Forex for a trader
Islamic finance forex trading

Islamic finance forex tradingAn Islamic Finance Assessment of the Modern Retail Forex Industry. I’ve been reading around this topic for a few years now and unfortunately I’ve not yet come across a really well explained Shariah-compliance analysis of the market. This is in part due to the complexity and fast-moving nature of the market, the secrecy of companies about their internal procedures, and in part, I feel, due to the breakdown of contact between Islamic scholars and experts in this industry. You can find articles from both sides online in e-fatwas or in marketing articles designed to attract the Muslim trader. But while the latter offers a poor grasp of Shariah, the former has a poor grasp of the mechanisms of the market itself. Hopefully below we can start to remedy this dearth of information and start asking the right questions so that Muslim traders are in a much better place to make a decision. How does it work? There are a plethora of Forex “How does it work” articles out there but unfortunately for our purposes none of them is written with the Islamic investor in mind who not only wants to find out how the whole structure works generally, but go into the nitty gritty mechanics of the transaction itself (i. e. Who buys what and sells what? Who owns what and why? What is a currency pair?) These are the sorts of questions we need to answer in order to work out retail FX’s Shariah compliance. What also doesn’t help is that this industry is a mixture of Over The Counter (OTC) and private Exchange-led markets so it is not as heavily regulated as, say, share trading where everything is well documented, scrutinised, and transparent, in fx there is much more opacity. An interesting aspect of FX trading through an Exchange is that all transactions are directly with the exchange. This means that if you have 5 different trades open, some losing and others winning, you can net your overall position and work out how much you owe the exchange (or more precisely, your broker can do that). If you’re OTC (aka the big boys) then your counterparty is another big boy, and then you are really dependent on the counterparty not actually defaulting for your trade to be worth what it is. Given that, there is a debt involved which you may or may not be trading at par value – and that raises questions about Shariah compliant hawala of debt. This is an interesting area that inshAllah we can explore fully in later articles.

All this made my research much harder, but here’s what I found. Firstly, I wanted to know the difference between retail fx and mainstream fx. Well there is a difference. Retail fx is a small part (5%) of the wider fx market. retail FX is where small everyday ordinary traders go online and trade currency through a broker. This is in contrast to the big boys of the FX world who trade in large amounts with each other using the interbank market directly. For retail FX users on the other hand, their trades are much smaller and a broker handles them and acts as an intermediary between them and the interbank market. Think of it like the small greengrocer who acts as a broker for retail customers but himself buys from the big boy importers based in a central market where the likes of Tesco and Sainsbury’s come and buy in bulk. But it gets more complicated unfortunately. There are actually two kinds of retail FX arrangements. Market Maker. These brokers actually take the other end of your transaction. So they’re not only executing your transaction, they’re the other guy you’re selling (or buying) to. They do this because they rightly understand that the majority of retail traders are unsophisticated and inexperienced and will end up losing money. These brokers may hedge their positions using related trades they themselves enter in the interbank market in order to manage their own money vis-a-vis the various transactions they’ve entered with their retail customers, but in a way that’s not really your concern as the end customer. You’re just trading with these guys. These guys may also use other methods where they match up different retail traders on their system who are trading in the opposite direction.

So if Joe buys EURUSD and Andrew sells it, they’ll match those two up. Here they’re not the guy at the end of the deal. ECN & STP. As time has passed, technology has developed, and retail traders have got savvier there has been a rise in Electronic Communication Networks and Straight-Through-Processing model brokers. ECN brokers pass on the trades they receive through their own bank to the wider ECN market. You can also see their current orders from other people on the network so it’s more transparent. So they don’t really fiddle around with the trade itself or have anything to do with it other than charging a greater spread than that available on the ECN directly. That’s how they make money. STP brokers broadly take your trade and pass it onwards to the market and make a cut. They usually will not show you the current orders and give access to the interbank market. They may also operate a hybrid model where they act as market makers for new fx traders and as STP brokers for experienced traders who they’ll just pass straight through to the market. Who they pass your trade on to depends on what arrangement they have going themselves. Some pass it on to a bank with whom they have a relationship, others pass it on to yet bigger STP or ECN brokers, and others pass on to the ECN market themselves. Why is this x-ray look into the industry important from a Shariah perspective? An important rule in Islamic financial law is that you are not allowed to borrow from someone just to buy something from them.

So you can’t lend ?100 to your mate for the express purpose that they buy your phone off you. Because if you didn’t have the incentive that he will buy your phone (for a profit off you) you wouldn’t give him that loan in the first place. This prohibition is mentioned in the following hadith: ‘Abdullah bin ‘Amr said: ‘The Messenger of Allah - peace and prayer of Allah be upon him - said: “It is not permissible to transact a loan combined with a sale, or to stipulate two conditions in one transaction, or to make a profit on something that you do not possess, or to sell something that is not with you.” (Narrated by Abu Daud, in hadith no. 3506; the status is good). So if the broker is lending you money for the sole purpose that you trade with him and he makes a cut from the spread (and potentially by being counterparty too, in the case of a Market Maker), then this falls foul of the same prohibition. However if the broker is not lending you money and is simply charging you a cost of brokerage then is fine. This would mean that ECN, STP, and Market Making brokers are all not permissible. But is borrowing actually going on? So hang on, where did all this borrowing business come from? Currencies don’t move very much daily in the grand scale of things. They only move tiny amounts in fact, measured in “pips”. So if you were to buy ?150 worth of dollars and waited for a week or so, you wouldn’t make much of a profit or loss. Perhaps a few pennies here or there, or at most we’re talking a pound or so. But now if you bought ?100,000 worth of the dollar in the same period, your profit or loss could be ?100 up or down – much more serious amounts.

