Exness Review
HFM Islamic Account
Overall, HFM offers an Islamic Account for Muslim traders. HFM offers swap-free trading for Muslim traders on trading account levels. HFM is considered trustworthy, with an overall Trust Score of 9 out of 10.
- Louis Schoeman
Jump to:
HFM 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
USD 0
Regulators
CySEC, FCA, DFSA, FSCA, FSA, CMA
Trading Desk
MT4, MT5, HFM APP
Crypto
Yes
Total Pairs
50+
Islamic Account
Yes
Trading Fees
0
Account Activation Time
24 Hours
HFM at a Glance
| 🏛 Headquartered | Cyprus |
| 🌎 Global Offices | Seychelles, South Africa, Dubai, UK, Kenya |
| 🏛 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 | 2010 |
| 📞 Botswana Office Contact Number | None |
| 📱 Social Media Platforms | • Facebook • YouTube • Telegram |
| ⚖️ Regulation | FSCA, CySEC, DFSA, FSA, FCA, FSC, CMA |
| 1️⃣ Tier-1 Licenses | • Financial Conduct Authority (FCA) |
| 2️⃣ Tier-2 Licenses | • Financial Sector Conduct Authority (FSCA) • Cyprus Securities and Exchange Commission (CySEC) • Capital Markets Authority (CMA) • Dubai Financial Services Authority (DFSA) |
| 3️⃣ Tier-3 Licenses | • Financial Services Authority (FSA) • Financial Services Commission (FSC) |
| 🪪 License Number | • South Africa – FSP 46632 • Cyprus – 183/12 • Dubai – F004885 • Seychelles – SD015 • United Kingdom – 801701 • Mauritius – 094286/GBL • Kenya – CMA license 155 |
| ⚖️ MFED, BoB, or NBFIRA Regulation | No |
| ✔️ Global Restrictions | • France ACPR – 53684 • Germany BaFin – 132342 • Hungary MNB – K8761153 • Italy CONSOB– 3673 • Norway – FT00080085 • Spain CNMV – 3427 • Sweden FI – 31987 • Austria FMA • Bulgaria FSC • Croatia HANFA • Czech Republic CNB • Denmark Finanstilsynet • Estonia FSA • Finland FSA • Greece HCMC • Iceland FME • Central Bank of Ireland • Latvia FKTK • Liechtenstein FMA • Lithuania Lietuvos Bankas • Luxembourg CSSF • Malta MFSA • Poland KNF • Portugal CMVM • Romania ASF • Slovakia NBS • Slovenia ATVP |
| ☪️ Islamic Account | Yes |
| 💻 Demo Account | Yes |
| 🛍 Retail Investor Accounts | 5 |
| ✔️ PAMM Accounts | No |
| 💻 Liquidity Providers | Barclays UK, BNP Paribas, and others |
| ✔️ Affiliate Program | Yes |
| 📱 Order Execution | Market |
| 📊 Starting spread | 0.0 pips |
| 📉 Minimum Commission per Trade | $3 to $4 |
| 💰 Decimal Pricing | 5th decimal pricing after the comma |
| 📞 Margin Call | Between 40% to 50% |
| 🛑 Stop-Out | Between 10% and 20% |
| 📉 Minimum Trade Size | 0.01 lots |
| 📈 Maximum Trade Size | 60 lots |
| ✅ Crypto trading offered? | Yes |
| ✔️ Offers a BWP Account? | No |
| 📉 Dedicated Botswana Account Manager? | Yes |
| 📈 Maximum Leverage | 1:2000 |
| 📊 Leverage Restrictions for Botswana? | No |
| 💳 Minimum Deposit (BWP) | 0 BWP or an equivalent to $0 |
| ✔️ Botswana Pula Deposits Allowed? | Yes |
| 📊 Active Botswana Trader Stats | 250,000+ |
| 👥 Active Botswana-based HFM customers | Unknown |
| 🔁 Botswana Daily Forex Turnover | Unknown, Forex overall is $6.6 Trillion |
| 💰 Deposit and Withdrawal Options | • Bank Wire Transfer • Electronic Transfer • Credit Card • Debit Card • Skrill |
| 💻 Minimum Withdrawal Time | 10 Minutes |
| ⏰ Maximum Estimated Withdrawal Time | 10 business days |
| 💳 Instant Deposits and Instant Withdrawals? | No |
| 🏛 Segregated Accounts with Botswana Banks? | No |
| 📱 Trading Platforms | • MetaTrader 4 • MetaTrader 5 • HF App |
| 💻 Tradable Assets | • Forex • Precious Metals • Energies • Indices • Shares • Commodities • Cryptocurrencies • Bonds • Stocks DMA • ETFs |
