Yes, LQDFX 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.
Finding a reputable list about LQDFX Islamic account local or worldwide can be a difficult process, especially finding a complete list from a trustworthy reputable source.
Below is an in-depth Islamic Account Review regarding this regulated Forex company, which will assist Islamic traders to make an informed decision when it comes to Swap-Free Islamic Accounts.
Established in late 2015, LQDFX has gone from strength to strength and has quickly positioned itself as one of the leaders in the FX industry, becoming award-winning on two different occasions.
LQDFX has established a number of Customer Support offices worldwide and aims to please its traders 24 hours, 5 days a week with the very best of Customer Service.
LQDFX set out its goal of being the most loyal, quality, and devoted broker through its business model of following the STP execution avenue. This means LQDFX has no conflict of interest between itself and its clients. No requotes, lightning-quick execution, and no dealing desk intervention.
The broker’s extensive experience combined with its multilingual support, makes LQDFX the broker of choice for traders of all levels, anywhere. The broker has the expertise and the resources to help everybody realize their investment goals.
LQDFX follows the STP execution model. This means that whenever a client of LQDFX places a trade, there is no dealing desk manipulation, no requotes, and no conflict of interest.
Every trade is placed into the LQDFX aggregator which ensures the best price for your trade, provided by a number of top-tier liquidity banks.
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 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.
There are two key elements of the Islamic law that 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 pertaining to 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.
- Trading on margin – 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 an LQDFX Islamic Account?
Opening an Islamic account is a very simple process that consists of the following steps:
- Go to the LQDFX website
- Visit the Islamic Account Portal
- Click the ‘Open Live Account’ page
- Provide your personal information, such as name, email, and phone number
- Select your trading conditions
The Islamic account is for Muslim traders only, and therefore some proof may be requested
What are LQDFX’s spread costs on an Islamic Account?
The Islamic account mirrors the Gold account in all aspects from spreads, to lot size restrictions. The key difference with the Islamic account is that no swaps are applied at rollover times.
The Islamic account can be made available in the VIP form should the minimum deposit be $25,000.
As such, traders can expect the following conditions when using the Islamic Account:
- Execution type: Market Execution
- Execution model: STP
- Account Manager: Yes
- Typical spread: 0.7 pips
- Available instruments: FX, Indices, Commodities, Metals
- Requotes: None
- Commission on FX: No
- Minimum deposit: $20
What other features does LQDFX Islamic Account have?
The LQDFX Islamic account will include the following features:
- Interest is not charged on contracts that are held for more than 24-hours. There is a consistent zero rollover interest.
- There are no additional rollover commissions where contracts are held for longer than 24-hours.
- Traders have access to the broker’s educational material
- Traders have access to all of the broker’s platform features
- Direct execution on trades
LQDFX Pros and Cons
|✔️ PROS||❌ CONS|
|Islamic Account available
No extra charges on the Islamic account
Easy signup process
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LQDFX at a Glance
|Countries not accepted for trade||The United States and Belarus|
|Islamic Account (Swap Free)||Yes|
|Minimum Deposit||$20 – $500|
|Platform Types||MetaTrader 4|
|OS Compatibility||Windows, Mobile, Web, iPhone, iPad
PC and Mac OS, mobile for Android and IOS
|Languages supported on Website||English, French, Italian, Russian|
|Customer Support Languages||English, French, Italian, Russian|
|Customer Service Hours||24/5|
How many instruments can I trade with LQDFX?
Trading assets available to all account holders include:
LQDFX offers traders the opportunity to trade a reasonably wide range of instruments wrapped as CFDs (Contracts for Difference), even including a selection of commodities, indices, and metals.
LQDFX offers trading in 71 forex currency pairs, 7 non-metallic commodities, and 12 major equity indices.
Which platforms are supported by LQDFX?
LQDFX provides MetaTrader 4
Does LQDFX offer leverage?
Yes, the broker offers flexible leverage up to 1:500 with the Micro account. However, leverage on other accounts is capped at 1:300, except for the VIP account, which offers rates up to 1:100.
What spreads can I expect with LQDFX?
The spreads offered by LQDFX are different for each account type and vary with market conditions. The Micro account has the widest spreads, with typical values of 1.7 pips for EUR/GBP, 1.2 pips for EUR/USD, and 1.8 pips for GBP/USD.
Gold and Islamic accounts have tighter spreads, with EUR/GBP usually 1.2 pips, EUR/USD 1.1 pips, and GBP/USD 1.4 pips.
Does LQDFX charge commission?
Yes, the ECN account has commissions of $3.50 per lot charge and the VIP has a $2.50 commission.
Are there additional charges on the Islamic account?
No, there are no additional charges on the Islamic Account
Is LQDFX regulated?
No, unfortunately, LQDFX does not appear to be regulated and is an offshore broker
Is LQDFX a recommended forex trading broker for experts and beginners?
Yes. LQDFX caters to both beginners and experts.
What is the overall rating out of 10 for LQDFX?
What is the difference between a demo and a live trading account?
A demo account offers the use of virtual funds instead of actual capital. This allows for risk-free trading as well as exploring of both the broker’s offer and the trading platform.
A demo account can be used for a variety of reasons including practice trading, testing trading strategies, exploring platforms and offers, and more.
Does LQDFX offer a demo account?
For how long is the demo account valid?
The demo account does not expire
Does LQDFX offer the option of an Islamic Account?
Which live trading accounts does LQDFX offer?
Micro Account, Gold Account, ECN Account, VIP Account, Islamic Account
What are the available deposit currencies for a live trading account?
USD and EUR only
Deposits and Withdrawals
What is the minimum deposit for LQDFX?
$20 – $500
How do I make a deposit and withdrawal from LQDFX?
- Bank transfer
- Visa and Mastercard
Does LQDFX charge withdrawal fees?
Yes, on certain transaction methods
How long does it take to make a withdrawal?
Most e-payment methods will be instant, while bank wire transfers can take up to 3 business days, depending on your location.