Our OctaFX Islamic Account Revealed:
- ✔️OctaFX Overview
- ✔️What exactly is an Islamic Account?
- ✔️Why is interest discouraged or prohibited by Sharia law?
- What are the steps involved in opening an OctaFX Islamic Account?
- What is OctaFX’s spread costs on an Islamic Account?
- What other features does OctaFX’s Islamic Account have?
- OctaFX Pros and Cons
- OCTAFX AT A GLANCE
OctaFX is a multi-award-winning forex and CFD broker that has more than 6.6 million registered traders from over 100 countries who use its comprehensive trading solutions to trade global financial markets. OctaFX provides several asset classes that can be traded in addition to offering two versatile and dynamic live trading accounts.
In addition to this, OctaFX offers Muslim traders the opportunity of converting their OctaFX MT5 account into an Islamic Account. OctaFX aims to reduce overall trading costs by ensuring that 97.5 of all trades are executed without slippage through ECN and STP models.
Since its establishment, a decade ago, OctaFX has accumulated more than 28 industry awards, including the following:
- Best Forex Broker India (2021) – Global Business Review Magazine
- Best Trading Conditions Asia (2021) – World Business Outlook
- Best ECN Broker (2021) – World Finance
- Best Trading Platform (2021) – FX Daily Info
- A decade of Excellence in Forex Asia (2021) – Global Banking And Finance Review
- Best Forex Broker Asia (2021) Global Banking And Finance Review
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 OctaFX Islamic Account?
To register for an OctaFX Islamic Account, traders must complete the registration for the OctaFX MT5 Trading Account. Once traders have verified their account and it has been approved, they can request an account conversion by contacting customer support.
What is OctaFX’s spread costs on an Islamic Account?
The spreads that traders can expect while trading on the OctaFX Islamic Account start from 0.6 EUR/USD.
What other features does OctaFX’s Islamic Account have?
OctaFX offers the swap-free Islamic Account option on the MT5 Account. Apart from being exempted from earning/paying interest, traders can expect the following features:
- Variable spreads that start from 0.6 pips EUR/USD
- Commission-free trading
- A recommended minimum deposit of at least $100
- Access to a range of markets that consists of 35 currency pairs, gold, silver, 3 energies, 10 indices, and 5 cryptocurrencies
- Leverage that ranges from 1:25 on cryptocurrencies up to 1:500 on forex pairs except for ZAR/JPY which has a limited ratio of 1:100
- A maximum trading volume of 500 standard lots
- Trades are executed at market execution within less than 0.1 seconds
- Access to 5th decimal pricing
- A choice between USD and EUR as the base account currency
- Margin call of 25% and a stop-out level of 15%
- Access to a wide range of trading styles and strategies that can be used when trading with OctaFX
OCTAFX AT A GLANCE
|Headquartered||Saint Vincent and the Grenadines|
|Regulating Authorities||FSA SVG, CySEC|
|Countries not accepted for trade||United States|
|Islamic Account (Swap Free)||Yes|
|OS Compatibility||Android, iOS, macOS, Windows, Linux, Web Browsers|
|Languages supported on Website||English, Malaysian, Hindi, Bangla, Thai, Spanish, German, Vietnamese, Portuguese, Arabic, Simplified Chinese, and more.|
|Customer Support Languages||Multilingual|
|Customer Service Hours||24/5|
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You might also like: OctaFX Demo Account
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How many instruments can I trade with OctaFX?
You can trade any of the following instruments:
- Index CFDs
Which platforms are supported by OctaFX?
OctaFX supports the use of:
- OctaFX Trading App
- MetaTrader 4
- MetaTrader 5
Does OctaFX offer leverage?
Yes, OctaFX offers leverage according to the financial instruments that can be traded through MetaTrader 4 and MetaTrader 5 as follows:
- Forex – up to 1:500 except on ZAR/JPY which is capped at 1:100
- Metals (Silver and Gold) – up to 1:200
- Energies – up to 1:100
- Indices – up to 1:50
- Cryptocurrencies – up to 1:25
What spreads can I expect with OctaFX?
You can expect floating spreads from 0.6 pips EUR/USD on MetaTrader 4 and MetaTrader 5.
Does OctaFX charge commission?
No, instead of charging a commission on trades, OctaFX offers marked-up spreads that include the broker fee for facilitating trades.
Are there additional charges on the Islamic account?
No, there are no additional charges on the Islamic Account.
Is OctaFX regulated and by whom?
Yes, OctaFX is regulated by CySEC and FSA SVG.
Is OctaFX a recommended forex trading broker for experts and beginners?
Yes, OctaFX is recommended for both beginners and experts.
What is the overall rating out of 10 for OctaFX?
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 OctaFX offer a demo account?
Yes, OctaFX offers a demo account.
How long is the demo account valid?
The demo accounts that OctaFX offers on MetaTrader 4 and MetaTrader 5 can be used for an unlimited time. However, if left unattended without any trading activity, the MetaTrader 4 account will expire after 8 days while the MetaTrader 5 account will expire after 60 days.
Which live trading accounts does OctaFX offer?
OctaFX offers the following trading accounts:
- OctaFX MT4 Account
- OctaFX MT5 Account
Does OctaFX offer an Islamic Account?
Yes, OctaFX offers the option for an Islamic Account on the OctaFX MT5 Account.
What are the available deposit currencies for a live trading account?
You can use EUR and USD for deposits.
DEPOSITS AND WITHDRAWALS
What is the minimum deposit required to open an account with OctaFX?
The recommended minimum deposit is $100.
How do you make a deposit and withdraw money with OctaFX?
- Debit Card
- Credit Card
- Bitcoin (BTC)
- Ethereum (ETH)
- Tether TRC-20 (USDTT)
- Tether ERC-20 (USDTE)
- Dogecoin (DOGE)
- Litecoin (LTC)
Does OctaFX charge withdrawal fees?
No, OctaFX does not charge any withdrawal fees.
How long does it take to make a withdrawal?
Depending on the withdrawal method used, withdrawals can take up to three hours according to the official OctaFX website.