FXOpen Review - Is FXOpen the Best Forex Broker For Me? ( Islamic Forex Broker )

Islamic Forex Broker

Choosing a forex broker is one of the most important choices you'll have to make as a forex trader as this is something you want to get right the first time or it might cause you unnecessary frustration in future.

This FXOpen review helps you determine if FXOpen is the best forex broker for you.

One of the biggest advantages of trading on FXOpen is its extremely low start up cost. It only costs $1 to open a micro account and $25 to open a standard account; you just can't beat this anywhere else. This is great for beginners who don't want to blow too much capital too early on.

Another important feature is that it supports the MetaTrader 4 platform which means that you can easily use an automated forex trading system such as FAPTurbo or Forex MegaDroid. You can even install your automated forex robots on your PDA or smartphone and FXOpen will support that.

FXOpen also has extremely low spreads, leverage of up to 1:500, supports Islamic accounts and have a wonderful and responsive support team. They also run frequent promotions and sometimes give bonuses on accounts meeting certain criteria.

However, this FXOpen review would not be a balanced one if I do not inform you of some problems FXOpen users have "complained" about.

FXOpen frowns on non-pure forex trading practices such as excessive scalping and catching the spike and does not hesitate to invalidate trades using these methods. This has caused much unhappiness among traders using these strategies. In their defence, most other forex brokers also do not allow these methods as they are lose-lose in the long run. If you're using these non desirable forex trading strategies, you might be better off with a direct access broker that does not have a dealing desk.

Did this FXOpen review help you? Check out a more detailed FXOpen Review HERE!

Islamic Forex Broker

What's a Forex Trading Broker? ( Islamic Forex Broker )

Islamic Forex Broker

Forex Trading Broker serves as the middle man in the foreign exchange trading floor. It's generally an institution that offers the latest in company and institutional news, foreign exchange press releases, foreign exchange promotions, as well as foreign exchange interviews. All these data are vital in maximizing the performance of clients in foreign exchange.

A reliable Forex Trading Broker is actually available online. One can find a broker based on the name of institution, the country where it's located, the trading platforms that the broker utilizes, and the type of account that will be used in the foreign exchange trading floor.

Some of the brokering firms that can cater to foreign exchange are Mada FX, Man Financials Global, MF Global Canada, Murphy and Williams Financial Group, ACM Advanced Currency Markets, Advanced Financial Worldwide, Alliance Investment Management, and Apex Fx Trading.

Others across the map are Real Stream Trading, Real Trade Group, RCG Fx Trader, and Real time Forex. Others are Key trade Bank, Capital Forex Pro, and Varengold. One can also find a broker by country since brokering institutions actually have a worldwide directory. Some of the countries that have reliable brokering firms are Canada, United States of America, United Kingdom and Australia.

If that is not easy enough, one can also opt to find quality forex service in terms of the various trading platforms used such as FX Trading Station, Delta Trading and MTrade FX among others. Lastly, one can actually opt to find the best forex service in terms of the various foreign exchange accounts such as live, Islamic, or demo.

One of the easiest and best online brokers is easy forex. Read our Easy Forex Review

Islamic Forex Broker

What is Swapped During Forex Swap? ( Islamic Forex Broker )

Islamic Forex Broker

Swap is a forex trading term and it means a real-time purchase and sale of the same amount of a selected currency for two different dates for the sale and purchase of another selected currency.

Forex swap is in a way a borrowing mechanism. You basically borrow one currency while lending another for a selected period of time. In other words swap is interest rates for the currency pairs you sell or buy.

Depending on the pair, you may either earn or pay swap interests.
 
Forex swap means that you can buy/sell a base currency today and sell/buy that currency sometime in the future. For example, let's say you bought fixed amount of Euro for Dollars and sold those Euro 3 months afterwards for Dollars. This is defined as Euro Swap.
So, how can forex swap help you profit? Consider an example:
 
Let's swap US Dollar and Euro. Forex trader enters a swap and buys $100,000 with exchange rate of $0.1 per euro (yeah right! It's just an example!). At the same time, another trader agrees to sell in 3 month the same $100,000 dollars to buy Euros at the exchange rate of $0.09. During this trade the trader makes up to 50,000 euro profit because the value of dollar changed.
 
In other words, forex swap is when the trader and the broker trade one currency for another at an agreed rate and then convert those selected currencies back at a selected date in the future, at the previously agreed exchange rate. The common forex swap involves the combination of a spot transaction and a forward transaction.
 
We have already learned that nothing comes cheap and of course there is a cost for forex swap. It is set by the interest rate difference of two selected currencies. The interest rate which you can earn during the swap period is used by the broker to calculate the price of the swap.
 
The actual calculation of swap cost involves the rate and the adjustment of the interest rate difference between the selected currencies for the amount of swap period. This gives the forex broker both borrowing and lending rates. This doesn't end here. The next step is to the swap points which are either added or subtracted from the price.
 
