10 Best brokers for Islamic trading accounts

Islamic trading accounts allow forex and CFDs traders to access the global financial markets under Sharia Law. They are also known as swap-free accounts because no swap or rollover fee is charged, or commission is earned on positions held open overnight.

 

This is a list of the top brokers offering Islamic trading accounts

 

In this in-depth guide you’ll learn:

  • What are the best brokers with Islamic trading accounts?
  • What is an Islamic trading account?
  • What is Sharia Law?
  • Is forex trading allowed under Sharia Law?
  • How to open an Islamic trading account?


And lots more…

 

Let’s dive right in…

 

10 Best Forex Brokers in South Africa for 2022

Rank

Broker

Review

Regulators

Min Deposit

Official Site

#1

4.8/5

User Score

#2

4.7/5

User Score

#3

4.5/5

User Score

#4

4.4/5

User Score

#5

4.7/5

User Score

#6

4.6/5

User Score

#7

4.7/5

User Score

#8

4.8/5

User Score

#9

4.7/5

User Score

#10

4.7/5

User Score

 

🔥 Broker📜 Regulation☪️ Islamic Account🚀 Open an Account
AvaTradeIreland, Australia, Japan,
South Africa,
Abu Dhabi,
British Virgin Islands, European Union,
Polish Branch.
Yes ✔️👉 Click Here
CMC MarketsFCA, ASICYes ✔️👉 Click Here
ExnessFSCA, FSA, CySEC, FCA, CBCS, FSC (BVI), FSC (Mauritius)Yes ✔️👉 Click Here
FxProFSCAYes ✔️👉 Click Here
HFMCySEC, FSC, FSCAYes ✔️👉 Click Here
IronFXFCA, ASIC, FSCA, CySECYes ✔️👉 Click Here
NAGACySEC, FCAYes ✔️👉 Click Here
PepperstoneAustralia, Bahamas, Cyprus, Dubai, Germany, Kenya, UKYes ✔️👉 Click Here
Plus500CySEC, FCA, MAS, FSA, ASIC, FMA, FSCAYes ✔️👉 Click Here
TickmillFSAYes ✔️👉 Click Here
XTBFCA, CySEC, IFSC, KNFYes ✔️👉 Click Here

 

Our Top 10 list on the top 10 Forex Brokers offering Islamic Accounts

  1. ✔️AvaTrade
  2. ✔️CMC Markets
  3. ✔️Exness
  4. FxPro
  5. HFM
  6. IronFX
  7. NAGA
  8. Pepperstone
  9. Plus500
  10. Tickmill

 

Regulated forex and CFDs brokers offer Islamic trading accounts to clients of Muslim faith on Standard and Raw Spread account types with trading on the MetaTrader 4, MetaTrader 5 and cTrader electronic trading platforms.

 

AvaTrade

Overall Rating

4.8/5

Rated #1 of
Recommended FX Brokers

💰Minimum Deposit

USD 100

🌐 Regulators

ASIC, FSA

📱 Trading Desk

MetaTrader 4, MetaTrader 5

Crypto

Yes

📈 Total Pairs

60

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

👉  AvaTrade was established in 2006 and is one of the oldest and most well-established online brokers in the global forex market. AvaTrade is licensed and regulated across all six continents, including leading regulatory authorities in the European Union, South Africa, Australia, Japan, Middle East, Poland, Israel and the British Virgin Islands.

 

👉 AvaTrade is an award-winning global forex and CFDs broker and accepts traders in Africa. AvaTrade clients trade currency pairs, commodities, stocks, indices, futures and cryptocurrencies on the MT4 and MT5 trading platforms and AvaTrade’s proprietary trading platforms. AvaTradeGo is a user-friendly and intuitive mobile trading app. It provides step-by-step guidance on opening and closing trades, feedback on your activity and support anytime and anywhere you need it.

 

👉 AvaTrade publishes an extensive array of research and market commentary and educational material, including basic-to-expert trading videos and trading guidelines. AvaTrade supports Trading Central, which provides valuable market insights and intelligence through WebTrader and AvaTradeGO.

