Tickmill claims to put clients' interests as their top priority. Does that mean they offer Islamic accounts for Muslim traders too?
The development of the internet and technology has made online trading possible these days. Financial markets are now open for anyone who is interested, regardless of their country of origin, gender, or occupation. Today, there are millions of active traders from all around the world with diverse levels of expertise, ranging from fully amateur retail traders to multi-billionaire experts.
Unfortunately, the default settings of a regular forex trading account may not always suit everyone. For Muslim traders who follow the Sharia law, such accounts are considered prohibited because it charges interest, which is considered Riba. With that in mind, some brokerages came up with a solution of providing a special Islamic account, also known as a swap-free account, which is designed specifically to follow the Sharia law. One of the brokers that offer Islamic accounts is Tickmill. Let's find out everything about it in this guide.
Get to Know Tickmill's Islamic Account
Tickmill is a rather popular broker that has been around since 2014. The broker offers a bunch of notable advantages, including a wide range of instruments, competitive fees, and speedy execution orders. At Tickmill, there are three types of accounts, namely Classic, Pro, and VIP. Each account type has specific requirements as well as benefits. You can choose whichever you like according to your trading needs.
Tickmill is an award-winning global ECN broker, authorized and regulated by the Financial Conduct Authority (FCA) in the UK, CySEC in Cyprus, and the FSA of Seychelles. Founded in 2014, it offers its retail and institutional clients various trading services with a prime focus on forex, stock, commodities, CFDs, and metals.
For traders who prioritize the value of spreads in broker selection, Tickmill provides excellent services with low spreads, starting from 0.0 pips.
The London-based company has a mission to provide clients with the best possible trading environment, so clients can focus on trading and become successful traders. One way to reach its mission is to offer a fast-execution of 0.15s. With this facility, it's no wonder that Tickmill gets the 2019 Best Forex Execution Broker award by the CFI.co Awards. Also, Tickmill received the achievement as Best CFD Broker Asia 2019 by International Business Magazine, the Best Forex Broker Asia, and the Most Transparent Broker 2019 by Forex Awards.
After registering in Tickmill, traders can choose the most ideal asset among 60 currency pairs that they can trade. If traders aren't sure yet to open a real account, Tickmill recommends learning to trade through a demo account.
There are also educational features such as Webinars, Seminars, Ebooks, and Video Tutorials. All of these facilities can be used by traders to increase knowledge about trading and the financial market as a whole. If traders already have enough knowledge, they have a greater opportunity for earning profit consistently.
For traders registered in real accounts, they can choose between provides three types of accounts, including Pro Account, Classic Account, and VIP Account. Traders can open positions with a minimum order of 0.01 Lots. This applies to all types of accounts.
The company provides recommendations for traders who are still confused when choosing an account. For example, for novice traders, Tickmill encourages clients to choose a Classic Account. It offers optimal conditions with fast order execution while enabling traders to use virtually any trading strategy. Additionally, the account is trade commission-free so traders only pay the bid/ask spread. Other than the 3 main accounts above, Tickmill also provides an Islamic account (swap-free).
The downside is, trading with Tickmill will only enable traders to use MetaTrader 4 as their offered trading platform. Although not much if compared to other brokers, the Tickmill platform provides a user-friendly and highly customizable interface, accompanied by sophisticated order management tools to help traders control positions quickly and efficiently.
The convenience of trading on Tickmill is enhanced by the existence of One-Click EA integrated on MT4. Traders will get Stop Loss and Take Profit calculations automatically. On top of that, Tickmill provides a VPS hosting for automated traders that can't be bothered with technical problems such as troublesome internet connection.
They offer several third-party research solutions, including Autochartist, which is a popular pattern-recognition software that uses automated technical analysis to make forecasts and generate trading signals. Autochartist is available both in Tickmill's web portal and as a platform plugin for MetaTrader 4.
As a Tickmill client, a trader can deposit and withdraw with a variety of payment methods, including Visa, Mastercard, bank transfer, and Skrill. Tickmill accepts deposits and withdrawals in 4 currencies, which include USD, EUR, GBP, and PLN.
Overall, Tickmill is a competitive broker in spreads and provides a safe trading environment with its regulated entities in three different jurisdictions. Although their trading platform is not outstanding, the analytical tools they present to equip traders' needs are considered by retail broker standards.
