The Dukascopy Islamic account is among the two Dukascopy account types suitable to Islamic traders, the other being the Dukascopy demo account. My Dukascopy Islamic account review provides details so Islamic traders know what to expect.
What Is the Dukascopy Islamic Account?
With the Dukascopy Islamic account, traders get a Shariah-compliant swap-free trading account. Therefore, traders keeping leveraged overnight positions neither pay nor receive financing rates, also known as swap rates.
Swap-free Islamic accounts face an additional fixed fee of $0.50 per $100,000, or 1.0 standard round lot dependent on the currency pair, for Forex trades and $0.75 for precious metal and CFD positions.
The Dukascopy minimum deposit requirement of $100 or a currency equivalent is the same as opening a standard account. The availability of the Dukascopy withdrawal methods depends on the geographical location of Islamic traders, but cryptocurrency deposits and withdrawals are available.
Why Is Interest Discouraged or Prohibited by Sharia Law?
Scholars continue to debate how the prohibition against interest applies to various areas of finance. As it is a religious matter, Islamic traders should consult their Imam to get clarification on Sharia law and why receiving interest is discouraged. The Dukascopy 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
Islamic accounts may differ among brokers, but the core feature is the absence of swap rates, making them Sharia-compliant. This allows Islamic traders to engage in leveraged trading without violating their faith. Demo accounts are available, but they may not reflect the swap-free feature of live accounts. They are still acceptable though, as Dukascopy demo accounts use virtual funds.
Special Restrictions for Islamic Accounts
Some brokers limit the time Islamic traders can keep leveraged overnight positions open. They may add administrative fees once Islamic traders breach the time limit. Other restrictions may include the trading platform selection, the asset selection, or leverage settings. Geographic restrictions may also apply, and some brokers require proof that a trader follows the Islamic faith.
The Dukascopy Islamic account includes deficit deductions from the account if the difference between the additional commissions and the swap amount is negative and less than the account equity. Dukascopy will also block trading, close open positions, and cancel pending orders. Dukascopy calculates the deficit daily at the settlement time and adjusts the minimum stop-loss level accordingly.
Dukascopy debits the deficit if:
- The client presses the “Pay Deficit” button in the “Rollover Policy” report
- The deficit exceeds $5,000 or 10% of the account balance
- The termination of the swap-free rollover policy
- A full withdrawal of the account balance
- The account incurs a maintenance fee
What Are the Steps Involved in Opening a Dukascopy Islamic Account?
After opening a Dukascopy trading account, Islamic traders can switch their account status to swap-free in the JForex platform. Traders who use the Dukascopy Islamic account with MT4 or MT5 can contact customer support to request a swap-free version.
Here are the steps to active swap-free status in JForex:
1. Log into your JForex trading platform.
2. Click “Reports” followed by “Rollover Policy.”
3. Check the box “I have read and agree to the Swap Free Accounts Terms and Conditions” under “Apply for Swap-Free policy,” followed by “Apply.”
Notable Features of the Dukascopy Islamic Account
During my Dukascopy broker review, the Dukascopy Islamic account offered Islamic traders the core features outlined below.
The key features of the Dukascopy Islamic account are:
- No swap rates, making it Sharia-compliant
- An additional fixed fee of $0.50 per $100,000, or 1.0 standard round lot dependent on the currency pair for Forex traders
- An additional fixed fee of $0.75 per $100,000 for precious metal and CFD positions
- Deficit deductions from the Dukascopy Islamic account if select conditions kick in
- A $100 Dukascopy minimum deposit requirement or currency equivalent
- Cryptocurrency deposits and withdrawals
- Competitive Dukascopy fees
- Dukascopy demo account
- Balanced asset selection
- Banking services
Dukascopy Islamic Account Pros and Cons
Before Islamic traders open the Dukascopy Islamic account, they should consider the pros and cons.
The Pros of the Dukascopy Islamic Account
- No swap rates
- Competitive Dukascopy fees
- Cutting-edge trading infrastructure
- Quality trading platforms
- In-house developed Swiss FX Marketplace (SWFX)
- Algorithmic and API trading
- Dukascopy copy trading
- 1:200 maximum leverage with negative balance protection
- Dukascopy demo account
- Balanced asset selection
- Banking services
- Account base currencies are USD, CHF, EUR, GBP, AUD, CAD, CZK, DKK, HKD, HUF, ILS, JPY, MXN, NOK, NZD, PLN, RON, CNH, SEK, SGD, TRY, XAU, and ZAR
The Cons of the Dukascopy Islamic Account
- Additional fixed fees to substitute the absence of swap rates
- Deficit deductions if select conditions apply
Bottom Line
The Dukascopy Islamic account allows Islamic traders to benefit from leveraged trading while complying with Sharia law. Besides standard Dukascopy fees, Islamic traders pay an additional fixed fee of $0.50 per $100,000, or 1.0 standard round lot dependent on the currency pair, for Forex trades and $0.75 for precious metal and CFD positions. Deficit deductions from the Dukascopy Islamic account apply if select conditions kick in, but Dukascopy remains one of the most transparent brokers offering Islamic accounts. Traders using the Dukascopy Islamic account can use maximum leverage of up to 1:200. The Dukascopy demo account is available to all traders. Dukascopy accepts Muslim traders and offers them a Sharia-compliant Dukascopy Islamic account. Dukascopy is a Swiss bank with 20+ years of operational excellence. Therefore, it is safe to open an Islamic account with Dukascopy. Dukascopy is an excellent broker due to competitive Dukascopy fees, excellent trading infrastructure, deep liquidity, and a trustworthy, secure trading environment.FAQs
Does Dukascopy offer leverage in the Islamic account?
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