Yes, MFX Broker Inc 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 MFX Broker Inc 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.
MFX Broker Inc Overview
MFX Broker Inc is a forex broker company in St. Petersburg, Russia that provides traders with access to two platforms that allow them to buy and sell foreign currencies. Retail currency traders use these broker companies to gain access to the 24-hour currency market for speculation purposes.
Forex broker services can also be provided for institutional clients and large companies such as investment banks.
MFX Broker Inc was initially established in 2006 under the name MasterForex with a license from IFSC Belize. Some years later it rebranded as MFX Broker Inc without renewing that license.
MFX Broker Inc had become quite popular until November 2016 when suggestions of fraud started to surface. At the time there were several negative reviews from traders who had difficulties withdrawing their funds.
MFX Broker Inc however still advertises itself as an international Forex broker which provides brokerage services, professional investment solutions, social trading, and education.
By using their social services you will be able to monetize your knowledge and get an income with the help of the knowledge of others.
MFX Broker Inc serves both retail and institutional customers from more than 160 countries in Europe, Latin America Asia, South East Asia, the Middle East, and Africa.
The broker company has offices worldwide in Egypt, Georgia, Indonesia, and Russia, and a professional team in each country that enables MFX Broker Inc to provide support in 7 different languages, 24 hours per day, five days per week.
MFX Broker Inc claims to provide some of the best CFD conditions in the market and doing business with the broker holds several advantages to traders.
Minimum deposit requirements are low (from $1) and spread start from 0,1 pips, with leverage up to 1:1000. The broker provides the best in trading platforms with MT4 and MT5 and an ECN account with immediate execution of from 0.1 seconds.
The broker promises fast depositing and withdrawal processes and promotions including daily contests for demo and real accounts with a total prize fund of more than $ 500 000.
Since the dawn of Islam people have had the blessing of the religion to make a living by exchanging goods, as long as it did not negate the rules and conditions set forth by Islam. Islamic traders are allowed to engage in trading activities, but there must be no postponement in regard to the exchange between the buyer and the seller, it must be done in one sitting.
Standard account holders pay or receive interest for positions held overnight, a factor that falls under the practice of usury according to Islam, so it’s not allowed for Islamic traders. With Islamic trading accounts (Swap-free accounts), no interest is charged on currency exchanges, the exchange must be done between two parties not to be a gamble.
With these accounts, Islamic traders can participate in the foreign exchange market without exposing themselves to the unjustified areas of the business that could put them in an unfavorable position with Islamic laws.
What exactly is an Islamic Account?
An Islamic Account, as it is usually offered by most brokers, is often not a standalone account, although some brokers may dedicate one account to be an Islamic or Swap Free account.
In many cases, the swap-free account is offered as an option by especially Forex brokers.
Islamic Accounts are more often provided by brokers who serve Middle Eastern clients along with clients from other jurisdictions, hence it offers certain features that are in line with Sharia law which prohibits the accrual of interest on funds deposited into an account.
The other important feature on 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 being paid for in full.
There are two key elements of Islamic law that relate specifically to trading accounts, these elements are Riba and Gharar.
According to Islam, if one would exchange the same set of goods/currencies with various values it would be considered Riba (unjustified interest) and unlawful. Furthermore, currency exchange may be done under the same contract at the time it was signed, in other words, a hand-to-hand exchange, which is allowed.
Riba is the prohibition of generating money from money, which in this case specifically refers to interest and is not allowed according to Sharia law. This type of interest is seen as both unjust and exploitive gains pertaining to trade or business.
The word Gharar means uncertainty, hazards, or risk. In Islamic finance, Gharar is prohibited because it runs counter to the notion of certainty and openness in business dealings.
Which financial activities are restricted and prohibited by Sharia law?
Due to the restrictions and prohibitions placed on Muslim traders, the following is affected:
- 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 and 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 and 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 element of 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 is prohibited by Sharia law.
- Short sales – which affects mostly shares and involves borrowing and subsequent sale of an asset, and 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 MFX Broker Inc Islamic Account?