What modern retail fx allows you to do is access ?100,000 positions even when you only use a few hundred pounds. This is called leverage. So if you’re being offered 1:100 leverage, with just ?1000 you can take a ?100,000 position in the market. But the key question for me is – if you’re putting up ?1000, where does the other ?99,000 come from? The answer is, in short, that the ?99,000 is essentially irrelevant. Because you have put up ?1000, the broker will close your position at the point your trade goes into ?1000 loss. That means you’ve lost all your capital and the ?99,000 is not triggered. In the extremely rare case where you go into a loss of more than ?1000 because the trader couldn’t close your position quickly enough, you owe the trader the further money lost on the transaction. So when you buy EURUSD you’re theoretically buying EUR and selling USD but in reality there is no physical exchange of the currencies, there isn’t the hundreds of thousands that every supposed transaction involves actually anywhere. Everyone is trading on margin and nets out at the end. So for example you buy $1000 for ?500 and the guy selling you goes the other way. The money is to be delivered in 2 days.

Two days later $1000 is now worth ?750 as the GBP has depreciated. So you’ve gained ?250, as your ?500 could now buy only $667 but you’ve instead ended up with $1000. So instead of messing around with re-exchanging currencies you net it out with the counterparty and he just pays you $333, or ?250. So, trading on the margins. Either side only ever needed ?250 to cover the potential gain or loss. This picture is muddied slightly by some contrary opinions expressed online, and it may be that at the higher end of the market borrowing actually does take place to enable large trades. But in the case of the small level retail fx trader, as far as I can glean, there is no such borrowing going on and the case is similar to the futures market and dissimilar to the share market. According to this conception of the trade then, the hadith does not apply and there is no issue with there being a loan and a sale going on in one transaction. However, for other reasons I am still not 100% convinced about the retail fx market. As I continue my research I’ll report back to you here! Other Problems to be dealt with in future posts in this FX series. Now that we’ve understood the basic mechanisms of the retail fx market and clarified what exactly is being traded – promises – we can move onto a number of other Shari’ issues that this raises. I will be dealing with these in future blogs in this FX series – so make sure you subscribe. These include issues like: If you’re trading on margin, are you selling what you do not own and falling foul of another part of the hadith mentioned above?

How does the Shariah deal with the interest-related carry-trade issues? Is the current market custom of actual completion taking place two days after the spot transaction a problem given the hadith that buying and selling of currencies should be hand to hand and on the spot? What about the issue that the whole industry is essentially a zero-sum game with a winner somewhere matching up with a loser somewhere else. Does the industry add value and is that important for the Shariah? When brokerage firms offer bonuses to use their services, is this acceptable? Some interesting articles for further reading: Please remember to subscribe to our email list (box on the top right), and follow us on Facebook and Twitter. Islamic finance forex trading. Foreign exchange (FX) is an important activity in modern economy. A foreign exchange transaction is essentially an agreement to exchange one currency for another at an agreed exchange rate on an agreed date, it provides protection against unfavorable currency exchange rates and helps businesses associated with activities in a foreign currency to set a form of currency risk exposure.

And when using techniques such as foreign exchange hedging capabilities, businesses can protect against adverse currency movements at a future date. FX transactions cover foreign currency payment transactions and fund transfers involving different currencies and countries and transactions such as travelers’ cheques, foreign currency cash, foreign currency drafts, foreign currency fund transfersremittances, investments and trade services. Permissibility of FX transactions. In Islamic finance, there is a general consensus among Islamic scholars on the view that currencies of different countries can be exchanged on a spot basis at a rate different from unity, since currencies of different countries are distinct entities with different values or intrinsic worth, and purchasing power. However, there were diametrically opposite views, in the past, on the permissibility of currency exchange on a forward basis, that is, when the rights and obligations of both parties relate to a future date. The divergence of views on the permissibility of currencies exchange contracts can be traced primarily to the issue of existence of the following elements; Riba (usury); Gharar (excessive uncertainty); and Qimar (speculationgambling). Regarding the comparison with Riba, some jurists compare paper currencies with gold and silver; which were universally acceptable as principal means of exchange in the early days of Islam. They refer to hadith of the holy prophet (peace be upon him) "Sell gold for gold, silver for silver. in same quantities on the spot; and when the commodities are different, sell as it suits you, but on the spot." However, the case of exchange involving paper currencies belonging to different countries, the intrinsic value or worth of paper currencies cannot be identified or assessed unlike gold and silver which can be weighed. Hence, the Shari’ah injunctions for Riba prohibition are not applicable to paper currencies.

Such exchange would be permissible as long as it is free from any injunction regarding the rate of exchange and the manner of settlement. Regarding Gharar and speculation, the prohibition of futures and forwards involving exchange of currencies is justified by the fact that such a contract involves sale of a non-existent object or of an object not in the possession of the seller. Some recent scholars have opined that futures, in general, should be permissible, because the efficient cause, that is, the probability of failure to deliver was quite relevant in a simple, primitive and unorganized market. However, this should be no longer cause for concern in today’s organized futures markets where the standardized nature of futures contracts and transparent operating procedures on the organized futures markets are believed to minimize this probability of failure. Nevertheless, such contention continues to be rejected by the majority of scholars; they underscore the fact that futures contracts almost never involve delivery by both parties. On the contrary, parties to the contract reverse the transaction and the contract is settled in price difference only. In addition, regarding the forecastability of exchange rates, they are volatile and remain unpredictable at least for the large majority of market participants. And any attempt to speculate in the hope of the theoretically infinite gains would be a game of chance for such participants. Forex in Islamic banks. Islamic banks exchange currencies on the spot in transactions such as a bank transfer or remittance expressed in a foreign currency, payment for goods imported from another country, payment for services billed in a foreign currency, in the case of a sell or a purchase of a foreign currency in cash or traveler’s cheque or bank draft against another currency, or when a client deposits a cheque or bank draft made out in a foreign currency and requires payment in local currency. In addition to spot transactions, an FX transaction may be undertaken by banks on the basis of forward contracts, futures contracts, option contracts, swap contracts and currency arbitrage. Even though, some of these transactions are controversial as Islamic financial instruments, because it is arguable that the element of speculation and interest is built into these contracts. Also, while there are normally no up-front costs involved with FX transactions, Islamic banks still derive a financial benefit by incorporating a margin into the transaction or the contract rate. This means that the bank’s rate may be different from the market rate prevailing at that time, whereby the bank makes a profit on a transaction.

