Our XM Islamic Account Revealed:
- ✔️XM Overview
- ✔️What exactly is an Islamic Account?
- ✔️Why is interest discouraged or prohibited by Sharia law?
- What are the steps involved in opening an XM Islamic Account?
- What is XM’s spread costs on an Islamic Account?
- What other features does XM’s Islamic Account have?
- XM Pros and Cons
- XM AT A GLANCE
XM is a multi-regulated and multi-award-winning broker that has been in operation since 2009. XM offers traders from around the world some of the most competitive trading conditions in the industry.
Traders can choose between four dynamic live trading accounts and each of these accounts offers unique and comprehensive trading solutions that cater to the trading needs, objectives, and styles of different traders, from novice traders who have never traded before to professional traders who need a competitive edge.
XM also offers the benefit that all account types can be converted to Islamic Accounts, exempting traders from earning/paying swaps that may be prohibited by their religion.
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 offers 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 the 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 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 an XM Islamic Account?
Traders who want to use the XM Islamic Account can choose the Islamic Option as part of their live account registration by following these steps:
- Traders can register any of the live trading accounts that are offered by XM
- Traders can complete the registration and log into their client portal where they can validate their trading account
- Traders can then contact XM to request an Islamic Account
What is XM’s spread costs on an Islamic Account?
The spreads that traders can expect from their Islamic Account will depend on the trading account they use, the financial instrument that is being traded and the market conditions on the day of trading.
The spreads that traders can expect are as follows:
- Micro Account – variable spreads from 1 pip EUR/USD
- Standard Account – variable spreads from 1 pip EUR/USD
- XM Ultra-Low Account – variable spreads from 0.6 pips EUR/USD
- Share Account – according to the underlying exchange and the individual share
What other features does XM’s Islamic Account have?
The features that traders can expect from their XM will depend on the account type that they choose to convert. However, some basic account features that traders can expect include the following:
- A minimum deposit from $5
- Leverage between 1:1 and 1:888 for account balances between $5 up to $20,000
- Leverage between 1:1 and up to 1:200 for account balances between $20,001 up to $100,000
- Leverage between 1:1 and up to a maximum of 1:100 for accounts with a balance from $100,001 and higher
- Commission-free trading on some accounts
- Negative balance protection which is applied to accounts
- Access to micro and standard lot trading
- Unlimited access to MetaTrader 4 and MetaTrader 5 across mobile, desktop, and internet browsers
- Frequent market updates
- Technical analysis and fundamental analysis
- Multilingual customer support
XM AT A GLANCE
|CySEC, IFSC, ASIC, FCA
|Countries not accepted for trade
|United States, Canada, Israel, Iran
|Islamic Account (Swap Free)
|Android, iOS, macOS, Windows, Linux, Web browsers
|Languages supported on Website
|English, Malaysian, Chinese Simplified, Chinese Traditional, Russian, French, Italian, German, Polish, Spanish, Portuguese, and several others
|Customer Support Languages
|Customer Service Hours
You might also like: XM Minimum Deposit
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You might also like: XM Demo Account
You might also like: XM Sign up Bonus
How many instruments can I trade with XM?
You can trade any of the following instruments:
- Stock CFDs
- Equity Indices
Which platforms are supported by XM?
XM supports the use of:
- MetaTrader 4
- MetaTrader 5
Does XM offer leverage?
Yes, XM offers leverage according to the account balance of traders as follows:
- Account balances between $5 up to $20,000 – 1:1 up to 1:888
- Account balances between $20,001 up to $100,000 – 1:1 up to 1:200
- Account balances of $100,001 and higher – 1:1 up to 1:100
What spreads can I expect with XM?
You can expect spreads from as low as 0.6 pips EUR/USD on the XM Ultra-Low Account.
Does XM charge commission?
Yes, XM charges commissions between $1 to $9 on the Shares Account according to the underlying stock exchange and the individual share.
Are there additional charges on the Islamic account?
No, there are no additional charges on the Islamic Account.
Is XM regulated and by whom?
Yes, XM is well-regulated by CySEC, IFSC, ASIC, and FCA.
Is XM a recommended forex trading broker for experts and beginners?
Yes, XM is recommended for both experts and beginners.
What is the overall rating out of 10 for XM?
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 XM offer a demo account?
Yes, XM offers a demo account. Traders can have up to 5 active demo accounts per trader.
How long is the demo account valid?
The demo account is indefinitely available if they are in use. Demo accounts that are inactive for 90 days will be closed.
Which live trading accounts does XM offer?
XM offers the following:
- Micro Account
- Standard Account
- XM Ultra-Low Account
- Shares Account
Does XM offer an Islamic Account?
Yes, XM offers an Islamic Account on all live trading accounts.
What are the available deposit currencies for a live trading account?
Deposits can be made in any currency. Once a deposit is received, it will be converted into the same currency as the base account currency, which can be either of the following:
DEPOSITS AND WITHDRAWALS
What is the minimum deposit required to open an account with XM?
How do you make a deposit and withdraw money with XM?
- Credit Card
- Debit Card
- International Bank Transfer
Does XM charge withdrawal fees?
No, XM does not charge any withdrawal fees.
How long does it take to make a withdrawal?
Withdrawal requests are processed within 24 hours of receipt and traders can expect their funds on the same day if they use e-wallets. Payments for a bank wire transfer or debit/credit card typically reflects between two to five business days.
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