LiteFinance Islamic Account
LiteFinance offers an Islamic account for Muslim traders. LiteFinance offers swap-free trading for Muslim traders on 2 trading accounts. LiteFinance has an overall trust score of 76% out of 100.
- Louis Schoeman
Jump to:
Islamic Account Overview
What is an Islamic Account
How to open an Axiory Islamic Account
Pros and Cons
Final Verdict
FAQ
Overall Rating
- 4.5/5
Min Deposit
USD 50 / 20717 NGN
Regulators
Trading Desk
MetaTrader 4, MetaTrader 5, Web-based
Crypto
No
Total Pairs
40
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
LiteFinance Islamic Account – 10 key points quick overview:
LiteFinance Overview
👉 Overall, LiteFinance is considered average risk, with an overall Trust Score of 76 out of 100. LiteFinance is licensed by zero Tier-1 Regulators (high trust), one Tier-2 Regulator (average trust), and zero Tier-3 Regulators (low trust). LiteFinance offers two different retail trading accounts namely an ECN Account and a Classic Account.
👉 LiteFinance is attractive to newbie traders who are acquainted with the Metatrader platforms since it has good copy trading capability, a variety of accounts with low minimum deposits, including a micro-trading account, and a range of accounts with low minimum deposits.
👉 Traders should be aware, however, that the fees of trading with LiteFinance are greater than those of other brokers offering comparable services.
👉 LiteFinance has two distinct live account choices, each with a modest minimum deposit requirement of just fifty dollars (USD), making them available to novice traders.
👉 However, to take advantage of the ECN Account’s narrow spreads (which begin at 0 pips on the EUR/USD), you will be required to pay a fee that ranges from 10 to 30 USD for every lot traded.
👉 The Classic Account does not charge any commissions, but the spreads are greater than those offered by other brokers offering comparable services, beginning at 1.9 pips on the EUR/USD.
👉 In addition to the MetaTrader 4 and Metatrader 5 platforms, LiteFinance also provides a customized copy trading platform that is intuitive and simple to use.
👉 The automatic copy-trading system gives traders the ability to trade independently, replicate the best deals, exchange knowledge, and connect with the signal sources they use.
👉 Additionally, it provides free access to independent market news and analysis from a third-party supplier known as Claws & Horns, in addition to providing VPS hosting for a fee of 15 USD per month.
👉 The educational and market analysis resources provided by LiteFinance are not the greatest in the industry. Yet, they are extensive, constantly updated, and appealing to traders of all experience levels, even though they are not the most prominent broker.
👉 With over 500,000 satisfied customers, LiteFinance Europe Limited has become an industry leader and has built a solid name across the world.
👉 The Cyprus Securities and Exchange Commission (CySEC) oversees the business and ensures that it abides by the requirements set out for forex and CFD brokers operating in the area.
👉 Margin trading is available across a broad variety of securities at LiteFinance Europe. These instruments include stock indices, commodities, and currencies.
👉 The trading accounts that the LiteFinance makes available are easy to use and include several useful extra features, such as a social trading platform and a forex analysis site.
LiteFinance At a Glance
| 🏛️ Headquartered | First Floor, First St Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines |
| 🏛️ Nigerian Based Office | Yes, Delta State, River State, Oyo State, Lagos |
| 👍 Accepts Nigerian Traders? | Yes |
| 📅 Year Founded | 2005 |
| 📱 Nigerian Office Contact Number | Delta State – +234-08168577388 River State – 08029086163 Oyo State – +2348101692515 Lagos – 08189979350 |
| ⚖️ Regulation | Marshall Islands |
| 🔎License Number | 093/08 |
| ⚖️ CBN Regulation | None |
| ✴️ Regional Restrictions | The United States, Israel, Japan, Russia, and some other countries |
| ☪️ Islamic Account | Yes |
| 📈 Demo Account | Yes |
| 📈 Retail Investor Accounts | 2 |
| 🚀 Offers a Nigerian Account? | No |
| 💻 Dedicated Nigerian Account Manager? | No |
| 📈 Maximum Leverage | 1:500 |
| 📈 Leverage Restrictions for Nigeria? | No |
| 💳 Minimum Deposit (₦) | 20,700 Nigerian Naira |
| 💳 Nigerian Naira Deposits Allowed? | Yes |
| 💰 Active Nigerian Trader Stats | 1.3 million |
| Active Nigerian-based LiteFinance customers | Unknown |
| 💰 Nigeria Daily Forex Turnover | $1.25 million+ |
| 💳 Deposit and Withdrawal Options | Credit Card, Debit Card, Bank Transfer, Bank Wire Transfers, Cryptocurrency Wallets |
| 💰 Segregated Accounts with Nigerian Banks? | Yes |
| 💻 Trading Platforms | MetaTrader 4, MetaTrader 5, LiteFinance Mobile Trading App |
| 💰 Tradable Assets | Forex, Precious Metals, Oil, Global Stock Indexes, CFD NYSE, CFD NASDAQ, CFD EURONEXT, CFD LONDON LSE, CFD XETRA, Cryptocurrencies |
| 🌐 Offers USD/NGN currency pair? | No |
| 🌐 USD/NGN Average Spread | N/A |
| 📈 Offers Nigerian Stocks and CFDs | No |
| 👨💼 Languages supported on Website | English, Indonesian, Russian, Malay, Thai, Spanish, French, Portuguese, Chinese (Simplified), Arabic, Persian |
| 👥 Customer Support Languages | Multilingual |
| 👥 Customer Service Hours | 24/5 |
| 👥 Nigerian-based customer support? | Yes |
| 💰 Bonuses and Promotions for Nigerians | Yes |
| ✴️Education for Nigerian beginners | Yes |
| 📊 Proprietary trading software | Yes |
| 💰 Most Successful Nigerian Trader | Uche Paragon ($20 million net worth) |
| ✔️Is LiteFinance a safe broker for Nigerians? | Yes |
| ✔️Rating for LiteFinance Nigeria | 7/10 |
| ✔️Trust score for LiteFinance Nigeria | 76% |
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.
