CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83.66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Islamic Account

Simply click the button below to create an Islamic trading account. Read the entire article to discover more about Islamic trading accounts.

Open Islamic Account Now

Islamic Trading Accounts

It is true that many online trading platforms offer access to a wide range of financial instruments, and traders may choose to engage in different trading strategies such as day trading or longer-term trading. However, it's important to note that the specific terms and fees associated with holding positions overnight or longer may vary depending on the platform and the financial instrument being traded.

For traders who follow Islamic principles, the payment of interest or "Riba" is prohibited. As a result, some online trading platforms offer Islamic accounts that are compliant with Sharia law. These accounts typically do not charge overnight swap or rollover fees, but instead charge a fixed commission on trades.

It's important for traders who are considering an Islamic account to carefully review the terms and conditions, including the maximum holding period before incurring fees, to ensure that the account meets their needs and aligns with their trading strategy. Additionally, traders may wish to consult with a Sharia scholar or financial advisor to ensure that their trading activities are compliant with Islamic principles.

How to open an Islamic account in 3 simple steps:
  1. Verify your account by sending all the relevant documentation.
  2. Fund your current trading account.
  3. After you’ve funded your account, you can apply for an Islamic account, which operates under the Sharia Law. The request will then be forwarded to the relevant department for review and approval. Requests are usually processed within 1-2 business days.

What is a Swap?

Yes, it is true that the payment of swap fees, which are essentially interest charges for holding positions overnight in the foreign exchange market, can be problematic for Muslim traders who follow Sharia Law. This is because Sharia Law prohibits certain financial transactions that involve the accumulation of interest, also known as "Riba".

To cater to the needs of Muslim traders who wish to follow Sharia Law, some brokers offer Islamic trading accounts that are compliant with Sharia principles. These accounts typically do not charge swap fees, but instead charge a fixed commission on trades or use a different fee structure.

It's important for Muslim traders who are considering an Islamic trading account to carefully review the terms and conditions to ensure that the account meets their needs and aligns with their trading strategy. Additionally, traders may wish to consult with a Sharia scholar or financial advisor to ensure that their trading activities are fully compliant with Islamic principles.

It is true that some brokers, including Preferred Capital Limited, offer Islamic trading accounts that are compliant with Sharia law. These accounts are designed to cater to the needs of Muslim traders who wish to trade in the financial markets while adhering to their religious beliefs.

As mentioned earlier, Islamic trading accounts typically do not charge swap fees or interest charges for holding positions overnight, which is in line with the principles of Sharia law. Instead, they may charge a fixed commission on trades or use a different fee structure.

Furthermore, the Sharia law dictates that the lender must share in the borrower's risk. In Islamic finance, the concept of profit and loss sharing is emphasized, and investments are made in companies and projects that are considered beneficial to society.

Preferred Capital Limited's commitment to providing a variety of trading solutions to fit the needs and requirements of its traders, including those who follow Sharia law, is commendable. It's important for traders to carefully review the terms and conditions of any trading account to ensure that it aligns with their trading strategy and religious beliefs.

Halal Gold and Silver Trading

It is true that Preferred Capital Limited offers access to Islamic halal trading of gold and silver, which is compliant with Shariah rules. In Islamic finance, trading in gold and silver is permissible, but it must have physical support, which means that traders must have actual possession or ownership of the precious metals they are trading.

Preferred Capital Limited's Islamic gold and silver trading account is designed to cater to the needs of Muslim traders who wish to trade in these commodities while adhering to their religious beliefs. This account type ensures that the trading of gold and silver is fully compliant with Shariah rules and principles.

It's important to note that in Islamic finance, there are specific rules and guidelines that must be followed when trading in gold and silver, such as ensuring that the precious metals are not used for speculative purposes or traded on margin. Traders who follow Shariah rules will appreciate the availability of a trading account that meets their specific needs and requirements.

Halal Oil Trading

It is true that Preferred Capital Limited offers Islamic oil trading on its trading platforms. The price of oil on Preferred Capital Limited's trading platforms is typically tied to the price of oil futures traded on futures markets around the world. This allows traders to gain exposure to the price of oil without the need to physically own the underlying asset.

