Our HotForex Islamic Account Revealed.
- ✔️HotForex Overview
- ✔️What exactly is an Islamic Account?
- ✔️Why is interest discouraged or prohibited by Sharia law?
- What are the steps involved in opening a HotForex Islamic Account?
- What is HotForex’s spread costs on an Islamic Account?
- What other features does HotForex’s Islamic Account have?
- HotForex Pros and Cons
- HOTFOREX AT A GLANCE
Established in 2010, HotForex is a well-regulated CFD and forex online trading broker that operates in several regions across the globe. HotForex is a brand name of HF Markets (Europe) Ltd, with more than 2.5 registered traders who make use of its competitive trading conditions.
HotForex offers a wide range of tradable instruments that can be traded through the popular and flexible MetaTrader 4 and MetaTrader 5 trading platforms, available across several web browsers, mobile, and desktop devices.
HotForex prides itself in offering some of the best trading solutions and competitive trading conditions through its five dynamic, flexible live trading accounts, including.
- Micro Account – an account that is perfect for newbie traders who are just starting to explore the financial markets.
- Premium Account – a popular account type among more experienced traders who want flexible position sizing.
- HFcopy Account – the best social trading account where traders can copy and use trading signals provided by experienced providers.
- Zero Spread Account – an account where traders can expect tight spreads from 0.0 pips, perfect for day traders and scalpers.
- Auto Account – which provides traders with a subscription service to trading signals in addition to the MQL5 community.
Traders can use these accounts to trade a wide range of markets spread across several asset classes including forex, bonds, shares, commodities, and several more. Traders are also given access to comprehensive market analysis, education, trading tools, demo accounts, Islamic Account options, and more.
What exactly is an Islamic Account?
An Islamic, or swap-free, trading account is allowed by Islamic Sharia law. These accounts are based on the Islamic principle where interest is not applied to positions that are held open for longer than a trading day after the trading day has concluded.
Islamic Accounts are provided by brokers who serve Middle Eastern clients along with clients from other jurisdictions and offer certain features that are in line with the Sharia law, which prohibits the accrual of interest on funds deposited into the account.
The other important feature of an Islamic Account is that transactions must be settled immediately, requiring 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, and
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 of trade or business.
Why is interest discouraged or 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 is 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.
- Margin trading – 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, and 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 HotForex Islamic Account?
To register for an Islamic account, traders can follow these steps.
- Traders can navigate to the official HotForex website to register online.
- Traders can complete the online application by providing the necessary personal, financial, employment, and trading information.
- Traders can verify their email address by selecting the link that is sent to the address they provided.
- Once verified, traders can complete their application and participate in the “Know Your Customer” process that involves traders uploading their proof of identity (POI) and their proof of residence (POR) to confirm that traders are who they say they are.
- Once traders have submitted their application, it will be reviewed, and their information will be compared against the documents that they provided and verified.
- When traders receive confirmation that their live trading account has been approved, they can contact HotForex’s customer support to request an account conversion.
What is HotForex’s spread costs on an Islamic Account?
The spreads that traders can expect with HotForex will depend on the spreads available on the live trading account being converted. Some typical spreads that traders can expect with HotForex, according to the account type are.
- Micro Account – Spreads from 1 pip
- Premium Account – Spreads from 1 pip
- Zero Spread Account – Spreads from 0.0 pips on Forex
- Auto Account – Spreads from 1 pip
- HF Copy Account – Spreads from 1 pip
What other features does HotForex’s Islamic Account have?
The features that traders can expect when they convert their Islamic Account will depend on the live trading account that they choose. Some typical features that traders can expect include.
- Flexible leverage ratios
- Competitive spreads
- Access to a wide range of markets
- Flexible margin call and stop-out levels
- Access to a personal account manager as well as telephone trading
- Micro-lot trading
- Access to powerful trading platforms, and more.
|Well-regulated CFD and forex broker||US clients are not accepted|
|There is a choice between several flexible trading accounts|
|Competitive trading conditions|
|Powerful trading platforms|
|Reasonable deposit requirements|
|Flexible leverage offered|
HOTFOREX AT A GLANCE
|Regulating Authorities||CySEC, FCA, DFSA, FSCA|
|Countries not accepted for trade||United States|
|Islamic Account (Swap Free)||Yes|
|OS Compatibility||Web browsers, Windows, macOS, Linux, Android, iPhone, tablets, iPads|
|Languages supported on Website||English, Portuguese, Spanish|
|Customer Support Languages||Multilingual|
|Customer Service Hours||24/5|
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How many instruments can I trade with HotForex?
You can trade any of the following instruments.
- Stocks DMA
Which platforms are supported by HotForex?
HotForex only supports the use of MetaTrader 5 on the following.
- MetaTrader 4
- MetaTrader 5
Does HotForex offer leverage?
Yes, HotForex offers leverage up to a maximum of 1:1000.
What spreads can I expect with HotForex?
You can expect spreads from 0.0 pips on the Zero Spread Account.
Does HotForex charge commission?
Yes, HotForex charges commissions between $3 on Forex Majors and $4 on other instruments.
Are there additional charges on the Islamic account?
No, there are no additional charges indicated on the Islamic Account.
Is HotForex regulated and by whom?
Yes, HotForex is regulated by CySEC, FCA, DFSA, and FSCA.
Is HotForex a recommended forex trading broker for experts and beginners?
Yes, HotForex is an ideal broker for both beginners and experts.
What is the overall rating out of 10 for HotForex?
What is the difference between a demo and a live trading account?
A demo account is a practice account that can be used by both beginner and professional traders. Beginners can use a demo account to practice their trading while more advanced traders can use it to test their trading strategies.
Alternatively, traders can also use a demo account to explore what a broker has to offer. Demo accounts are known for the risk-free environment that they offer along with the virtual funds which are used to trade.
Does HotForex offer a demo account?
Yes, HotForex offers a demo account.
How long is the demo account valid?
The demo account is available for an unlimited time.
Which live trading accounts does HotForex offer?
HotForex offers the following live trading accounts.
- Micro Account
- Premium Account
- Zero Spread Account
- Auto Account
- HFCopy Account
Does HotForex offer an Islamic Account?
Yes, HotForex offers the option of an Islamic Account to Muslim traders.
What are the available deposit currencies for a live trading account?
USD and ZAR.
DEPOSITS AND WITHDRAWALS
What is the minimum deposit required to open an account with HotForex?
How do you make a deposit and withdraw money with HotForex?
- Bank Transfers
- Credit Card
- Debit Card
Does HotForex charge withdrawal fees?
No, HotForex does not charge withdrawal fees.
How long does it take to make a withdrawal?
The processing time on withdrawals will depend on the withdrawal method that is used. It can be instantly, or it could take a few business days.
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