Hedging tools. Today’s currency markets are characterized by volatile exchange rates. In a volatile market, the participants are exposed to currency risk and Islamic rationality requires that such risk should be minimized in the interest of efficiency if not reduced to zero. Islamic FX hedging mechanisms are designed to achieve the objectives of the conventional currency hedging contracts while being in conformity with the Islamic commercial jurisprudence principles. This implies the need to ensure that the contract is free from Riba, Gharar and Maysir. Some these mechanisms are: • A forward contract involving currencies allows one currency to be sold against another, for settlement on the day the contract expires; it eliminates the risk of fluctuating exchange rates by fixing a rate on the date of the contract for a transaction that will take place in the future. • A futures contract involving currencies is an agreement to buy or sell a particular currency for delivery at an agreed-upon place and time in the future; however, these contracts very rarely lead to the delivery of a currency, because positions are closed out before the delivery date. • A foreign currency option is a hedging tool, similar to an insurance policy that allows one currency to be exchanged for another on a given date, at a prearranged exchange rate, without any obligation to do so; foreign currency options eliminate the spot market risk for future transactions. • A swap contract involving currencies is an agreement to exchange one currency for another and reverse the exchange at a later date; it is based on a notional principal amount, or an equivalent amount of principal, that sets the value of the swap at maturity but is never exchanged; Currency swaps are used to gain liquidity.

• Currency arbitrage aims to take advantage of divergences in exchange rates in different money markets by buying a currency in one market and selling it in another market to take benefit of the differing interest rates. From the Shari’ah viewpoint, the problem with the above structures arises when the parties involved want to exchange currency sometime in future but already fixing a rate which is fixed today while the contract is sealed today. This contravenes to the basic Shari'ah rules governing the exchange of currency (Bai` Sarf). In Bai` Sarf, it is a requirement for an exchange which involves two different currencies to be transacted on spot basis. Hence it is prohibited to enter into forward currency contracts whereby the execution of a deferred contract in which the concurrent possession of both the counter values by both parties does not take place. Nevertheless, in order to minimize the risk of uncertainty of prices in the future, forwards, futures, options and swaps markets for currency-trading have also emerged for Islamic banks although the general ruling of Shari'ah scholars is that hedging is not permissible. Yet, these objections may be arguable, since hedging helps to eliminate Gharar by enabling the importer to buy the needed foreign exchange at the current exchange rate, since Islamic banks only invest the foreign currencies purchased by them in a Shari'ah-compliant manner as far as is possible and since the principle of protection of wealth is respected. In addition, genuine speculation is allowed in Islam, as opposed to professional speculation, where the speculator is not a genuine investor. Most of the Islamic financial contracts provided by Islamic banks will be exposed to foreign exchange fluctuations arising from general FX spot-rate changes in foreign operations and the resultant foreign currency receivables and payables.

Islamic banks can charge fees based on various Islamic contracts and to curb speculation and misuse, hedging could be confined to foreign exchange receivables and payables related to real goods and services only. Islamic FX Swap. The swap introduced by Islamic banks, based on concepts such as Wa’ad, Murabahah, Musawamah and Tawarruq is deemed by scholars as permissible as long as it is free from elements that contravene the Shari’ah, and for the purpose of fulfilling the need for hedging. Therefore Shari’ah parameters in structuring and executing swap are very important to ensure market practitioners truly fulfill and adhere to the requirement outlined by Shari’ah. Two broad categories of Shari’ah parameters on Islamic FX Swap are suggested, namely the guidelines on combining various contracts in one single transaction and the other is on guidelines of how to demarcate Islamic swap purposes either to hedge or to speculate. The two commonly offered structures of Islamic FX Swap in the market are based on the contract Bai` Tawarruq or the concept of Wa’ad (promiseundertaking). The arrangement based on Tawarruq it is structured with the application of two sets of Tawarruq (at the beginning) to enable the same effect as FX Swap to be achieved. While the second structure based on the concept of Wa’ad involves exchange of currencies at the beginning, and promise or undertaking (Wa’ad) to carry out another Bai` Sarf at the future date based on the rate determined today. At the expiry date, the second Bai` Sarf will be implemented to get back the original currency. So You’re Looking For a Halal Investment? Let’s Take a Look at Shares & Forex. So you have a few quid sloshing around in your bank account (Islamic of course) for the foreseeable future and you’re thinking of investing it somewhere that offers a better return than your standard Islamic Bank ISA. But when you start looking the whole thing is a minefield. For a start its hard to pick through where you should be investing, what assets, for how long, with the cheapest brokers, and at what risk, and on top of all these usual concerns you also want your investment to be halal. So let’s do a quick run-through of the two most common easy-to-access places you can invest money in and the Shariah rulings regarding them: Shares & Forex.