| ✔️ Offers USD/BWP currency pair? | No |
| 📊 USD/BWP Average Spread | None |
| ✅ Offers Botswana Stocks and CFDs | No |
| 💻 Languages supported on the Website | 20 Languages |
| ☎️ Customer Support Languages | Multilingual |
| 👥 Copy Trading Support | Yes |
| ⏰ Customer Service Hours | 24/5 |
| 📞 Botswana-based customer support? | No |
| 💸 Bonuses and Promotions for Botswanans? | No |
| 📚 Education for Botswanan beginner traders | Yes |
| 📱 Proprietary trading software | Yes |
| 🤝 Most Successful Trader in Botswana | Unknown |
| ✔️ Is HFM a safe broker for Botswana Traders? | Yes |
| 🎖 Rating for HFM Botswana | 9/10 |
| 🥇 Trust score for HFM Botswana | 85% |
| 👉 Open Account | 👉 Open Account |
HFM Overview
Overall, HF Markets, also known just as HFM (previously HotForex) is considered low-risk, with an overall Trust Score of 85 out of 100. HFM is licensed by one Tier-1 Regulator (high trust), four Tier-2 Regulators (average trust), and two Tier-3 Regulators (low trust). HFM offers four different retail trading accounts namely a Cent Account, Premium Account, HFCopy Account, and Zero Spread Account.
HFM is a worldwide broker specializing in foreign exchange, indices, stocks, and commodities with headquarters in the United Kingdom. The broker is proud to have received over 60 industry awards and to have over three and a half million customers who have established accounts with them.
Since the beginning of 2024, HFM has been subject to CMA regulation, contributing to its stellar standing among the Botswana community of CFD and Forex traders. HFM is a multi-regulated broker that has established itself as one of the most successful companies in the industry currently.
The broker provides not only the greatest trading platforms in the business but also extremely excellent conditions.
In addition, the broker provides sufficient choices for customization, a wide selection of instructional resources, effective customer service, and some very tempting bonus opportunities. HFM has a presence in most financial markets because of the variety of trading accounts it offers.
Because everyone has their own preferences, the firm tries to cater to a wide range of customer requirements by supplying a few different trading platforms. This is one of the components of presenting a diversified product portfolio.
HFM Signals allows for every transaction made on the MetaTrader platform to be seen at any time, and traders could customize risk levels and trading sizes, and delete signals whenever they choose.
The customers of the international division of HF Markets could be eligible for a selection of appealing and alluring benefits. Most of these incentives cannot be withdrawn and are just intended to boost your possibility of making trades.
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.
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 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 is a HotForex Islamic Account, and how does it work?
A HotForex Islamic Account, also known as a swap-free account, is designed to cater to traders who adhere to Islamic principles and seek to trade in compliance with Sharia law. This account type eliminates the concept of interest (Riba) from trading by not charging or paying swap or interest on overnight positions. Instead, HotForex offers a commission-based structure on Islamic accounts.
Are there any eligibility or documentation requirements for opening a HotForex Islamic Account?
