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AvaTrade Islamic Account
Overview, AvaTrade offers an Islamic Account for Muslim traders. AvaTrade offers swap-free trading for Muslim traders on 4 trading account levels namely Halal Gold & Silver Trading, Halal Oil Trading, Halal Indicies Trading and Islamic Forex Trading.
- Louis Schoeman
Jump to:
AvaTrade Overview
What is an Islamic Account?
How to Open an Islamic Account?
Pros and Cons
Final Verdict
FAQ
Overall Rating
- 4.9/5
Min Deposit
$100 / 1 342 BWP
Regulators
ASIC, FSA
Trading Desk
MetaTrader 4, MetaTrader 5, Ava Social, Ava Protect, Trading Central
Crypto
Yes
Total Pairs
55+
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
AvaTrade at a Glance
| 🏛 Headquartered | Dublin, Ireland |
| 🌎 Global Offices | Australia, Ireland, South Africa, Japan, British Virgin Islands, UAE |
| 🏛 Local Market Regulators in Botswana | • Ministry of Finance and Economic Development (MFED) • Bank of Botswana (BoB) • Non-Bank Financial Institutions Regulatory Authority (NBFIRA) |
| 💳 Foreign Direct Investment in Botswana | 115.89 BWP Million in 2021 |
| 💰 Foreign Exchange Reserves in Botswana | 5270 USD Million in 2021 |
| ✔️ Local office in Gaborone? | No |
| 👨⚖️ Governor of SEC in Botswana | None, Moses Dinekere Pelaelo is the Governor of the Bank of Botswana |
| ✔️ Accepts Botswana Traders? | Yes |
| 📊 Year Founded | 2006 |
| 📞 Botswana Office Contact Number | None |
| 📱 Social Media Platforms | • Twitter • YouTube |
| ⚖️ Regulation | Central Bank of Ireland (CBI), BVI FSC, ASIC, FSCA, JFSA, FFAJ, ADGM, CySEC, ISA, KNF, IIROC |
| 1️⃣ Tier-1 Licenses | • Central Bank of Ireland (CBI) • Australian Securities and Investment • Commission (ASIC) • Japanese Financial Services Authority (JFSA) • Financial Futures Association of Japan (FFAJ) • Investment Industry Regulatory Organization of Canada (IIROC) through Friedberg Mercantile |
| 2️⃣ Tier-2 Licenses | • Cyprus Securities and Exchange • Commission (CySEC) Financial Sector • Conduct Authority (FSCA) Israel Securities • Authority (ISA) • Abu Dhabi Global Market Financial Services Regulatory Authority (ADGM FRSA) • Polish Financial Supervision Authority (KNF) |
| 3️⃣ Tier-3 Licenses | • British Virgin Islands Financial Service Commission (BVI FSC) |
| 🪪 License Number | • Ireland (C53877) • Australia (406684) • South Africa (45984) • British Virgin Islands (SIBA/L/13/1049) • Japan (JFSA 1662, FFAJ 1574) • Abu Dhabi (190018) • Cyprus (247/17) • Israel (514666577) • Poland (693023) • Canada (Friedberg Mercantile) |
| ⚖️ MFED, BoB, or NBFIRA Regulation | No |
| ✔️ Regional Restrictions | Iran, Belgium, and the United States |
| ☪️ Islamic Account | No |
| 💻 Demo Account | Yes |
| 🛍 Retail Investor Accounts | 1 (Retail and Professional Option) |
| ✔️ PAMM Accounts | No, MAM |
| 💻 Liquidity Providers | Currenex, and other bank and non-bank entities |
| ✔️ Affiliate Program | Yes |
| 📱 Order Execution | Instant |
| 📊 Starting spread | From 0.9 pips |
| 📉 Minimum Commission per Trade | No Commission Charges |
| 💰 Decimal Pricing | 5 points after the comma |
| 📞 Margin Call | 50% on Retail, 25% on AvaOptions Accounts |
| 🛑 Stop-Out | 10% |
| 📉 Minimum Trade Size | 0.01 lots |
| 📈 Maximum Trade Size | Unlimited |
| ✅ Crypto trading offered? | Yes |
| ✔️ Offers a BWP Account? | No |
| 📉 Dedicated Botswana Account Manager? | No |
| 📈 Maximum Leverage | • 1:30 (Retail) • 1:400 (Pro) |
| 📊 Leverage Restrictions for Botswana? | No |
| 💳 Minimum Deposit (BWP) | 1370 Botswanan Pula or an equivalent to $100 |
| ✔️ Botswana Pula Deposits Allowed? | No |
| 📊 Active Botswana Trader Stats | 250,000+ |
| 👥 Active Botswana-based AvaTrade customers | Unknown |
| 🔁 Botswana Daily Forex Turnover | Unknown, Forex overall is $6.6 Trillion |
| 💰 Deposit and Withdrawal Options | • Wire Transfer • Electronic Payment • Gateways • Credit Cards • Debit Cards |
| 💻 Minimum Withdrawal Time | 24 to 48 Hours |
| ⏰ Maximum Estimated Withdrawal Time | Up to 10 days |
| 💳 Instant Deposits and Instant Withdrawals? | No |
