Swissquote offers an Islamic account for Muslim faith traders including a swap-free account. The Islamic forex trading environment is ideal for traders following strict sharia law with a fixed fee instead of a swap.
Swissquote at a Glance
| ? Broker’s Name | Swissquote |
| ? Headquartered | Gland, Switzerland |
| ? Year Founded | 1990 |
| ⚖️ Regulating Authorities | FINMA, CSSF, FCA, DFSA, SFC, MAS and MFSA |
| ? Countries not accepted for trade | USA |
| ☪️ Islamic account (swap-free) | Yes |
| ? Demo Account | Yes |
| ? Institutional Accounts | Yes |
| ? Managed Accounts | Yes |
| ? Maximum Leverage | 1: 100 |
| ? Minimum Deposit | $ 1 000 / R14 211.85 |
| ? Deposit Options | Credit cards Debit cards Bank Wire Transfers |
| ? Withdrawal Options | Credit cards Debit cards Bank Wire Transfers |
| ? Platform Types | Bank Wire Transfers Platform Types MetaTrader 4, MetaTrader 5 and Advanced Trader |
| ? OS Compatibility | PC, Mac, Web, Android, iOS |
| ? Tradable assets offered | Equities Warrants and derivatives Options and futures Funds ETFs Bonds Currencies Forex Commodities Share indices |
| ?? Languages supported on Website | English, French, German, Italian, Spanish, Russian, Arabic and Chinese |
| ? Customer Support Languages | English, French, German, Italian, Spanish, Russian, Arabic and Chinese |
| ? Customer Service Hours | 24/5 |
| ? Open an Account | ? Click Here |
Swissquote Islamic Account– 12 key points quick overview:
Swissquote at a Glance- Swissquote Islamic Account– 12 key points quick overview:
- Swissquote Overview
- What exactly is an Islamic Account?
- Which financial activities are restricted and prohibited by Sharia law?
- What are the steps involved in opening a Swissquote Islamic Account?
- What are Swissquote’s spread costs on an Islamic Account?
- What other features does Swissquote’s Islamic Account have?
- Swissquote Customer Reviews
- Swissquote Pros and Cons
- Conclusion
- Frequently Asked Questions
Swissquote Overview
Swissquote is a broker that has been established in 1990 and has headquarters in Gland, Switzerland. The broker is an award-winning broker who offers traders access to various global markets.
Swissquote is owned by Swissquote Group Holding Ltd, which is Switzerland’s leading provider of online financial and trading services. It is listed on the SIX Swiss Exchange (symbol: SQN) since 2000. The group has offices in Zürich, Bern, London, Luxembourg, Malta, Dubai, Singapore, and Hong Kong.
The broker is well-regulated in Switzerland through the Swiss Financial Market Supervisory Authority (FINMA) and Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF).
Since Swissquote operates in several countries it is also regulated by the Financial Conduct Authority (FCA) in Great Britain, the Dubai Financial Services Authority (DFSA), the Hong Kong Securities and Futures Commission (SFC), the Monetary Authority of Singapore (MAS), and Malta Financial Services Authority (MFSA).
Most of these regulatory bodies require that client funds be kept in accounts separate from the broker’s account, which means that traders can fund their account with the knowledge that it is safe, secure, and available whenever needed.
Being regulated by FINMA, you also get CHF 100 000 investor protection per account, and with the added protection with CSSF, you are protected for up to € 20 000 for securities and € 100 000 for cash.
Swissquote offers trading in several live account types on the popular MetaTrader 4 and MetaTrader 5. In addition, it also offers traders an Advanced Trader, all these options can be utilized on various devices.
Clients from the United States are not accepted as clients at Swissquote.
What exactly is an Islamic Account?
An Islamic Account, as offered by most brokers, is not a standalone account, but some brokers do dedicate one account to being an Islamic or Swap Free account. It is mostly offered by Forex brokers.
Islamic Accounts are also offered by brokers who serve Middle Eastern clients and offer certain features that are in line with Sharia law, which prohibits the accumulation of interest on funds deposited into the account.
The other feature of an Islamic Account is that transactions must be settled immediately. This requires that currencies be transferred from one account to the other right after the transaction has been completed and therefore paid for in full.
