Our IC Markets Islamic Account Revealed:
- ✔️IC Markets Overview
- ✔️What exactly is an Islamic Account?
- ✔️Why is interest discouraged or prohibited by Sharia law?
- What are the steps involved in opening an IC Markets Islamic Account?
- What are IC Markets’ spread costs on an Islamic Account?
- What other features does IC Markets’ Islamic Account have?
- IC Markets Pros and Cons
- IC MARKETS AT A GLANCE
IC Markets Overview
IC Markets is a large, true ECN broker that has been in operation since 2007 with multiple regulations and authorization with reputable regulatory entities. IC Markets offers traders access to a wide range of tradable instruments across several asset classes.
IC Markets offers a choice between three distinctive account types, namely:
- Raw Spread cTrader Account
- Raw Spread MetaTrader Account
- Standard MetaTrader Account
The benefit that IC Markets offers its Muslim traders is Sharia-compliant instruments and trading conditions and the ability to convert all trading accounts into 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 the 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 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 an IC Markets Islamic Account?
To register for an Islamic Account, traders must first register for a live trading account. Once the account has been approved and funded, traders can request for an account conversion to an Islamic Account.
What are IC Markets’ spread costs on an Islamic Account?
The spreads that traders can expect on the IC Markets Islamic Account start from 0.0 pips on the Raw Spread Accounts on MetaTrader and cTrader and 0.6 pips on the Standard MetaTrader Account.
What other features does IC Markets’ Islamic Account have?
The IC Markets Islamic Account features that traders can expect will depend on the account type that traders convert to an Islamic Account. However, some common features that traders can expect regardless of the account type include:
- Access to more than 90 Sharia-compliant financial instruments
- Access to leverage up to a maximum of 1:500
- Spreads from as tight as 0.0 pips on the Raw Spread Accounts
- No additional costs in place of the swaps
- Access to MetaTrader 4 and MetaTrader 5
While the IC Markets Islamic Accounts do not earn/pay swap fees, Muslim traders who use the IC Markets Islamic account can expect a flat rate financing charge on some financial instruments. The rates that are charged and the available holding period will be subject to change if market conditions change.
Traders must note that the Raw Spread, as well as Standard Account commissions and spreads, apply to the Islamic account as they would on a normal account where swaps are charged.
Traders can expect a flat charge that ranges from $5 per lot up to a maximum of $80 per lot. Traders must note that Fridays will attract a triple charge if positions are kept open for longer after the trading session has ended.
IC MARKETS AT A GLANCE
|Broker's Name||IC Markets|
|Regulating Authorities||CySEC, ASIC, FSA, SCB|
|Countries not accepted for trade||United States|
|Islamic Account (Swap Free)||Yes|
|OS Compatibility||Web browsers, Linux, Windows, macOS, iOS, Android|
|Languages supported on Website||English, Spanish, Russian, Thai, Malay, Vietnamese, Italian, Portuguese, and several others|
|Customer Support Languages||Multilingual|
|Customer Service Hours||24/7|
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How many instruments can I trade with IC Markets?
You can trade any of the following instruments:
Which platforms are supported by IC Markets?
IC Markets only supports the use of MetaTrader 5 on the following:
- MetaTrader 4
- MetaTrader 5
- Myfxbook AutoTrade
Does IC Markets offer leverage?
Yes, IC Markets offers leverage up to 1:500.
What spreads can I expect with IC Markets?
You can expect spreads from 0.0 pips.
Does IC Markets charge commission?
Yes, IC Markets offers commissions as follows:
- cTrader Raw Spread Account – from $3.00 per USD 100K traded.
- MetaTrader Raw Spread Account – from $3.5 per lot, per side.
Are there additional charges on the Islamic account?
Yes, there are additional holding commissions charged on certain forex pairs. These commission charges range from between $5 up to $80 per lot, with triple charges when traders hold a position over Friday nights.
Is IC Markets regulated and by whom?
Yes, IC Markets is well-regulated by ASIC, CySEC, FSA, and SCB.
Is IC Markets a recommended forex trading broker for experts and beginners?
Yes, IC Markets is suited to both beginners and experts.
What is the overall rating out of 10 for IC Markets?
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 IC Markets offer a demo account?
Yes, IC Markets offers a demo account.
How long is the demo account valid?
The demo account is available for an unlimited period. However, if the demo account shows no activity, it will expire after 30 days.
Which live trading accounts does IC Markets offer?
IC Markets offers the following live trading accounts:
- Raw Spread cTrader Account
- Raw Spread MetaTrader Account
- Standard MetaTrader Account
Does IC Markets offer an Islamic Account?
Yes, IC Markets offers the option of an Islamic Account on all live trading accounts.
What are the available deposit currencies for a live trading account?
- CHF, and several others.
DEPOSITS AND WITHDRAWALS
What is the minimum deposit required to open an account with IC Markets?
How do you make a deposit and withdraw money with IC Markets?
- Credit Cards
- Debit Cards
- Neteller VIP
- Bank Wire Transfer
- Broker to Broker
- Thai Internet Banking
- Vietnamese Internet Banking
Does IC Markets charge withdrawal fees?
No, IC Markets does not charge any withdrawal fees.
How long does it take to make a withdrawal?
Withdrawal processing times will depend on when the trader submits their withdrawal request and which payment method they use for their withdrawal. Some payment methods offer instant processing while others, such as bank wire, can take a few days.