Our CM Trading Islamic Account Revealed.
- ✔️CM Trading Overview
- ✔️What exactly is an Islamic Account?
- ✔️Why is interest discouraged or prohibited by Sharia law?
- What are the steps involved in opening a CM Trading Islamic Account?
- What is CM Trading’s spread costs on an Islamic Account?
- What other features does CM Trading’s Islamic Account have?
- CM Trading Pros and Cons
- CM TRADING AT A GLANCE
CM Trading Overview
CM Trading is an FSCA-regulated South African broker that has been in operation since 2012, offering a wide range of tradable instruments that can be traded through.
- MetaTrader 4
These trading platforms offer comprehensive and innovative mobile trading capabilities across iOS and Android devices in addition to being compatible with desktop computers and web browsers.
CM Trading is a well-established broker that uses innovative trading technology, offering traders simple and secure trading solutions and comprehensive trading options. CM Trading operates according to values that are based on integrity and honesty, with transparent operations that surround client safety and fund security.
CM Trading keeps all client funds in segregated accounts with top-tier banks while the website and connections are secured through SSL, ensuring that all information is encrypted between the website and trading platform.
CM Trading boasts with several industry awards that it has won over the years, including “Best Performing Broker in Africa” in 2017 and “Best Financial Broker in Africa” in 2019, amongst several others.
Traders have a choice between four dynamic and flexible trading accounts, namely.
- Bronze Account
- Silver Account
- Gold Account
- Premium Account
An advantage that CM Trading offers, is that Muslim traders can register any of the four live trading accounts and convert them to an Islamic Account.
What exactly is an Islamic Account?
An Islamic, or swap-free, trading account is allowed by Islamic Sharia law. These accounts are based on the Islamic principle where interest is not applied to positions that are held open for longer than a trading day after the trading day has concluded.
Islamic Accounts are provided by brokers who serve Middle Eastern clients along with clients from other jurisdictions and offers certain features that are in line with the Sharia law, which prohibits the accrual of interest on funds deposited into the account.
The other important feature of 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.
Two key elements of Islamic law relate specifically to trading accounts, these elements are.
- Riba, and
Riba is the prohibition of generating money from money, which in this case specifically refers to a type of interest, which is not allowed according to Sharia law. This type of interest is seen as both unjust and exploitive gains of trade or business.
Why is interest discouraged or 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 the 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.
- Margin trading – 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 a CM Trading Islamic Account?
CM Trading’s Islamic Account is fully Sharia-compliant, and it is aligned with the principles of Islamic Finance. To register for an Islamic Account, traders can follow these steps.
- Register for a live trading account and complete the account verification process.
- Contact CM Trading customer support to request an account conversion.
- Deposit the required minimum amount to the trading account to activate it.
What is CM Trading’s spread costs on an Islamic Account?
The spread cost on the Islamic Account will depend on the live trading account’s trading conditions. Typical spreads that traders can expect from CM Trading as per the account types are as follows.
- Bronze Account – Regular spreads
- Silver Account – from 1.2 pips EUR/USD
- Gold Account – from 0.9 pips EUR/USD
- Premium Account – from 0.9 pips EUR/USD
What other features does CM Trading’s Islamic Account have?
The specific features that traders can expect from their Islamic Account will depend on the live trading account that they convert. However, traders can expect some of the following basic specifications.
- Access to a demo account
- Access to different market reviews
- CM Trading eBook
- The ability to attend different webinars
- Access to risk-free trades
- A minimum deposit from $250 up to $100,000 and more, depending on the account type
- Access to powerful trading platforms that can be used across different devices
- Access to 24/5 customer support through several communication channels
- Access to a wide range of markets
- Commission-free trading on all accounts and financial instruments
CM TRADING AT A GLANCE
|Broker's Name||CM Trading|
|Countries not accepted for trade||United States|
|Islamic Account (Swap Free)||Yes|
|OS Compatibility||Android, iOS, Windows, Linux, macOS|
|Languages supported on Website||English, Arabic, Russian|
|Customer Support Languages||Multilingual|
|Customer Service Hours||24/5|
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How many instruments can I trade with CM Trading?
You can trade any of the following instruments.
Which platforms are supported by CM Trading?
CM Trading supports the use of the following.
- MetaTrader 4
Does CM Trading offer leverage?
Yes, CM Trading offers leverage up to 1:200.
What spreads can I expect with CM Trading?
You can expect spreads from 0.9 pips on the Gold and Premium Account.
Does CM Trading charge commission?
No, CM Trading does not charge commissions. The broker’s fee is included in the spread.
Are there additional charges on the Islamic account?
No, there are no additional charges on the Islamic Account.
Is CM Trading regulated and by whom?
Yes, CM Trading is regulated by the FSCA.
Is CM Trading a recommended forex trading broker for experts and beginners?
Yes, CM Trading is a recommended forex trading broker for both beginner and expert traders.
What is the overall rating out of 10 for CM Trading?
What is the difference between a demo and a live trading account?
A demo account is a practice account that can be used by both beginner and professional traders. Beginners can use a demo account to practice their trading while more advanced traders can use it to test their trading strategies.
Alternatively, traders can also use a demo account to explore what a broker has to offer. Demo accounts are known for the risk-free environment that they offer along with the virtual funds which are used to trade.
Does CM Trading offer a demo account?
Yes, CM Trading offers a demo account.
How long is the demo account valid?
The demo account is available for an unlimited period if it is actively being used.
Which live trading accounts does CM Trading offer?
CM Trading offers the following live trading accounts.
- Bronze Account
- Silver Account
- Gold Account
- Premium Account
Does CM Trading offer an Islamic Account?
Yes, CM Trading offers an Islamic Account on all account types offered.
What are the available deposit currencies for a live trading account?
CM Trading supports the use of EUR or USD
DEPOSITS AND WITHDRAWALS
What is the minimum deposit required to open an account with CM Trading?
How do you make a deposit and withdraw money with CM Trading?
You can use any of the following.
- Bank wire transfer
- Debit & credit cards
- Online Naira
Does CM Trading charge withdrawal fees?
Yes, CM Trading may charge fees on some withdrawal methods.
How long does it take to make a withdrawal?
This will depend on the withdrawal method that traders use. Some withdrawals may be instant whereas others can take a few days to process and clear.