Two key elements of Islamic law relate specifically to trading accounts, these elements are:
Riba
Gharar
Riba is the prohibition of generating money from money, which in this case specifically refers to an interest, which is not allowed according to Sharia law. This type of interest is seen as both unjust and exploitive gains pertaining to trade or business.
Which financial activities are restricted and prohibited by Sharia law?
Due to the restrictions and certain prohibitions placed on Muslim traders when considering the intricate details involved with trading activities, the following are affected greatly:
Overnight rollovers – which involve the incurrence or receiving of swap points on positions that are held open for longer after the trading day has concluded at the New York close at 5 PM EST which is prohibited by the Sharia law.
Margin deposits and interest – which involves the accrual of interest on funds that are deposited into the trading account, which is prohibited.
Loans – when followers of the Sharia law have funds transferred by either a bank or other financial institution and it involves interest terms, this is prohibited by the Sharia law as per the key element, Riba.
Trading on margin – stocks that are traded on margin result in the trader being liable for paying interest, which amounts to Riba, as money is borrowed from the broker to buy or sell such equities, which is prohibited by the Sharia law.
Short sales – which affects mostly shares and involves borrowing and subsequent sale of an asset, which is prohibited.
Forward sales – which affects forward contracts as well as the trading of futures contracts which involves the buying and selling of contracts at a future date according to a price agreed upon on the day of entering such a contract.
What are the steps involved in opening a Swissquote Islamic Account?
Islamic Swap-Free accounts are only offered to clients of Islamic faith, and it is subject to Swissquote’s approval.
Traders must complete the live account application before they can apply for the Islamic Account. There may be certain documents, apart from proof of identity and residential address that Swissquote may require before approving an application for an Islamic account.
What are Swissquote’s spread costs on an Islamic Account?
Spreads that start from 1.7 pips can be expected. This will depend on the financial instrument trading in.
What other features does Swissquote’s Islamic Account have?
When making use of the Swissquote Islamic account, traders can expect the following features:
Accounts have a minimum deposit requirement of $ 1 000
Interest is not charged on contracts that are held for more than 24 hours
There are no additional rollover commissions where contracts are held for longer than 24 hours
Traders can trade in both mini and micro-lots
Traders have access to 5-digit spreads
Traders have access to Expert Advisors
Markets for Islamic Account holders open on Sundays at 11 pm CET and close on Fridays at 11 pm CET.
Swissquote Customer Reviews
Excellent bank
Excellent bank, almost client for more than 10 years. Difficult to find a better alternative solution in Switzerland (and sometimes also abroad)
Very nice and user-friendly platform
Very nice and user-friendly platform. It is recommended also for intermediate beginners.
Integrated Financial Platform
Swissquote provides a one-stop platform for all your financial requirements. Be it a regular bank account, trading platform, retirement solution, or even crypto trading.
All of that is available through an integrated, user-friendly, and rigorously regulated platform.
Trustworthy Bank with reasonable fees.
Trustworthy Bank with reasonable fees.
Only Chart-Tools should be improved
Swissquote Pros and Cons
| ✔️ Pros | ❌ Cons |
| Commission-free trading offered on forex trading | Clients from the United States not accepted |
| MetaTrader 4 and MetaTrader 5 offered | Limited payment methods |
| Offers a demo account | No fixed spreads offered |
| Offers an Islamic account | The minimum deposit requirement is high |
| Offers competitive spreads | |
| Offers trading in a variety of instruments | |
| Regulated through FINMA, CSSF, FCA, DFSA, SFC, MAS and MFSA |
Conclusion
Swissquote offers an Islamic account for Muslim faith traders including a swap-free account. The Islamic forex trading environment is ideal for traders following strict sharia law with a fixed fee instead of a swap.
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Frequently Asked Questions
Are Muslim traders from South Africa allowed to open a trading account with Swissquote?
Yes, Muslim traders from South Africa are allowed to open a SwissQuote Islamic Account
What is the overall rating out of 10 for the Swissquote Islamic account?
The overall rating for the Swissquote Islamic account is 7/10.
Are there additional charges on the Islamic account?
Not that can be seen on Swissquote’s website. Islamic accounts, however, have the same spreads which start from 1.7 pips on the Standard Account.
Is Swissquote Islamic account a standalone account?
This account type is a standalone account with a separate application procedure.
What platform does the Swissquote Islamic account support?
MT4, MT5, and Swissquote platforms are supported.
Featured SA Shares Writer and Forex Analyst.
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