Shares. Shares are okay per se to invest in as they are simply seen as owning a percentage in a business. The obvious thing to watch out for is that the company should not be dealing in unislamic things. So you couldn’t go along and buy shares in Lloyds TSB or Heineken for example (you can read our guide on how to screen for sharia-compliant companies here). But you all knew that right? The real question is what do you do when a company deals in some unislamic things and some unislamic things? Two things: Firstly, if a company deals in mainly unislamic things then it is deemed unislamic and you shouldn’t invest in it. Secondly, if a company deals in only a fraction of unislamic things (e. g. less than 10%), then lots of scholars have said that it is okay to invest in these companies and give away that percentage of the profits that accrue from the haram section as charity. More precisely, if you know 5% of a company’s profits derive from alcohol, then you give away 5% of profits you receive. The second big issue is how much cashdebt does the company have? Islamically we don’t want to trade in interest of course, and that means we need to exchange ?50 for exactly ?50. But in certain shares, as the price fluctuates for the cost of the entire company (as the stock price varies) you end up paying more or less than par value for the debtcash. So let’s say for example a company has ?1000 in cash on its accounts and that forms the majority of its value, and then the stocks of the company trade at ?50,000 in total – you’re paying more than par value. The way to avoid this kind of situation is according to scholars that you avoid companies who have large debtcash piles where the majority of their stock value is due to this, but go for companies where in fact the value is due to the value of their broader business. There are Islamic stock indices that screen companies for this sort of thing so that you don’t have to do the digging on this – but these screens are typically quite expensive and designed for the institutional Islamic investor. However for the private investor all is not lost. It is quite easy on most online share trading websites to get a snapshot of the company, how much debt they are in, what is their market capitalisation, and even their accounts.

Read our guide on how to screen for sharia-compliant shares. It really just comes down to being a bit sensible and using your common sense. Investing in a heavily leveraged company that sells beverages including alcoholic ones is probably unislamic, while investing in a pharmaceutical company which makes the majority of its money from drug sales is okay. Contrarian opinions on shares. There are a number of people who have adopted different opinions on share trading and regard it as unislamic. However these are either weak opinions or do not understand the investment context (part of a wider problem of scholars not being well-grounded in finance when it comes to Islamic Financial rulings). Some people say “Share prices are speculative and so investing in shares is gambling”. They say this because a “share” is not priced at the exact value of a company. Let’s say a company owns ?500 worth of machinery and ?1000 worth of land – the share price of that company should presumably be ?1500, but its not. This, these people argue, means that shares are a form of gambling. However they fail to understand that a company’s worth is not just achieved by adding up its constituent parts, but in fact goodwill, brand name, and a whole host of other things come into it too. So it is fine for a company to be worth more than its constituent parts. Other people say “shares are not actually “ownership” in a company and are merely a bundle of rights to things like voting at AGMs, having a right to dividends. and getting updates from the company on certain matters. It doesn’t entail ownership of the company. Therefore, shares are buying and selling a bunch of rights and is haram.” Firstly, this argument is wrong because ultimately what these rights are giving to the shareholder are exactly those rights that define an owner – ultimate control on key decisions and a right to profits.

Secondly, they are also likely wrong on the point about selling rights. But more on that in a later blog. VERDICT: GENERALLY FINE, JUST DO YOUR RESEARCH ON A COMPANY PROPERLY. Forex Trading. Forex trading is very easily accessible online and the allure of quick money is there with their slick advertising promising you millions. Again, from the outset it also looks halal as you are apparently just trading in money – which is perfectly fine. However all is not what meets the eye. It is true that if you buy ?5000 for $3000 and then a year later you sell it for $4000 as the pound appreciates against the dollar, this is perfectly halal transaction and there is nothing wrong with that. However Forex trading is not that. It is not that for a number of reasons: Firstly, in order for someone to make money on currency markets which move daily just fractions of pennies in price, you have to be investing huge amounts – we’re talking hundreds of thousands per trade – for it to have a discernible profit. So let’s say the GBP strengthens against the USD a cent for every ?, if you invested ?1000 you would make $10. Not very much is it? Now if you invested ?100,000 in the same trade, you would make $1000. Much more substantial. So these forex companies give you access to “leverage” which means that for putting up every ?1 they will let you invest ?50 or even ?100. That means that with a very small amount of money you can take very large positions in the forex market.

This magnifies both your profits and losses. Again, nothing wrong with this per se. In Islam you can borrow from someone, and then use that money to invest, make a profit, and return that loan interest free to the creditor. But there is something very subtle which makes this haram in the context of forex. In forex these companies are lending you this money for the sole purpose of you then using that money to enter a trade with them for which they will get a commission. In other words they are getting a set return from every loan they make. This is understood by scholars to be a form of interest, and so the whole transaction is haram. N. B. Some companies erroneously advertise a “shariah-compliant” forex account where the user will neither get nor have to give interest on their money in their accounts in a “carry trade”. Of course Islamically this is good and would be part of a Shariah-compliant currency trading account, but it does not deal with the fundamental problem of the way the transaction works which I noted above. So don’t be duped by these accounts. To my knowledge there are no currently available “Islamic” forex accounts for ordinary investors available.

(One possible way of structuring a Forex trading platform to make it shariah compliant would be to divorce the source of the loan and the platform on which you trade. So if you loaned money from x and then used broker y to enter into the forex transaction, with no link between x and y. But this would require some legalShariah wizardry – your thoughts on this welcomes though!) VERDICT: NOT SHARIAH COMPLIANT AS IT IS. In part two of this blog I will cover other popular ways of investing money such as Spread Betting, Bonds, ETFs, Pension Funds, Options, Futures, and Forwards. So watch out for that in the coming weeks. Please remember to subscribe to our email list (box on the top right), and follow us on Facebook and Twitter. Is Forex Trading allowed in Islam? Forex Trading is often used as investment but let's look at it from an Islamic perspective. What is Forex Trading? Forex trading is, in the simplest of terms, currency trading.

