OneTrade Islamic Account

Our OneTrade Islamic Account Revealed:

• ✔️OneTrade Overview
• ✔️What exactly is an Islamic Account?
• ✔️Why is interest discouraged or prohibited by Sharia law?
• What are the steps involved in opening a OneTrade Islamic Account?
• What is OneTrade’s spread costs on an Islamic Account?
• What other features does OneTrade’s Islamic Account have?
• OneTrade Pros and Cons
• ONETRADE AT A GLANCE

OneTrade Overview

OneTrade is a UK-based DMA broker which was founded in 2010. OneTrade is the trading name of the leading social network, FXStat and offers traders from around the world with the trade in more than 90 financial instruments spread across these asset classes:

• Forex
• Commodities
• Indices

The prices that OneTrade charges form part of competitive trading conditions, and they are aggregated from leading banks, non-banks, MFs, and ECNs with the benefit of low latency trade execution within 10 milliseconds, and less.

Since its establishment, OneTrade has grown and expanded its operations to several other countries, and it became one of the leading forex brokers in the industry. OneTrade provides a proven safe and secure trading environment and ensures that the strict requirements of the FCA are fulfilled.

Traders can expect a dynamic and versatile trading account with OneTrade, with the benefit that Muslim traders can convert their trading account into an Islamic Account, which exempts them from overnight fees and any other interested, prohibited by the Sharia Law.

What exactly is an Islamic Account?

An Islamic, or swap-free, trading account is one which is allowed by the Islamic Sharia law. These accounts are based on the Islamic principle where interest is not applied to positions which are held open for longer than a trading day, after the trading day has concluded.

Islamic Accounts are provided by brokers who serve Middle Eastern clients along with clients from other jurisdictions and offers 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 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 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

Riba is the prohibition of generating money from money, which in this case specifically refers to 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.

Why is interest discouraged or 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 which 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, and 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 such a contract.

What are the steps involved in opening a OneTrade Islamic Account?

To convert the live trading account into an Islamic Account, traders must first complete the registration for the live account. This can be done by navigating to the official OneTrade website, completing the online application, and submitting it.

Once the application is received, OneTrade will assess the trader’s application and their risk tolerance to determine which financial instrument is suitable and appropriate for the trader.

In addition, OneTrade will also review the trader’s proof of identity and residence to verify their identity against the information provided. Once these checks are done and the trading account has been approved, traders can deposit the minimum amount required and request for an Islamic Account conversion to be done.

Traders must note that OneTrade reserves the right to approve or decline a request for an Islamic Account conversion. In addition, OneTrade can also cancel the swap-free or Islamic status of the account if misuse or abuse of the account is noticed.

What is OneTrade’s spread costs on an Islamic Account?

The spreads that traders can expect with OneTrade are variable and start from 0.3 pips EUR/USD.

Variable spreads change according to the financial instrument being traded, the position size, and the market conditions on the day of trading. Traders can expect competitive spreads from OneTrade which are low as result of commissions charged to make up for the broker’s fee.

What other features does OneTrade’s Islamic Account have?

OneTrade only offers one live trading account which can be converted into an Islamic Account. The features that traders can expect with this account include:

• Minimum deposit of $100 (1 482 ZAR)
• Maximum leverage ratio up to 1:100
• Variable spreads which start from 0.3 pips EUR/USD
• Commission charges from $3.50 (52 ZAR)
• Scalping and hedging strategies which can be used
• Overnight interest rates or swaps, which are credited/debited
• The use of Expert Advisors (EAs)
• Access to trailing stops and pending orders
• The ability to use one-click trading and automated trading (forex robots)

In addition to this, traders can also expect access to comprehensive trading solutions such as a comprehensive Multi-Account Management (MAM) solution. The MAM option is offered through the MetaTrader 4 platform which provides money managers with the ability to place orders across several client accounts simultaneously.

There are no additional fees or charges indicated for the Islamic Account. However, there may be certain terms and conditions that traders must acknowledge before they convert their account.

OneTrade Pros and Cons

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FAQ

TRADING ENVIRONMENT

How many instruments can I trade with OneTrade?

You can trade more than 90 financial instruments across these asset classes:

• Forex
• Commodities
• Indices

Which platforms are supported by OneTrade?

OneTrade only offers the use of MetaTrader 4 through which trades can be executed on desktop, mobile, and web browsers.

Does OneTrade offer leverage?

Yes, OneTrade offers leverage of a maximum 1:100.

What spreads can I expect with OneTrade?

You can expect variable spreads which start from 0.3 pips EUR/USD.

Does OneTrade charge commission?

Yes, OneTrade charges commissions of $3.5 (52 ZAR).

Are there additional charges on the Islamic account?

No, there are no additional charges indicated for the Islamic Account.

Is OneTrade regulated and by whom?

Yes, OneTrade is regulated by the reputable Financial Conduct Authority (FCA) in the United Kingdom.

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

Yes, OneTrade is suited to both beginner and expert traders.

What is the overall rating out of 10 for OneTrade?

8/10.

ACCOUNTS

What is the difference between a demo and 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 of 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 OneTrade offer a demo account?

Yes, OneTrade offers a demo account.

How long is the demo account valid?

Typically, demo accounts are available and valid for 30 days.

Which live trading accounts does OneTrade offer?

OneTrade only offers a single trading account.

Does OneTrade offer an Islamic Account?

Yes, OneTrade offers the option for the live trading account to be converted into an Islamic Account.

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

• EUR
• GBP
• USD

DEPOSITS AND WITHDRAWALS

What is the minimum deposit required to open an account with OneTrade?

$100 (1 482 ZAR).

How do you make a deposit and withdraw money with OneTrade?

• Bank Wire Transfer
• Credit/Debit Card
• Skrill
• Neteller

Does OneTrade charge withdrawal fees?

No, OneTrade does not charge withdrawal fees.

How long does it take to make a withdrawal?

Withdrawals can take between a few hours up to several days.