IC Markets Islamic Account

IC Markets Islamic Account – 13 key points quick overview:

1. ☑️Overview
2. ☑️IC Markets at a Glance
3. ☑️What exactly is an Islamic Account?
4. ☑️Which financial activities are restricted and prohibited by Sharia law?
5. ☑️How to open an IC Markets Islamic Account
6. ☑️What exactly is a Swap?
7. ☑️What are IC Market’s spread costs on an Islamic Account?
8. ☑️What is IC Markets’ Maximum Trade/Orders on an Islamic Account?
9. ☑️What other features does IC Markets’ Islamic Account have?
10. ☑️Customer Reviews
11. ☑️Pros and Cons
12. ☑️Conclusion
13. ☑️Frequently Asked Questions

Overview

IC Markets was founded in 2007 and is a well-known Forex and CFD broker known for its dedication to offering high-quality trading services to clients worldwide, including those in South Africa.

One of the primary characteristics that distinguishes IC Markets is its significant emphasis on technology and innovation, which is visible in its comprehensive trading platforms and tools.

The broker offers the popular MetaTrader 4 and 5 platforms and the cTrader platform to South African traders, all noted for their user-friendly interfaces and comprehensive trading capabilities.

These platforms cater to traders of all experience levels and are compatible with various devices, ensuring accessibility and ease.

IC Markets also interfaces with multiple trading tools and applications, boosting the trading experience with automated trading and extensive charting features.

Traders rely on liquidity and execution speed, and it excels in both areas by offering access to a large liquidity pool and ensuring quick trade execution without requotes.

This is especially useful for South African traders who use high-frequency trading or scalping tactics.

The broker’s competitive pricing structure is another key benefit for South Africans dealing with IC Markets.

They boast tight spreads on key currency pairings starting at 0.0 pips and a straightforward pricing mechanism with no hidden costs.

This is critical for cost-conscious traders searching for value in their trading costs.

IC Markets at a Glance

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 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 exploitative 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 greatly affected:

• 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 Sharia law.
• Margin deposits and interest involve 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.
• Margin trading – 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.
• Short sales – which affect mostly shares and involve borrowing and subsequent sale of an asset, which is prohibited.
• Forward sales, which affect forward contracts as well as the trading of futures contracts, involve 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 open an IC Markets Islamic Account

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

Step 1 – Select the option “open account”

Traders can navigate to the IC Markets website and select the relevant banner to start the online application by clicking on the “open account” option.

Step 2 – Complete information

Complete all the personal information sections and select Next.

Step 3 – Select your trading platform

Select the account you would like to trade in from the list, with Standard- & Raw accounts being the options that allow for Swap-free selection.

Step 4 – Security Question & Answer

Select a security question and answer, as well as read through the terms and conditions. Once ready, select submit.

Step 5 – Verification

Security verification to be completed

When these required fields have been completed, traders will be required to upload supporting documentation to prove both their identity and their residential address as part of the ‘Know Your Client’, or KYC, procedure.

Once this has been completed, traders can fund their account with the minimum deposit and proceed to request their live trading account to be converted into an Islamic Account.

What exactly is a Swap?

A swap can be defined simply as an agreement into which two parties enter that relates to the exchange 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, who 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.

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

What are IC Markets’ spread costs on an Islamic Account?

IC Markets’ spreads start from 0.0 pips when using either the cTrader or MetaTrader Raw Spread Accounts and 1 pips when using the MetaTrader Standard 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 is IC Markets’ Maximum Trade/Orders on an Islamic Account?

The maximum number of trades that Muslim Traders can have open at a given time is 200, and this includes any pending orders as well.

Furthermore, the maximum volume per trade depends on the financial instrument being traded and ranges from 50 lots up to 500 lots.

What is the minimum deposit amount on IC Markets’ Islamic Account?

The minimum deposit amount on the IC Markets Islamic Account is $200 / R 3200 ZAR

Despite converting the live trading account, regardless of the type of account, to that of an Islamic Account, Muslim traders are subjected to the set minimum required deposit amount.

This amount is fixed across all account types, this is to ensure the minimum margin requirement is covered.

Muslim traders are not limited by their initial deposit, but $200 is the minimum recommended amount to open a live trading account and start trading.

Overall Rating

• 4.7/5

Read Review

OPEN AN ACCOUNT

Min Deposit

USD 200

Regulators

ASIC, CySEC, FSA, SCB

Trading Platform

MT4, MT5, WebTrader

Crypto

Yes

Total Pairs

61

Islamic Account

Yes

Trading Fees

Low

Account Activation

24 Hours

What other features does IC Markets’ Islamic Account have?

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

6 Accounting features that are standard across all accounting types include:

• Access to more than 90 tradable financial assets
• Leverage up to 1:500
• Spreads from as low as 0.0 pips on the cTrader and MetaTrader Raw Spread Accounts.
• No additional costs in place of swaps.
• Low commission charges on trades.
• Access to MetaTrader 4 and MetaTrader 5.

Customer Reviews

🥇 Delighted!

I used the chat facility to contact IC Markets customer care at 7 a.m. one morning. I was pleasantly delighted to be instantly connected with a skilled agent. They answered my question and pointed me to several useful tools on their website, improving my overall experience. – Olivia Meyer

🥈 Best Broker!

As an experienced trader, I believe IC Markets is the best, well-rounded broker in the industry. Whatever my favorite trading instruments are, I can always rely on them to be available. The variety of alternatives is astounding. It’s the same with trading tactics; regardless of my approach, IC Markets has an account and trading platform that precisely meets my needs. – Caleb Botha

🥉 Great Support.

I recently ran into issues while attempting to fund my sample account and balance with the broker. Fortunately, I contacted their customer service, and they answered quickly. After explaining my situation, the support crew immediately sorted it, and I received the additional required funds. – Hannah Viljoen

Pros and Cons

Conclusion

IC Markets offers Islamic swap-free accounts on 2 types of accounts, Raw Spread-, & Standard accounts. The swap-free options are available on the MT4, MT & cTrader Platforms. With spreads from 0.0 pips and leverage at 1:500, with no additional cost in place of swaps.

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Frequently Asked Questions

What is the overall rating out of 10 for IC Markets?

The overall rating for this broker is 8/10.

Are there any additional charges on the IC Markets Islamic account?

Islamic or swap-free accounts do not pay or earn swaps or interest, where a small financing charge is applied overnight. Open trades for more than 1 day are subject to a flat-rate financing charge by IC Markets.

What is a Forex Islamic account?

These are accounts for traders of the Muslim faith who want to trade forex in accordance with their religious belief of not accumulating any interest (or Riba).  Riba is prohibited under Sharia law.