Pacific Financial Derivatives – Islamic Account

Pacific Financial Derivatives offers an Islamic Account to traders of the Muslim faith, which can be opened as a swap-free version of any of the three swap-rated accounts with the same access to all the trading conditions, tools, and features.

Pacific Financial Derivatives at a Glance

Overall Rating

• 4.0/5

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OPEN AN ACCOUNT

Min Deposit

USD 1

Regulators

FMA

Trading Platform

MT4

Crypto

Yes

Total Pairs

0

Islamic Account

Yes

Trading Fees

Low

Account Activation

24 Hours

Pacific Financial Derivatives  Islamic Account – 11 key points quick overview:

1. Pacific Financial Derivatives at a Glance
2. Pacific Financial Derivatives  Islamic Account – 11 key points quick overview:
3. Pacific Financial Derivatives Overview
4. What exactly is a Pacific Financial Derivatives Islamic Account?
5. Why is interest discouraged or prohibited by Sharia law?
6. What are the steps involved in opening a Pacific Financial Derivatives Islamic Account?
7. What are Pacific Financial Derivatives’ spread costs on an Islamic Account?
8. What other features does Pacific Financial Derivatives’ Islamic Account have?
9. Pacific Financial Derivatives Customer Reviews
10. Pacific Financial Derivatives Pros and Cons
11. Frequently Asked Questions

Pacific Financial Derivatives Overview

Pacific Financial Derivatives is an online Forex broker that was first established in 1991 in New Zealand where the company is still headquartered today.

Pacific Financial Derivatives provides a user-friendly trading environment that is beginner-friendly, with access to a wide range of popular asset classes and tradable instruments.

As such, Pacific Financial Derivatives provides trading in Spot Foreign Exchange, Spot Metals, Spot Oil, Commodities, CFDs, Indices, and deals in Futures CFD Contracts for small, medium, and large investors and market participants across the globe.

Trading is facilitated on the world-renowned MetaTrader 4 platform from MetaQuotes, with a variety of different account choices offering varying trading conditions, each attached to the feature-rich MetaTrader software environment.

These accounts are all available as swap-free, Islamic versions.

Pacific Financial Derivatives offers a Dealing Desk model, which means that traders are given direct access to the best prevailing market prices with no intervention from the broker. This allows for a transparent and competitive pricing environment.

Spreads average at around 0.4 pips for major currency pairs like EUR/USD and commission-free trading is offered across most accounts. Where commission is charged, it is competitively priced at $1 charged per side per lot on the PFDPro Account.

Pacific Financial Derivatives has a minimum deposit requirement of just $1, which is extremely low and provides no barrier of entry to beginner traders.

This low minimum deposit is further complemented by a relatively comprehensive educational offering, which consists of a Forex glossary of terms, an introduction to Forex, and a useful economic calendar.

Deposit security is guaranteed with Pacific Financial Derivatives due to the broker’s regulatory status and their compliance measures towards ensuring client funds are safe.

Pacific Financial Derivatives was initially authorized in 1999 by the former Securities Commission as an Authorised Introducing Broker with the NZ Futures & Options Exchange, then as an NZX Futures & Options Participant Firm.

In 2011, the Financial Markets Authority accredited the Company as an Authorised Futures Dealer. In 2015, the Financial Markets Authority licensed PFD as a Derivatives Issuer as per the Financial Markets Conduct Act 2013.

What exactly is a Pacific Financial Derivatives Islamic Account?

To better understand Islamic forex trading, it is important to first gain an insight into the guiding principles of Islamic finance.

📍 To this end, Islamic finance differs significantly from conventional finance in that it is guided by a set of ethics rather than by a purely profit motive. As such, two principles guide Islamic finance as below:

The first principle is a risk-sharing philosophy between the lender and borrower. According to Islamic principles, interest is unethical, as it guarantees a reward for the lender, while the borrower must incur all the risk. This, according to Islamic finance, can lead to exploitative practices.

The second principle is that financial activity must promote social and economic well-being. The purpose of finance in Islam is to promote happiness and contentment in this earthly life. Finance is just one part of life and society.

With these guiding principles, the fundamental feature of Islamic finance is to encourage socio-economic justice.  It is for this reason that interest (or riba) is prohibited. Excessive risk (or gharar) is also prohibited, as is excessive gambling or speculation.

Why is interest discouraged or prohibited by Sharia law?

📍 Interest is any pre-agreed fee paid over and above the principal amount, whether it is a personal or commercial loan. Charging interest, according to Sharia law, or making money from money, is unlawful. The major reasons for its condemnation include:

Riba promotes negative growth. It may increase money quantitatively, but essentially, there is no primal progression in social wealth.

Riba disgraces the human spirit. It effectively promotes a culture that places undue significance on that which is monetary, while disregarding that which is human.

Riba is essentially seen as the unlawful acquisition of property.

When entrenched, Riba corrupts society.

Riba is, for all intents and purposes, unjust. While it creates money for the lender, it is extremely oppressive to the borrower.

What are the steps involved in opening a Pacific Financial Derivatives Islamic Account?

