Table of Contents

What is Advancedmarkets.com?

Advancedmarkets.com is a platform that provides institutional trading solutions, focusing on multi-asset liquidity and Direct Market Access (DMA) execution for Foreign Exchange (FX) and Contracts for Differences (CFDs) to professional clients like brokers, hedge funds, family offices, and trading desks.

Is Advancedmarkets.com regulated?

Yes, Advanced Markets (UK) Ltd, a subsidiary of Advanced Markets LLC, is authorized and regulated by the Financial Conduct Authority (FCA) with License Reference Number 777739. Additionally, some profiles have migrated to Daman Markets, which is regulated by the UAE Securities and Commodities Authority (SCA).

Are the services offered by Advancedmarkets.com permissible in Islam?

No, the core services offered, particularly leveraged off-exchange trading of Foreign Exchange (FX) and Contracts for Differences (CFDs), are generally considered impermissible in Islam due to the involvement of Riba (interest, through overnight financing fees), Gharar (excessive uncertainty and speculation), and Maysir (gambling-like characteristics). Advancedmarkets.com vs. Halal Investment Platforms

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What are Contracts for Differences (CFDs)?

CFDs are derivative financial instruments that allow traders to speculate on the price movement of an underlying asset (like stocks, commodities, indices, or currencies) without actually owning the asset.

The profit or loss is the difference between the opening and closing price of the trade.

Why is leveraged FX trading considered problematic in Islam?

Leveraged FX trading is problematic because it often involves overnight financing charges (rollover fees) that are a form of Riba (interest). