I studied the forex market nature for 3 year and i made a break through through consistancy. I have a well developed trading plan with high probability trades and a proper risk management which includes 1%-0% risk… i have a islamic account which doesn’t have swap (interest) i have a 1:30 leverage.
There is this debate about the forex trading wether its halal or haram.
To me it doesn’t feel like that because i studied hard for it. For 3 years. I would like to know u opinion about it
here is one broker called vanatge fx who calim to have an islamic account and approval from sheikh Hasan Qamra and their reasons are as following:
How are the funds segregated and ring fenced in Vantage FX for Shariah Compliance？
- We have separate accounts which never mingle with conventional funds. All clients funds are held in a segregated account with Australia’s AA rated National Australian Bank (NAB).
How can I withdraw my funds from Vantage FX Islamic accounts？
- Vantage FX clients can request withdrawal of their funds anytime by accessing their Client Portal and lodging a withdrawal request. All withdrawal requests are processed once a day around 1pm AEST. Any withdrawal request received after 1pm Sydney time is automatically processed the following business day around 1pm AEST.
What fees and charges apply to Vantage FX Islamic accounts？
-All Muslim clients who use a Vantage FX Islamic account will be charged Standard STP spreads and the daily administration fee.
What spreads do I get charged on a Vantage FX Islamic account？
-Vantage FX charges Standard STP spreads or Raw ECN spreads on all Islamic accounts.
Are there swap or interest charges？
-There are no swap or interest charges. We charge an admin/agency (Wakeel) fee justifiable for administration related expenses to manage your account.
How are trades processed on a Vantage FX Islamic account？
-The client places the trade and Vantage FX transfer the trade to a liquidity provider. This means that the client’s trade always has an effect on supply/demand as it is a position in the real market. Clients can be assured that they are trading real prices and affecting prices via supply demand with their own positions. The client is always responsible for the effect that his order has on the underlying market. Positions, even small during times of low liquidity, can move the market. The client has full ownership of his trade and its effect.
Why do I get charged an administration fee on Vantage FX Islamic accounts？
-In order to provide fair and transparent access to global markets, Vantage FX has to pass on the costs associated with maintaining their open positions. All our liquidity providers charge certain fees to keep positions open and this cost is passed onto clients via the daily Administration fee.
How are trades executed on Vantage FX Islamic accounts and is there actual possession (Qabdh) of currencies？
-Vantage FX guarantees absolute transparency in trading. Whether you trade Forex, Commodities or Indicies, with our Islamic account you can be assured that all our pricing comes directly from Liquidity Providers, and thus be assured your trading and trading exposure are real; a basic requirement that makes our Islamic account Shariah compliant.
Are there always Liquidity Providers (LP) involved in your trading model？
- If a broker does not use LP’s to access the interbank market then they are a market maker and there is a direct conflict of interest between broker and trader. The account balances of all these different currency denominations are held within our segregated bank account. In our case this is with the National Australia Bank (NAB). These funds then allow the client to trade up to 50 currency pairs via our liquidity providers. Yes there is always possession and we serve on your behalf as agent (Wakeel) to take possession on your behalf. This is also known as A-Book broker model.
Does Vantage FX provide a loan to clients to trade on an Islamic account？
-Vantage FX doesn’t provide any loan to clients. Vantage FX provides margin trading where all trade financing is provided by Liquidity Providers who then charge Vantage FX Administration Fee.
The Administration fee is then passed onto clients via MT4 platform.
What is the Shariah basis for this product？
-The relationship between Vantage FX and the client is that of Wakalah/agency. Vantage FX being the agent that manages the accounts and charges an Administration fee based on a signed mandate. The relationship between the liquidity providers and Vantage FX is that of Qardh (Loan) which is managed under a signed mandate by Vantage FX. The account holders do not sign a mandate with the liquidity provider and have an agreement only with Vantage FX. The actual trading is referred to as Bay al-Sarf (currency trading).
Is the Vantage FX Islamic account Shariah compliant？
-At Vantage FX we are fully committed to delivering the first officially certified Islamic account. We have worked alongside well known shariah scholars including Sheikh Hasan Qamra, Chairman of the Shariah Board and follow his strict requirements in order to receive official certification which proves that Vantage FX account is fully Shariah compliant. cou
Could you please give me the opinion based on this information ?