- Interest called as riba
- Extreme risk called as gharar
- Gambling and speculation
The generally risky forex trading, when it is practiced in accordance with the Islamic finance principles is called Islamic forex trading.
The Islamic forex accounts facilitate practitioners of Islam to engage in forex trading, without breaking the laws of the religion.
Islamic forex trading accounts are more commonly known as swap free trading accounts in the forex market. These allow you to trade any pair of currency, carry trading overnight, without procuring any withdrawal or reward.
To be compliant with Shari’a Law, the Halal trading accounts allow you to hold open positions for long periods, without any interest. With Islamic forex trading accounts, your profit or loss depends entirely on the movement of currencies.
In addition, the Halal accounts have minimal risks because Islamic finance prohibits excessive risk. Any interest based fee is waived in Islamic forex accounts.