Islamic accounts with no swap commission
eToro offers islamic accounts which are in accordance with Islamic Sharia law.
The definition of islamic account
It's known that the duration of FX and commodities trading in spot market is 24 hours, At 5:00 pm New York time all open positions are rolled over for more than 24 hours and the interests are added to company normal accounts every 24 hours (the company pays the interest or takes it). However through the islamic accounts, there is no Riba in all forms and whatever the duration of contract. In FX market, if you don't close the trade before 5:00 pm New York time, all open trades wil be automaticaly rolled over. this settlement is the most important part in the legitimate problem. Some believed that the rollover commision is coupled with usurious interest because currency interest is involved in calculating the commission, while others believe it's not usurious interest rather than a commision to extend the commercial contract. So how the client can get off this problem? We are here in eToro close all trades at 5:00 pm and you can reopen it immediately in order to avoid all the problems and trade according to Islamic Sharia law. in addition, the client will not receive or pay any usurious interest because of immediately buying or selling. as well as, the clients who don't have the total price of trade, they can trade by using the leverage which allows them to trade whatever their contracts and without any usurious interest.
Here is the fatwa that allows you to trade in FX market by using margin which is popular in FX market.
There's no doubt that currency trading is one of the most difficult Financial Transactions in islamic jurisprudence (Faqih); because it's required the simultaneous exchange in the same spot as the prophet Muhammad (PBUH) Said (hand to hand). But contemporary scholars considered the record of money to bank account could be as delivery, therefore the decisions and fatwas are issued. So the most important conditions to trade currency are:
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Immediately buying and selling without delay.
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The pair of currency should be enrolled in the accounts of buyer and seller.
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The price of the trade should be paid without any delay.
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No interest on trades, if there is any usurious interest, So the contract will be invalid, void and Haram.
The way to get off this problem
One could either buy as far as his money permit or take a loan from broker without interest as he doesn't receive any usurious interest on his money.
The benefits of eToro Islamic account
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No interest on settlement for more than 24 hours, Zero-rollover interest consistently.
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eToro doesn't take any additional commision on rollover for more than 24 hours.
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We do not charge any commissions or fees on account management, Our revenues come strictly from the spreads (the difference between the Ask and the Bid prices of a currency pair).
How to open eToro islamic account?
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Open a real account in eToro and install the platform
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Invest at least $ 1,000
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send the documents to change your account to Islamic one.
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One of our representative will be available to describe the benefits of islamic accounts and its types (Silver,Gold,VIP)