It is a globally decentralized market where businesses, investors, banks, governments and traders come to exchange currencies. Being the largest and the most liquid market in today’s world, forex trading has reached stupendous levels of popularity, resulting in an average daily turnover exceeding approximately $5 trillion. What is the ruling on Forex Trading in Islam? Forex trading is one of the most debated topics under Islamic jurisprudence. In order to reach a general consensus, various ordinances and fatwa’s (Islamic rulings which are issued by a universally recognized religious authority of Islam) have been issued on the matter. Based on the following hadith, the majority of scholars agree that trade in currency is permissible in the domain of Islam and has been practiced for years: Narrated by ‘Ubaadah ibn al-Saamit (may Allah be pleased with him) who said: The Messenger of Allah (peace be upon him) said: “Gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, salt for salt, like for like, same for same, hand to hand. If the types are different then sell however you like, so long as it is hand to hand.” (Muslim 1587) However, this permissibility is only valid under the fulfillment of a few conditions, which are as follows: 1. There should be no interest (riba) involved. Taking interest is strictly forbidden in Islam and there is no room for a ‘grey’ area in the matter. Hence, any currency trade transaction that involves ANY type of usury, is not allowed in Islam.

For example, when you are dealing with the same kind of currency (e. g. dollar for dollar), the exchange needs to be of equal amounts (e. g. 1 dollar for 1 dollar). You cannot trade the same currency for different values (e. g. 1 dollar for 3 dollars) because that falls in the domain of riba. 2. The tradeexchange must take place in the same sitting in which the business contract is formulated. You may trade one type of currency for another (e. g. dollars for rupees), as long as you make sure that the exchange is made in the same meeting as when the contract is signed. 3. The tradeexchange needs to be hand-to-hand: immediate and without delay. Buying and selling in the currency market are allowed but the exchange must be carried out at the earliest and any sort of delays should be avoided. If there is a delay, the transaction may fall under the umbrella of riba, which is prohibited. Moreover, according to the Islamic Fiqh Council, under the ‘hand-to-hand’ clause, the exchange in currencies which happen over the phone or the internet are only permissible if the exchange results in immediate transfer of funds from the seller’s account to the buyer’s account or if the buyer or his agent takes immediate possession of the respective cheque payment. Alas, these are the common rulings on the matter of forex trading and we can only do our best to live our life in accordance with the Islamic teachings. In the end, Allah (SWT) knows best. This Privacy Policy sets out how Finance Magnates LTD uses and protects any information that you give Finance Magnates LTD when you use this website. If you continue to browse or use this website andor any of its affiliated websites andor services you are agreeing to comply with and be bound by the following Privacy Policy, which together with our Terms and Conditions (link) govern Finance Magnates LTD’s relationship with you This privacy notice applies to any Finance Magnates LTD websites, applications, services, or tools (collectively "Services") where this privacy notice is referenced, regardless of how you access or use them, including through mobile devices. Please review carefully the entire website's Privacy Policy before agreeing to it. By viewing or using this website or any part of it, you agree to the complete Privacy Policy of this website.

The term "Finance Magnates LTD", "this website", "the website", "us" or "we" refers to the owner of the website. The term "you" refers to the user or viewer of the website. Finance Magnates LTD is committed to ensuring that your privacy is protected as provided in this Privacy Policy. Should we ask you to provide certain information by which you can be identified when using this website, you can be assured that it will only be used in accordance with this Privacy Policy. What is personal information? Personal Information is information relating to an identified or identifiable natural person. An identifiable natural person is one who can be identified, directly or indirectly, by reference to an identifier such as a name, an identification number, location data, an online identifier, or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that natural person. We do not consider personal information to include information that has been anonymized or aggregated so that it can no longer be used to identify a specific natural person, whether in combination with other information or otherwise. We collect personal information from you when you use our Services. What we collect. The provision of all personal information is voluntary, but may be necessary in order to use our Services (such as registering an account).

We may collect the following personal information: Identification details, such as name, age etc: When you create an account with us When you register to our events When you fill in forms on our websites Contact information including email address, phone, etc: When you create an account with us When you register to our events When you fill in forms on our websites Information we are required or authorized by applicable national laws to collect and process in order to authenticate or identify you or to verify the information we have collected. Any information that is provided by you when using our services (community discussions, contact forms, etc). Information about other services you have bought from us, when you purchase products or services on our sites Communication we have with you (emails, letters, messages sent to us through our social media platforms, feedback, contact forms) Information about you, your location and how you use our website, information about your interests and preferences: When you accept our cookies placed on your device When you update your account information When you open our marketing emails When you click on our banner adverts When you fill in forms on our website When you get in touch with us When you respond to our requests for feedback When you opt in to receiving messages from us Personal information we collect automatically when you use our Services. We collect information about your interaction with our Services and your communications with us. This is information we receive from devices (including mobile devices) you use when you access our Services. This information could include, but not limited to, Device ID or unique identifier, device type, unique device token. Location information. Keep in mind that when using a mobile device, you can control or disable the use of location services by any application on your mobile device in the device's settings menu. Computer and connection information such as statistics on your page views, traffic to and from the sites, referral URL, ad data, your IP address, your browsing history, and your web log information. Personal information we collect using cookies and similar technologies. We use cookies, web beacons (or pixels), unique identifiers, and similar technologies to collect information about the pages you view, the links you click, and other actions you take when using our Services, within our advertising or email content. We use Google Analytics which is a web analyzing tool of Google Inc. for the purposes of the adequate design and continuous optimization of our website. Google Analytics works with cookies and creates pseudonymised usage profiles, which enable an analysis of your use of our website. Information stored in such cookies (such as browser typeversion, operating system used, referrer URL, Hostname of the accessing computer, time of server request) are usually transmitted to and stored on Google's servers.