 

CMC Markets

Overall Rating

4.7/5

Rated #227 of
Recommended FX Brokers

💰Minimum Deposit

USD 0

🌐 Regulators

FCA, ASIC

📱 Trading Desk

Crypto

Yes

📈 Total Pairs

300

☪️ Islamic Account

No

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

👉 CMC Markets is a leading forex and CFDs broker established in 1989. With over three decades of experience, CMC Markets offers forex traders in Africa an excellent trading experience, providing access to multiple assets with competitive spreads.

 

👉 CMC Markets supports the world’s favourite MetaTrader 4 trading platform and Next Generation, an award-winning proprietary platform, to trade currency pairs and CFDs on indices, cryptocurrencies, commodities, shares and treasuries. CMC Markets is regulated by the FCA in the United Kingdom and the ASIC in Australia. It is a safe and reliable broker for forex traders in Africa.

 

Exness

Overall Rating

4.9/5

Rated #2 of 
Recommended FX Brokers

💰Minimum Deposit

USD 10.00

🌐 Regulators

FSCA, FSA, CySEC, FCA, CBCS, FSC (BVI), FSC (Mauritius)

📱 Trading Desk

MetaTrader 4, MetaTrader 5

Crypto

Yes

📈 Total Pairs

107

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

👉 Exness is a multi-regulated global forex and CFDs broker that accepts traders in Africa. Founded in 2008, Exness is licensed and regulated by several Top-tier authorities, including the FCA, CySEC, FSCA and FSA. Nymstar Limited operates Exness.com; a securities dealer authorised and regulated by the Seychelles Financial Services Authority (FSA). Exness is a Market Maker and NDD forex broker.

 

👉 Exness provides access to a wide range of asset classes on the MT4 and MT5 trading platforms and the Exness Web Terminal, with the choice of 5 different trading accounts. Exness publishes an extensive array of educational material via online articles, videos, webinars and online trading courses. Exness provides up-to-date live market analysis and advanced trading tools such as an Economic Calendar, WebTV and trading calculators.

 

FxPro

Overall Rating

4.7/5

Rated #202 of
Recommended FX Brokers

💰Minimum Deposit

🌐 Regulators

📱 Trading Desk

Crypto

Yes

📈 Total Pairs

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

👉 FxPro is a global, multi-regulated forex and CFDs broker who accepts Africa traders. FxPro offers access to a wide range of asset classes on the MT4, MT5 and cTrader platforms. FxPro also has its own award-winning proprietary trading platform.

 

👉 The firm is a No Dealer Desk (NDD) broker, so order execution is fast, with most orders filled in under 15 minutes. The NDD broker model ensures no conflict of interest or problems with slippage and re-quotes. FxPro is regulated by several Top-tier authorities, including the FCA, CySEC and FSCA.

 

👉 FxPro supports a wide range of trading tools and market analysis on its trading platforms and publishes an array of educational material for beginner forex brokers.

 

HFM

Overall Rating

4.8/5

Rated #6 of
Recommended FX Brokers

💰Minimum Deposit

USD 5

🌐 Regulators

CySEC, FSC, FSCA

📱 Trading Desk

MetaTrader 4 and MetaTrader 5

Crypto

No

📈 Total Pairs

50+

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

👉  HotForex is a global, multi-regulated forex and CFDs broker who accepts Africa traders. Founded in 2010, HotForex and HF Markets fall under the HF Markets Groups, operating in multiple jurisdictions.

 

👉 HotForex offers access to a wide range of asset classes on the MT4 and MT5 trading platforms with six trading accounts. Every account provides commission-free trading for currency pairs; the Zero Spread account is commission-based with spreads from 0 pips on forex.

 

👉 HotForex has a team of in-house analysts who regularly publish Market News, analysis and outlook reports. The team also publish a wide range of research and educational material. The trading platforms support advanced trading tools such as AutoChartist, a Trading Calculator and Economic Calendar, and the Traders’ Board.

 

IronFX

Overall Rating

4.5/5

Rated #187 of 
Recommended FX Brokers

💰Minimum Deposit

USD 100

🌐 Regulators

FCA, ASIC, FSCA, CySEC

📱 Trading Desk

MetaTrader 4

Crypto

Yes

📈 Total Pairs

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

👉  IronFX is a well-established global forex and CFDs broker that accepts Africa traders. IronFX was founded in 2010 and is the trade name of Notesco Limited, a company based in Bermuda. IronFX offers access to many asset classes on the MT4 trading platform. MT4 provides IronFX clients with a host of advanced trading tools and a user-friendly interface.

