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      Amana Chief Calls for Greater Transparency Around Swap-Free Trading Costs

      Published: just now

      Amana Chief Calls for Greater Transparency Around Swap-Free Trading Costs

      Muhammad Rasoul, Chief Executive Officer of Amana, has challenged the retail foreign exchange and contract-for-difference industry's promotion of "swap-free" or "Islamic" trading accounts, arguing that financing costs are inherent whenever leverage is used and should be communicated more transparently to clients.

       

      Speaking from the broker's Dubai office, Rasoul said that any leveraged product held overnight involves a financing component, regardless of whether it is explicitly labelled as a swap or interest charge.

       

      "Financing exists wherever leverage exists," he said, suggesting that the industry's marketing of high-leverage or interest-free accounts as client acquisition tools lacks sufficient clarity around actual costs and risks.

       

      Amana is a Dubai-based retail broker operating in the Middle East and North Africa region. According to Rasoul, the firm has adopted a model that prioritises client transparency over aggressive promotional tactics, including implementing a lower default leverage ratio of approximately 25 times to reduce the risk of account blow-ups.

      The company has also shifted its focus towards longer-term, direct relationships with clients and encourages fully funded trading where appropriate, Rasoul said.

       

      "Our goal is to create a place we'd want our own family members to trade. We prioritise honesty over aggressive positioning and focus on clear, proactive communication on costs and risks."

      — Muhammad Rasoul, Chief Executive Officer, Amana

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      Muhammad Rasoul, Chief Executive Officer, Amana

       

      Rasoul's comments come amid ongoing debate within the retail brokerage sector over the structure and disclosure of financing costs on leveraged products, particularly those marketed to Muslim clients who seek Sharia-compliant trading solutions.

       

      The full interview and analysis is available in Broker Insights: https://liquidityfinder.com/insight/broker-insights/amana-reality-check-muhammad-rasoul-swap-free-leverage

       

      Found this interesting? Become a member of LiquidityFinder and get daily industry news direct to your inbox — join here.

      A Dubai-based trading brokerage firm that deals in spreads and commissions, energies, precious metals, indices, cryptocurrency, forex, ETF, CFD, commodities

      This content may have been written by a third party. LiquidityFinder makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplies by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.
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