We are in swiss fs through the ECN system, there is no conflict of interest between the company and clients.
In the ECN bank liquidity trading system, we find that the company’s benefit is on the continuity of the client, as we note that the company has a fixed commission on each transaction executed by the client, the client’s profit in the markets is not harmful to the company and his loss is not beneficial to the intermediary company.
Trade with swiss fs through the ECN system, instant trade execution.
In this system, the immediate execution of deals is defined as “Instant Execution”, which is a system that executes the required deals at the required moment without any delays in execution. Which is useful in opening or closing deals at the prices offered in the market at the right moment for the customer and not for the intermediary company.
We at swiss fs through the ECN system, the client is not bound by any conditions of trading.
In this system, the company does not restrict the client to any condition in his trading or trading strategies, as it allows trading at the time of the news, allows fast trading, and allows advisors and automated trading. Of course, unlike the system of market-making companies, as there is a company that prevents the client from trading in these ways, as the damage to the company can be high in the case of the client’s profit at the time of strong news movement or through the use of a profitable expert advisor.
Also, through the ECN system, spreads are not fixed and moving.
We find that the spreads are not fixed and moving. The amount of the spread depends on the banks financing the liquidity, as the more liquidity is available from the banks, the more narrow and few the spread
ECN bank trading accounts are accounts in which liquidity is available directly from the banks financing the liquidity, as there are no trading clearings or deal rooms within the company, and therefore all the prices available by the broker are bank prices rather than prices made by the company. Here, you will not find any re-pricing from the company or price slippage at the time of opening deals, since the deals are not made from inside the company’s dealing rooms, but are done directly against the banks that finance liquidity.
The Islamic account for forex trading is that account that is free of usurious interests in all its forms, regardless of the duration of the contract concluded between the two parties.
And here we mean usurious interest, that is, the interest that the trader pays to the bank in exchange for leaving the account open for the next day or for the period they want.
A transaction in the foreign exchange market may require time to close
And if the trader opens a deal and more than 24 hours have passed, and this deal is not closed before five o’clock New York time, then this deal is fixed and entered into the overnight rollover process automatically.
Consequently, it consists of an extension fee, which is in fact usurious interest that is imposed on the transaction that has been opened for a day or more.
This is known as the overnight rate or commission.
Therein lies the problem, in the incompatibility of trading operations with Islamic law.
Because these transactions are linked to usurious interests, which are prohibited by Islamic law.
This interest is included in the arithmetic process for this commission, as Sharia forbids a Muslim to take or pay any interest in exchange for the transactions he makes.
So how can a Muslim trader get rid of this problem? What is the mechanism of action for the Islamic account in forex?