 

👉 IronFX publishes an in-depth Market Insights blog and Daily Market Outlook videos on the IronFX YouTube channel. Clients have access to Trading Central features, including technical analysis and on-demand educational videos.

 

NAGA

Overall Rating

4.7/5

Rated #208 of
Recommended FX Brokers

💰Minimum Deposit

USD 50

🌐 Regulators

CySEC, FCA

📱 Trading Desk

Dealing Desk with DMA and STP

📱Platforms

NAGA Web Trader, MT4, MT5, iSO and Android Apps

Crypto

Yes

📈 Total Pairs

45+

📈 Max. leverage

1:1000

☪️ Islamic Account

No

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker


👉
NAGA is a global fintech company that was established in 2015. NAGA provides a user-friendly Super App with a simple interface to access the global markets and trade forex and CFDs on stocks, commodities and ETFs. NAGA’s core focus is on social trading and offers AutoCopy and NAGA Feed, central hubs for traders and investors to share trading experience and strategies.

 

👉 NAGA is the NAGA Group AG trademark name, based in Germany and publicly listed on the Frankfurt Stock Exchange (FSE). NAGA supports clients through a proprietary trading platform called NAGA Trader, MetaTrader 4, and MetaTrader 5. The company provides advanced search functionality and notifications and publishes comprehensive market analysis and educational material through NAGA Academy.

 

👉 The FCA authorised and regulated NAGA in the United Kingdom and the CySEC in Cyprus. NAGA is regulatory compliant and regarded as a safe, reliable broker for forex and CFDs traders in Africa.

 

Pepperstone

Overall Rating

4.9/5

Rated #54 of
Recommended FX Brokers

💰Minimum Deposit

USD 10

🌐 Regulators

FCA, SCB, CMA, ASIC, DFSA, CySEC, BaFIN

📱 Trading Desk

MetaTrader 4, MetaTrader 5, cTrader and TradeView

Crypto

Yes – CFDs

📈 Total Pairs

70

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

👉 Pepperstone is globally-regulated forex and CFDs brokerage that accepts beginner traders in Africa. Pepperstone was founded in 2010, its headquarters are based in Australia, and the brokerage is regulated by several Top-tier authorities, including the FCA in the UK and ASIC in Australia.

 

👉 Pepperstone offers clients access to various financial instruments on the MT4, MT5 and cTrader trading platforms. Clients choose three types of accounts: the Standard commission-free account, the commission-based Razor account, and the commission-free, swap-free Islamic account.

 

👉 Pepperstone publishes an impressive range of trader research and educational material, including Market Analysis, Economic Calendar, trading guides, webinars and daily market news. It supports additional trading tools such as Smart Trader Tools, VPS hosting and Autochartist.

 

Plus500

Overall Rating

4.9/5

Rated #55 of
Recommended FX Brokers

💰Minimum Deposit

USD 100

🌐 Regulators

CySEC, FCA, ASIC, FMA, FSB, MAS

📱 Trading Desk

MetaTrader 4 and MetaTrader 5

Crypto

Yes

📈 Total Pairs

70

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

👉 Plus500 is a global, multi-regulated forex and CFDs broker that accepts traders in Africa. Plus500 provides access to a wide range of asset classes on its Plus500 trading platform, which supports advanced trading tools and customised features for risk management.

 

👉 Founded in 2008, Plus500 is well-established and internationally recognised for being regulatory compliant and safe to use. It is regulated by several Top-tier authorities, including the FCA in the UK, which is the leading regulatory authority in the world. Plus500 is a subsidiary of Plus500 Ltd, a publicly-traded company listed on the London Stock Exchange.

 

👉 Plus500 provides limited market analysis and no trader educational material. It does support an in-built Economic Calendar and provides a few videos on forex trading for beginners in the Plus500 Trader’s Guide.

 

Tickmill

Overall Rating

4.7/5

Rated #3 of 
Recommended FX Brokers

💰Minimum Deposit

USD 100

🌐 Regulators

FSA

📱 Trading Desk

MetaTrader 4

Crypto

Yes

📈 Total Pairs

62

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

👉 Tickmill is a global, multi-regulated forex and CFDs broker who accepts Africa traders. Tickmill was founded in 2014 and offers access to a wide range of asset classes on the MT4 trading platform. Tickmill is regulated by several Top-tier authorities, including the FCA, CySEC, FSCA and FSA.’