Currency swap deals with the exchange of interest in one currency for the same interest in another currency. It is referred to as a foreign exchange transaction.
 
Interest rate swap is an agreement where one stream of interest payments is exchanged for another. In other words, it is the exchange of one set of cash for another based on the interest rate conditions. Interest rate swap is used to manage the exposure to instability in interest rates or to get lower margin interest rates.
 
What happens if you aren't interested in swap? Most forex brokers provide both swap and swap-free accounts. The Swap-free accounts are designed for forex traders that do not wish to use this option or can not use swap feature due to their religious beliefs. Many forex brokers refer to swap-free accounts as "Islamic accounts".  
 
Using a swap-free forex account allows you roll over the position over night without either gaining or losing any amount. Holding the trading deal for a longer time also assures the trader that only the exchange rate for the set period of time will affect the result of the deal.
 
How does swap look like? The trading positions which a forex trader leaves open after a certain hour specified by a broker (usually it is after 11:59:59 PM Hamburg time) is subject to a swap debit or credit. Below are examples of how the swap rates might look like.
 
Currency Pair: EURUSD Long: -0.53 pips Short: -1.52 pips
Currency Pair: EURGBP Long: -1.30 pips Short: -1.79 pips
Currency Pair: USDJPY Long: -0.47 pips Short: -1.59 pips
 
Don't forget about the weekends. If you roll over the position from Wednesday to Thursday, then the next value date is Monday, meaning the rollover fee indicated as an example in the above table has to be multiplied by 3. Also, it is important to realize that swap rates aren't fixed and updated daily.

Check out more forex articles, tutorials and forex brokers reviews at http://www.forexexplore.com
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Islamic Forex Broker

Best Forex Broker - 7 Things to Consider Before Signing Up With a Foreign Exchange Broker ( Islamic Forex Broker )

Islamic Forex Broker

If you are interested to take part in online currency trading, one of the first things you need to do is to register with an foreign exchange broker. However there are so many brokers out there, how do you know the best forex broker for you?

Here are some factors that are useful to know:

User Interface:

You need to be comfortable with the user interface and the ease in which you can execute trades, obtain the most updated economic news, and perform technical analysis. The user interface should be easy to use as you do not want to spend too much time finding out how it works. You should definitely be able to register for a demo account at no charge so that you can play around with the software since often the best forex broker is the one you feel the most comfortable with.

Charting Feature:

A good foreign exchange broker should have a charting facility and most of the common indicators such as stochastics, MACD, etc for you to execute technical analysis.

Minimum deposit:

This is important especially if you have limited initial trading capital. A few online forex brokers require a bare minimum of only $1 to begin trading but others require quite a bit more.

Leverage:

Leverage is an important consideration for some traders but not for all. Some online forex brokers can offer leverage as high as 1:500.

Support:

An important criteria of a good online foreign exchange broker is a good support team. They should preferably have multiple methods in which you can reach them displayed prominently on their website, because you do not want to be left in the lurch when you are facing difficulties.

Islamic accounts:

This is an important factor for Muslim traders as they have to sign up with a online foreign exchange broker that offers swap free accounts.

MetaTrader 4 support:

If you plan to use automated forex software like FAPTurbo, then an online foreign exchange broker that supports the MT4 platform is essential. Forex traders sometimes have not decided on the strategy they'll employ when they register for an online forex broker and subsequently when they decide on using automated forex software, they realise that their broker doesn't support it. I suggest signing up for a broker that supports the MT4 platform even if you don't plan to use an automated forex robot.

Remember, the best forex broker for your friends may not be the best foreign exchange broker for you. A lot depends on your forex trading strategies and requirements.

The foreign exchange broker that we recommend is fxopen.com. You can take a look at our FXOpen review here.

Islamic Forex Broker

Islamic Forex Trading - The New Horizons of Forex Trading ( Islamic Forex Broker )

Islamic Forex Broker 

Forex trading has entered an expansion era in these recent years and it has become the largest global market ever known to man. It is a global currency market where you can use a great number of particular currencies, according to what you find more suitable to your trader's taste. However the more used currencies are those known as "majors", such as USD, EUR, GBP, AUD, JPY and their pair combinations.

But despite this great and accelerated expansion of forex around the world there was still a region where forex was not totally available, which sounded extrange considering the great interest present among the people of this region in forex trading. The part of the world I'm talking about is what is commonly known as the "Islamic World". They had been left apart and people from such big countries as Saudi Arabia and Iran were not participating at their full potential in the forex market.

Thankfully in recent times a wave of "Islamic Brokers" or "Islamic Forex Trading" has been moving and penetrating the internet forex community and they have implemented suitable forex services for people from this region of the world.