How we use cookies. A cookie is a small file which asks permission to be placed on your computer's hard drive. Once you agree, the file is added and the cookie helps analyze web traffic or lets you know when you visit a particular site. Cookies allow web applications to respond to you. As an individual the web application can tailor its operations to your needs, likes and dislikes by gathering and remembering information about your preferences. We use traffic log cookies to identify which pages are being used. This helps us analyze data about web page traffic and improve our website in order to tailor it to customer needs. We only use this information for statistical analysis purposes and then the data is removed from the system. Overall, cookies help us provide you with a better website, by enabling us to monitor which pages you find useful and which you do not. A cookie in no way gives us access to your computer or any information about you, other than the data you choose to share with us. You can choose to accept or decline cookies. Most web browsers automatically accept cookies, but you can usually modify your browser setting to decline cookies if you prefer. This may prevent you from taking full advantage of the website. Personal information collected from other sources. We allow you to share information with social media sites, or use social media sites to create your account or to connect your account with the respective social media site.

Those social media sites may give us automatic access to certain personal information retained by them about you (e. g., content viewed by you, content liked by you, and information about the advertisements you have been shown or have clicked on, etc.). You control the personal information you allow us to have access to through the privacy settings on the applicable social media site and the permissions you give us when you grant us access to the personal information retained by the respective social media site about you. By associating an account managed by a social media site with your account and authorizing us to have access to this information, you agree that we can collect, use and retain the information provided by these social media sites in accordance with this privacy notice. We may also use plug-ins or other technologies from various social media sites. If you click on a link provided via a social media plug in, you are voluntarily establishing a connection with that respective social media site. If you give us personal information about someone else, you must do so only with that person's authorization. You should inform them how we collect, use, disclose, and retain their personal information according to our privacy notice. What we do with the information we gather. We require this information to understand your needs and provide you with a better service, and in particular for the following reasons: Internal record keeping. Providing customer service. Improvement of our products and services. When you register to one of our events we use the information to send you information regarding the event and other relevant upcoming events. Please notice that you will subscribe to the event mailing list after clicking "save and continue" in the first registration page. Periodic promotional emails about new products, special offers or other information which we think you may find interesting using the contact details which you have provided. You can opt out of receiving marketing emails by clicking on the unsubscribe link which we include in all our marketing emails.

Emailsalerts to you based on your account settings. Personalized experience (including advertising and marketing) on our sites according to your interests. Detect, prevent, mitigate and investigate fraudulent or illegal activities. How long we keep your data: We retain your personal information for as long as necessary to provide the Services you have requested, or for other essential purposes such as complying with our legal obligations, resolving disputes, and enforcing our policies. How we protect your data. We protect your personal data against unauthorised access, unlawful use, accidental loss, corruption or destruction. We use technical measures such as encryption and password protection to protect your data and the systems they are held in. We also use operational measures to protect the data, for example by limiting the number of people who have access to the databases in which our booking information is held. We keep these security measures under review and refer to industry security standards to keep up to date with current best practice. Sharing your data How we might share your personal information. We may disclose your personal information to other separate services within Finance Magnates LTD or to third parties. This disclosure may be required for us to provide you access to our Services, to comply with our legal obligations, to enforce our Terms of Service, to facilitate our marketing and advertising activities, or to prevent, detect, mitigate, and investigate fraudulent or illegal activities related to our Services. We attempt to minimize the amount of personal information we disclose to what is directly relevant and necessary to accomplish the specified purpose. We do not sell, rent, or otherwise disclose your personal information to third parties for their marketing and advertising purposes without your consent.

In the event that Finance Magnates LTD is acquired by or merged with a third party, we reserve the right, in any of these circumstances, to transfer or assign the information we have collected from you as part of such merger, acquisition, sale, or other change of control. In the unlikely event of our bankruptcy, insolvency, reorganization, receivership, or assignment for the benefit of creditors, or the application of laws or equitable principles affecting creditors' rights generally, we may not be able to control how your information is treated, transferred, or used. How do we protect your personal information. We use secure server software (SSL) and firewalls to protect your information from unauthorized access, disclosure, alteration, or destruction. Furthermore, our employees and third party service providers have access to your non-public personal information only on a "need to know" basis. We follow industry standards to protect the personal information submitted to us, both during transmission and once we receive it. No method of transmission over the Internet, or method of electronic storage, is 100% secure. Therefore, while we use commercially acceptable means to protect your personal information, we cannot guarantee its absolute security. When your credit or debit card account information is being transmitted to our Sites or through our Sites, it will be protected by cryptographic protocols. To be clear, Finance Magnates LTD does not itself store your credit or debit card account information, and we do not have direct control over or responsibility for your credit or debit card account information. We use third party payment processors that are the controllers of your credit card information. Our contracts with third parties that receive your credit or debit card account information require them to keep it secure and confidential. You have the following rights concerning our processing of your personal data: Right to access Right to rectification what is that? Right to erasure Right to object (on grounds relating your particular situation) in case of processing of your personal data based on our legitimate interest (e. g. direct marketing) Right to withdraw your consent at any time in case of any consent-based processing of your personal data without affecting the lawfulness of processing based on consent before your withdrawal; Right to lodge a complaint with a supervisory authority. To raise any objections or to exercise any of your rights, you can send an email to us at [email protected] com or you can write to us at 7 Zabotinski Street, Ramat Gan, Israel.