To open a HotForex Islamic Account, traders typically need to provide documentation to confirm their eligibility, such as proof of their Islamic faith. This documentation may include a certificate from an authorized Islamic institution or a letter of self-declaration regarding adherence to Islamic finance 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, or Riba in Islamic finance, is discouraged and often prohibited by Sharia law due to several key principles. Firstly, interest is seen as exploitative because it generates profit without contributing to economic development or risk-sharing. Secondly, it is considered unethical as it may lead to wealth concentration and social inequality.
Thirdly, Riba is believed to undermine economic stability as it can create speculative bubbles and financial crises. In Islamic finance, transactions must be based on real economic activity and fairness, with profits and losses shared among parties. Therefore, interest-free financial systems, like those in Islamic banking and trading, aim to align with these principles, promoting ethical and equitable financial practices.
How does the prohibition of interest impact financial products like HotForex’s Islamic Account?
The prohibition of interest (Riba) significantly impacts financial products like HotForex’s Islamic Account. In these accounts, the concept of interest is entirely eliminated from trading activities to comply with Sharia law. Instead of interest-bearing positions (swaps), Islamic Accounts use a commission-based structure to cover administrative costs for carrying positions overnight.
This ensures that traders who adhere to Islamic principles can participate in the financial markets without violating their religious beliefs. By providing Islamic Accounts, HotForex aims to offer a platform that aligns with the ethical and financial principles of Sharia law while allowing traders to engage in the global financial markets.
What are the steps involved in opening an HFM Islamic Account?
Step 1 – Complete Your Personal Information.
The first step is to head to the HFM homepage. Simply click “Open Live Account” on the top right as shown below and proceed to enter your personal information.
Step 2 – Complete Your HFM Markets Live Account Profile.
All fields are mandatory and must be completed in order for the process to move on to the third step of registration.
Step 3 – Upload requested Documents to Verify your chosen HFM Markets Live Account.
Before choosing an account option, verify with the HFM Customer Support team if it is indeed possible to choose the Islamic Option.
Step 4 – Choose a Trading Platform.
The Verification of the HFM live trading account should generally be completed within minutes of uploading all documentation. Once a trader is fully confirmed, they will receive an email notification as confirmation.
What is HFM’s spread costs on an Islamic Account?
Traders can expect spreads from HFM to differ based on the spreads in their source live trading account. Botswana Muslim traders should anticipate the following spreads with HFM, albeit they will vary by account type:
➡️ Micro Account – from 1 pip
➡️ Premium Account – from 1 pip
➡️ HFcopy Account – from 1 pip
➡️ Zero Spread Account – from 0.0 pips
What are the spread costs on a HotForex Islamic Account?
The spread costs on a HFM Islamic Account, like other account types, can vary depending on the specific trading instrument and market conditions. Islamic Accounts aim to provide a swap-free environment in compliance with Sharia law, eliminating overnight interest (Riba) charges. Instead, HotForex may employ a commission-based structure on Islamic Accounts to cover administrative costs associated with carrying positions overnight.
How can I find detailed information about spread costs on a HotForex Islamic Account for my specific trades?
To obtain detailed information about spread costs for your specific trades on a HotForex Islamic Account, it’s advisable to use the trading platform provided by HotForex
Overall Rating
- 4.9/5
Min Deposit
USD 0
Regulators
CySEC, FCA, DFSA, FSCA, FSA, CMA
Trading Desk
MT4, MT5, HFM APP
Crypto
Yes
Total Pairs
50+
Islamic Account
Yes
Trading Fees
0
Account Activation Time
24 Hours
What other features does HFM’s Islamic Account offer traders?
When traders convert their Islamic Accounts to a live trading account, the features they may expect will differ depending on the live trading account they choose. Traders should expect the following characteristics:
➡️ Flexible leverage ratios are offered depending on the financial instrument being traded.
➡️ Market prices and margins are competitive.
➡️ Access to a diverse selection of commercial venues.
