Forex trading has entered an enlargement age in these recent years and it is the largest global market ever known to occupy. It is a worldwide forex market where you can use a great number of specific currencies, according to what you find more acceptable to your trader's taste. However the more used currencies are those known as "majors",eg greenbacks, EUR, GBP, AUD, JPY and their pair mixes.
But regardless of this great and accelerated growth of currency exchange around the world there was still an area where currency exchange wasn't absolutely available, which sounds bizarre considering the great interest present among the people of this area in forex trading. The part of the Earth I'm talking about is what's commonly known as the "Islamic World". They had been left apart and folk from such big states as Saudi Arabia and Iran were not participating at their full potential in the forex market.
fortunately in recent times a wave of "Islamic Brokers" or "Islamic currency trading" has been moving and penetrating the internet forex community and they have implemented appropriate forex services for people from this area of the world.But what is different in an "Islamic currency trading" account to the "regular" foreign exchange trading account that everyone knows in non-islamic countries? Well, the difference resides principally in the observance of the "Shariah Law" by the "Islamic rules" in the services offered to traders from these states. This suggests two things that may make different one "Islamic account" account from the regular one.
The interest payment on account balance is waived in the Islamic account, AKA a No Riba trading account. So how does this all work? As an example, if a foreign exchange trader comes to a decision to leave their trading positions open overnight, the standard broker will charge rollover costs, which are largely the interest the broker pays the bank to leave the trade open overnight. Forex market hours come into play here. Also rather than swaps, based mostly on interest, an Islamic account will be charged a service charge for each lot left overnight based totally on the currency pair.
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