Islamic Forex brokers - Malaysia

The fact that there is such thing as Islamic Forex brokers only proves that there is indeed a wide diversity in the Forex trading sector. Once you understand this, you can no longer presume that all transactions take place in Western countries where the majority of the market players are non Muslims. In any case, a lot of so called religious people do not practice any of the tenets that are required of them. The Islamic Forex accounts however is another attempt to get everyone, regardless of the religious beliefs, involved.

Muslims in particular are concerned about investment accounts that involve overnight interest. According to the Islamic Sharia law, Muslims are forbidden to take any money in return for their ‘giving’. That means that if a Muslim is trading currencies, he or she is not allowed to pay or receive any type of interest on their payment.

For this, the Islamic No Ribba accounts offered by some Forex brokers today are preferred for this group. Muslim traders like from developed countries like UAE, Saudi Arabia, Iran, Malaysia and others that are looking to participate in the Forex trading sector fall into this category. The obvious drawback to using No Ribba accounts is that these often times come with higher spreads.

Are No Ribba Accounts for Muslim Traders Only?

An Islamic account provided by a broker may be a quiet unique type of trading account but be aware that this is not limited to Muslims only. In fact, you can be rest assured that Forex brokers can and will not ask you your religious background when trading currencies.

If you are a Malaysian Muslim trader who leaves trades open overnight on a regular basis and regularly pay high roll over fees, then an Islamic account may be suitable for you. Make sure though that you weigh the downsides as well before deciding to use this.  And once you have chosen to trade with an Islamic No Ribba account, the next step is to choose which Islamic Forex broker to open an account with. Not all brokers offer Islamic accounts so you will definitely need to narrow down your choices.

In addition to that, make sure that you deal with a broker that is not only licensed but regulated as well. A regularized broker is one that is under the supervision of a trustworthy financial authority.  Trading with a regularized broker can give you the peace of mind, knowing that you’re funds is in safe hands (provided that you don’t gamble them recklessly).

To open account with Islamic Forex broker in Malaysia, Click here