FBS Islamic Account Review

FBS is a well-established broker known for its versatile trading services and global reach. This broker has a client base of over 27 million traders from around the globe. This global reach includes a strong presence in regions with significant Muslim populations, including countries in the Middle East, Asia, and Africa. To accommodate its Muslim clientele, the broker offers Islamic (swap-free) accounts that are designed to align with Sharia law.

In this FBS Islamic account review, we’ll explore the broker’s swap-free account features, benefits, drawbacks, and how they cater to Muslim traders.

67.71% of retail CFD accounts lose money

Understanding Islamic Trading Accounts

Traditional forex and CFD trading often involves swap fees, which are interest-based charges applied to positions held overnight. However, Islamic finance strictly prohibits the earning or paying of interest, also known as Riba. This means that standard trading accounts are unsuitable for practising Muslims. 

Islamic accounts offer a solution by removing swap charges, making trading permissible under Sharia law. Some brokers may introduce alternative fees, such as administrative charges, or widen spreads to offset the absence of swaps. However, some brokers aim to provide a genuinely interest-free experience. Let’s examine how FBS manages this in their Islamic account offerings.

How FBS Islamic Accounts Work

FBS offers a swap-free option across its real trading accounts, including Standard and Cent accounts. This option can be enabled directly within the Trader Area settings or during the account creation process. This flexibility allows traders to convert their existing accounts or set up new ones with Sharia compliance in mind from the outset.

FBS Islamic accounts generally feature competitive trading conditions similar to their standard counterparts. Spreads can be floating from 0.7 pips on both the standard and cent accounts with no commissions. However, when trading forex exotic pairs, you will be charged a commission once a week instead of the swap. For other instruments, there is no weekly commission.

Additionally, for the long-term strategies (positions left open for more than 2 days), FBS may charge a fixed fee for the total number of days during which the order was open. The value is determined as the value of 1 point of the transaction in US dollars, multiplied by the size of the currency pair swap point of the order. This fee is not an interest and depends on whether the order is open to buy or sell.

Pros of FBS Islamic Accounts

• Full Sharia Compliance - FBS eliminates swap fees from the Islamic account entirely, ensuring adherence to Islamic finance principles.

• Availability Across Account Types - The Swap Free option can be applied to both Standard and Cent accounts. This offers flexibility for traders with different capital, strategies, and experience levels.

• Competitive Trading Conditions - Islamic accounts on FBS largely maintain the competitive spreads and execution speeds offered on FBS's standard accounts.

• Wide Range of Instruments - Traders with Islamic accounts have access to a diverse array of trading instruments, including CFDs on forex, metals, stocks, energies, and indices.

• Multiple Platforms - FBS supports MetaTrader 4 (MT4), MetaTrader 5 (MT5), and its proprietary FBS mobile trading app, providing diverse platform choices and advanced trading tools.

Cons of FBS Islamic Account

• Weekly Commission on Exotic Forex Pairs - While generally swap-free, positions on Forex Exotic instruments incur a weekly commission. Traders need to be mindful of these specific charges.

• Fixed Charge on Long-term Positions - Any position left open for more than 2 days incurs a fixed fee based on the asset class and the number of days the position was left open.

How To Set Up an FBS Islamic Account

Changing the account status to Swap-free is available in the Personal Area account settings. You can enable the Swap-free option on all real accounts in the account settings. Here is how to do it:

• Open an Account - Register for a live trading account on the FBS website or through their mobile app. Choose your preferred account type as you register (Standard or Cent).
• Verify Your Account - Complete the necessary verification steps by providing identification and proof of residence documents as per FBS's requirements.
• Activate Swap-Free Option - Once your account is verified, you can easily activate the Swap Free option directly from your Personal Area. Simply log into your Personal Area and select the needed account in the Dashboard. Scroll down to find Swap-free in the Account settings section and click on the button to activate the option. Alternatively, you can select this option during the initial account creation.

The Credibility of FBS

FBS has established itself as a reputable global broker since its inception. It holds licenses and is regulated by various financial authorities worldwide. These include the ASIC in Australia, the FSCA in South Africa, and the FSC in Belize. This multi-regulatory structure is part of the reason why FBS has grown into one of the largest brokers in the world. Today, it boasts over 27 million clients from around the world.

In addition to this regulatory oversight, the broker has garnered stellar reviews from users. On Trustpilot, it has a 4.3-star rating out of 5 based on over 5,900 different reviews. 67% of these reviews gave the broker a perfect 5-star review. This high user rating and extensive reach further enhance the appeal of the broker to traders.

Final Verdict

FBS provides a robust and Sharia-compliant trading solution for Muslim traders through its Islamic accounts. The ability to activate the "Swap Free" option on both Standard and Cent accounts offers flexibility for various trading styles and capital levels. These accounts benefit from competitive trading conditions, access to a broad range of market instruments, and support for popular trading platforms. This allows for a high-performance trading experience that aligns with religious principles.

While FBS successfully eliminates traditional interest-based swap fees, traders should be aware of the weekly commissions on Forex Exotic pairs. Additionally, long-term positions (open for more than 2 days) will incur a fixed charge. These alternative charges are clearly outlined, ensuring transparency, which is crucial for Sharia compliance.

Nonetheless, these are relatively modest trade-offs for a genuinely swap-free experience. Additionally, FBS’s strong regulatory framework and positive user reviews further reinforce its credibility as a trusted broker.

67.71% of retail CFD accounts lose money