Islamic Account

Islamic (swap free) Trading Accounts

If you want to open a Swap-Free Islamic trading account, simply click on the button below. If you want to learn more about Swap-Free Islamic trading accounts, read the full article.

Join Friedberg Direct and enjoy the benefits of trading with a locally regulated broker!

Islamic – Swap-Free – Trading Accounts

Online trading platforms operate 24 hours a day and allow people to choose from a large variety of instruments – foreign exchange, commodities, shares, bonds, options and more. Some of the positions opened by traders are done for day trading – positions opened for a few hours. Other traders, however, employ trades with a longer scope, and wish to keep their positions opened for more than 24 hours.

How to open an Islamic account in 3 simple steps:

  1. Verify your account by sending all the relevant documentation.
  2. Fund your current trading account.
  3. After you’ve funded your account, you can apply for an Islamic account, which operates in accordance with Sharia Law. The request will then be forwarded to the relevant department for review and approval. Requests are usually processed within 1-2 business days.

What is a Swap?

Leaving open positions on the foreign exchange market for more than 24 hours requires the payment of special fees called SWAPs. These fees are a kind of interest rate and, therefore, they are problematic for Muslim traders who follow Shariah Law, which prohibits certain financial transactions including those which include the accumulation of interest.

To solve this issue, brokers offer their Islamic clients the option and convenience of a Swap-Free Islamic account. This account type is similar to a regular one with one key difference: it is not subjected to any interest, which sits well with the finance principles of Sharia law.

The Sharia law dictates that the lender must share in the borrower’s risk. In non-Islamic accounts, the risk falls exclusively on the lender. In Islamic eyes, this is considered exploitative and wasteful.

Friedberg Direct is fully committed to providing its traders with a variety of trading solutions to fit their needs and wants.

Gold and Silver CFD Trading

Friedberg Direct offers access to the Islamic halal trading of gold and silver. In general, Islamic gold and silver trading must have physical support in gold and silver. Friedberg Direct offers those wishing to trade on Gold and Silver a trading account that complies with this requirement.

Oil CFD Trading

Discover Islamic oil CFD trading* with Friedberg Direct today. The price of oil on Friedberg Direct’s MT4 platform is tied to the price of oil futures traded on futures markets around the world.

Trade oil without accumulating positive or negative swaps with Friedberg Direct. Enter the volatile oil trading markets with Friedberg Direct.

* Please bear in mind that Commodity and Stock Index CFD contracts are subject to monthly contract rollover price adjustments. These remain applicable to Swap-Free Islamic accounts as well.

Index CFD Trading

Instantly access the world’s most liquid stock CFD indices* on your Friedberg Direct Islamic trading account – Stock market indices directly linked to global stock markets without accumulation of swaps. Pay only the bid-ask spreads on your Friedberg Direct Islamic trading account.

* Please bear in mind that Commodity and Stock Index CFD contracts are subject to monthly contract rollover price adjustments. These remain applicable to Swap-Free Islamic accounts as well.

Forex CFD Trading

Friedberg Direct has introduced its Islamic trading account, in consideration of with Islam rules. Customers with an Islamic trading account will not be charged daily swaps.

Come experience a transparent Forex trading environment with Friedberg Direct and trade on a wide range of currency pairs such as EUR/USD, as well as CFDs on indices, bonds, stocks or commodities.

Friedberg Direct wants all its customers to be able to exercise their trading passion and grow their capital, while respecting their belief and the rules of Islam.

Note! Friedberg Direct is not a religious legislative body or institution; therefore, do not take this Islamic Account definition as permission to trade. Please verify, independently, all trading and Swap-Free Islamic account conditions are in accordance with your beliefs.

*Certain FX instruments (ZAR, TRY, RUB, MXN pairs) are not available on Islamic accounts. To trade these pairs, clients must give up their ‘Islamic account’ privileges and be subject to fees or interest

*Islamic accounts are subjected to an increased spread on FX pairs

Swap-Free Islamic Account main FAQs

  • What are the advantages of a Swap-Free Islamic account?

    Obviously, the main attraction of the Swap-Free Islamic account is that it allows those who adhere to Sharia Law to trade on the markets without breaking with their faith. It also allows traders to stay true to their morals and ethics. Swap-Free Islamic accounts are founded on the principles of fairness and transparency in financial markets.

    Friedberg Direct, powered by AvaTrade does not certify or guarantee that “Islamic” accounts are “Shariah-Law” compliant, these are “swap-free” accounts offered as an option and convenience for our Islamic/Muslim clients, but they have specific limits and conditions of use that must be adhered to.

  • Is forex trading allowed under Islam?

    Friedberg Direct does not offer cryptocurrency trading in their Islamic accounts, however they do offer traditional fiat currency, or forex, trading. It has been determined by Muslim scholars that forex trading is halal, as long as the trading adheres to several principles, all of which are included in the conditions of our Islamic accounts. Currency exchange and profiting from currency exchange is allowed under Sharia Law because any individual has the right to pursue activities that allow them to improve their financial condition.

    • It is the sole responsibility of the client to confirm with their own religious authority whether trading in our Swap-Free/Islamic accounts, and the conditions they come with, is permitted according to their belief.
  • Does Islam allow CFD trading?

    This is because when you purchase a CFD you are not actually purchasing anything tangible. Instead you are speculating on the price rising or falling. In CFD the trader is leveraging the value of the stock in order to make profits. By opening a no-swap Islamic account the trader is avoiding the issue of taking or giving riba. Friedberg Direct makes Islamic accounts available to any trader who wishes to abide by Sharia Law and remain halal in their trading practice.

    IMPORTANT: Please note that trades that are held open for more than 10 days will be charged swaps, even on Islamic accounts! This is a condition and limitation of Swap-Free Islamic accounts with Friedberg Direct powered by AvaTrade technology.

Open an Islamic Account with us today!