KAB Islamic Account

KAB  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

KAB at a Glance

Overall Rating

• 3.5/5

Read Review

OPEN AN ACCOUNT

Min Deposit

USD 100

Regulators

FCA, CySEC

Trading Platform

MT4

Crypto

Yes

Total Pairs

0

Islamic Account

Yes

Trading Fees

Low

Account Activation

24 Hours

Choose your quick section of our KAB Islamic Account below.

Our KAB Islamic Account Revealed:

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

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

KAB Overview

KAB is an online forex broker based in Cyprus and has been operational since 2002.

KAB offers competitive and comprehensive trading conditions with a minimum deposit of $ 100. Trades can trade with a variety of financial instruments that include HK/China Stocks, China IPOs, Cyprus Stock Exchange Equities, Rolling Futures, Spot Metals, Spot Forex, ECN Forex, and Global Futures.

Trading can be done through the opening of four live account types that has their own dynamic, competitive, and comprehensive trading solution. The account types include HK/China Stocks Account, Portfolio Management Account, KAB MT4 Account, and ECN Forex Account.

These accounts provide traders with access to various global markets using KAB’s unique and competitive trading conditions along with the ability to trade using powerful trading platforms such as MetaTrader 4, HK/China Securities Trading Platform, and KAB MT4 Mobile Trading.

Since KAB also has a branch in Kuwait, Muslim traders are offered the option of converting their trading account to an Islamic Account. However, not much information is available on this account type on the broker’s website.

What exactly is a KAB Islamic Account?

An Islamic Account, as offered by most brokers, is not a standalone account. However, some brokers do dedicate one account to being an Islamic or Swap Free account.

Islamic Accounts are mostly 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.

Another especially important feature of an Islamic Account is that transactions must be settled immediately. This requires 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 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.

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 that 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.

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.

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 a KAB Islamic Account?

Islamic Swap-Free accounts are only offered to clients of the Islamic faith and it is subjected to KAB’s approval.

Traders with live accounts can also convert the account into a KAB Islamic Account. It is done through the following steps:

Step 1 – Open a trading account

• Navigate to the KAB website and click on ‘Live’ in the ‘Start Trading’ banner.

Step 2 – Complete the Information

• A new page will open that consists of an online account application that requires the trader to complete some basic information such as full name, email, telephone number, financial information, and trading experience.
• After this has been submitted the trader will be subjected to a ‘Know Your Client’, or KYC, which is a process that will require the submission of relevant documentation to verify the trader’s identity and residential address.
• As soon as all the information and documentation provided are verified by the broker the trader will receive a confirmation email. Now the trader can go ahead, fund the account, and start trading.

The process involved with converting the account may either form part of the registration of the live account or it may only be done once the live trading account has been approved and the trading account has been funded, after which a request for conversion can be done.

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

KAB offers variable spreads that depend on the financial instrument being traded along with the market conditions. Since the Islamic account has similar features as the other live account types.

What other features does KAB’s Islamic Account have?

The Islamic account offered by KAB is not a standalone account and traders have the same account features as other traders.

Features of the Islamic account include:

Tight spreads and competitive commissions.

Access to instant execution and superior execution speeds.

Access to various global markets.

Leverage between 1:20 and 1:500.

Access to all the trading platforms

Dedicated customer support.

Traders should take note that markets open on Sundays at 11 pm CET and close on Fridays at 11 pm CET. In addition, there may be some restrictions and limits which apply to the Islamic Account.

Overall Rating

• 3.5/5

Read Review

OPEN AN ACCOUNT

Min Deposit

USD 100

Regulators

FCA, CySEC

Trading Platform

MT4

Crypto

Yes

Total Pairs

0

Islamic Account

Yes

Trading Fees

Low

Account Activation

24 Hours

KAB Customer Reviews

Really nice experience with…

Really nice experience with the staff and staff in general. We have been very happy to stay through KAB, really good service, so stop now. And completely fair to relocation.
I can only highly recommend KAB to people who want a rental property.
Vh
Melina

Very informative and advisory

Very informative and advisory about the housing situation in Copenhagen and good advice when there are no vacancies in the public housing sector.

Was very sweet to talk to

Was very sweet to talk to when I called them and they solved my problem in no time

KAB Pros and Cons

Conclusion

KAB  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

You might also like: KAB Review

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You might also like: KAB Fees and Spreads

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You might also like: KAB Sign-up Bonus

Frequently Asked Questions

Trading environment

How many instruments can I trade with KAB?

You can trade the following financial instruments:

• HK/China Stocks
• China IPO’s
• Cyprus Stock Exchange Equities
• Rolling Futures
• Spot Metals
• Spot Forex
• ECN Forex
• Global Futures

Which platforms are supported by KAB?

MetaTrader 4, HK/China Securities Trading Platform, and KAB MT4 Mobile Trading.

Does KAB offer leverage?

Yes. Leverage of up to 1: 500.

What spreads can I expect with KAB?

You can expect variable spreads which depend on the type of account and the financial instruments. Typical spreads start from USD 0.50 on spot metals.

Does KAB charge a commission?

Yes. KAB charges commission depending on the financial instrument being traded in as well as the market conditions. Traders with an Islamic account are subjected to the same commissions.

Are there additional charges on the Islamic account?

Not that can be seen on KAB’s website.

Is KAB regulated?

Yes. KAB is regulated by CySEC in Cyprus and CMA in Kuwait.

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

Yes. KAB does offer a trading environment for beginners and the more professional trader, but it focuses more on the professional.

What is the overall rating out of 10 for KAB?

6/10.

Accounts

What is the difference between a demo and a live trading account?

A demo account offers the use of virtual funds instead of actual capital. This allows for risk-free trading as well as exploring both the broker’s offer and the trading platform.

A demo account can be used for a variety of reasons including practice trading, testing trading strategies, exploring platforms and offers, and more.

Does KAB offer a demo account?

Yes. The broker does offer a demo account that has the same features as the live account.

For how long is the demo account valid?

The demo account is valid for 30-days.

Does KAB offer the option of an Islamic Account?

Yes. KAB offers the option of an Islamic Account for traders of the Muslim faith.

Which live trading accounts does KAB offer?

KAB offers an HK/China Account, Portfolio Management Account, a KAB MT4 Account, and an ECN Forex Account.

What are the available deposit currencies for a live trading account?

• EUR
• USD
• GBP

Deposits and withdrawals

What is the minimum deposit for KAB?

$ 100.

How do I make a deposit and withdrawal with KAB?

• Bank Wire Transfer
• UnionPay

Does KAB charge withdrawal fees?

No. However, traders should take note that fees from financial institutions may apply.

How long does it take to make a withdrawal?

This will depend on the payment method used. Transfers through Bank Wire Transfer and UnionPay can take between 1 and several business days.