If you have ever invested on stocks, then you are probably well aware of the fact that the success of any stock trader depends greatly on how the market is fairing. If you are looking to get started in Forex trading in Dubai, then you’ll learn that one of the major differences between stock trading and Forex trading is the profitability on various market conditions. In stock trading, the trader only gets to be positive about the future if the market is moving up. Forex trading on the other hand, allows a trader to profit regardless of the conditions of the market whether it is moving up or down. Remarkably, the Forex market is the largest financial market in the world with a volume of $3 trillion trades a day. The Forex market is very dynamic and free flowing in nature.
As online Forex trading is increasing rapidly in Gulf especially in Dubai, UAE, Saudi Arabia and Kuwait, huge number of Forex brokers are giving the opportunity in Islamic Forex trading accounts.
The Islamic or No Ribba Accounts
While Forex trading is generally accepted on a global scale, there had been a region where Forex trading was not totally feasible. I’m talking about the Islamic world where Muslims are not able to participate in the markets as they follow their “Shariah Law.” In a nutshell this is an Islamic moral code which basically state that people should give and not expect anything in return. Islamic Forex accounts or No Ribba accounts are those that are created based on this belief to accommodate Muslim traders.
In Forex trading, brokers charge interest on positions which traders have open overnight, usually not for the profit of these brokers but to cover the charges which the banks apply for positions that brokers have open through the night. These charges are referred to as roll over fees. In Islamic accounts, these interest payments are waived and instead of swaps based on interest, an Islamic account will be charged a service fee for each lot or contract that is left overnight.
Since the approach of these trends and adjustments in the Forex trading sector, participating in the markets has never been more feasible for all regions across the globe, making the foreign exchange the largest financial market known today.