| 🏛 Segregated Accounts with Botswana Banks? | No |
| 📱 Trading Platforms | • AvaTradeGO • AvaOptions • AvaSocial • MetaTrader 4 • MetaTrader 5 • DupliTrade • ZuluTrade |
| 💻 Tradable Assets | • Forex • Stocks • Commodities • Cryptocurrencies • Treasuries • Bonds • Indices • Exchange-Traded • Funds (ETFs) • Options • Contracts for • Difference (CFDs) • Precious Metals |
| ✔️ Offers USD/BWP currency pair? | No |
| 🚀Service description | financial instruments and multiple trading platforms, operating since 2006. |
| 💰 Bonus 20% | welcome bonus accordengly to regulation |
| 📊 USD/BWP Average Spread | N/A |
| ✅ Offers Botswana Stocks and CFDs | No |
| 📊 Average deposit/withdraw processing time | Depends on the method used. – CC and e-payments is immediate. Bank wire can take up to 7 business days depending on the banking institution |
| 🔎 Banned countries | US, North Korea, New Zealand, Iran, Belgium |
| 💻 Languages supported on the Website | English, Chinese (Simplified), Chinese (Traditional), Turkish, Thai, Slovakian, Russian, Portuguese, Polish, German, Hungarian, French, and several others |
| 📈 Related lot sizes | Standard, Mini and Micro lots size |
| 👥 Sponsorship | Currently with Bolt |
| ✴️ Instruments offered | 800+ |
| ✴️ Instruments | Metals, Commodities, Stocks, FX Options, Oil, ETFs, Options, Crypto currencies, CFDs, Indexes, Shares, Spread Betting, Indices, Forex, Bonds |
| ✴️ Total offered per instrument | CFD – Agricultural =7 CFD – Crypto = 20 CFD – EFTs = 60 CFD – Energies = 5 CFD – Indices = 32 CFD – Metals = 7 CFD – Shares = 623 Forex = 55 GRAND Total = 809 |
| ☎️ Customer Support Languages | Multilingual |
| 📈 Account Types | Real Account, Demo Account, Islamic Account. Options Account |
| 📈 Demo Account Description | Free Demo Accounts with $100,000. No limitations on the number of demo accounts. 21 days limitation |
| 👥 Copy Trading Support | Yes |
| ⏰ Customer Service Hours | 24/5 |
| 📞 Botswana-based customer support? | No |
| 💸 Bonuses and Promotions for Botswanans? | Yes |
| 📚 Education for Botswanan beginner traders | Yes |
| 📱 Proprietary trading software | Yes |
| 🤝 Most Successful Trader in Botswana | Unknown |
| ✔️ Is AvaTrade a safe broker for Botswana Traders? | Yes |
| 🎖 Rating for AvaTrade Botswana | 9/10 |
| 🥇 Trust score for AvaTrade Botswana | 93% |
| 👉 Open Account | 👉 Open Account |
AvaTrade Overview
Overall, AvaTrade is considered low risk, with an overall Trust Score of 93 out of 100. AvaTrade is licensed by five Tier-1 Regulators (high trust), five Tier-2 Regulators (average trust), and one Tier-3 Regulator (low trust). AvaTrade offers a single live trading account with the option between Retail and Professional.
AvaTrade was founded in 2006 and has since grown to become one of the leading trading firms in the world. AvaTrade is one of the finest trading brokers for a variety of reasons, and they are a fantastic option for anybody wishing to trade online in a highly regulated, hassle-free environment.
They can accommodate traders of all experience levels by offering a vast array of trading instruments, as well as a wealth of free instructional resources, trading tools, and duplicate trading platforms like DupliTrade and ZuluTrade.
If you lack the time or skills to trade on your own, you might use these social networks that allow you to duplicate signals from other traders.
AvaTrade focuses on the trader’s experience, in conjunction with a solid financial foundation and award-winning customer service. AvaTrade has created an Islamic trading account that adheres to all Islamic regulations.
Customers having an Islamic trading account are exempt from daily swap fees. The swap costs are converted into daily administration fees for all forex trading items on the MT4 platform.
Botswanans must remember that AvaTrade is not a governmental body, therefore this description of an Islamic Account should not be construed as authority to trade. To trade cryptocurrencies, consumers must relinquish their ‘account’ privileges and pay additional fees or interest.
