FXTM Islamic Account

FXTM Islamic Account offers an Islamic account 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.

Overall Rating

• 4.6/5

Read Review

OPEN AN ACCOUNT

Min Deposit

USD 200

Regulators

FCA, FSC, FSCA

Trading Platform

MT4, MT5, FXTM Trader

Crypto

No

Total Pairs

0

Islamic Account

Yes

Trading Fees

Low

Account Activation

24 Hours

FXTM Islamic Account – A Key 15-Point Overview

1. ☑️FXTM at a Glance
2. ☑️Overview
3. ☑️What exactly is an Islamic Account?
4. ☑️Which financial activities are restricted and prohibited by Sharia law?
5. ☑️How to enable the SWAP-Free on my trading account?
6. ☑️What are the steps involved in opening an FXTM Islamic Account?
7. ☑️What exactly is a Swap?
8. ☑️What are FXTM’s spread costs on an Islamic Account?
9. ☑️What are FXTM’s Maximum Trades/Orders on an Islamic Account?
10. ☑️What is the minimum deposit amount on FXTM’s Islamic Account?
11. ☑️What other features does FXTM’s Islamic Account have?
12. ☑️What are the pros and cons of FXTM’s Islamic Account?
13. ☑️Customers Reviews
14. ☑️Conclusion
15. ☑️Frequently Asked Questions

FXTM At a Glance

Overview

FXTM is an STP and ECN broker that has been in operation since 2011, with offices in the UK, Cyprus, South Africa, and Mauritius, along with respective authorization and regulation through FCA, CySEC, FSCA, and FSC.

FXTM offers comprehensive and competitive trading conditions with minimum deposits which start from as little as $10, which is equivalent to 160 ZAR, providing traders with access to a wide variety of financial instruments including:

📊 Forex

📊 Commodities

📊Cryptocurrency

📊Stocks

📊 Shares

📊Indices

📊 Metals

📊 Energies, and

📊 CFDs

FXTM facilitates the trading of such financial instruments in its comprehensive offering of a variety of accounts which include:

• Advantage
• Advantage Plus

The minimum deposit that Muslim Traders can expect when opening a live trading account is $10/160 ZAR when registering for a Cent Account. The maximum leverage that FXTM offers is 1:2000 and spreads start from 0.0 pips on the FXTM Pro Account.

For the greater part, FXTM offers commission-free trading unless traders make use of the ECN Account which has commissions of $2 charged per lot.

Muslim traders have the option of converting their live trading account to that of an Islamic Account provided that it is not a Stocks Account.

In addition, when using the ECN, ECN Zero, Standard, and FXTM Pro Accounts, Muslim traders can only convert their account to an Islamic account if they are using MetaTrader 4 as their trading platform.

This condition does not apply when using either the Cent or the Stocks CFD Account as these accounts are not limited to the trading platform when converting the account to an Islamic Account.

Muslim traders need to note that the Swap Free, or Islamic Account, option is not a permanent conversion of the live trading account, but that, depending on the financial instrument traded, the Swap Free option can be used for between 2 and 10 days.

Should the position that is held open, subject to the limited days it may stay open, be held for longer than the indicated number of days per instrument, traders will be charged the swap applicable to the financial instrument.

What exactly is an Islamic Account?

An Islamic Account, for the greater part as offered by most brokers, is not a standalone account, although some brokers dedicate one account to being an Islamic or Swap Free account, in most cases, this is an option offered by especially Forex brokers.

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

The other 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, these elements are:

• Riba, and
• 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 Sharia law. This type of interest is seen as both unjust and exploitive gains pertaining to trade or business.

Gharar can simply be defined as the act of gambling, which is strictly prohibited by Sharia law. In addition, the Arabic word also suggests an element that surrounds a certain level of deception through hazardous sales or risky investments.

According to Gharar, the speculation involved with price movements of Forex and CFDs is considered gambling, which refers back to deception, hazardous sales, and risky investments.

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.

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

☪️ 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.

☪️ 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, which is prohibited by the Sharia law.

☪️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 into such a contract.

How to enable the SWAP-Free on my trading account?

Step 1: Log in to your MyFXTM Dashboard

Step 2: Navigate to the “My accounts – Accounts overview” menu from the left-hand side.

Step 3: Click on the orange arrow next to “Deposit” and click “Enable SWAP Free”

Step 4: In the Pop-up window click “Ok”.

How to open an FXTM Islamic Account

To convert the trading account into that of an FXTM Islamic Account, Muslim traders can follow these steps:

Step 1: Navigate to the FXTM website.

Navigate to the FXTM website and select ‘Open account’ to sign up with FXTM.

Step 2: Register your details

you will be redirected to a new page that features an online application requiring the trader’s First and Last Name, country of residence, mobile phone number, email address, and a user-selected password.

Step 3: Verify your details through the  FXTN OTP PIN.

Once completed, select the ‘Send PIN’ option to have an OTP sent to the mobile number provided, verifying the number. The OTP/PIN can be entered in the field provided. Once this is complete, traders can select ‘Register Now’ to complete the application.

Step 4: Submit Proof

If you are Muslim and Look to trade SWAP-free, you can submit proof of your Islamic faith by filling out the contact form.

A document that can serve as proof of Islamic faith is a certification from a recognized religious authority, such as an Islamic scholar, imam, or mosque.

What exactly is a Swap?

A swap can be defined simply as an agreement into which two parties enter which relates to exchange sequences of cash flows over a set period of time normally at the time the contract is initiated.

During this, there is at least one of the series of cash flows that is subjected to a random and uncertain variable that involves an interest rate, a foreign exchange rate, an equity price, or a commodity price.

When trading Forex, for instance, there is a limited amount of time in which traders have to close open positions before a certain market closes at a specified time. Should the position remain open, this will attract an overnight or rollover fee, which is a type of interest.

As previously mentioned, Muslim traders who follow the Sharia law are, amidst other activities, prohibited from paying such interest.

To accommodate traders of the Muslim faith, that follow the Shariah Law, brokers offer the option of an Islamic Account, or a Swap-Free account so that they would not be exempted from being able to conduct trading activities that are against their religion.

FXTM offers Muslim traders the option of converting their live trading account, despite the type, to that of an Islamic or Swap Free account to accommodate these prohibitions along with any other restrictions placed on traders due to this law.

What are FXTM’s spread costs on an Islamic Account?

💳 FXTM’s spreads start from 0.0 pips on the FXTM Pro Account.

💳 Seeing that the Islamic Account is not provided as a standalone account, Muslim traders are not exempted from normal trading conditions such as spreads that do not generate interest, and thus Muslim traders are still subjected to such trading fees.

What are FXTM’s Maximum Trades/Orders on an Islamic Account?

The Maximum Trades/Orders on an Islamic Account are the same despite the Swap-Free option and are determined by the type of live trading account the trader has. These limits are as follows:

📉 Standard Account – 100 lots.

📉 Cent Account – 300 lots.

📉 Shares Account – 100 lots.

📉 ECN, ECN Zero, and FXTM Pro Accounts – unlimited orders.

What is the minimum deposit amount on FXTM’s Islamic Account?

$10 when opening a Cent Account, which is equivalent to 160 ZAR

Despite the Islamic Option, Muslim traders are required to open a live trading account, choosing from FXTM’s various options depending on the trading needs and objectives and the trader.

Muslim Traders will have to make the minimum deposit which varies between accounts, before having access to select the option of an Islamic Account.

What other features does FXTM’s Islamic Account have?

Seeing that the Islamic Account option offered by FXTM cannot be seen as a standalone account, traders have access to the same accounting features as other traders.

Depending on the type of live account that the trader chooses, the features vary greatly across most accounts.

Traders need to keep in mind that access to MetaTrader 5 is limited for Muslim Traders unless they register either a Cent or Stocks CFDs Account.

Some of the account features offered by FXTM include, but are not limited to:

• Standard Account – Floating leverage from 1:2000, instant order execution, spreads from 1.3 pips, 40% margin call, and a stop out of 20%.
• Cent Account – Fixed leverage from 1:1000, instant order execution, spreads from 1.5 pips, 60% margin call, and a stop out of 40%.
• Stocks CFD Account – Fixed leverage of 1:10 for US Shares and 1:3 for EU Shares, instant execution, spreads from 0.1 pips, 40% margin call, and a stop out of 20%.
• ECN Account – Floating leverage form 1:2000, market execution, commissions charged at $2 per lot, spreads from 0.1 pips, 80% margin call, and a stop out of 50%.
• ECN Zero Account – Floating leverage from 1:2000, market execution, spreads from 1.5 pips, 80% margin call, and a stop-out level of 50%.
• FXTM Pro Account – Floating leverage from between 1:25 and 1:200, market execution, spreads from 0 pips, margin call of 80%, and a stop-out level of 50%.

What are the pros and cons of FXTM’s Islamic Account?

Through the provision of an Islamic Account, brokers like FXTM ensure that Muslim traders who follow the Shariah Law are able to trade Forex financial instruments as well as futures without having to pay any overnight fees pertaining to open positions.

While complying with the Shariah Law, Islamic Account holders can enter into trades without having to worry about losing their positions before the trading day ends.

Muslim traders need to note that the Swap Free, or Islamic Account, option is not a permanent conversion of the live trading account, but that, depending on the financial instrument traded, the Swap Free option can be used for between 2 and 10 days.

Should the position that is held open, subject to the limited days it may stay open, be held for longer than the indicated number of days per instrument, traders will be charged the swap applicable to the financial instrument.

Overall Rating

• 4.6/5

Read Review

OPEN AN ACCOUNT

Min Deposit

USD 200

Regulators

FCA, FSC, FSCA

Trading Platform

MT4, MT5, FXTM Trader

Crypto

No

Total Pairs

0

Islamic Account

Yes

Trading Fees

Low

Account Activation

24 Hours

Customer Reviews

🥇Excellent Educational Resources

FXTM’s platform is user-friendly, and its educational resources are excellent. Their spreads are competitive, especially for those with larger account balances. However, their customer support could be more proactive. Reviewed: John Doe

🥈Happy Customer

FXTM offers a wide range of assets with competitive spreads, from forex to cryptocurrencies. Their support is responsive, and education materials are helpful. Reviewed: Maria Ramirez

🥉Great Choice

FXTM is a well-regulated broker with a diverse range of assets. Their spreads are competitive, and their educational materials are comprehensive. Reviewed: Lee Kim

Conclusion

ForexTime is an award-winning broker for a good reason. Whatever a client’s financial interests, they can provide trading solutions to suit.

FXTM offers the widest selection of instruments, platforms, account types, and resources to make the trading experience as convenient and efficient as possible.

FXTM is regulated by several financial authorities globally, including the top-tier Financial Conduct Authority (FCA), and their customer support gives fast and relevant answers.

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Frequently Asked Questions

Does FXTM have the option of a swap-free Islamic Account?

Yes, there is a swap-free Islamic account option available on all account types, except MT5.

When are swaps calculated on the FXTM Islamic account?

Swaps are calculated between 23:59:45 – 00:00:00 (EET), from Monday to Friday.

Are there additional charges on the Islamic account?

No, but the Islamic Account option is not fixed, it is subjected to a certain period within which it can be used with the number of days depending on the financial instrument being traded.

Is MT4 halal or haram?

It can be used by Muslims for halal trading.

Which trading is best for Muslims?

It has been determined by Muslim scholars that forex trading is halal, as long as the trading adheres to several principles

Why is the SWAP-free option not available to me?

Muslim traders can opt for a swap-free account to adhere to Islamic principles. In conventional trading, swaps involve interest, which is prohibited in Islamic finance. A swap-free account eliminates interest-related charges, aligning with Sharia law that forbids usury. This accommodation allows Muslim traders to participate in the financial markets while adhering to their religious beliefs, promoting ethical and interest-free financial transactions. Swap-free accounts offer an inclusive option for individuals seeking to combine their faith with their trading activities.