To exercise choices regarding cookies, you can modify your browser setting to decline cookies if you prefer. This may prevent you from taking full advantage of the website. To stop receiving marketing emails from us, you can opt out of receiving marketing emails by clicking on the unsubscribe link which we include in all our marketing emails. If you have created an online Profile with us and would like to update the information you have provided to us, you can access your account to view and make changes or corrections to your information. You may also contact us as detailed in the Contact Us section, below. When you get in touch, we will come back to you as soon as possible and where possible within one month. If your request is more complicated, it may take a little longer to come back to you but we will come back to you within two months of your request. There is no charge for most requests, but if you ask us to provide a significant about of data for example we may ask you to pay a reasonable admin fee. We may also ask you to verify your identity before we provide any information to you. You can write to us at 7 Zabotinski Street, Ramat Gan, Israel. or you can send an email to us at [email protected]

com. Finance Magnates LTD may change this policy from time to time by updating this page, and by providing any information to Finance Magnates LTD you're accepting such changes. You should check this page from time to time for any changes. This policy is effective from 2505 2018. Cookies Policy : What Are Cookies. As is common practice with almost all professional websites this site uses cookies, which are tiny files that are downloaded to your computer, to improve your experience. This page describes what information they gather, how we use it and why we sometimes need to store these cookies. We will also share how you can prevent these cookies from being stored however this may downgrade or ‘break’ certain elements of the sites functionality. For more general information on cookies see the Wikipedia article on HTTP Cookies. How We Use Cookies. We use cookies for a variety of reasons detailed below. Unfortunately is most cases there are no industry standard options for disabling cookies without completely disabling the functionality and features they add to this site. It is recommended that you leave on all cookies if you are not sure whether you need them or not in case they are used to provide a service that you use. You can prevent the setting of cookies by adjusting the settings on your browser (see your browser Help for how to do this). Be aware that disabling cookies will affect the functionality of this and many other websites that you visit. Disabling cookies will usually result in also disabling certain functionality and features of the this site.

Therefore it is recommended that you do not disable cookies. The Cookies We Set. If you create an account with us then we will use cookies for the management of the signup process and general administration. These cookies will usually be deleted when you log out however in some cases they may remain afterwards to remember your site preferences when logged out. We use cookies when you are logged in so that we can remember this fact. This prevents you from having to log in every single time you visit a new page. These cookies are typically removed or cleared when you log out to ensure that you can only access restricted features and areas when logged in. This site offers newsletter or email subscription services and cookies may be used to remember if you are already registered and whether to show certain notifications which might only be valid to subscribedunsubscribed users. This site offers e-commerce or payment facilities and some cookies are essential to ensure that your order is remembered between pages so that we can process it properly. From time to time we offer user surveys and questionnaires to provide you with interesting insights, helpful tools, or to understand our user base more accurately. These surveys may use cookies to remember who has already taken part in a survey or to provide you with accurate results after you change pages. When you submit data to through a form such as those found on contact pages or comment forms cookies may be set to remember your user details for future correspondence. In order to provide you with a great experience on this site we provide the functionality to set your preferences for how this site runs when you use it. In order to remember your preferences we need to set cookies so that this information can be called whenever you interact with a page is affected by your preferences.

Third Party Cookies. In some special cases we also use cookies provided by trusted third parties. The following section details which third party cookies you might encounter through this site. Third party analytics are used to track and measure usage of this site so that we can continue to produce engaging content. These cookies may track things such as how long you spend on the site or pages you visit which helps us to understand how we can improve the site for you. From time to time we test new features and make subtle changes to the way that the site is delivered. When we are still testing new features these cookies may be used to ensure that you receive a consistent experience whilst on the site whilst ensuring we understand which optimisations our users appreciate the most. As we sell products it’s important for us to understand statistics about how many of the visitors to our site actually make a purchase and as such this is the kind of data that these cookies will track. This is important to you as it means that we can accurately make business predictions that allow us to monitor our advertising and product costs to ensure the best possible price. The Google AdSense service we use to serve advertising uses a DoubleClick cookie to serve more relevant ads across the web and limit the number of times that a given ad is shown to you. For more information on Google AdSense see the official Google AdSense privacy FAQ. We use adverts to offset the costs of running this site and provide funding for further development. The behavioural advertising cookies used by this site are designed to ensure that we provide you with the most relevant adverts where possible by anonymously tracking your interests and presenting similar things that may be of interest. In some cases we may provide you with custom content based on what you tell us about yourself either directly or indirectly by linking a social media account. These types of cookies simply allow us to provide you with content that we feel may be of interest to you. We also use social media buttons andor plugins on this site that allow you to connect with your social network in various ways. For these to work the following social media sites including; Facebook, Twitter, Instagram, YouTube, LinkedIn, Google+, will set cookies through our site which may be used to enhance your profile on their site or contribute to the data they hold for various purposes outlined in their respective privacy policies. Agreement or the failure of either Party to exercise any right or remedy to which it, he or they are entitled hereunder shall not constitute a waiver thereof and shall not cause a diminution of the obligations under this or any Agreement. No waiver of any of the provisions of this or any Agreement shall be effective unless it is expressly stated to be such and signed by both Parties.

