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MGK GLOBAL Islamic Account

 

 

Overall Rating

4.7/5

Rated #255 of
Recommended FX Brokers

💰Minimum Deposit

USD 30

🌐 Regulators
CSIs
📱 Trading Desk

Crypto

Yes

📈 Total Pairs

18

☪️ Islamic Account

No

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Yes, MGK GLOBAL 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 MGK GLOBAL 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.

 

MGK GLOBAL Overview

MGK GLOBAL is an a-book forex broker company in Labuan, Malaysia that also offers an Islamic Account to customers that adhere to Sharia Law.

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.

MGK GLOBAL was founded in 2015 and offers forex trading services via MetaTrader 4 and MT4 Mobile trading platforms. MGK GLOBAL offers the trade of currencies and commodities but is only regulated by the FSA in Malaysia.

The company is based in Labuan, a federal territory of Malaysia and a popular offshore financial center. Being regulated by the Labuan Financial Services Authority (FSA) is not a guarantee of sound practices, but there are certain registration and annual fees applicable to Labuan companies – even though their physical presence in Labuan is not required.

Because offshore brokerages are not required to meet any capital adequacy requirements, to report positions, or to apply client protection rules, investing with such a company may be risky and generally not recommended.

MGK Global is a multi-asset platform that offers more than 167 tradable assets, including Forex trading and Shares Dealing.

 

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 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.
  • 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, it is prohibited by 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 MGK GLOBAL Islamic Account?

Traders who are eligible for an Islamic Account usually have to complete a live account application before they can apply for the Islamic Account. There may be certain documents, apart from proof of identity and residential address, that MGK GLOBAL may require before approving an application for an Islamic account.

 

What are MGK GLOBAL’s 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.

 

Overall Rating

4.7/5

Rated #255 of
Recommended FX Brokers

💰Minimum Deposit

USD 30

🌐 Regulators
CSIs
📱 Trading Desk

Crypto

Yes

📈 Total Pairs

18

☪️ Islamic Account

No

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

What other features does MGK GLOBAL Islamic Account have?

When making use of the MGK GLOBAL Islamic account, traders can expect the following kind of features:

  • In essence, traders have access to the same trading instruments and platform features as traders with the Normal or Speed accounts.
  • 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 Expert Advisors, which allow for automated trading.
  • Direct execution on trades, and
  • Accounts are activated with a minimum deposit requirement as stipulated by the broker.

Before registering an account, traders should ensure that they contact the support desk to find out more regarding any restrictions and/or limits.

 

 

MGK GLOBAL Pros and Cons

✔️ PROS ❌CONS
Islamic or swap-free account available Information on the website about conditions lacking
The support team can assist in several languages Broker not properly regulated

 

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You might also like: MGK GLOBAL Sign up Bonus

 

MGK GLOBAL at a Glance

Broker’s name MGK Global
Headquarters Labuan, Malaysia
Year founded 2015
Regulating authorities Financial Services Authority of Labuan, Malaysia
Countries not accepted for trade No specific countries listed.
Demo account Yes
Islamic account (swap-free) Yes
Institutional accounts No
Managed accounts Yes
Maximum leverage 1:500
Minimum deposit $30
Deposit options Bank wire transfer and AsianPay
Withdrawal options Bank wire transfer and AsianPay
Platform(s) provided MT4
OS compatibility Mac, Windows, Linux, Web, Mobile Android, iPhone, iPad.
Tradable assets offered Currencies and commodities
Languages supported on the website English, Italian, Russian, French, Spanish, Arabic, and More
Customer support languages English, Italian, Russian, French, Spanish, Arabic, and More
Customer service hours Monday to Friday between 09:00 and 18:00.

 

FAQ’s

 

Trading Environment

 

How many instruments can I trade with MGK GLOBAL?

You can trade the following financial instruments:

  • Currencies
  • Commodities

 

Which platforms are supported by MGK GLOBAL?

MT4

 

Does MGK GLOBAL offer leverage?

Yes, to a maximum of 1:500

 

What spreads can I expect with MGK GLOBAL?

You can expect spreads from 1 Pip.

 

Does MGK GLOBAL charge commission?

Yes MGK Global does charge commission on CFD instruments.

 

Are there additional charges on the Islamic account?

Such charges are not 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.

 

Is MGK GLOBAL regulated?

MGK GLOBAL is only regulated by the Malaysian FSA.

 

Is MGK GLOBAL a recommended forex trading broker for experts and beginners?

MGK GLOBAL caters to both beginners and experts.

 

What is the overall rating out of 10 for MGK GLOBAL?

5/10.

 

Accounts

 

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.

 

Does MGK GLOBAL offer a demo account?

Yes

 

For how long is the demo account valid?

Not indicated.

 

Does MGK GLOBAL offer the option of an Islamic Account?

Yes

 

Which live trading accounts does MGK GLOBAL offer?

Normal Account and Speed Account.

 

What are the available deposit currencies for a live trading account?

USD, EUR, and more

 

Deposits and Withdrawals

 

What is the minimum deposit for MGK GLOBAL?

$ 30

 

How do I make a deposit and withdrawal from MGK GLOBAL?

Bank wire transfer and AsianPay.

Does MGK GLOBAL charge withdrawal fees?

MGK Global withdrawal fees vary depending on your selected withdrawal payment method.

 

How long does it take to make a withdrawal?

This will depend on the payment method used. It can take 2 to 5 days to reflect in your account.

 

 

Author Details

Louis Schoeman

Louis Schoeman

Featured Forex and Stocks writer

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