There are some investment platforms that provide islamic account. Basically what they do is not to charge swap fees etc.
I faced one situation with Avatrade. I opened an account and requested to turn my account into Islamic account which they offer for their customers. But then I realized they say they still allow us with leverage. In principle what I know is that we borrow money from the broker to trade with leverage. They told me even if it’s Islamic account, it is not possible to trade without leverage. They call in it interest-free-leverage.
So my question is that how is this possible? I’m going to take a position in my Islamic account and it will be at least 5x leveraged. I will gain or lose 5 times with 1 unit investment. How is leveraged trading possible in shariah rules I didn’t understand.
I checked some of the titles in this forum but the other discussions didn’t convince or give idea about it. Thank you so much for making it clear for us in advance.
May Allah bless you,
There are many investment platforms who offer “Islamic” accounts, when in fact it is a pure manipulation of the term.
Sadly, many Muslims work for these companies and also help disguising haram trades with halal ones. This happens a lot with those who offer CFD and Forex trading services.
The only advice I can offer is to make sure you are trading with a platform that has been certified as shariah compliant by a shariah board.
As of today, Avatrade on their live webchat have confirmed to me that they do not have certification for the Islamic account offered.
hey Mufti-Bilal thank you for the help.
So if i made sure that the broker is using sharia laws and i made sure with certification that it desnt mix halal trades with haram can i still trade