Traders who are eligible for an Islamic Account must first contact the support team to find out exactly how to open such an account.
Usually, they have to complete the live account application and then apply for the Islamic Account. There may be certain documents, apart from proof of identity and residential address, that MFX BROKER INC may require before approving an application for an Islamic account.
What is MFX Broker Inc spread costs on an Islamic Account?
Some charges may not be indicated on the account features pages, hence Muslim traders are advised to contact the support team to find out about fees like wider spreads, additional commissions, or administration fees. Forex Brokers that provide this type of trading need to compensate for their services by charging commissions on forex trades.
What other features does MFX Broker Inc Islamic Account have?
When making use of the MFX Broker Inc Islamic account, traders can expect 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.
MFX Broker Inc Pros and Cons
|✔️ PROS||❌ CONS|
|Many account types offered||US Clients not accepted|
|Segregated client funds used||Many controversies and bad reviews|
|MT4 and MT% offered as a trading platform||Not properly regulated|
|Islamic account available|
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MFX Broker at a Glance
|Broker’s name||MFX Broker Inc|
|Headquarters||St. Petersburg, Russia|
|Regulating authorities||Regulation claimed: IFSC (Belize)|
|Countries not accepted for trade||United States|
|Islamic account (swap-free)||Yes|
|Deposit options||Wire Transfer, Credit Card, Western Union, Perfect Money, WebMoney, MoneyGram, Neteller, UnionPay,|
|Withdrawal options||Wire Transfer, Credit Card, Western Union, Perfect Money, WebMoney, MoneyGram, Neteller, UnionPay,|
|Platform(s) provided||MetaTrader 4, MetaTrader 5|
|OS compatibility||Mac, Windows, Linux, Web, Mobile Android, iPhone, iPad.|
|Tradable assets offered||Stocks, Options, Futures, Indices, Commodities, Energies, Shares, CFDs|
|Languages supported on the website||English, Spanish, Russian, Chinese, Indonesian, Malay, Arabic|
|Customer support languages||English, Spanish, Russian, Chinese, Indonesian, Malay, Arabic|
|Customer service hours||24/5|
How many instruments can I trade with MFX Broker Inc?
You can trade several different instruments with MFX Broker Inc, which include the following:
Which platforms are supported by MFX Broker Inc?
MFX BROKER INC provides the following popular trading platforms:
- MetaTrader 4
- MetaTrader 5
Does MFX Broker Inc offer leverage?
Yes, MFX Broker Inc offers maximum leverage of up to 1: 1000
What spreads can I expect with MFX Broker Inc?
MFX Broker Inc offers fixed spreads from 0,1 pips on its various accounts. Spread on EUR/USD is 2 pips.
Does MFX Broker Inc charge commission?
Is MFX Broker Inc regulated and by whom?
MFX Broker Inc claims to be regulated by the IFSC in Belize.
Is MFX Broker Inc a recommended forex trading broker for experts and beginners?
MFX Broker Inc offers a fair trading environment for most traders.
What is the overall rating out of 10 for MFX Broker Inc?
What is the difference between a demo and a live trading account?
A demo account as is offered by broker companies like MFX Broker Inc is usually funded with virtual money and gives a prospective customer the opportunity to experiment with the company’s trading platforms and its features.
Does MFX Broker Inc offer a demo account?
Can I convert my demo account to a live trading account with MFX Broker Inc?
This is not clear from the information on the company homepage.
Which live trading accounts does MFX Broker Inc offer?
What are the available deposit currencies for a live trading account?
USD, EUR, RUB
Deposits and Withdrawals
What is the minimum deposit required to open an account with MFX Broker Inc?
How do you make a deposit and withdraw money with MFX Broker Inc?
MFX Broker Inc offers the following deposit and withdrawal methods:
- Wire Transfer
- Credit Card
- Western Union
- Perfect Money
Does MFX Broker Inc charge withdrawal fees?
Fees from financial institutions may be applicable.
How long does it take to make a withdrawal?
Depending on bank services it may take several days longer for the money to be available in a customer’s bank account.