An IC Islamic account, offered by IC Markets Global, is a swap-free trading account designed for clients who, due to their religious beliefs, cannot earn or pay interest (swap) on overnight positions. This allows them to trade in compliance with Islamic finance principles.
Key Features of IC Islamic Accounts:
- Swap-Free: No interest (swap) is charged or credited on overnight positions. This is the defining characteristic and ensures compliance with Sharia law.
- Account Types: IC Markets Global offers the swap-free option on both their Raw Spread and Standard account types. This provides flexibility in choosing an account structure that suits individual trading preferences.
- Platforms: These accounts are available on MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader platforms, providing traders with access to a range of trading tools and capabilities.
- Eligibility: Designed specifically for clients of Islamic faith who adhere to Sharia finance principles prohibiting interest.
Understanding Swap-Free Trading:
In conventional forex trading, a "swap" or "rollover" fee is charged or paid when positions are held overnight. This fee represents the interest rate differential between the two currencies being traded. Islamic finance principles prohibit the earning or paying of interest. Therefore, Islamic accounts eliminate this swap charge, maintaining Sharia compliance.
Example:
Imagine a Muslim trader wants to hold a EUR/USD position overnight. In a standard trading account, they would either pay or receive a swap fee based on the interest rate difference between the Euro and the US Dollar. However, with an IC Islamic account, this swap fee is removed, and the position can be held overnight without violating Islamic finance principles.
Summary:
An IC Islamic account is a specialized trading account that adheres to Islamic finance principles by eliminating swap fees, making it suitable for Muslim traders who wish to trade in compliance with Sharia law.