 

👉 Tickmill is a No Dealer Desk (NDD) broker and makes money mainly through spreads and swaps on certain tradeable classes and commissions on certain trading accounts.

 

👉 Tickmill publishes a wide range of research and educational material, including video tutorials, eBooks and news articles. It also hosts regular webinars and seminars for forex training for beginner and advanced traders.

 

XTB

Overall Rating

4.6/5

Rated #69 of
Recommended FX Brokers

💰Minimum Deposit

USD 250

🌐 Regulators

FCA, CySEC, IFSC, KNF

📱 Trading Desk

No Trading Desk

Crypto

Yes

📈 Total Pairs

48

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

XTB

 

👉 XTB is a global, multi-regulated forex and CFDs broker that accepts beginner traders in Africa. XTB was founded in 2002 and offers access to a wide range of asset classes on the MT4 trading platform. The brokerage has a feature-rich proprietary trading app called XTB xStation, which provides access to award-winning analysis and research and XTB Market Sentiment indicators.

 

👉 XTB is licensed and regulated by multiple Top-tier authorities, including authorities in the UK, Cyprus, Poland and Spain. It is a safe and reliable broker for forex and CFDs traders in Africa.

 

👉 XTB publishes a variety of course topics for beginners and advanced forex traders on its site and runs an online Trading Masterclass live stream event on its YouTube channel. Ten speakers share their trading strategies and offer 24/5 trading support.

 

What is an Islamic trading account?

👉 An Islamic trading account is Sharia-compliant. Regulated forex brokers offer Islamic trading accounts to clients who practice the Islamic faith and observe the principles of Sharia Law. The Islamic trading account was created to ensure traders comply with the regulations of Islamic finance.

 

👉 An Islamic trading account is also known as a swap-free or halal account. Swap-free accounts allow traders to trade forex and CFDs on standard terms on popular electronic trading platforms without incurring credit or debit interest fees. Traders do not earn or pay interest or swaps on trading positions on currency pairs, commodities, shares, indices, ETFs, futures and bonds.

 

What is Sharia Law?

👉 Islam’s legal system is referred to as Sharia Law. It is based on the teachings of the Qur’an and the Sunna as well as the consensus of Islamic scholars, known as Ijma’a. Sharia Law also draws from Qiyas, meaning “reasoning through analogy”.

 

👉 Sharia means “the way” and does not represent the “body of law”. Sharia Law acts as a code of conduct to guide modern Muslims in all areas of life, ranging from their personal beliefs to daily routines.

 

Is forex trading allowed under Sharia Law?

👉 Forex traders can access the global markets using Islamic trading accounts without transgressing the principles of Sharia Law. The two key elements of Islamic trading law relate to riba and gharar.

 

👉 What is Riba?

Sharia Law prohibits any activity where people “make money from money”, known as riba. Earning interest is forbidden in Islamic finance as it transgressors the principle of “just and non-exploitive gains” that guides how to trade, invest and operate businesses.

 

👉 What is Gharar?

Gharar is the practice of “gambling”, which is prohibited under Sharia Law. Gharar involves an element of deception and includes risky trading and investment or unnecessary risks associated with buying or selling assets. Forex is deemed gharar because trading currency pairs is speculative and inherently risky.

 

Traders and investors of the Muslim faith are expected to engage in long-term financial activities on capital markets, including the stock and bond market.

 

How are Islamic trading accounts Sharia-compliant?

There are six areas that Islamic accounts address to be Sharia-compliant. These fundamental elements allow traders and investors of the Muslim faith to access the global markets without transgressing Islamic finance laws.

 

👉 No interest earned on margin deposits

Islamic accounts do not earn interest on deposits as it transgresses the principle that Islamic traders and investors cannot “make money from money”.

 

Islamic banking adheres to the belief that “money is a means of exchange and the value of a financial asset is equal to the value of another asset”. Sharia Law prohibits traders and investors from earning interest or profiting from borrowing and lending money.

