Scandinavian Capital Markets delivers swap-free trading Islamic accounts for Muslim faith trades on Vanuatu STP/ECN accounts & Sweden ECN accounts. Scandinavian Capital Markets accounts are ideal as they align with the Islamic Muslim faith and incur no swaps or interest charges on overnight positions.
Scandinavian Capital Markets at a glance
| Broker's Name | Scandinavian Capital Markets |
| 🏛️ Headquartered | Stockholm, Sweden |
| 📅 Year Founded | 2011 |
| 💫 Company Registration no. | 556863-5972 |
| ⚖️ Regulating Authorities | SFSAF |
| ⏳ SFSAF | 80438 |
| 🌐 Countries not accepted for trade | United States, Iran, Syria, North Korea, Yemen, and Cuba |
| ☪️ Islamic account (swap-free) | Yes |
| 📎Sign up Bonus | Not offered |
| 👍 Demo Account | Yes |
| 📌 Account types | Vanuatu STP / ECN Sweden ECN |
| 📊 Institutional Accounts | Yes |
| 📊 Managed Accounts | Yes |
| 📈 Maximum Leverage | 100:1 |
| 💰 Minimum Deposit | $ 250 / R 4000 ZAR |
| 💳 Deposit Options | Bank wire |
| 💳 Withdrawal Options | Bank wire |
| 💻 Platform Types | MT4, cTrader, Currenex for Windows |
| 📱 OS Compatibility | Mobile iOS and Android |
| 📈 Tradable assets offered | Forex - 45 Trading Pairs, Metals |
| 👨💼 Languages supported on Website | English |
| 👥 Customer Support Languages | Not indicated |
| 📆 Customer Service Hours | 24 hours per day |
| 🔎 Open an Account | 👉 Click Here |
Min Deposit USD 250 Regulators SFSAF Trading Platform MT4, cTrader, Currenex Crypto Yes Total Pairs 45 Islamic Account Yes Trading Fees Low Account Activation 24 Hours
Scandinavian Capital Markets Review – 10 key points quick overview:
Scandinavian Capital Markets at a glance- Scandinavian Capital Markets Overview
- What exactly is an Islamic Account?
- Which financial activities are restricted and prohibited by Sharia law?
- What are the steps involved in opening a Scandinavian Capital Markets Islamic Account?
- What is Scandinavian Capital Markets ’spread costs on an Islamic Account?
- What other features does Scandinavian Capital Markets’ Islamic Account have?
- Scandinavian Capital Markets Pros and Cons
- Scandinavian Capital Markets Conclusion
- Frequently Asked Questions
Scandinavian Capital Markets Overview
Scandinavian Capital Markets is a forex broker company in Sweden.
Scandinavian Capital Markets is based in Stockholm and was founded by a team of financial professionals under guidance of Arif Alexander Ahmad and Michael Buchbinder in 2011.
Scandinavian Capital Markets was originally established as a wealth management company and obtained registration for the forex market a year later. It is authorized and registered with the Swedish Financial Supervisory Authority (FSA).
After five years, in 2017, Sweden’s first STP-ECN Brokerage was launched and continued to grow into a company that provides the best technology platforms and customer service to forex traders.
Scandinavian Capital Markets is safe to do business with, due to its obligatory conditions and constant overseeing of business. The broker is a better option to choose for seasoned or active traders due to the high minimum deposit.
Scandinavian Capital Markets uses sophisticated platforms and tools, which are essential and more suitable for professional or high-level trading and often required by fund managers or institutions.
The broker holds fully segregated accounts that separate clients’ funds from the company and further post-trade records make sure that Scandinavian Capital Markets integrates transparency in all its operations.
Orders are executed immediately and directly with liquidity sources and Scandinavian Capital Markets strives to zero rejects and no re-quotes.
What exactly is an Islamic Account?
Islamic accounts, known as swap-free accounts, are compliant with Sharia law because there is no swap or rollover interest on overnight positions, which is against the Muslim faith.
Muslim clients can benefit from these same trading conditions and terms as regular trading account types, with the only difference having no swaps on trading instruments. A handling charge may however apply.
An Islamic Account may be a standalone account or an account option offered on regular accounts.
Islamic Accounts are often provided by brokers who serve Middle Eastern clients and offer features that are in line with Sharia law, which prohibits the accrual of interest on funds deposited into the account.
Another 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 Islamic law that relate specifically to trading accounts, namely Riba and Gharar. Riba is a concept that refers to increasing or exceeding growth, which forbids interest credited from loans or deposits.
Gharar is an Arabic word associated with uncertainty, deception, and risk, which in modern finance include futures and options contracts, which have dates of delivery in the future.
Which financial activities are restricted and prohibited by Sharia law?
| 💠Financial Activities restricted & prohibited by Sharia law | 📈 RoboMarkets |
| Overnight rollovers | 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 |
| Margin deposits and interest | the accrual of interest on funds that are deposited into the trading account |
| Loans | when followers of the Sharia law have funds transferred by either a bank or other financial institution and it involves interest terms |
| Trading on margin | stocks that are traded on margin result in the trader being liable for paying interest |
| Short sales | affects mostly shares and involves borrowing and subsequent sale of an asset |
| Forward sales | 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 |
Due to the restrictions and prohibitions on Muslim traders when considering the intricate details involved with trading activities, the following may be affected or prohibited:
- Overnight rollovers, because it involves the receiving of swap points on positions that are held open for longer after the trading day has concluded at the New York close at 17:00 EST, as is prohibited by the Sharia law.
- Margin deposits and interest, because it involves the accrual of interest on funds which are deposited into the trading account, which is prohibited.
