Pepperstone – Islamic Account

Pepperstone – Islamic Account

Share on facebook
Share on linkedin
Share on twitter
Share on pinterest
Share on email

Pepperstone - Islamic Account

 

Overall Rating

4.9/5

Rated #10 of
Recommended FX Brokers

💰Minimum Deposit

USD 10

🌐 Regulators

ASIC, FCA, CySEC, BaFin, DFSA, SCB, CMA

📱 Trading Desk

MetaTrader 4, MetaTrader 5 and cTrader

Crypto

Yes

📈 Total Pairs

1000+

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Our Pepperstone Islamic Account Revealed:

 

Pepperstone Overview

Established in 2010, Pepperstone is a multi-regulated and multi-award-winning ECN and STP broker headquartered in Australia. Pepperstone is one of the largest trading brokers in the world, offering traders access to more than 1,000 CFD instruments that can be traded through cTrader, MetaTrader 4, and MetaTrader 5.

 

Pepperstone offers competitive trading conditions, with spreads that start from 0.0 pips, commission-free options, access to trading tools and educational materials, negative balance protection that is applied to retail accounts, and more.

 

Pepperstone is trusted and guarantees client fund security by keeping all client deposits in segregated accounts with top tier Australian banks. Pepperstone has multiple regulations and authorisation through several entities in each jurisdiction in which it operates, providing traders with a fair, transparent, and secure trading environment in which they can trade different markets.

 

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
  • Gharar

 

Riba is the prohibition of generating money from money, which in this case specifically refers to an 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 Pepperstone Islamic Account?

Traders who live in the accepted regions as indicated on the official Pepperstone website must register a live trading account that must be verified and funded. Once approved, traders can convert their live trading account to an Islamic account by contacting customer support.

 

Pepperstone offers the Islamic Account to:

  • Albania
  • Azerbaijan
  • Bangladesh
  • Burkina Faso
  • Bahrain
  • Brunei
  • Brunei Darussalam
  • Algeria
  • Egypt
  • Guinea and several other Islamic regions around the globe

 

What is Pepperstone’s spread costs on an Islamic Account?

The spreads on the Pepperstone Islamic Account range between 1 pip and up to 1.2 pips EUR/USD. The spreads that traders can expect will depend on the financial instrument that they trade and the market conditions on the day of trading.

 

What other features does Pepperstone’s Islamic Account have?

The Pepperstone Swap-free Islamic account has the following unique features:

  • A minimum deposit of AU$200 or equivalent in EUR, GBP, or USD as the official account base currencies
  • Average spreads between 1 to 1.2 pips EUR/USD
  • Commission-free trading
  • The ability to use scalping, hedging, and EAs

 

When traders use the Islamic Account that is offered by Pepperstone, they must take note that there are administration fees charged as follows:

  • Cryptocurrencies (Professional Account Only), commodities, equities – 1.5 USD
  • Index Markets – 10 USD
  • GER40, FRA40, JPN225, CN50, ETH/USD (Professional Account Only) – 12 USD
  • SpotCrude and SpotBrent – 20 USD
  • US30 – 30 USD
  • Forex, precious metals on the retail account – 50 USD
  • Only on the professional account – Crypto10, Crypto20, and Crypto30 – 50 USD
  • BTC/USD (Professional Account Only) – 125 USD

 

Pepperstone Pros and Cons

PROS CONS
Award-winning broker with multi-regulation Restricted leverage offered for non-professional traders
Negative balance protection which is applied to retail trading accounts Limited account types offered
Powerful trading platforms offered Demo account expires in 30 days
Social trading opportunities are offered Fixed spreads are not offered
Accepts several different trading strategies and styles US clients are not accepted
Islamic account and demo account options are offered

PEPPERSTONE AT A GLANCE

Broker's Name Pepperstone
Headquartered Melbourne, Australia
Year Founded 2010
Regulating Authorities ASIC, FCA, DFSA, SCB, CySEC, BaFin, CMA
Countries not accepted for trade United States
Islamic Account (Swap Free) Yes
Demo Account Yes
Institutional Accounts Yes
Managed Accounts No
Maximum Leverage 1:30 (retail), 1:500 (professional)
Minimum Deposit AU$200
Deposit Options
  • Credit cards
  • Debit Cards
  • Bank transfer
  • PayPal
Withdrawal Options
  • Credit cards
  • Debit Cards
  • Bank transfer
  • PayPal
Platform Types
  • cTrader
  • MetaTrader 4
  • MetaTrader 5
OS Compatibility Android, iOS, web browsers, Linux, Windows, macOS
Tradable Assets
  • Forex
  • Commodities
  • Indices
  • Shares
  • ETFs
  • Currency Indices
  • Cryptocurrencies
Languages supported on Website English, Simplified Chinese
Customer Support Languages English, Spanish, Russian, Chinese, Vietnamese, Arabic, Indonesian, Italian, French, Laotian, German Polish
Customer Service Hours 24/5

