5 Best Forex Islamic Broker 2021 - Find out the Muslim Friendly Brokers

— Not all forex brokers offer an Islamic Forex account but today we have find out some best brokers that do open up trading to millions of Muslim investors. According to Islamic law, often referred to as Sharia law, Muslims are prohibited from earning interest on their giving. This law also applies to interest.

Best forex islamic broker 2021

List of Best Forex Islamic Broker 2021

Best Forex Islamic Account

— Exness
— eToro
— Fxtm
— FP markets

In the above list, we have recommended Exness, Because exness is the world's first forex broker that allows instant deposits and withdrawal with Islamic law.

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What is an Islamic Forex Account?

An Islamic Forex Account is a Forex trading account that abides by Islamic law, known as the Sharia. Those who follow this law are guided by the Quran, the sacred book of Islam, and they must obey certain standards and practices to maintain lawfulness.

What makes a Forex Islamic account halal?

— Forex brokers wishing to attract Islamic clients have are a few basic principles they must apply to at least a segment of their offering, thus creating the Islamic account. These concepts are a bit different from what the western world might understand as traditional banking or trading. Below, we explain three of the key concepts of Islamic law most relevant to the question of an Islamic Forex account.

— Riba
“Riba” means increase, excess or addition and it refers to financial interest. It is seen as a type of usury and selfishness that can lead to hoarding. The charging of usurious interest as a business practice is deemed to have an adverse effect upon the Islamic ideal of fellowship in the community and is therefore prohibited under Sharia law.

— Gharar

“Gharar” refers to risk, more precisely defined as “the sale of what is not present” and is a haram (forbidden) practice in Islam, forbidden by Sharia law. Those who abide by the Sharia may not gamble, sell short (in the traditional sense commonly referred to in stock trading), or conclude agreements which might involve uncertainty or chance.

— The Mudharabah Arrangement 

A “Mudharabah arrangement” is an arrangement or partnership between two parts: the financial role and the management of the funds. The financial role will invest, and the other will control the money.
However, in Sharia law, the Mudarabah Agreement can be restricted. This means the investor will only allow the one who manages the funds to administer them in a certain type of business or location. If it is unrestricted, it indicates that the management of the funds have no constraint.

— Musharakah Arrangement 

“Musharakah” means “to share”, and it is another type of partnership permitted by the Sharia law where both parties will benefit from earnings in a trade. In this way, the financial part will earn without having to go against the rule against Riba.

Losses must also be shared by those in a Musharakah Arrangement, but the amount of such will depend upon the amount of invested capital. On the other hand, the divided profit is previously set according to the agreement on the contract.

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