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Islamic account - what can I trade?

trading currency online

In other words, in order to follow Shariah law when trading through an Islamic trading account, you need to know which assets you can invest in so that you can remain true to your faith. The good news is that the vast majority of financial markets, apart from futures and bonds, are classified as halal.


At the time of issue, a fixed interest rate comes into play and remains so throughout the bond's existence. Depending on the supply and demand in the market, the bond may fluctuate and change. The percentage of the investment return (calculated from the original value of the bond) remains unchanged.

Due to the fact that bonds are essentially based on interest rates, bonds are considered haram. This is because - even if you invest via a CFD in exness forex broker login, for example, no interest is paid - the crucial factor is that the root of the spread still contains the value of the interest rate.


Due to the delays in futures contracts, they are also considered haram. This is due to the fact that the signing of the purchase contract is not immediate.

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As far as we know, there are no specific Islamic cryptocurrencies, which means there are none that are specifically for Islamic finance. However, they work in the same way as standard forex currency pairs.

The fluctuations here depend largely on changes in supply and demand. For example, the value of the US dollar is quoted against another currency to form a pair, and this can cause the value to rise or fall.

In the context of Islamic finance, you can consider cryptocurrencies halal. This is because cryptocurrencies are not dependent (either indirectly or directly) on interest rates. Some other commodities that are considered halal are commodities such as produce and metals.

Halal Forex Trading Accounts - Advantages

One of the major advantages of using a halal forex trading account is that no swap commissions are required. As such, you can be sure that you are trading Forex in a halal manner. With an Islamic account, the immediately noticeable advantage is that there are no swap positions. This, of course, means that you can open long-term positions without the possibility of reducing your profits due to swap commissions.

One of the other notable advantages of using a Halal Forex trading account is that you can open a position in a currency pair and avoid high swap costs. Swap costs can be very high, especially when it comes to exotic currency pairs. Therefore, it is a great advantage to avoid them.

Halal Forex Trading Accounts - Disadvantages

Of course, not having a swap can also be seen as a disadvantage, as you cannot take full advantage of the high interest payments associated with short positions. Generally, a non-swap broker without interest still needs to benefit from a profit in some form. This is usually in the form of fixed management fees. In this way, Islamic banks can still make a profit.