➡️ Margin call and stop-out amount that may be adjusted flexibly.
➡️ Minimum trading sizes from 0.01 lots.
➡️ Position size may be adjusted freely according to the kind of account that traders have.
➡️ Margin call and stop-out limits that are flexible as well as fair.
➡️ The availability of a dedicated personal account manager.
➡️ Low required initial deposits, which vary depending on the kind of account.
➡️ Access to MetaTrader 4 and MetaTrader 5 on a wide variety of platforms, including mobile devices, desktop PCs, and several internet browsers.
➡️ Open and understandable price structures with no additional or hidden charges.
➡️ HFM offers dedicated, prompt, and helpful customer support.
➡️ Safety of client funds and protection of investment interests.
➡️ Dependable liquidity sources, the best available price, and slippage that is kept to a minimum.
What additional features does a HotForex Islamic Account offer to traders?
HotForex’s Islamic Account, also known as a swap-free account, offers several features in addition to compliance with Sharia law. Traders using Islamic Accounts can access the same extensive range of trading instruments, technical analysis tools, and trading platforms as other account types.
This means they can benefit from HotForex’s full suite of trading resources while adhering to Islamic finance principles. Furthermore, traders can enjoy the convenience of commission-based pricing to cover administrative costs related to carrying positions overnight instead of interest charges. Islamic Accounts are available for various account types, allowing traders to choose the one that best suits their trading needs and preferences.
Can I use automated trading strategies, such as Expert Advisors (EAs), with a HotForex Islamic Account?
Yes, traders using HotForex’s Islamic Account can certainly use automated trading strategies, including Expert Advisors (EAs). Islamic Accounts provide access to the same trading platforms and tools as other account types, allowing traders to deploy automated trading systems if they wish to do so.
HFM Botswana Pros and Cons
| ✔️ Pros | ❌ Cons |
| HFM does not apply additional charges to the Islamic account, such as admin fees, holding fees, etc. | HFM’s spreads are much wider than that of competitors, especially on entry-level accounts |
| The minimum deposit for every type of account is reasonable, and it starts from 64 BWP / 5 USD | HFM does not accept BWP as an account base currency |
| HFM is a beginner-friendly broker with educational materials and tools | There is a limited choice when it comes to deposits and withdrawals in terms of payment methods supported by HFM |
| There are several bonuses and rewards for new and existing traders | |
| HFM is a broker that places the safety of clients and their funds first | |
| The broker is transparent about its fee schedules, finances, and what it does with client funds | |
| There is a choice between four retail accounts, each catering to different traders | |
| HFM is internationally known and has registrations from several reputable entities globally |
Verdict on HFM
Overall, HFM is very competitive in terms of its trading fees and spreads.
You might also like: HF Market Review
You might also like: HFM Account Types
You might also like: HFM Demo Account
You might also like: HFM Sign Up Bonus
You might also like: HFM Minimum Deposit
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
Frequently Asked Questions
Who can register an HFM Islamic Account?
Any Muslim trader worldwide can register a live account and request an account conversion. However, HFM reserves the right to require proof of religion before approving the account conversion to prevent misuse or abuse of the account’s swap-free status.
What is the average spread on an HFM Islamic Account?
Average spreads will depend on the type of account that Botswanans convert as follows:
- Cent Account – from 1 pip
- Premium Account – from 1 pip
- HFcopy Account – from 1 pip
- Zero Spread Account – from 0.0 pips
How long does my HFM Islamic Account approval take?
Once you have requested an Islamic conversion, it could take a business day or a few days for the account to be approved.
Which HFM live account can I convert into an Islamic Account?
You can convert any of the following live trading accounts:
- Cent Account
- Premium Account
- HFcopy Account
- Zero Spread Account
Does HFM offer halal trading conditions?
Yes, HFM offers halal trading conditions to Muslim traders. Therefore, not all financial instruments offered on normal accounts will be available on Islamic Accounts.
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.
