Islamic Accounts Add Interest to Forex Brokers
As of 2009, there were over 300 banks and 250 mutual funds around the world complying with Islamic principles. As of 2014, sharia compliant financial institutions represented approximately 1% of total world assets totaling close to $2 trillion in funds. Not all Muslims follow Sharia laws. According to accounting firm, Ernst & Young, Islamic Banking makes up only a fraction of the banking assets of Muslims, but it has been growing at an annual rate of 17.6% between 2009 and 2013, faster than banking assets as a whole and it is projected to grow by an average of 19.7% a year up until 2018.
Over the years, Islamic rules have been tweaked slightly so as to allow Muslims to participate in currency markets without violating sharia law. Most brokers now offer Non-Swap accounts which can be used under certain conditions that allow traders to either trade as much as their money permits, or take a loan from broker on the condition that the broker doesn’t receive any usurious interest on the loan. In most cases, there is no interest or commission taken on contracts lasting longer than 24 hours and zero rollover interest is a constant.