Swap or Roll Over Charges
It is clearly stated in the Quran and in many Hadith that Muslims are forbidden to indulge in transactions with interest charges. They are forbidden to pay interest and / or receive interest payments. In the case of Online Forex Trading, Swap or roll over charges is actually a form of interest charges. As such, there is no doubt that Muslims are forbidden to trade in Online Forex Trading.
Trading Competition Details
This is not a meaningless Demo contest, this is a live trading competition, where competitors will trade their own, live trading account. We want to make this forex trading competition as realistic to live trading conditions as possible. So The Forex Village has teamed up with Lite Forex to offer traders a fantastic trading competition. First off, you can open an account with LiteForex with as little as $1!! If you like, you can look at this as an ‘Entry Fee', except that it's your money to trade as you like.
The competition winner for October was Vikram Pradesh from Mumbai, who made a staggering 164% return on his trading. Well done Vikram!
How Does the Competition Work?
The forex trading competition begins at 00.00GMT on the first trading day of each month and ends at 23.59 GMT on the close of the last trading day of the month. The winner will be determined by calculating the highest percentage gain each month. All winners will be notified by the 5th trading day of the following month, and prize money will be sent by either Paypal or wire transfer to the competition winners.
Entry is permitted at any time throughout the month. Once you have an account, you are automatically entered for all subsequent trading competitions - so as long as you continue to trade, you have a chance of winning!
Why do I need to open a live account?
We want to encourage sensible, thought fuelled trading, not hot-headed risk taking. By having a live trading competition, we are able to stimulate live trading conditions, not meaningless trading on a demo account.
If we allowed entry to the competition on demo accounts, then there would be nothing to stop a trader from submitting 2 seperate entries under different names, then taking a highly leveraged ‘short' trade with one account, and a ‘long' trade with the other. Whatever happens to the currency pair in question, the ‘trader' is left with one of his entries having made a spectacular return.
The purpose of the competition is to avoid these problems, and to encourage sensible trading.
The Forex Village is proud to introduce this month’s featured website, www.ForexBrokerRebates.com. The idea behind Forex Broker Rebates is that they will rebate back to the trader a portion of the spread for each forex trade the trader takes. Forex Broker Rebates have teamed up some of the biggest and most reputable forex firms in the industry – firms like FXCM, Forex.com and CMS Forex - to provide forex traders with great rebate deals. They will rebate back to you $4 for each single lot forex trade that you make.
Forex Broker Rebates act as ‘Introducing Brokers’ for these firms – which means they receive a small commission from the broker for each trade you make. Now the great thing about this scheme is that it costs you nothing to join – you continue to pay the same, competitive spreads with the brokers that you would if you didn’t register with them, but each month, you get paid a rebate, directly into your bank account. And what is even better, even if you already have an account with FXCM, Forex.com or CMS Forex, you can still register with Forex Broker Rebates to claim your free forex rebates. They say that there is no such thing as a free lunch, but in this case, they might just be wrong! If you want to learn more about Forex Broker Rebates, go directly to their website by clicking here.
Advertisers: are you interested in becoming The Forex Village’s ‘Featured Website’? Contact info@theforexvillage.com for further details.
Shariah, or Islamic law prohibits any interest to be paid on an investment. However, the rollover interest from a forex position is a key aspect of forex trading. Thus the question arises, how can a Muslim forex trader from Saudi Arabia or the United Arab Emirates (or indeed a Muslim from any other country who wishes to trade forex in accordance with Shariah law) do so without violating Shariah law? Fortunately, it is possible to find a forex brokwho can provide an account which charges no overnight interest. Such swap-free accounts are usually offered only to Muslims in order to prevent abuse by other forex traders. To substitute for the revenue from a missing swap, forex brokers usually charge a flat fee for this service.
The following is a list of forex brokers which are suitable for Muslim Forex traders, allowing them to open the accounts without overnight interest (often called 'no Riba' accounts). These forex brokers are appropriate for forex traders from Iran, UAE, Saudi Arabia and other countries in the Middle East