- Loans are prohibited by Sharia law as per the element of Riba. Followers of the Sharia law are prohibited from having funds transferred by either a bank or other financial institution and involving interest.
- Trading on margin results in a trader being liable for paying interest, which also amounts to Riba and is prohibited by Sharia law, as money is borrowed from the broker to buy or sell such equities.
- Short sales, which affects mostly shares and involve borrowing and subsequent sale of an asset, are prohibited.
- Forward sales are affected. The trading of futures contracts 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 Scandinavian Capital Markets Islamic Account?
1. Step 1 – Register an account
Make way to the website and select an Islamic account on the selection bar.
2. Step 2 – Select trading option
Select the option to start trading.
3. Step 3 – Select account type
Select account type you would like to use between Sweden ECN & Vanuatu ECN
4. Step 4 – Complete info and start trading
Complete the info requested in the 6 steps and select continue and start trading.
What is Scandinavian Capital Markets ’spread costs on an Islamic Account?
To make up for money lost by not charging overnight fees, a broker like Scandinavian Capital Markets usually charge extra fees on Islamic accounts – either in administration fees, wider spreads, or additional commissions. In the case of Scandinavian Capital Markets, swap fees are replaced by daily administration charges.
What other features does Scandinavian Capital Markets’ Islamic Account have?
When making use of the Scandinavian Capital Markets Islamic account, traders can expect key features like the following:
- Interest is not charged on contracts that are held for more than 24-hours.
- Some specific restrictions and limits may apply to the Islamic Account.
- The minimum deposit for an Islamic account opened on the MT4 platform is $1 000 000.
- For accounts opened on the cTrader platform, the minimum deposit is $10 000.
- Certain Forex products are not offered on Islamic accounts, and trading these pairs is subject to the interest on overnight positions.
Min Deposit USD 250 Regulators SFSAF Trading Platform MT4, cTrader, Currenex Crypto Yes Total Pairs 45 Islamic Account Yes Trading Fees Low Account Activation 24 Hours
Scandinavian Capital Markets Pros and Cons
| ✔️ Pros | ❌ Cons |
| Competitive spreads | Deposit methods limited to bank wire |
| Demo account can be opened | Maximum leverage of 1:100 |
| Premium account management services | Only 45 pairs on most account types |
| Registered with SFSA | High minimum deposit of 10 000 USD |
| Solid banking partners | Limited deposit methods. |
| Transparent trading conditions | |
| Multiple trading platforms. |
Scandinavian Capital Markets Conclusion
Scandinavian Capital Markets delivers swap-free trading Islamic accounts for Muslim faith trades on Vanuatu STP/ECN accounts & Sweden ECN accounts. Scandinavian Capital Markets accounts are ideal as they align with the Islamic Muslim faith and incur no swaps or interest charges on overnight positions.
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Frequently Asked Questions
Trading environment
How many instruments can I trade with Scandinavian Capital Markets?
You can trade several different instruments with Scandinavian Capital Markets, which include the following:
- Forex – 45 trading pairs
- Metals
Which platforms are supported by Scandinavian Capital Markets?
Scandinavian Capital Markets provides the following popular trading platforms:
- MT4
- cTrader
Does Scandinavian Capital Markets offer leverage?
Yes, Scandinavian Capital Markets offers a maximum leverage of up to 1: 100.
What spreads can I expect with Scandinavian Capital Markets?
Scandinavian Capital Markets offers spreads from 0 pips on the Premium Account.
Does Scandinavian Capital Markets charge commission?
No commission is charged on the Standard Account, but commissions on the Premium Account is $10 per lot r/t on MT4 and $10 per lot r/t on cTrader.
Are there additional charges on the Islamic account?
Swap fees are replaced by daily administration charges.
Is Scandinavian Capital Markets regulated and by whom?
Scandinavian Capital Markets is regulated by the FSA and Markets in Financial Instruments Directive (MiFID) regulations apply.
Is Scandinavian Capital Markets a recommended forex trading broker for experts and beginners?
Scandinavian Capital Markets offers a better trading environment for seasoned traders due to its high minimum deposit requirements. The sophisticated platforms and tools are also essential and more suitable for professional or high-level trading as required by fund managers or institutions.
What is the overall rating out of 10 for Scandinavian Capital Markets?
6/10.
Accounts
What is the difference between a demo and live trading account?
A demo account as is offered by broker companies like Scandinavian Capital Markets is usually funded with virtual money and gives a prospective customer the opportunity to experiment with the company’s trading platforms and its features, before setting up a real account which needs to be funded with the customers own real money.
Does Scandinavian Capital Markets offer a demo account?
Yes.
How long is the demo account valid?
Not clear from information on the company homepage how long the demo account can be used.
Which live trading accounts does Scandinavian Capital Markets offer?
- Standard Account
- Premium Account
- Custom Account
- Islamic Account
Does Scandinavian Capital Markets offer an Islamic Account?
Yes, the broker does offer an Islamic account
What are the available deposit currencies for a live trading account?
USD, EUR, GBP, and SEK.
Deposits and withdrawals
What is the minimum deposit required to open an account with Scandinavian Capital Markets?
$ 10 000.
How do you make a deposit and withdraw money with Scandinavian Capital Markets?
Scandinavian Capital Markets offers BankWire transfers for deposit and withdrawals.
Monies will usually only be refunded to accounts in the same name as the trading account.
Does Scandinavian Capital Markets charge withdrawal fees?
No.
How long does it take to make a withdrawal?
Withdrawal requests are processed within 24 hours on business days. Requests submitted during weekends are processed on Mondays. It can take up to 5 business days before the withdrawn funds arrive in the client’s bank account.
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