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.
What are the steps involved in opening a LiteFinance Islamic Account?
👉 Step 1 – Navigate to the LiteForex website
➡️ The first step in registering for a LiTeForex account involves traders navigating to the LiteForex website, and clicking on “Register” to proceed.
👉 Step 2 – Fill out the LiteForex registration
➡️ The third step in the registration process requires traders to fill in their: email address, phone number, and password.
👉 Step 3 – Access the LiteForex trading dashboard and verify your email address.
➡️ Traders will now gain access to the Liteforex trading dashboard where they can verify their personal information in order to start trading.
👉 Step 4 – Contact the LiteForex support team for the Islamic account application.
What is LiteFinance’s spread costs on an Islamic Account?
👉 LiteFinance offers variable/floating spreads, which change depending on the traded financial instrument, retail investor accounts, and market conditions. The ECN Account provides tight spreads, but each transaction incurs a commission depending on the traded financial instrument.
👉 Classic Account spreads are larger, but there are no transaction fees, making it the best choice for novice traders. The following are some of the common spreads that Nigerians may anticipate from LiteFinance:
| 🔧 Financial Instrument | 📊 Classic Account Typical Spread | 💻 ENC Account Typical Spread |
| Forex Major Pairs | 1.8 pips | 0.0 pips |
| Forex Minor Pairs | 10 pips | 3 pips |
| Forex Major Crosses | 14 pips | 6 pips |
| Energies | 3 pips | 1 pip |
| Precious Metals | 9.5 pips | 4.3 pips |
| Indices | 0.0 pips | 0.0 pips |
| NYSE | 4.1 pips | 0.1 pips |
| NASDAQ | 4.1 pips | 0.1 pips |
| EURONEXT | 4.1 pips | 0.1 pips |
| LONDON LSE | 4.1 pips | 0.1 pips |
| XETRA | 4.2 pips | 0.2 pips |
| Cryptocurrencies | 0.3 pips | 0.1 pips |
What other features does LiteFinance’s Islamic Account offer traders?
👉 The features that Nigerian traders can expect will depend on whether they use the Classic or ECN account. However, Nigerian Muslim traders can expect these typical features:
➡️ Spreads between 0.0 pips and 1.8 pips.
➡️ Leverage that ranges from between 1:1 to 1:500.
➡️ Market execution on trades.
➡️ Access to MetaTrader 4, MetaTrader 5, and a range of LiteFinance apps.
➡️ Minimum trade size of 0.01 lots and maximum of 100 lots.
➡️ Margin level of 100% and Stop-Out of 20%.
➡️ Unlimited access to social trading and copy trading.
👉 In addition, Nigerian traders must consider the following when they register an Islamic account with LiteFinance:
➡️ The condition given in Islamic client accounts for all account kinds, excluding leverage and currency provided. In the event of any suspicion or misuse, the trading market may terminate all open positions and remove the free swap conditions at its discretion.
➡️ The fundamental and only deciding element for an Islamic account is the customer’s Islamic faith. LiteFinance has the right to terminate a swap/Islamic free account without prior notice.
➡️ Principally, LiteFinance does not allow Islamic forex trading accounts to be used for carry arbitration and trades or any other method to profit on currency and interest rate discrepancies.
➡️ Customers often take advantage of interest accounts by holding their positions for a certain time without receiving interest; however, positions held for longer than one week will be charged per lot.
➡️ The Islamic account holders accept and understand that if LiteFinance suffers a loss because of swap-free account rollovers, the market has the right to recover the loss by debiting any account of the customer’s account with a loss account.
➡️ If a customer’s account balance is inadequate to compensate, the client agrees to credit the desired amount to their account on the LiteFinance.
LiteFinance Pros and Cons
| ✔️ Pros | ❌ Cons |
| LiteFinance is well-regulated and compliant with MiFID requirements | VPS is not provided free of charge |
| Expert analysis is provided through Claws & Horns | Commission charges are not the cheapest |
| There is a market-leading analysis app provided to Nigerian traders | There is a limited selection of tradable instruments |
| Dedicated client support offered in several languages |
LiteFinance Final Verdict
LiteFinance offers services and support in multiple languages and offers customized trading conditions for all clients, trading in a range of markets including Forex, Metals, Indices, and Energies, and offers new traders a demo account with no limits for free practice.
FAQ
Can I use leverage on the Islamic Account?
Yes, leverage can be used on the Islamic Account as it is not haram. However, leverage is only halal when it is used on halal trading instruments.
How much is the minimum deposit requirement on the Islamic account?
The minimum deposit remains the same on the Islamic Account as with typical accounts. When registering an account, Nigerians must pay the 20,900 NGN / 50 USD minimum deposit to start trading.
Is LiteFinance a reliable broker?
LiteFinance is a reliable broker that is well-regulated by CySEC and complies with MiFID. Client fund protection is guaranteed and there is also investor protection given to eligible traders.
Can anyone register an Islamic Account with LiteFinance?
The Islamic Account is only available to traders who follow Sharia law and those based in Islamic regions.
Where is LiteFinance located?
LiteFinance is headquartered in Cyprus but has global offices in Afghanistan, Egypt, Ghana, Indonesia, Iran, Kenya, Kyrgyzstan, Mongolia, Morocco, Myanmar, Nigeria, Philippines, Singapore, Tanzania, Thailand, and Vietnam.
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