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Pepperstone is one of the most well-known brokers in the Forex industry. Besides the main Pepperstone account types, Pepperstone offers another sort of account to fulfill all kinds of customers' needs. For now, let's take a look at the Pepperstone Islamic account.
A Pepperstone Islamic account, also called a swap-free account, is designed specifically for Muslim traders who adhere to Sharia law. Because paying or receiving any sort of interest is forbidden, including interest on overnight expenditures that are considered needless or exploitative, these accounts do not charge any interest. In this guide, we will do a Pepperstone Islamic account review and go through its important features.
"Pepperstone's a retail foreign exchange broker, we provide people with the ability to trade on 68 currency pairs and metals, we're basically interfacing to the global foreign exchange market" - Owen Kerr
Considering that this is a different account type especially created for Muslim traders, it comes as no surprise that its trading features are different as well. It is important to get familiar with each of them, so you are fully aware of what awaits you on your trading journey.
Spreads are as low as 1 pip for the Pepperstone Islamic account and can go up to 1.2 pips. Pepperstone offers the lowest average spreads across two of the three most popular Euro currency pairs. That makes this account type much more attractive to the users of Pepperstone for Forex.
There is no difference between the leverage levels of other accounts and Islamic accounts. Pepperstone offers some of the most competitive ratios in the industry. From 30:1 all the way up to 500:1, (for retail traders it is capped at 200:1). They give traders the ability to really maximize their potential profits.
However, if you are a beginner, it would be a better idea to stop yourself from using high leverage because in this case, there is a higher chance of losing all your money.
The Pepperstone Islamic account has no commission fees. On the other hand, Islamic accounts have a minimum account opening balance which is 200AUD or the equivalent, which sometimes can be a big disadvantage for newbies who want to start trading with just a few dollars.
The Pepperstone Islamic account gives unique opportunities for one segment of traders but let's look at the bigger picture and talk about its pros and cons.
Traders who follow Sharia law are not charged with additional charges but it is possible that their non-trading fees are higher.
When comparing the Pepperstone Islamic vs Standard account, the only difference between them is that there are no overnight or rolling fees. But because of this, Muslim traders may be charged a higher amount of trading and non-trading fees.
An Islamic account includes all the instruments as with the other types of accounts, including Forex, commodities, cryptocurrency, stocks, shares, indices, metals, energies, bonds, CFDs, and ETFs.