Are you looking to use ZuluTrade, but need an Islamic account to respect the Shariah?
In this post we’ll tell you who is the best broker to connect to ZuluTrade that allows Islamic accounts.
We will also show you how to open one.
Islamic Trading Accounts
The term Islamic trading accounts refers to special trading accounts, specifically designed to comply with the Islamic Law. The main feature they must have, is that they cannot pay nor earn any kind of interest. The Shariah, considers all forms of interest as exploitation.
In traditional accounts, holding overnight positions may lead to the crediting or debiting of sums relative to the capital (i.e. Swap).
If, for instance, you open a short position on Euro/Dollar, keeping it overnight, your account will be credited with an interest due to the different rates applied by the ECB for the Euro, and the FED for the Dollar.
On the contrary, maintaining a long position on the same contract, would involve the payment of an interest rate.
These two events cannot happen on Islamic Accounts.
ZuluTrade Islamic Account – Which is the Best Broker
There are a lot of brokers you can choose to start copy trading with ZuluTrade, including several among the most famous, such as AvaTrade, Pepperstone, IC Markets, FXCM, and many others.
But the best broker to use with ZuluTrade, that allows Islamic accounts, is AAAFX.
AAAFX is owned by the same company that owns ZuluTrade, i.e. the Formax Group. With AAAFX the whole Copy Trading experience on ZuluTrade is definitely better, besides the fact that some interesting services such as the ZuluTrade Profit Sharing ZuluTrade account are only available through this broker.
Shortly, I will show you how to request an AAAFX Islamic account.
AAAFX Islamic Account
AAAFX Islamic accounts are different from those offered by other brokers. The difference being that while other brokers charge the interests on these accounts as higher spreads or higher transaction costs, AAAFX doesn’t. AAAFX offers the exact same conditions as standard accounts.
The practice of charging interests implicitly is extremely unfair and subtle, and AAAFX is categorically against it. On the other hand, AAAFX reserves the right not to recognize an Islamic account or to suspend it if it has already been opened in case this possibility offered to Islamic traders has been abused of.
How to Open an Islamic Account on AAAFX
To open an Islamic account, that will never be credited or debited for interests, simply open this page and fill in all the required data, such as name, surname, residential address etc.
This will create a standard account.
Open a Live Account with AAAFX and link it to ZuluTrade. (CFD Service. 80.6% loses money)
Are you looking for a tutorial to follow through for all this procedure? Here it is.
Then, you will have to send a request to the AAAFX back office, via email to [email protected], specifying you wish for your account to be converted to an Islamic account.
Finally, you will have to wait for the request to be processed, and before long you will receive confirmation of the operation at your email address, and you’re done!