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SMFX Islamic Account

SMFX Islamic Account

 

Yes, SMFX 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 SMFX 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 Swap Free Islamic Accounts.

 

Overview

 

SMFX is a Cypriot forex broker company that has already been in operation since 1997 and has its headquarters based in Limassol.

SMFX is a trading name of Scope Markets Ltd., provider of financial services under registration number 145,138 and regulated by the International Financial Services Commission of Belize.

Scope Markets Ltd operates through two locations – one of them based offshore in Belize and the other (SM Capital Services) as authorized brokerage in Cyprus. In turn, the Cyprus entity operates in different domains, but all offer similar services.

SMFX makes use of segregated accounts for clients, offers a wide range of products and multi-platform trading.

SMFX offerings vary according to traders’ residency but maintain its dealer’s service reputation since 1997.

SMFX serves traders through competitive trading conditions, good customer service, and market updates together with an economic calendar, free education, and other helpful tools.

SMFX trading platforms offer simple, user-friendly, yet sophisticated trading for both experienced traders and beginners in the business. Further, the company strives to consistently develop and advance its technology.

All aspects of the trading process are being automated as far as possible to maximize efficiency and keep manual intervention to a minimum.

The SMFX brand was nominated for “Best Retail FX Broker” and “Most Transparent Broker” at an iFX EXPO in Macao.

 

Traders can trade

  • Currencies: (70+)
  • Cryptocurrencies: (5+) Bitcoin, Litecoin, Ethereum
  • CFD: (15+) Gold, Silver, Stock Indexes, Oil, Other Commodities

 

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 be 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 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 paid for in full.

There are two key elements of the Islamic law that relate specifically to trading accounts, these elements are:

  • Riba
  • Gharar

 

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 such a contract.

 

What are the steps involved in opening an SMFX Islamic Account?

 

Traders who are eligible for an Islamic Account must complete the 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 SMFX may require before approving an application for an Islamic account.

 

What are SMFX’s spread costs on an Islamic Account?

 

Traders can expect extra fees on Islamic accounts – are either in wider spreads, additional commissions, or administration fees to make up for money that they lose with not charging overnight fees. New Islamic traders should enquire about these special conditions or extra fees before joining, because it is often overlooked or not indicated on the account features pages.

 

What other features does SMFX’s Islamic Account have?

 

When making use of the SMFX Islamic account, traders can expect the following key 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 should take note that markets open on Sunday at 11 pm CET and close on Fridays at 11 pm CET. In addition, there may be some restrictions and limits which apply to the Islamic Account.

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

 

Pros and Cons

✔️ PROS ❌ CONS
Islamic Account can be opened by Muslim traders Little strategy insight
Low deposits required to open accounts Officially not properly regulated
Many account types Offshore broker
One on one mentoring
VPS available

 

You might also like: SMFX Account Types Overview

You might also like: SMFX Demo Account – Step by Step

You might also like: SMFX Fees and Spreads

You might also like: SMFX Minimum Deposit

You might also like: SMFX Sign up Bonus

 

SMFX at a Glance

Broker’s name SMFX
Headquarters Limassol, Cyprus
Year founded 1997
Regulating authorities CySEC (Cyprus) registration no. 339/17

IFSC (Belize) registration IFSC/60/373/TS/19.

Countries not accepted for trade Canada, Eritrea, Iran, Iraq, Japan, Liberia, Libya, New Zealand, North Korea, Puerto Rico, Somalia, Sudan, Syrian Arab Republic, United States, Virgin Islands, EU member states, Iceland, Norway, Liechtenstein, Afghanistan, Cote d’Ivoire, Cuba, Myanmar, and Ecuador.
Demo account Yes
Islamic account (swap free) Yes
Institutional accounts Yes
Managed accounts Yes
Maximum leverage 200:1
Minimum deposit Defined by account type and minimum for the standard account is $50
Deposit options Bank Wire, Neteller, Skrill
Withdrawal options Bank Wire, Neteller, Skrill
Platform(s) provided MT4, WebTrader, Mobile Trader
OS compatibility Desktop, Web, Mobile iOS, and Android
Tradable assets offered Currencies: (70+)

Cryptocurrencies: (5+) Bitcoin, Litecoin, Ethereum

CFD: (15+) Gold, Silver, Stock Indexes, Oil, Other Commodities

Languages supported on the website Multilingual
Customer support languages Multilingual
Customer service hours 24 hours and 5 days a week.

 

FAQ’s

 

Trading Environment

 

How many instruments can I trade with SMFX?

You can trade several different instruments with SMFX, which include the following:

  • Currencies: (70+)
  • Cryptocurrencies: (5+) Bitcoin, Litecoin, Ethereum
  • CFD: (15+) Gold, Silver, Stock Indexes, Oil,
  • Other Commodities

 

Which platforms are supported by SMFX?

SMFX provides the following popular trading platforms:

  • MT4
  • WebTrader
  • Mobile Trader

 

Does SMFX offer leverage?

Yes, SMFX offers maximum leverage of up to 1: 200.

 

What spreads can I expect with SMFX?

SMFX offers variable spreads on its various accounts. Standard account spreads starting from 1.8 pips, VIP already lowers it to 1.3 pips and ECN spreads starting from 0 pips while charges are combines into the commission of 3.5$ per side.

If details on the website is not comprehensive, more information can be obtained from the customer support service.

 

Does SMFX charge commission?

Yes.

 

Are there additional charges on the Islamic account?

Some brokers charge extra fees on Islamic accounts – are either in wider spreads, additional commissions, or administration fees to make up for money that they lose with not charging overnight fees.

New Islamic traders should enquire about these special conditions or extra fees before joining, because it is often overlooked or not indicated on the account features pages.

 

Is SMFX regulated and by whom?

SMFX is regulated by CySEC.

 

Is SMFX a recommended forex trading broker for experts and beginners?

SMFX offers the best trading environment for all types of traders.

 

What is the overall rating out of 10 for SMFX?

6/10.

 

Accounts

 

What is the difference between a demo and a live trading account?

A demo account as is offered by broker companies like SMFX is usually funded with virtual money and gives a prospective customer the opportunity to experiment with the company’s trading platforms and its features before setting up a real account funded with the customer’s actual money.

 

Does SMFX offer a demo account?

Yes.

 

Can I convert my demo account to a live trading account with SMFX?

This is not clear from the information on the company homepage.

 

Which live trading accounts does SMFX offer?

  • Mini Accounts
  • Standard Accounts
  • Top Accounts
  • Elite Accounts
  • Eva Account
  • Revolution Forex Account

 

Does SMFX offer an Islamic Account

Yes.

 

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

USD and more.

 

Deposits and Withdrawals

 

What is the minimum deposit required to open an account with SMFX?

$ 50 minimum deposit amount to open a standard account, while the very minimum for the mini account is set to $ 10.

 

How do you make a deposit and withdraw money with SMFX?

SMFX offers the following deposit and withdrawal methods:

  • Bank Wire
  • Neteller
  • Skrill

 

Does SMFX charge withdrawal fees?

SMFX allows that two requests per month can be done free of charge, with further requests being charged the equivalent of $35.

 

How long does it take to make a withdrawal?

Withdrawals by means of certain methods may be processed within a day but depending on bank services it may take several days for the money to be available.

 

Author Details

Louis Schoeman

Louis Schoeman

Featured Forex and Stocks writer

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