 

You might also like: Pepperstone Account Types

You might also like: Pepperstone Demo Account

You might also like: Pepperstone Fees and Spreads

You might also like: Pepperstone Minimum Deposit

 

Overall Rating

4.9/5

Rated #10 of
Recommended FX Brokers

💰Minimum Deposit

USD 10

🌐 Regulators

ASIC, FCA, CySEC, BaFin, DFSA, SCB, CMA

📱 Trading Desk

MetaTrader 4, MetaTrader 5 and cTrader

Crypto

Yes

📈 Total Pairs

1000+

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

FAQ

TRADING ENVIRONMENT

How many instruments can I trade with Pepperstone?

You can trade any of the following instruments:

  • Forex
  • Commodities
  • Indices
  • Shares
  • ETFs
  • Currency Indices
  • Cryptocurrencies

 

Which platforms are supported by Pepperstone?

Pepperstone supports the use of:

  • cTrader
  • MetaTrader 4
  • MetaTrader 5

 

Does Pepperstone offer leverage?

Yes, Pepperstone offers leverage of up to 1:30 for retail clients while professionals are given access to leverage up to 1:500.

 

What spreads can I expect with Pepperstone?

Spreads with Pepperstone start from 0.0 pips on the Razor Account.

 

Does Pepperstone charge commission?

Yes, Pepperstone charges commissions from AU$7 or currency equivalent per round turn on the Razor Account.

 

Are there additional charges on the Islamic account?

Yes, the Islamic account incurs additional administration charges in USD that are applied as follows:

  • Cryptocurrencies (Pro Only), commodities, equities – 1.5 USD
  • Index Markets – 10 USD
  • GER40, FRA40, JPN225, CN50, ETH/USD (Pro Only) – 12 USD
  • SpotCrude and SpotBrent – 20 USD
  • US30 – 30 USD
  • Forex, precious metals, Crypto10 (Pro), Crypto20 (Pro), and Crypto30 (Pro) – 50 USD
  • BTC/USD (Pro Only) – 125 USD

 

Is Pepperstone regulated and by whom?

Yes, Pepperstone is regulated by ASIC, FCA, DFSA, SCB, CySEC, BaFin, CMA.

 

Is Pepperstone a recommended forex trading broker for experts and beginners?

Yes, Pepperstone is recommended for both beginners and experts.

 

What is the overall rating out of 10 for Pepperstone?

9/10.

 

ACCOUNTS

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 Pepperstone offer a demo account?

Yes, Pepperstone offers a demo account.

 

How long is the demo account valid?

The MetaTrader 4 and MetaTrader 5 demo accounts typically expire after 30 days. However, traders who have a verified live trading account with Pepperstone can request that their demo account be set to non-expiry. This will provide unlimited access if the trader uses it at least once every 90 days.

 

Which live trading accounts does Pepperstone offer?

Pepperstone offers:

  • Standard Account
  • Razor Account
  • Professional Account

 

Does Pepperstone offer an Islamic Account?

Yes, Pepperstone offers an Islamic Account option.

 

What are the available deposit currencies for a live trading account?

  • USD
  • AUD
  • JPY
  • GBP
  • EUR
  • CAD
  • CHF
  • NZD
  • SGD
  • HKD

 

DEPOSITS AND WITHDRAWALS

What is the minimum deposit required to open an account with Pepperstone?

AU$200.

 

How do you make a deposit and withdraw money with Pepperstone?

  • Credit cards
  • Debit Cards
  • Bank transfer
  • PayPal

 

Does Pepperstone charge withdrawal fees?

No, Pepperstone does not charge any withdrawal fees. However, banks may charge intermediary fees that traders will be liable for.

 

How long does it take to make a withdrawal?

According to the official Pepperstone website, withdrawals can take between one and three working days.