Apart from that, Tickmill also offers Islamic accounts upon request. Essentially, Islamic accounts have exactly the same trading conditions as regular trading accounts. The only difference is that there are no swaps or interests charged overnight on trading instruments. To compensate for that, the broker charges overnight fees for any position that's left open for more than three consecutive nights. This can be a great advantage for Muslim traders who are looking to eliminate swaps in their trades in compliance with their religious beliefs.
How to Convert Regular Trading Accounts to Islamic Accounts
It's important to understand that Tickmill does not offer Islamic accounts as a separate account type. It is a special type that's only available to certain clients by request. This means you'll need to open a regular trading account first before you can convert it to an Islamic account. The complete steps are as follows:
- Create a live trading account, either a Classic, Pro, or VIP.
- Then, log in using your account credentials.
- Contact customer service and request to convert your account to an Islamic type.
- The support team will process your request for the status conversion within 1 business day.
- You will receive an email confirmation stating that your account is all set. Note that all of your subsequent trading accounts will be automatically converted into Islamic accounts after your request, so there's no need to contact customer service again.
It is worth mentioning that Islamic accounts are available to Muslim clients only. You can send a request at any time, but you need to make sure that you are eligible for it. In this case, the company may require an adequate justification for proof of your necessity of the conversion. You will be informed via email about whether your request is accepted or not.
Also, keep in mind that once your accounts are converted into Islamic accounts, you won't be allowed to make profits from swaps anymore and/or request any payment of the swap amounts that have been lost because of the conversion.
In exchange for swaps, Tickmill charges additional overnight fees for positions that are held open for more than three consecutive nights, including weekends. In other words, the fees are applied on the fourth night and each night after that until the position is closed. Moreover, the fee depends on the instrument that you use, ranging from $0.01 up to $50. You can check the detailed information list on the broker's website.
Please note that all charges are in USD or equivalent in your base currency. The fees are fixed per 1 lot regardless of the position type and applied to both MT4 and MT5 swap-free accounts as a separate balance operation at 00:00 server time.
The Bottom Line
In conclusion, Tickmill is one of the few brokers that offer a solution to ensure that Muslim traders can get the same advantages as other traders while still abiding by their religious faith. With an Islamic account, clients can make trades comfortably without having to worry about swaps or interests on trades. Just keep in mind that instead of swaps, the broker charges overnight fees on positions that are held open for more than three consecutive nights. But apart from that, there's not much difference between Islamic accounts and regular trading accounts.
Tickmill is the brand name of Tickmill Ltd. which offers trading services with premium products and innovative technology. Superior trading conditions, ultra-fast execution, safety of client funds, and dedicated support are at the forefront of their offering.
Jan 30 2023
So if I'm not a Muslim, I can't get a Swap-free account, right? This means that the swap rate is really an unavoidable fee, right? So to help Muslim traders avoid Riba, brokers will charge other fees to cover the exchange rate loss, right? And the interest part is the positive interest that can bring you profit. So even though we are not Muslim traders, we can still aim for that positive rate, right? The question is does anyone know how to calculate the swap rate? Since it can give you a positive rate that can make a profit with it, I think many traders will use it as an advantage.
And what makes me wonder is the overnight fee can be very high? And what causes the swap rate to rise or fall?
Jan 30 2023
Ansnawi : Regarding your statement, after all, swap rates are truly unavoidable. The swap rate is linked to the reference interest rate of the country of the currency. Each currency has this interest rate.
The swap rate is the rate on the fixed portion of a swap as determined by its particular market and the parties involved. In an interest rate swap, it's a fixed rate that is swapped with a benchmark rate like LIBOR or the federal funds rate plus or minus a difference. It is also the exchange rate attached to the fixed portion of a currency swap. Swap rates are applied to different types of swaps. An interest rate swap is a swap of a floating rate for a fixed rate. Currency swap refers to the exchange of interest payments in one currency for payments in another currency. In both types of transactions, the fixed factor is called the swap rate.
And for the calculation, the simple way to calculate the swap rate is:
For the rates, visit tickmill's website to check it out.
Apr 15 2023
@Asnawi:Yes, that is correct. Swap-free accounts are typically only available for Muslim traders, as the purpose of these accounts is to adhere to Islamic financial principles which prohibit the charging or paying of interest. The swap rate is essentially the cost of holding a position overnight. It is a fee that is incurred when a trader holds a position open past 5:00 PM Eastern Standard Time (EST), which is considered the end of the trading day.
The swap rate can be either positive or negative, depending on the interest rate differential between the two currencies being traded.