A Pacific Financial Derivatives Islamic Account can be opened in one of two ways, either as an online sign-up or as a paper mode account.

The online sign-up option is available for individual clients only and is intended to be completed in conjunction with the relevant provisions of the Client Services Agreement.

Step 1 – Open Your Account

The first step is to register online with a username, email, and password. You will receive an auto-email to the registered email id with your chosen username and password and a link page.

Step 2 – Fill out the form

You may click on the link to activate the online registration to further complete the online sign-up.

Once the registration is activated by clicking on the link page, you can log in immediately using the username and password to complete the online signup.

The paper-mode account opening process has a separate set of steps.

Once you have decided which of the account forms is right for you, please download the corresponding PDF form from the Pacific Financial Derivatives website.

You will then be required to provide a copy of each photo-identification document for all directors/authorized signatories.

This must be followed by a copy of the bank deposit slip/bank account statement/credit card statement or other notice of confirmation issued by a bank or any utility accounts showing the name and current address of all directors/authorized signatories.

You will also be required to provide supporting documents that confirm your religious status.

These documents must be sent to the Pacific Financial Derivatives’ physical address to complete the paper-mode registration process.

Funding your account once the account is set up is quite easy. You have the choice between the classical Swift transfer and fast and easy online funding.

Overall Rating

• 4.0/5

Read Review

OPEN AN ACCOUNT

Min Deposit

USD 1

Regulators

FMA

Trading Platform

MT4

Crypto

Yes

Total Pairs

0

Islamic Account

Yes

Trading Fees

Low

Account Activation

24 Hours

What are Pacific Financial Derivatives’ spread costs on an Islamic Account?

The spread costs on the Islamic Account are the same as those on the swap-rated accounts for which the swap-free version has been created.

As such, Pacific Financial Derivatives operates a No Dealing Desk model, which allows for access to the best spreads at the prevailing market price. The full spread list can be viewed on the broker’s website with live market prices.

Due to this NDD model, spreads are competitive and average at around 0.4 pips for major currency pairs like EUR/USD.

Commissions are also charged, which average $1 charged per side per lot on the PFDPro Account.

What other features does Pacific Financial Derivatives’ Islamic Account have?

📍 The Islamic Account option from Pacific Financial Derivatives will have the following features:

No Interest/Swap Charge on Overnight Positions

Administrative Fee Will Apply for Overnight Positions Held for Over 3 Days

Competitive Spreads

Leverage Up To 300:1

Fast Market Execution

No Trading Restriction

24/5 Dedicated Client Support

Pacific Financial Derivatives Customer Reviews

I rarely take the time to write reviews but I’m seeing some negative ones here about PFD and felt I should speak up. I’m based in Ireland and have been with them for nearly two years. I’m full-time at the screens and barring one 30s gap during a quiet period, have seen nothing untoward in that time. People complain of slippage, varying spreads, and minor differences in the spot price, but they’re not being realistic. In a constantly flowing market, nothing stays static. And any broker offering static pricing is trading against your position, in fact. As for varying spot rates, there will always be minor differences between providers.
Many people complain too about spreads being high at 1.2 pips etc, and that’s just ridiculous. Trading is a business, and the spread is the cost of doing business. If the cost cannot be afforded then the business should cease operating.
One final comment, If you are suspicious of your broker then you have failed to carry out sufficient due diligence.
Sufficient due diligence means knowing your broker’s business’s minute ins and outs and structure. Information that can be found but requires serious online digging.

Very good broker. lowest trading costs. (spread) . enough execution speed. Good customer service.

I have been with PFD for about 6 months. I decided to withdraw the balance of my account (under $1000) as I am giving up forex trading, to be honest, I suck at it. I submitted my application over the weekend and the money was credited to my NZ bank account on Monday. If you are an NZ-based trader this is the ONLY NZ-based forex company. I know I visited their building in Auckland. They also do not charge a wire fee to NZ banks.

Pacific Financial Derivatives Pros and Cons

Conclusion

Pacific Financial Derivatives offers an Islamic Account to traders of the Muslim faith, which can be opened as a swap-free version of any of the three swap-rated accounts with the same access to all the trading conditions, tools, and features.

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Frequently Asked Questions

How many instruments can I trade with Pacific Financial Derivatives?

Pacific Financial Derivatives provides access to several instruments across the following popular asset classes:

• Forex
• Commodities
• Stocks
• Indices
• Metals

Do Pacific Financial Derivatives offer leverage?

Yes. Pacific Financial Derivatives offers variable leverage depending on the account type, with a maximum available ratio of 1:300.

What spreads can I expect with Pacific Financial Derivatives?

Pacific Financial Derivatives operates a No Dealing Desk model, which allows for access to the best spreads at the prevailing market price. The full spread list can be viewed on the broker’s website with live market prices.

Due to this NDD model, spreads are competitive and average at around 0.4 pips for major currency pairs like EUR/USD.

Does Pacific Financial Derivatives charge a commission?

Yes. Commissions are charged on the PFDPro account at $1 per side per lot.

What is the overall rating out of 10 for Pacific Financial Derivatives?

8/10