In addition, Certain FX products (ZAR, TRY, RUB, and MXN pairings) are not accessible on Islamic accounts, and to trade these instruments, consumers must relinquish their ‘account’ privileges and incur fees or interest.
AvaTrade is dedicated to enabling consumers to trade and invest online, thus they provide a variety of standalone and online trading platforms to accommodate diverse types of traders.
Each platform offers traders a pleasant trading experience by displaying an assortment of financial instruments across numerous markets, several analytical tools, and charts.
Trading tools and services offered by AvaTrade include an economic calendar that keeps users up to speed on the newest market news, technical and fundamental analysis software, trading calculators and the most recent market updates.
These tools may aid in the analysis of prospective trading opportunities and enhance your trading experience overall. Most traders could get by with the given tools, but it is always great to have extra options.
AvaTrade provides the award-winning automatic technical analysis tool Trading Central, which operates on the desktop and mobile MetaTrader platforms.
Based on advanced identification algorithms, Trading Central will monitor and analyse the markets to uncover trading opportunities across hundreds of financial instruments.
What exactly is an Islamic Account for Traders?
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.
The 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 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
➡️ 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 on trade or business.
What exactly is an Islamic Account for traders at AvaTrade?
An Account, also known as a Sharia-compliant account, is a unique offering by AvaTrade designed to accommodate traders who adhere to Islamic principles and Sharia law.
Are there any additional requirements or conditions for opening an Islamic Account with AvaTrade?
To open an Islamic Account with AvaTrade, traders typically need to meet a few conditions. Traders should be able to prove their eligibility for the account type based on their adherence to Islamic principles.
Why is interest discouraged or prohibited by Sharia law?
Because of 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.
➡️ 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, which is prohibited by 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.
Why is interest discouraged or prohibited by Sharia law?
Interest, known as “Riba” in Islamic finance, is discouraged and often prohibited by Sharia law. One of the primary concerns is the perceived injustice and exploitation associated with earning money from money without participating in productive economic activities.
How does Sharia law define interest (Riba) in financial transactions?
Sharia law defines interest (Riba) as any predetermined, fixed, or guaranteed excess or increase in financial transactions. This excess could be in the form of interest, usury, or any predetermined extra amount that one party is obligated to pay to another party. Riba can take various forms
What are the steps involved in opening an AvaTrade Islamic Account?
Here are the steps to open an Islamic account on AvaTrade:
Step 1: Apply for an account with AvaTrade.
Visit the webpage and complete the online registration form.
Step 2: Verify the account.
Submit the relevant documentation which includes proof of identity and proof of residence.
Step 3: Fund the current trading account.
Pay the minimum deposit of $100 to start trading.
Step 4: Apply for an Islamic Account.
As soon as the trader has funded their account, they can apply for an Islamic account by filling in a request.
Step 5: Review And Approval
As soon as the request for an AvaTrade Islamic Account has been received, it will be forwarded to the relevant department for review and approval. As soon as the request has been received it will take between 1 to 2 business days to process.
What are AvaTrade’s spread costs on an Islamic Account?
The cost of the spread on the Islamic account at AvaTrade varies depending on the trading item. The Islamic Account at AvaTrade offers the same spreads as the regular account, with no fixed spreads. Traders might expect the following typical spreads:
➡️ Forex – fixed spreads of 0.9 pips on EUR/USD
➡️ Stocks – fixed spreads from 0.13%
➡️ Commodities – fixed spreads from 0.5% on Gold
➡️ Indices – fixed spreads from 0.50% on US_500
➡️ FX Options – fixed spreads of 0.9 pips on EUR/USD
➡️ ETFs – fixed spreads from 0.13%
➡️ Bonds and Treasuries – fixed spreads of 0.03 pips Over the Market for Euro Bonds and 0.06 Over the Market for Japan Government Bonds
➡️ Cryptocurrencies – From 0.25% Over Market on BTC/USD
What are AvaTrade’s spread costs on an Islamic Account?
AvaTrade’s spread costs on an Islamic Account, also known as a Sharia-compliant account, typically follow the same spread structure as their regular trading accounts. Spreads are the difference between the buying (ask) and selling (bid) prices of financial instruments.
Can traders expect competitive spread costs on AvaTrade’s Islamic Account?
AvaTrade aims to offer competitive spread costs to all its traders, including those using Islamic Accounts. The competitiveness of spreads can vary depending on market conditions, the asset being traded, and the account type.
Overall Rating
- 4.9/5
Min Deposit
$100 / 1 342 BWP
Regulators
ASIC, FSA
Trading Desk
MetaTrader 4, MetaTrader 5, Ava Social, Ava Protect, Trading Central
Crypto
Yes
Total Pairs
55+
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
What other features does AvaTrade’s Islamic Account offer traders?