Preferred Capital Limited's Islamic oil trading account is designed to cater to the needs of Muslim traders who wish to trade in oil while adhering to their religious beliefs. This account type ensures that trading in oil is fully compliant with Shariah rules and principles, which prohibits the accumulation of interest, or Riba.

By offering an Islamic oil trading account, Preferred Capital Limited allows Muslim traders to trade in the volatile oil markets without accumulating positive or negative swaps or interest, which is in line with the principles of Shariah law.

It's important to note that oil trading can be risky and volatile, and traders should carefully consider their trading strategy and risk tolerance before entering the markets. However, for those who wish to trade oil in compliance with their religious beliefs, Preferred Capital Limited's Islamic oil trading account may be a suitable option.

Halal Indices Trading

It is true that Preferred Capital Limited offers access to the world's most liquid stock indices on its Islamic trading account. This means that traders can gain exposure to stock market indices that are directly linked to global stock markets without the accumulation of swaps or interest, which is in compliance with Shariah rules.

Stock indices are a popular way for traders to access broad-based exposure to equity markets, without the need to purchase individual stocks. By offering Islamic stock index trading, Preferred Capital Limited allows Muslim traders to access these markets without violating their religious beliefs.

On Preferred Capital Limited's Islamic trading account, traders only need to pay the bid-ask spreads, which are the difference between the buying and selling price of a stock index. This is because the accumulation of interest or swaps is not allowed under Shariah law.

It's important to note that trading in stock indices can be risky and traders should carefully consider their trading strategy and risk tolerance before entering the markets. However, for those who wish to trade stock indices in compliance with their religious beliefs, Preferred Capital Limited's Islamic stock index trading account may be a suitable option.

Islamic Forex Trading

It is true that Preferred Capital Limited has introduced its Islamic trading account, which is fully compliant with Islamic rules. One of the key features of this account is that customers will not be charged daily swaps, which are fees charged for keeping positions open overnight. Instead, the swap fees are fully transferred within the MT4 platform into daily administration fees on all Forex trading products. This ensures that the Islamic trading account is free from interest-based transactions, which is in line with the principles of Shariah law.

Traders using the Islamic trading account can access a wide range of financial instruments, including currency pairs like EUR/USD, as well as indices, bonds, ETFs, stocks or commodities. Preferred Capital Limited offers a transparent Forex trading environment, where traders can trade with confidence and without worrying about violating their religious beliefs.

Preferred Capital Limited is committed to providing its clients with a solid, secure product that respects their principles and follows the rules of Islam. The Islamic trading account is one such product that allows Muslim traders to engage in online trading without compromising their religious beliefs.

*Cryptocurrency trading is not available on Islamic accounts, to trade cryptocurrencies clients must give up their ‘Islamic account’ privileges and be subject to special fees or interest.

*Certain FX instruments (ZAR, TRY, RUB, MXN pairs) are not available on Islamic accounts, to trade these pairs, clients must give up their ‘Islamic account’ privileges and be subject to fees or interest

Islamic accounts are subjected to an increase spread on FX pairs

Any questions? We’re here to help.

Obviously, the fundamental draw of the Islamic account is that it permits people who adhere to Sharia Law to trade on the markets without compromising their faith. Additionally, it enables traders to uphold their morals and ethical standards. Fairness and openness in the financial markets are the cornerstones of Islamic accounts.

However, Preferred Capital Limited does provide traditional fiat currency, or forex trading, which is available in their Islamic accounts but not in their cryptocurrency accounts. Muslim scholars have determined that forex trading is permissible as long as it abides by a number of rules, all of which are outlined in the terms of our Islamic accounts. Sharia Law permits currency exchange and the profit therefrom because everyone has the right to engage in activities that enable them to improve their financial situation.

This is so that you understand that when you buy a CFD, you're not really buying anything material. Instead, you are making a prediction about whether the price will increase or decrease. When trading CFDs, the trader uses the stock's value as leverage to increase profits. The trader avoids the issue of taking or donating riba by opening a no-swap Islamic account. Any trader who wants to follow Sharia Law and conduct their trading in a halal manner can access Islamic accounts through Preferred Capital Limited.