 

👉 No overnight rollovers

Islamic accounts do not incur or receive rollover swap fees on positions held overnight. Islamic account holders may leave bid/ask positions open overnight without paying a swap fee, a form of interest. Swap fees generate revenue for forex and CFDs brokers and transgress the Sharia principle of “making money from money”. It also goes against the Sharia principle of sharing risk.

 

👉 Margin deposit with no interest

Conventional margin trading is not allowed as it involves borrowing funds from a forex and CFDs broker to buy and sell financial assets. Islamic accounts offer a margin deposit with no interest charged on transactions. Islamic account holders pay the margin and associated administrative fees and commissions.

 

👉 Short selling is prohibited

Borrowing and selling stock on short positions is not allowed. Short selling is deemed a form of gharar (gambling), which is prohibited under Sharia Law. Short sellers speculate on price movements and aim to profit when prices rise or fall in the right direction. They use leverage from brokerages to buy or sell immediately, and brokers earn money from interest charges.

 

👉 Forward selling is prohibited

Buying and selling financial assets for a price agreed on the day of the transaction to sell in the future is prohibited. Clients cannot enter into trading futures and forward contracts. Forward sales transgress Sharia Law because the sale of financial assets takes place without physical ownership. Murabaha dictates that the material or constructive possession of a commodity is essential.

 

👉 No trading loans are offered

Loans to clients, guarantees for loan repayments and signed obligations are not allowed as they constitute riba.

 

Who can open an Islamic trading account?

Theoretically, any trader or investor can open an Islamic trading account with a regulated broker that offers this type of account. However, it’s generally accepted that Islamic trading accounts are only offered to clients of the Muslim faith who wish to access the global financial markets without transgressing the principles of Sharia Law.

 

How to open an Islamic trading account?

  1. Select a reputable forex and CFDs broker regulated by a top-tier authority.
  2. Register an account with the broker and provide the necessary documents to verify the account.
  3. Select the electronic trading platform that allows you to trade using an Islamic account.
  4. Fund your trading account.
  5. Apply for an Islamic account and provide the relevant documentation.
  6. Start trading once your Islamic account has been processed and verified.

 

What makes an Islamic account different to a regular forex trading account?

Islamic or swap-free trading accounts do incur fees or earn interest. Transactions are processed without delay, and currencies are immediately transferred from one account to another. Transaction costs are paid at the same time.

 

What are the principles of Islamic finance?

Islamic banks were launched in the 1970s in Saudi Arabia and the United Arab Emirates (UAE). Today, over US$1 trillion of assets are managed under Islamic finance rules. Islamic finance adheres to the practical application of Islamic or Shariah Law. The primary principles are derived from the Qur’an with an emphasis on partnership and justice.

 

Main principles of Islamic finance

The four pillars of Islamic Finance are:

➡️️​ wealth should be generated from asset-based investment and legitimate trade; using money to make money is forbidden

➡️️​ investment should provide an ethical and social benefit to broader society without expectation of pure return

➡️️​ risk should be shared

➡️️​ haram (harmful) financial activities must be avoided

 

What financial activities are NOT allowed according to Sharia Law?

The following financial activities are prohibited according to Sharia Law:

➡️️​ Charging and receiving riba (interest). A lender may not charge straight interest as it transgresses the concept of partnership, justice and risk-sharing. Sharia Law prohibits a person from “using money to make money”.

➡️️​ It is haram (unlawful or undesirable) to invest in businesses that generate income from the sale of alcohol, drugs, gambling, pornography and pork.

➡️️​ Speculative trading of high-risk assets is viewed as gambling and is prohibited. This includes speculating on the options and futures market. Mutual insurance is a permitted financial asset because it is deemed an unavoidable, reasonable business risk. Speculation or extreme risk trading and investment transgressors the “shared responsibility for shared financial security” principle.

➡️️​ Selling something that one does not own is prohibited. This issue pertains to uncertainty about the contract terms and the subject matter. Therefore, trading or investing in complex derivative instruments, sales on margin and conventional short sales are prohibited.

 

What financial activities are ALLOWED according to Sharia Law?

Financial institutions

👉 Financial institutions are prohibited from charging and receiving interest payments from clients. They must earn profits by other means, including profit share from investments in approved financial assets as long as the lender shares the risk. Banks can earn fees from services provided.

