If you are unsure whether you can trade with a swap-free, Shariah-compliant account, at Alpari, and want to ensure your trading activities remain halal, this article provides an analysis of the Alpari Islamic account. Are you a Muslim trader who wants to benefit from competitive trading conditions? Read my Alpari Islamic account assessment to understand if you get fair treatment as a Muslim trader and learn about the pros and cons of the broker’s Islamic account option.
What Is the Alpari Islamic Account?
The Alpari Islamic account is one of two Alpari account types suitable for Muslim traders, who cannot pay or receive interest and require access to leveraged overnight trading. The Alpari Islamic account is a Shariah-compliant swap-free trading account for Muslim traders who keep leveraged overnight positions, as it neither pays nor receives financing rates, also known as swap rates.
During my Alpari Islamic account review, Alpari did not add extra costs to replace lost revenues from the absence of swap rates. Therefore, I rank Alpari among the best Islamic account Forex brokers, as it is a rare broker that does not substitute swap rates with wider spreads or high administrative fees.
Why Is Interest Discouraged or Prohibited by Sharia Law?
Islamic traders should consult their Imam to clarify why receiving interest is discouraged or prohibited under Sharia law, as this is a religious matter, and scholars continue to debate how this applies to financing. The Alpari Islamic account complies with Sharia law, allowing Islamic traders to stay true to their faith while engaging in leveraged trading.
Key Features of an Islamic Brokerage Account
While trading conditions differ among brokers, the core feature of an Islamic brokerage account is the absence of swap rates. Islamic accounts are Sharia-compliant, allowing Islamic traders to engage in leveraged trading without violating their faith. Muslim traders can explore the trading conditions at no risk, in the Alpari demo account.
Special Restrictions for Islamic Accounts
Special restrictions for Islamic accounts depend on brokers. They may include geographic restrictions, proof that a trader follows the Islamic faith, asset limitations, restrictive leverage settings, potential time limits on how long Islamic traders can keep leveraged overnight positions open before they incur excessive administrative fees, and trading platform limitations.
Concerning limitations on its Islamic account, Alpari has stated that Iranian residents and citizens are excluded from trading ETFs.
What Are the Steps Involved in Opening an Alpari Islamic Account?
Alpari offers a swap-free Islamic account option for all account types. Islamic traders must open an account and then change to a swap-free Alpari Islamic trading account via the Alpari back office.
Here are the steps to open your Alpari Islamic account:
1. Click “Open Account” on the Alpari homepage.
2. Follow the on-screen instructions and log into the Alpari back office.
3. Click “Accounts Overview” in the left menu, choose your trading account, and click the green arrow next to “Deposit.”
4. Select “Enable swap-free mode.”
Notable Features of the Alpari Islamic Account
During my Alpari broker review, the absence of replacement fees to compensate for the loss of swap fees stood out.
Other key features of the Alpari Islamic account are:
- No swap rates, making it Sharia-compliant
- Low commission-free Alpari fees from 0.1 pips or $1.00 per 1.0 standard round lot in MT4
- MT5 traders receive minimum commission-free spreads of 0.3 pips or $3.00 per 1.0 standard round lot
- Raw spread Forex trading for a commission of $5.00 per round lot, gold commissions of $18 per $1,000,000 notional value, and cryptocurrency commissions of 0.03% of the deal value
- No trading restrictions
- Alpari demo account
- Ultra-competitive Alpari leverage of 1:3000 with negative balance protection, DRM conditions, automatic stop-out levels at 80% margin level, and forced liquidation at 50% margin level
- Algorithmic trading via MT4/MT5
Alpari Islamic Account Pros and Cons
Traders should consider the pros and cons before opening an Alpari Islamic account.
The Pros of the Alpari Islamic Account
- A regulated broker with 25+ years of experience
- No replacement fees or trading restrictions
- An average order execution speed of 0.1277 seconds
- A cutting-edge price improvement mechanism that improves pricing on 60.66% of trades by an average of 0.84 pips or $8.40 per 1.0 standard round lot
- A well-balanced asset selection
- A trustworthy Alpari withdrawal system for verified clients
- Unlimited access to an Alpari demo account
The Cons of the Alpari Islamic Account
- Alpari may revoke or reject swap-free status
Bottom Line
The Alpari Islamic account is a Shariah-compliant option for Muslim traders. It is available across all account types, and traders can enable it from the Alpari back office. Unlike many brokers, Alpari does not replace swap rates with other fees or implement trading restrictions. Therefore, Muslim traders can engage in leveraged overnight trading without violating their faith. Alpari may monitor trading activity and revoke privileges at the broker’s discretion. The Alpari Islamic account has the same leverage as the broker’sswap-based accounts. While no trading occurs in the Alpari demo account, it may simulate swap rates. Each Muslim trader should evaluate if a simulation violates their faith. Alpari has 25+ years of experience, and its owner, Exinity, ranks among the best-known groups in Forex. Therefore, traders should feel safe opening any Alpari account.FAQs
Does Alpari offer leverage on the Islamic account?
Can Muslim traders use the Alpari demo account?
Is it safe to open an Islamic account with Alpari?