While non-Muslim traders cannot open a swap-free account, they can still aim to profit from the swap rate. If a trader buys a currency with a higher interest rate than the currency they are selling, they will earn a positive swap rate. Conversely, if a trader sells a currency with a higher interest rate than the currency they are buying, they will pay a negative swap rate.
The swap rate is calculated using the interest rate differential between the two currencies being traded, as well as the current market price and the number of days that the position is held open. Brokers typically provide a swap rate calculator on their platform or website to help traders calculate the potential swap rate for a given position.
The overnight fee, or swap rate, can vary widely depending on the currency pair being traded, the broker being used, and the current market conditions. It can be affected by factors such as changes in interest rates, central bank policies, and market volatility. Traders should be aware of the potential costs associated with holding a position open overnight and should factor this into their overall trading strategy.
Jan 30 2023
I heard about Wednesday swap rates that will charge you three times the swap rate. And there are also higher fees that will charged if you use an Islamic account when opening a trade on Wednesday. I mean why is Wednesday getting three charges? Oh my.. there are a lot of fees that happen in Forex and we really have to calculate carefully when trading and it's not easy to count them all bro.. Lots of calculations including rate and also many considerations in Forex.
Jan 30 2023
Kansha: The reason for triple swp rate because of that spot Forex contracts have a settlement period of two days. For example, a spot Forex contract that occurs on Monday will settle on Wednesday, a transaction that occurs on Tuesday will settle on Thursday, a trade that occurs on Wednesday will settle on Friday. , but a transaction that occurs on a Thursday will pay out the following Monday. In this example, the transaction that took place on Thursday continues through the weekend because banks are closed on Saturdays and Sundays. Triple interest is applied to positions opened at 5:00 p.m. New York time on Wednesday, as that marks the start of a new 24-hour trading day (Thursday).
You should note that swap rates can be negative or positive, depending on the currency pair being traded and the prevailing interest rates at the time.
Lot of fees at Forex? To reduce the fees, just using scalping and day trading because the trading is finish only a day so you don't need to get charged by swap rate and also you don't need to open Islamic account.
Jan 30 2023
Andy :Agree! The only way to avoid swap rates and Riba is by scalping or day trading. But for note, doing scalping and day trading requires a lot of concentration and a lot of technical analysis. So, for a new trader, these exchanges are not user-friendly; friendly because little money is needed to start trading, unfriendly because much of the technical analysis used requires time to learn. Meanwhile, swing trading is more relax, but you will get the swap rate and for the muslim trader who is a swing trader or seasoned trader, you need to convert first change your muslim account and to trade you need a lot of money.
Rakibul Islam Hridoy
Apr 15 2023
Can you explain in more detail the features and requirements of Tickmill's Islamic account, and how it differs from their standard accounts? Additionally, could you discuss the eligibility criteria for opening an Islamic account, and provide insights on the advantages and disadvantages of using this type of account for trading?
Apr 21 2023
@Rakibul Islam Hridoy: Hello there! Tickmill's Islamic account is designed to meet the needs of traders who follow the Sharia law and prohibits the payment or receipt of interest. This account is also known as a swap-free account as it eliminates the rollover interest on overnight positions.
The Islamic account is available for both MT4 and MT5 platforms, with access to all trading instruments, including forex, CFDs, and commodities. The account features include zero swaps, no commissions, and no hidden fees. The account holder also receives a dedicated account manager to assist with trading needs.
To be eligible for the Islamic account, traders must follow the Islamic faith and provide relevant documentation to prove their eligibility. They must also meet the minimum deposit requirements of the chosen account type.
The main advantage of the Islamic account is that it adheres to the principles of Sharia law, making it suitable for traders who prioritize ethical and religious beliefs over profits. It also provides an opportunity to trade without incurring overnight swap fees, which can be beneficial for long-term traders.
On the other hand, the disadvantages of the Islamic account are that it may have wider spreads compared to standard accounts, and some trading strategies may not be compatible with the account's restrictions. Additionally, the account may have limited availability for certain instruments and may have higher deposit requirements compared to standard accounts.
Apr 21 2023
I came across some information about Tickmill's fees and charges and noticed that they are fixed per 1 lot, regardless of the position type, and applied to both MT4 and MT5 swap-free accounts as a separate balance operation at 00:00 server time. I also learned that all charges are in USD or equivalent in the base currency. Can you explain more about how these fees work and why they are charged? Are there any other fees that traders should be aware of when trading with Tickmill, and are there any options for reducing or avoiding these fees? Finally, how do Tickmill's fees compare to those of other brokers in the industry?