 

Retail traders and investors

👉 Retail traders and investors of the Muslim faith can trade financial assets on the global markets using an Islamic trading account because the trading conditions are Sharia-compliant. Islamic or swap-free accounts do not earn interest, and account holders are not required to pay interest rates. Transactions are processed immediately, and currencies are transferred without delay. Transaction costs are paid at the same time the money is transferred.

 

Islamic financial instruments that are Sharia-compliant

Mudarabah / profit-sharing and loss-bearing

Mudarabah is also known as mudarabah, modaraba and modarabah.

 

A lender or investor (rab al maal) and borrower or investment manager (mudareb) set up a profit-sharing partnership to carry out a financial or business activity.

 

The rab al maal (lender/investor) provides the funds or financing. The mudareb (borrower/investment manager) offers professional support and expertise to manage the financial activity.

 

The mudareb does not take an unnecessary risk on the financial activity, only puts in the necessary time to manage the portfolio and does not provide any capital to fund the activity. The mudareb is not responsible for any losses. These are borne entirely by the rab al maal.

 

Funds are invested in Sharia-compliant businesses. The mudareb (borrower/investment manager) earns a fee deducted for profits. Both parties share in any gains made on a pre-arranged ratio.

 

Musharaka / joint venture

Musharaka is a Sharia-compliant joint venture or investment partnership. The financing partner and client (borrower) underwrite assets (property or cash) to the musharaka (Islamic joint venture) and share any profits earned based on pre-agreed ratios. The musharaka is structured to ensure the financing partner and borrower earn back the initial investment plus a return and margin.

 

Any losses incurred are shared according to a pre-agreed ratio. Musharakas (joint ventures) are typically managed by the client (borrower), but all parties have the right to exercise control over the musharaka.

 

There are three types of musharakas: permanent, diminishing and temporary. The difference between a musharaka and mudarabah is that only the financing party bears any losses incurred from the joint venture.

 

Wadiah / safekeeping

Wadiah is also known as Al Wadi’ah and Wadia.

 

Wadiah is a contract of safekeeping. It is a Sharia-compliant contemporary form of a deposit account. The depositor places an investment or property with a Sharia-compliant party for safekeeping.

 

Wadiah Yad Dhamanah is a contract of wadiah with a repayment guarantee. The depositor is guaranteed a pre-agreed return by the depositary.

 

Murabahah / cost-plus

Murabahah is also known as morabaha.

 

Murabahah is a Sharia-compliant finance tool used to provide trade financing, working capital and acquisition finance. The financing party buys assets identified by clients (borrowers) from third parties and sells the assets to borrowers for the original purchase price plus a pre-agreed profit margin. Clients pay the asset purchase price in instalments.

 

The four pillars of a murabahah are:

➡️️​ Financing parties do not offer loans to Islamic account holders. Instead, they sell assets at a markup.

➡️️​ Profit is specified upfront. Profit is the difference between the price charged by third parties and the price charged for the asset by the financing party.

➡️️​ Borrowers purchase the asset in total but can pay in instalments.

➡️️​ Financing parties bear the risk of owning assets until the asset is sold to the buyer.

 

Ijara / leasing

Ijara is also known as ijarah.

 

Ijara is a Sharia-compliant finance tool used to finance the acquisition of assets. Financing parties purchase assets (equipment, vehicles, property) and lease them to clients for a rental fee. The fee is calculated based on a benchmark such as LIBOR.

 

Ijara transactions may give clients (lessees) the right to buy the asset before the lease term ends. Ijara is different to conventional lease agreements because obligations to ensure and maintain the asset are not passed on to the client (lessee).

 

To offset risks associated with asset ownership, lenders enter into a service agreement with the client (lessee) to ensure they cover the cost of insuring and maintaining the asset.

 

FOREX TRADING AFRICA DISCLAIMER

Forex and CFDs are complex instruments, and trading these instruments come with a high-risk warning. Trading forex and CFDs involves a high risk of losing money rapidly due to leverage and margin. You need to understand how forex trading works and decide whether you can afford to take the risk of losing money on trade orders that do not go your way.

Forex Trading Africa annually reviews brokers and financial instruments and provides information to help traders and investors make better decisions when trading on global markets. The information is published to help improve your knowledge and understanding of international multi-asset trading and market participants.

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