doesnt receive any usurious interest on the loan. No interest on trades. The definition of an Islamic account. Answered by Shaykh Faraz. The benefits of an eToro Islamic account. Both currencies and commodities are traded on the spot market for 24 hours. In the currency market, if you dont close the trade before 5:00 pm New York time, all open trades will be automatically rolled over. Please see the Fatwaa of Mufti Taqi Uthmani (DB tml, and Only Allah Taala Knows Best.
An eToro Islamic account provides you with interest-free leverage. Open a real account on eToro. On the other hand, contemporary scholars consider the record of money transferred to or from a bank account as delivery. In and of itself, currency exchange (sarf) is permissible, as long as certain conditions are met, such as the transaction be done hand-to-hand without delay.
Our revenues come strictly from spreads (the difference between the buy and sell prices of an instrument). Theres no doubt that currency trading is one of the most difficult dilemmas in Islamic jurisprudence (Faqih). Please see: Forex Currency Trading, and Allah knows best. However with respect to forex trading in particular, Mufti Taqi Usmani leading contemporary Hanafi scholar and Islamic finance expert believes it to be impermissible, due to various problematic elements associated with this form of trading. With an Islamic account, we make sure that there is no Riba in any form throughout the duration of the contract. This normally poses a problem for those following Islamic law, due to the possible usurious interest charged for the rollover. Forex Trading is Currency Trading on Internet where you trade on margin and leverage mechanism. According to these decrees, the conditions for trading currency are: Immediate buying and selling without delay. No interest on contracts lasting longer than 24 hours zero rollover interest consistently. Is Forex Trading is allowed in Islam. EToro doesnt take any additional rollover commissions for contracts lasting longer than 24 hours. The company can then either pay the interest or charge the clients account to cover the fees.