Notification of Changes. Hopefully that has clarified things for you and as was previously mentioned if there is something that you aren’t sure whether you need or not it’s usually safer to leave cookies enabled in case it does interact with one of the features you use on our site. However if you are still looking for more information then you can contact us through one of our preferred contact methods. Terms Of Use: In using this website you are deemed to have read and agreed to the following terms and conditions: The following terminology applies to these Terms and Conditions, Privacy Statement and Disclaimer Notice and any or all Agreements: “Client”, “You” and “Your” refers to you, the person accessing this website and accepting the Finance Magnates LTD’s terms and conditions. “The Finance Magnates LTD”, “Ourselves”, “We” and “Us”, refers to our Finance Magnates LTD. “Party”, “Parties”, or “Us”, refers to both the Client and ourselves, or either the Client or ourselves. All terms refer to the offer, acceptance and consideration of payment necessary to undertake the process of our assistance to the Client in the most appropriate manner, whether by formal meetings of a fixed duration, or any other means, for the express purpose of meeting the Client’s needs in respect of provision of the Finance Magnates LTD’s stated servicesproducts, in accordance with and subject to, prevailing English Law. Any use of the above terminology or other words in the singular, plural, capitalisation andor heshe or they, are taken as interchangeable and therefore as referring to same. We are committed to protecting your privacy. Authorized employees within the Finance Magnates LTD on a need to know basis only use any information collected from individual customers. We constantly review our systems and data to ensure the best possible service to our customers. Parliament has created specific offences for unauthorised actions against computer systems and data. We will investigate any such actions with a view to prosecuting andor taking civil proceedings to recover damages against those responsible. Client records are regarded as confidential and therefore will not be divulged to any third party, other than Finance Magnates LTD, if legally required to do so to the appropriate authorities. We will not sell, share, or rent your personal information to any third party or use your e-mail address for unsolicited mail. Any emails sent by this Finance Magnates LTD will only be in connection with the provision of agreed services and products.

Exclusions and Limitations The information on this web site is provided on an “as is” basis. To the fullest extent permitted by law, this Finance Magnates LTD:excludes all representations and warranties relating to this website and its contents or which is or may be provided by any affiliates or any other third party, including in relation to any inaccuracies or omissions in this website andor the Finance Magnates LTD’s literature; and excludes all liability for damages arising out of or in connection with your use of this website. This includes, without limitation, direct loss, loss of business or profits (whether or not the loss of such profits was foreseeable, arose in the normal course of things or you have advised this Finance Magnates LTD of the possibility of such potential loss), damage caused to your computer, computer software, systems and programs and the data thereon or any other direct or indirect, consequential and incidental damages. Finance Magnates LTD does not however exclude liability for death or personal injury caused by its negligence. The above exclusions and limitations apply only to the extent permitted by law. None of your statutory rights as a consumer are affected. We use IP addresses to analyse trends, administer the site, track user’s movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information. Additionally, for systems administration, detecting usage patterns and troubleshooting purposes, our web servers automatically log standard access information including browser type, access timesopen mail, URL requested, and referral URL. This information is not shared with third parties and is used only within this Finance Magnates LTD on a need-to-know basis. Any individually identifiable information related to this data will never be used in any way different to that stated above without your explicit permission. Like most interactive web sites this Finance Magnates LTD’s website or ISP uses cookies to enable us to retrieve user details for each visit. Cookies are used in some areas of our site to enable the functionality of this area and ease of use for those people visiting. Links to this website.

You may not create a link to any page of this website without our prior written consent. If you do create a link to a page of this website you do so at your own risk and the exclusions and limitations set out above will apply to your use of this website by linking to it. Links from this website. We do not monitor or review the content of other party’s websites which are linked to from this website. Opinions expressed or material appearing on such websites are not necessarily shared or endorsed by us and should not be regarded as the publisher of such opinions or material. Please be aware that we are not responsible for the privacy practices, or content, of these sites. We encourage our users to be aware when they leave our site & to read the privacy statements of these sites. You should evaluate the security and trustworthiness of any other site connected to this site or accessed through this site yourself, before disclosing any personal information to them. This Finance Magnates LTD will not accept any responsibility for any loss or damage in whatever manner, howsoever caused, resulting from your disclosure to third parties of personal information. Copyright and other relevant intellectual property rights exists on all text relating to the Finance Magnates LTD’s services and the full content of this website. All rights reserved. All materials contained on this site are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of Finance Magnates LTD. You may not alter or remove any trademark, copyright or other notice from copies of the content. All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts. Opinions expressed at Finance Magnates LTD are those of the individual authors and do not necessarily represent the opinion of Fthe Finance Magnates LTD or its management. Finance Magnates LTD has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and omissions might occur. Any opinions, news, research, analyses, prices or other information contained on this website, by Finance Magnates LTD, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. Finance Magnates LTD will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Neither party shall be liable to the other for any failure to perform any obligation under any Agreement which is due to an event beyond the control of such party including but not limited to any Act of God, terrorism, war, Political insurgence, insurrection, riot, civil unrest, act of civil or military authority, uprising, earthquake, flood or any other natural or man made eventuality outside of our control, which causes the termination of an agreement or contract entered into, nor which could have been reasonably foreseen.

Any Party affected by such event shall forthwith inform the other Party of the same and shall use all reasonable endeavours to comply with the terms and conditions of any Agreement contained herein. Failure of either Party to insist upon strict performance of any provision of this or any Agreement or the failure of either Party to exercise any right or remedy to which it, he or they are entitled hereunder shall not constitute a waiver thereof and shall not cause a diminution of the obligations under this or any Agreement. No waiver of any of the provisions of this or any Agreement shall be effective unless it is expressly stated to be such and signed by both Parties. Notification of Changes. The Finance Magnates LTD reserves the right to change these conditions from time to time as it sees fit and your continued use of the site will signify your acceptance of any adjustment to these terms. If there are any changes to our privacy policy, we will announce that these changes have been made on our home page and on other key pages on our site. If there are any changes in how we use our site customers’ Personally Identifiable Information, notification by e-mail or postal mail will be made to those affected by this change. Any changes to our privacy policy will be posted on our web site 30 days prior to these changes taking place. You are therefore advised to re-read this statement on a regular basis. These terms and conditions form part of the Agreement between the Client and ourselves. Your accessing of this website andor undertaking of a booking or Agreement indicates your understanding, agreement to and acceptance, of the Disclaimer Notice and the full Terms and Conditions contained herein. Your statutory Consumer Rights are unaffected. © Finance Magnates 2015 All Rights Reserved.



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