But what is different in an "Islamic forex trading" account to the "regular" forex trading account that we all know in non-islamic countries? Well, the difference resides mainly in the observance of the "Shariah Law" by the "Islamic forex broker" in the services offered to traders from these countries. This means two things that will make different one "Islamic account " account from the regular one.

First: the interest payment on account balance is waived in the Islamic account.

Second: instead of swaps, based on interest, an Islamic account will be charged a service charge for each lot left overnight regarded to the currency pair.

So with these adjustments forex trading opens to all regions of the world making this market, as I mentioned above, the largest known by man.

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Islamic Forex Broker

Why and How Do Some Entrepreneurs Use an Islamic Forex Broker?

Islamic Forex Broker

The creation of an Islamic forex broker is a reflection of the diversity within the sector. We can no longer presume that all transactions take place in Western Europe where Christianity is the professed religion. In any case many so called religious people do not practice any of the tenets that are required of them. This innovation is yet another attempt to get everybody involved.

Muslims are very concerned about accounts which bring overnight interest. Therefore the non Riba accounts are preferred for this group. Countries in the Middle East such as Iran and Saudi Arabia fall within this category. Trading Point is one of those companies with a leverage reading of 1:500. Individuals concerned about interest rates can visit these establishments.

Identifying forex institutions which are friendly.

A simple search protocol on the company characteristics will tell you whether they meet the minimum requirements for your religious leanings. Under Shariah laws, adherents are not supposed to accept interest payment. Nonetheless this industry has rollover rates which are paid as part of the commission structure. Only verified Muslims can benefit from these swap free arrangements.

The missing revenue gap is replaced by a flat fee. Fast Brokers is an American exception to the rule in as much as there is no additional fee. Watch out for the ECN sign and ensure that there are no conflicts of interest in the Islamic forex broker arrangements. A case in point is where there is a second quotation of prices in order to trade against existing clients.

If the company has a variable spread that is as low as zero pips then you have to work out the maximum point. Some of the schemes include 19 currency pairs, silver, gold and futures. The Meta Trader 4 platform is an absolutely must because it allows you to trail stops, hedge, use your mobile phone and automate your processes.

How the companies set their forex entry criteria.

The flat fee arrangement is so attractive that some unscrupulous characters have opted to abuse the facility. That is why companies such as FX Open have decided to restrict the Shariah account to Muslim countries. Look for a fixed spread which ranges between 2 to 3 pips on majors. Leverage can be as high as 500:1 but that does not mean that you use it all.

Some of these companies require minimum deposits of as little as $1. This means that you are in the perfect position to learn without attracting risks. Watch out for the customer support because it may be provided in foreign languages. The Islamic forex broker works well if you follow the entry criteria and are willing to use the single deposit rule.

Adam has been trading forex for 5 years and has tried various strategies, robots and so called copy a pro trading systems. Although Adam now trades independently on a full time basis he owes his success to the World Forex Club. It is their training, live rooms and continued patience that have helped Adam see his full potential.

Islamic Forex Broker
 

How to Choose an Islamic Forex Broker

Islamic Forex Broker

Among the many different Forex brokers and Forex trading accounts available to the Forex trader, there is one particular type of broker and trading account that stands out. An Islamic account, provided by an Islamic Forex broker is a very unique type of trading account that we do not find in other trading markets.

An Islamic Forex broker might offer its customer base the option of opening an Islamic Forex account, which is of course not limited to Muslims only. No Forex broker, not even an Islamic Forex broker can or will ask you your religion when trading Forex.

What an Forex Islamic account is in simple terms is an interest free, also known as a No Riba trading account. So how does this all work? For example, if a Forex trader decides to leave his or her trading positions open overnight, the standard broker will charge rollover fees, which are basically the interest the broker pays the bank to leave the trade open overnight.

The thing about these fees is that they are problematic for the Islamic community. According to the Islamic Shariah law, Muslims are forbidden to take any money in return for their "giving". That means if a Muslim is investing in Forex, he/she is not allowed to pay or receive any type of interest on their payment. By the way, this is something that exists in the Jewish religion as well.

In order to meet the needs of the Islamic population and to enable them to trade Forex, the concept of an Forex Islamic account was invented. Anyone can open such an account in theory, but it might not be right for everyone. An Islamic Forex account is in fact interest-free but it often times comes with higher spreads or other down sides, all depending on the Islamic broker.

If you are a trader that leaves trades open overnight on a regular basis and regularly pay high rollover fees, an Islamic account might be the perfect solution for you. Once you decide to trade with an Forex Islamic account, the next step is choosing the best Islamic Forex broker for you. The most effective way to do that is to read Forex broker reviews by some of the Web's leading sites, and simply filter out all brokers that do not have the option to trade with a Forex Islamic account.

DailyForex provides you with all the resources needed to succeed in Forex trading.
Read more about Islamic Forex Brokers and Islamic Forex at DailyForex.com

Islamic Forex Broker