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Does eToro offer Islamic accounts?
Yes. An Islamic account is available for users want to trade while still following the Quran and related finance restrictions.
Also known as swap-free accounts, this type of account has been created primarily for traders of the Islamic faith as they won’t be charged with interest, commissions or rollover fees.
In this article we're going to detail about the specifics of thid Islamic-compliant account that is provided by eToro.
Do you want to open an account now?
If you are then there's no need to look anywhere else. To open an eToro account, simply the button below and this will bring you to eToro's quick online registration page.
Yes, I want to open an account
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
The Definition of an Islamic Account
An Islamic trading account differs a lot from a regular trading accounts. As stated on the Sharia law, it prohibits the accumulation of interest so under no circumstances, they are not allowed to pay or receive interest rates or what is called as “Riba” in any form. This specific account type needs to completely aligned and follow the basic principles of Islamic law.
No Commissions and Interest
Under this type of account, you are relieved from paying fees on any trades that are left open overnight.
Here’s the deal:
Any open trades in the currency market are automatically rolled over if they are not closed by 5:00 pm (New York time) and under a regular trading account, these open trades are bound to be charged with usurious interest which is against the Islamic law and is called “Haram”.
But if you are using an Islamic account, there are no rollover or weekend charges if your position has not been closed for over 24 hours. You can even hold your positions as long as you want and it will not incur any fees.
Real-Time Execution of Trades
Still in accordance with the Sharia law which requires transactions to be settled immediately, trades are executed in real time without any delays.
Is eToro Halal?
The Islamic account that is offered by eToro is a halal trading account in accordance with the Sharia law.
eToro Gets the Revenue Strictly From Spreads
eToro only receives revenues from the spreads and that is the difference from the currency pair’s buy and sell prices. You won’t even get charged with fees for account management.
Proof of Religion Required
This account type is offered by eToro exclusively to Muslim clients and as part the requirements, they will ask for a proof of religion before the converting the account. This document may be accomplished from a religious organization.
How to Open an Islamic Account?
In order to have an Islamic account with eToro, first you need to register for a real account, verify it and make an initial deposit of $1000. The next step is to get in touch with their customer support team and to request to open an Islamic account.
Requesting for an eToro Islamic account
eToro Traders from Saudi Arabia, UAE and Other Muslim Countries
Residents from Saudi Arabia and the United Arab Emirates can open an account and trade with eToro. There are no restrictions for users who are based in these countries.
The company doesn’t have any physical office in these nations and is currently not regulated by the Saudi’s Capital Market Authority (CMA) and UAE’s Abu Dhabi Global Market (ADGM) and Dubai Financial Services Authority (DFSA).
Here's the list of the most populous Muslim countries which eToro supports:
- Algeria
- Azerbaijan
- Bangladesh
- France
- India
- Indonesia
- Ivory Coast
- Jordan
- Malaysia
- Morocco
- Saudi Arabia
- Senegal
- United Arab Emirates
On the other hand, below are the list of countries and territories with a significant population of Muslim residents where eToro is blocked due to changes in regulations:
- Afghanistan
- Burkina Faso
- Cameroon
- Chad
- China
- Democratic Republic of the Congo
- Ethiopia
- Guinea
- Iran
- Iraq
- Libya
- Mali
- Niger
- Nigeria
- Pakistan
- Russia
- Sierra Leone
- Somalia
- Sudan
- Syria
- Tajikistan
- Tanzania
- Tunisia
- Turkey
- Turkmenistan
- Uzbekistan
- Yemen
Look:
eToro has based its rules from an industry standard to offer Islamic account for traders of the Islamic faith who wish to have access to the financial market. If you really want an assurance that you are compliant with teachings or scriptures, it is highly recommended that you speak to somebody who has an extensive knowledge of the Quran.
Opening an Islamic Account
If you've decided open an Islamic account right now with eToro, you can register via the button below so you can get started. Be sure to follow the instructions that were stated above so you can activate this specific account type.
Open an eToro account
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
