One of the benefits of an Islamic trading account is that it does not involve swaps. In a standard trading account, the trader must pay interest on any funds he borrows or loses. Islamic trading accounts do not charge interest on open positions and offer a halal alternative for those traders who follow Islamic principles.
AvaTrade offers two types of accounts: standard and Islamic. For the former, they offer a demo account that simulates a real account for 21 days. This demo account provides up to 100,000 USD in virtual funds, and is free. In order to get a full-fledged account, traders must first go through the KYC process, verify their residential address, and then deposit some money. Once the account has been created, it is possible to convert it to an Islamic trading account within 1-2 business days.
AvaTrade has a large amount of financial instruments available for trading. In addition to forex, it also offers a large range of stocks and commodities. These include CFDs on indices, stocks, raw materials, currencies, and cryptocurrencies. In addition, the trading platform supports ETFs and funds traded on stock exchanges. However, Muslim investors may be wondering what assets are halal and which are not. While stocks and indices are halal, futures and bonds are not.
If you are a Muslim and want to trade the forex markets, you can do so with an Islamic broker. You will have the choice between several sharia-compliant brokers in the market. Most of these companies have low minimum deposit requirements and offer free virtual private servers. Some of the best Islamic Forex brokers also offer free VPSs and automated trading.
Using an Islamic trading account means that you can avoid paying interest on funds that you don’t need. You can also open and close positions quickly. This is a great advantage over intraday trading, as scalping means opening and closing positions quickly. While scalping is not prohibited by Islamic trading, it isn’t the best option for everyone.
AvaTrade offers accounts for different levels of traders. They have average-to-competitive spreads and offer several tradable currency pairs, commodities, stocks, indices, vanilla options, ETFs, and bonds. They also have a good customer support team.
Avatrade is an excellent option for Muslim traders who want to trade the forex market. Islamic accounts don’t include swap commissions, which allows you to trade in high-risk currency pairs without paying a swap commission. They also allow you to open positions early in the morning, anticipating continued movement.