Apart from interest and swaps, the AvaTrade Islamic Account is identical to a standard retail account. The following features are available to Muslim traders in addition to the normal ones:
➡️ Halal Gold and Silver Trading – AvaTrade offers Islamic halal gold and silver trading. For valid Islamic gold and silver transactions, a physical supply of gold and silver is necessary. AvaTrade offers gold and silver trading accounts that adhere to Sharia law.
➡️ Islamic Oil Trading is now available on AvaTrade. On the AvaTrade MT4 Platform, oil may be traded using oil futures traded on worldwide futures markets. AvaTrade facilitates the trading of oil without swap accumulation. AvaTrade may be used to access the volatile oil markets.
➡️ Halal Indices Trading – Botswana Muslim traders with an AvaTrade Islamic trading account get quick access to the world’s most liquid stock indices. Stock market indices that are linked to global stock markets without the build-up of swaps. In addition, traders on an AvaTrade Islamic account pay just the bid-ask spreads.
➡️ Islamic Forex Trading – AvaTrade has introduced a trading account that adheres to all Islamic standards. Customers holding an Islamic trading account will not be charged for daily swaps. On the MT4 platform, all swap charges are turned into daily administration fees for all forex trading products.
What additional features does AvaTrade’s Islamic Account offer traders?
AvaTrade’s Islamic Account, tailored to align with Sharia principles, offers a range of valuable features to traders. One notable feature is the elimination of overnight interest charges (swap or rollover fees), ensuring that trading activities adhere to Islamic finance guidelines.
Are there any specific eligibility requirements or conditions for opening an Islamic Account with AvaTrade?
To open an Islamic Account with AvaTrade, traders generally need to meet specific criteria and adhere to certain conditions:
Eligibility Verification: Traders interested in an Islamic Account should typically provide documentation or a statement confirming their commitment to Islamic finance principles and their eligibility for this account type. This verification is essential to ensure that the account complies with Sharia law.
Asset Availability: While Islamic Accounts often offer access to a diverse range of assets, traders may want to confirm that their preferred financial instruments are available for trading within the Islamic Account.
Trading Conditions: While Islamic Accounts do not involve overnight interest charges (Riba), standard trading costs such as spreads and commissions may still apply. These costs can vary depending on market conditions and the specific assets being traded.
Adherence to AvaTrade’s Policies: Traders should adhere to AvaTrade’s terms and conditions and any additional policies specific to Islamic Accounts. Compliance with these policies ensures a smooth trading experience and alignment with Sharia principles.
AvaTrade Botswana Pros and Cons
| ✔️ Pros | ❌ Cons |
| Botswanan traders have access to several mobile trading applications | AvaTrade will apply inactivity fees if a trading account becomes dormant |
| AvaTrade offers superior educational material | Botswanans cannot deposit or withdraw in BWP, and there is no BWP-denominated account, subjecting them to currency conversion fees |
| Botswanan traders can expect commission-free trades | The demo account expires after 21 days |
| AvaTrade does not charge any deposit or withdrawal fees | |
| AvaTrade is well-regulated and fully compliant with Sharia | |
| Islamic Accounts provide access to several halal asset classes | |
| Traders can use a range of trading strategies when they trade using AvaTrade | |
| There is a free demo account offered across trading platforms |
Verdict on AvaTrade
Overall, AvaTrade is very competitive in terms of its trading fees and spreads.
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Frequently Asked Questions
What is the minimum deposit on the AvaTrade Islamic Account?
The minimum deposit on an AvaTrade Islamic Account is 100 USD / 1370 BWP.
How can I open an Islamic Account with AvaTrade?
You can first register for, and validate, a retail trading account and contact AvaTrade to convert your account to Islamic or Swap-Free status.
What is the average spread I can expect from AvaTrade?
The average spreads you can expect on the Islamic Account is 0.9 pips on EUR/USD.
What is the maximum leverage I can use on the Islamic Account?
You can use leverage up to 1:200 on the retail account and 1:400 on the pro account.
Can anyone register an Islamic Account with AvaTrade?
Only traders who are Islamic and follow the Sharia law can convert their account into an Islamic account.
Conclusion
Now it is your turn to participate:
Do you have any prior experience?
What was the determining factor in your decision to engage?
Was it because of the minimum deposit, regulation, retail trading accounts, or any other factors?
Have you experienced any issues such as difficulty withdrawing funds, inability to verify regulations, irresponsive customer support, etc.?
Regardless, please share your thoughts in the comments below
Addendum/Disclosure:
No matter how diligently we strive to maintain accuracy, the forex market is a volatile environment that may change at any time, even if the information supplied is correct at the time of going live.
