customer’s bank account.
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