Yes, CharterPrime Islamic Account offers an Islamic account for Muslim faith traders including a swap-free account. The Islamic forex trading environment is ideal for traders following strict sharia law with a fixed fee instead of swap. The fee is not an interest and depends on the direction of the order.
CharterPrime is an Australian and New Zealand-based broker which has been in operation since 2012 with strict regulation and authorization through FSP as a global financial and Forex trading provider which provides personal trading conditions to various traders.
CharterPrime offers comprehensive and competitive trading conditions with minimum deposits which start from as little as US Dollar 100, proving traders with access to a wide variety of financial instruments including:
- Precious Metals
- Indices, and
- Spot Commodities
CharterPrime facilitates the trading of such financial instruments in its comprehensive offering of three main types of accounts, each tailored to cater to traders with differing levels of experience, skills, and knowledge. These main accounts are:
- Variable Account – with a minimum deposit of US Dollar 100.
- ECN Account – with a minimum deposit of US Dollar 100.
- Swap-free account – with a minimum deposit of US Dollar 100.
Instead of merely having the option to convert a live trading account into that of an Islamic Account, CharterPrime makes provision for a standalone Islamic Account which has its own features.
What exactly is an Islamic Account?
An Islamic Account, for the greater part as offered by most brokers, is not a standalone account, although some brokers dedicate one account to being an Islamic or Swap Free account, in most cases, this is an option offered by especially Forex brokers.
Islamic Accounts are also provided by brokers who serve Middle Eastern clients along with clients from other jurisdictions and offer certain features that are in line with the Sharia law, which prohibits the accrual of interest on funds deposited into the account.
The other important feature of an Islamic Account is that transactions must be settled immediately, requiring that currencies be transferred from one account to the other right after the transaction has been completed and therefore paid for in full.
Two key elements of the Islamic law relate specifically to trading accounts, these elements are:
- Riba, and
Riba is the prohibition of generating money from money, which in this case specifically refers to an interest, which is not allowed according to Sharia law. This type of interest is seen as both unjust and exploitive gains about trade or business.
Which financial activities are restricted and prohibited by Sharia law?
Due to the restrictions and certain prohibitions placed on Muslim traders when considering the intricate details involved with trading activities, the following is affected greatly:
- Overnight rollovers – which involve the incurrence or receiving of swap points on positions that are held open for longer after the trading day has concluded at the New York close at 5 PM EST which is prohibited by the Sharia law.
- Margin deposits and interest – which involves the accrual of interest on funds that are deposited into the trading account, which is prohibited.
- Loans – when followers of Sharia law have funds transferred by either a bank or other financial institution and it involves interest terms, this is prohibited by the Sharia law as per the key element, Riba.
- Margin trading – stocks that are traded on margin result in the trader being liable for paying interest, which amounts to Riba, as money is borrowed from the broker to buy or sell such equities, and which is prohibited by the Sharia law.
- Short sales – which affects mostly shares and involves borrowing and subsequent sale of an asset, which is prohibited.
- Forward sales – which affects forward contracts as well as the trading of futures contracts which involves the buying and selling of contracts at a future date according to a price agreed upon on the day of entering into such a contract.
What are the steps involved in opening a CharterPrime Islamic Account?
To convert the trading account into that of a CharterPrime Islamic Account, Muslim traders can follow these steps:
- To apply for an account, traders can navigate to the CharterPrime website and select the option to open a live trading account.
- Traders will be presented with an online application that needs to be completed with some personal information such as the trader’s full name, email address, and phone number.
- Once this has been completed, the trader will have to confirm their account by clicking on the embedded link in the email which will be sent to the email address that they provided.
- Once this is done, traders will be subjected to a ‘Know Your Client’, or KYC, a process that requires the submission of supporting documents to prove the trader’s identity and residential address.
- As soon as this has been done, the account will be submitted for review and verification after which the trader can deposit the minimum amount and trading can commence.
What are CharterPrime’s spread costs on an Islamic Account?
CharterPrime offers Muslim Traders who make use of the Islamic Account with variable spreads, although where it starts from is not indicated on the CharterPrime website.
Even though the Islamic Account is a standalone account, Muslim traders are not exempted from normal trading conditions such as spreads that do not generate interest, and thus Muslim traders are still subjected to such trading fees.
What other features does CharterPrime’s Islamic Account have?
The Islamic Account offered by CharterPrime is a standalone account and has its own features although they are similar to that of the other account types offered. These features include:
- A minimum deposit of US Dollar 100.
- Variable spreads.
- Commissions of US Dollar 40 per lot which is charged every Wednesday.
- Leverage of up to 1:500.
- Access to a minimum trade size of 0.01 lots.
Pros and Cons
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CharterPrime at a Glance
|Headquartered||New Zealand, Australia|
|Countries not accepted for trade||United States|
|Islamic Account (Swap Free)||Yes|
|Minimum Deposit||US Dollar 100|
|Platform Types||MetaTrader 4|
|OS Compatibility||Web browsers, Windows, macOS, Linux, Android, iPhone, tablets, iPads|
|Tradable Assets||Forex, commodities, precious metals, indices, spot commodities|
|Languages supported on Website||English, Simplified Chinese, Traditional Chinese, Vietnamese, and more.|
|Customer Support Languages||Multi-lingual|
|Customer Service Hours||24/5|
How many instruments can I trade with CharterPrime?
You can trade the following instruments:
- Precious Metals
- Indices, and
- Spot Commodities
Which platforms are supported by CharterPrime?
Does CharterPrime offer leverage?
Yes. CharterPrime offers maximum leverage of 1:500.
What spreads can I expect with CharterPrime?
Spreads from as little as 0.0 pips when using the ECN Account.
Does CharterPrime charge commission?
Yes. Commissions of US Dollar 40 are charged on the Islamic Account on Wednesdays.
Are there additional charges on the Islamic account?
Not that can be ascertained from the information provided on the CharterPrime websites. Muslim traders are subjected to all other normal trading and non-trading fees except being exempted from paying overnight fees.
Is CharterPrime regulated?
Yes. CharterPrime is regulated by FSP.
Is CharterPrime a recommended forex trading broker for experts and beginners?
Yes. CharterPrime caters to both beginners and experts.
What is the overall rating out of 10 for CharterPrime?
What is the difference between a demo and a live trading account?
A Demo Account is a risk-free account that is funded by virtual money and allows traders to either practice trading, explore the broker’s offering, or test trading strategies in a mimicked live trading environment.
Does CharterPrime offer a demo account?
For how long is the demo account valid?
This information is not available but when generally comparing demo accounts between brokers, the frequent term is 30-days.
Does CharterPrime offer the option of an Islamic Account?
Yes. CharterPrime makes provision for the Islamic Account as a separate and standalone account type.
Which live trading accounts does CharterPrime offer?
CharterPrime offers the following trading accounts:
- Variable Account
- ECN Account, and
- Islamic Account
What are the available deposit currencies for a live trading account?
- AUD, and more.
Deposits and Withdrawals
What is the minimum deposit for CharterPrime?
US Dollar 100.
How do I make a deposit and withdrawal with CharterPrime?
- USDT (Tether)
- Bank Wire Transfer
- Local Gateway
Does CharterPrime charge withdrawal fees?
- USDT – withdrawal fee of 5%.
- Bank Wire Transfer – withdrawal fee of US Dollar 40.
- Skrill – withdrawal fee of 1%.
- Neteller – withdrawal fee of 2%, maximum US Dollar 30.
How long does it take to make a withdrawal?
This will depend on the method through which withdrawals are made along with the process involved and generally it can take between one and several business days.