Best Trading Platforms offering Islamic Accounts for Investors in Turkmenistan

The term 'Shariah-compliant' is used in Islamic Finance to denote that a financial product or service complies with the principles of Islamic Law.

Often, people get confused between the various fatawa and are unsure which ones to even believe in. But unfortunately, most fatwa websites are not experts in finance and investments, and no fatwa website will have someone providing commercial and practical insight.
The term 'Shariah-compliant' is used in Islamic Finance to denote that a financial product or service complies with the principles of Islamic Law.

Often, people get confused between the various fatawa and are unsure which ones to even believe in. But unfortunately, most fatwa websites are not experts in finance and investments, and no fatwa website will have someone providing commercial and practical insight.

Turkmenistan's population consists of about 93% Muslims. For this reason, and considering that it's an important subject to take care of, we have compiled the top 3 trading and investment apps available to local investors that offer Shariah-compliant investment accounts.

Top 3 Trading Apps offering Shariah-Compliant accounts for clients in Turkmenistan

AvaTrade

AvaTrade's Islamic trading account offers Muslim clients the option to trade on fixed spreads, according to Sharia law. As a result, traders can feel confident trading with this Trading application.

To set up an Islamic account with AvaTrade, you must first open one of the broker's regular account types and then contact your account manager before placing any trades and request them to change it to the Islamic compliant one. Your account manager will ask you a few questions and then make the change to a swap-free account, ensuring that your trading is always fully compliant with Sharia law.

AvaTrade was founded in 2006, considered a lifetime in the online trading industry. In that time, they have built a solid reputation. As one of the most highly regulated online brokers out there to offer CFD trading online, AvaTrade serves over 300,000 Traders with over 1,000 financial instruments available, including Forex, Cryptocurrencies, Stocks, Commodities and Indices.

XM

XM offers 100% Shariah law compliant trading accounts with the following conditions:

- No interest charges (Riba) on overnight positions
- No spread widening
- No up-front commissions
- Trades can be held with no time limit
- No re-quotes, no hidden costs

To open an XM Islamic Swap-Free account, you should signup and Open a Live Account and subsequently request the Swap Free Status via submitting a Form via XM's client portal.

NAGA

NAGA Group A.G. is a German financial technology company listed on the Frankfurt Stock Exchange, offering over 950 Financial Instruments and Assets.

NAGA offers an Islamic swap-free account. You will need to inform their Support team via email from your registered email address to obtain it. Once you get your swap-free account, you will have 0 swap charges on all instruments for positions that remain open for 10 calendar days. Hence, if you leave a trade open for more than 10 calendar days, you will be charged 10 USD (or equivalent in your account's base currency) per day. For example, if you close your position on the 12th day, you will be charged 20 USD (for the 11th and 12th day). Gold, Silver, and Oil aren't included in the swap-free accounts. This means that the swaps for your positions in Gold, Silver, and Oil instruments are not treated as Halal.

nagamarkets.com

Why is Shariah compliance noteworthy?

For any Muslim investor who respects the Quran, ensuring that their earnings are Shariah-compliant is extremely important. These earnings go beyond salary and money earned through business; Shariah compliance includes income accrued through other investments. It can be tricky to determine whether you are complying with Islamic law or not. So, if you wish to invest or trade, the best chance you have is to open an account that openly discloses that it has been



Is Stock Trading Halal?


Shares may be divided, according to the field of activity and work involved, into three categories:


  1. Companies dealing in permissible business, such as transportation, shipping, manufacturing clothing, tools, office supplies, furniture, etc., do not engage in any haraam practices or transactions, such as cheating, lending or borrowing based on riba. Instead, they follow Islamic rulings in all their transactions and dealings. These types of companies are called permissible or clean companies, and it is acceptable to buy and sell shares in them.

  2. Shares based on prohibited types of work, such as companies that deal with tourism, hotels that promote and aid in immoral actions, breweries, riba-based banks, commercial insurance companies, companies that print and distribute indecent magazines, and so on. It is not permissible to buy shares or invest in these companies, and it is not permitted to advertise or promote them. There is no confusion about the ruling concerning these two types of companies, and the matter is quite clear.

  3. Companies whose field of work is permissible, but they engage in some haraam practices or transactions, such as transportation companies – for example – that have interest-bearing accounts in the bank, or they are financed using riba-based loans from banks. These types of companies are called mixed companies. The contemporary scholars differed concerning their ruling on them. Still, many scholars' view is that it is haraam to buy shares in them, invest in them or promote them since the shareholder is a partner in the company, so he is a partner to every transaction into which the company enters as riba or other haraam transactions.


However, screening each stock to determine if it is Halal can be painful. So instead, there are Islamic finance apps that help by presenting a bunch of sharia-compliant Stocks.



What is a Forex Islamic Account?


The Qur'an states in aya 2:275 that Allah has permitted trade and forbidden usury. But not all trade is allowed in Islam. For example, the Qur'an prohibits gambling (maisir, games of chance involving money). In addition, while the Quran does not explicitly mention gharar (risk), several hadiths prohibit selling products like "the birds in the sky or the fish in the water", "the catch of the diver", or an "unborn calf in its mother's womb". These have been called bayu al-gharar (literally "trading in risk", defined as sales in which gharar is the significant component).


Both currencies and commodities trade in the spot market for 24 hours. Then, at 5:00 pm New York time, all open positions are rolled over for the next 24 hours and the daily interest is added to the company's accounts every 24 hours. The company can then pay the interest or charge the client's account to cover the fees.


With an Islamic account, a trading platform has to ensure that there is no Riba in any form throughout the contract. For example, suppose you don't close the trade before 5:00 pm New York time in the forex market. Then, all open trades will be automatically rolled over, which poses a problem for those following Islamic law due to the possible usurious interest charged for the rollover.


There's no doubt that currency trading is one of the puzzles in Islamic jurisprudence (Faqih). On the one hand, it requires the simultaneous exchange of currencies, making it a hand-to-hand deal. On the other hand, contemporary scholars consider the record of money transferred to or from a bank account as delivery. To resolve the issue, several decisions and fatwas have been issued. According to these decrees, the conditions for trading currencies are:


  • Immediate buying and selling without delay.

  • The currencies need to be transferred from the seller's account to that of the buyer and vice versa.

  • The cost of the trade should be paid without delay.

  • No interest in trading. If there is any usurious interest, the contract will be invalid, void and Haram.

Risk Warning: Contracts for Difference ("CFDs") are leveraged products and carry a high level of risk to your capital as prices may move rapidly against you. Losses can exceed your deposits and you may be required to make further payments. These products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice.

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