If you are a Muslim strictly following the religious principles of Islam, you want to comply with the Shari’ah prohibition on Riba. So, finding a swap-free broker is one of the first things in your trading process.
With the Muslim population steadily growing in Africa, you can find many Sharia Law complaint brokers across the continent. However, given a lot of options, it can be challenging to find a good swap-free broker.
Not anymore. This blog will guide you through choosing the best brokers in South Africa who understand and follow Sharia Law and offer swap-free brokerage.
Choose a well-regulated and licensed broker.
The trustworthiness of a broker is based on its regulatory status. Make sure you choose a broker regulated by top-tier financial authorities. It must undergo regular audits, fulfill capital requirements, and provide negative balanced protection. In addition, they should also provide segregated accounts.
In African countries, forex brokers are regulated and licensed by their respective regulatory authorities. For instance, in South Africa, the Financial Sector Conduct Authority (FSCA) agency regulates and authorizes forex brokers to operate legally within the country. So, you must be familiar with forex market regulation in Africa.
If you want to confirm your broker’s status, you can visit the regulator’s official website. Do not forget to consider the broker’s size and operating history. For all this information, you can perform Google research and visit the broker’s LinkedIn page and the official website, if any.
Read the broker’s policies for swap-free accounts.
In the Islamic religion, earning or paying interest is unjust or exploitative. Traditional trading accounts charge interest for holding positions more than a trading day. Swap-free accounts eliminate this charge so that Muslims can engage in forex trading without going against their religious laws. So, you must carefully review the broker’s terms and conditions.
It is important to note that every broker can provide a different version of the swap-free account. Before you sign up for the account, you must dig deeper into this. Some brokers may offer a 7-day swap-free time, while some offer swap-free conditions for an indefinite time.
Shortlist 5-10 swap-free brokers and read everyone’s policies, conditions, and charges. Further, shortlist the ones that suit your needs. Make sure all necessary and applicable charges are clearly mentioned on their website. Just beware of the brokers who label their accounts as Islamic but charge hidden fees in the replacement of swap fees.
Pay attention to customer service
Even the most experienced traders may need help navigating the fluid trading world. So, responsive and quick customer support is paramount for troubleshooting and prompt answers to questions related to accounts. A reputable and genuine broker always empahsize a responsive and knowledgeable support team. This includes availing an account advisor to help with trading, minimizing risks, and maximizing profits.
Some swap-free account brokers provide support (mostly multilingual support) through chats, calls, and emails, often 24/5 or 24/7. You must choose a broker who provides excellent customer service. Try to contact them with some queries and see how they handle it. So you can get a better idea of their customer service.
Islamic Account Options other than Forex
Does the broker offer swap-free trading beyond forex? Does it include indices, stocks, and commodities? Choosing the right type of trading account may also involve considering this point. So, if you want to trade across other markets, you can find an Islamic forex broker that provides a variety of assets. This is a great way to diversify your portfolio without swaps.
Find about additional perks
Although additional perks are not that important, many brokers offer them to make trading more rewarding. For example, you may get a welcome bonus or deposit bonus, which makes the beginning so much more exciting for traders. Many swap-free brokers in Africa also offer cashback or rebate programs. So, make sure you carefully read the terms and conditions to ensure there are no hidden costs.
Other important factors to look into
● Explore all features of the account
● Reputation of the broker
● Ease of fund withdrawal
● Access to educational tools and resources
● Availability of demo accounts
With all these things in mind, you can find a reputable, regulated, and licensed swap-free broker in Africa. This will allow you to benefit from trading while still maintaining your religious beliefs.
This article does not endorse or express the views of Qrius and/or its staff.
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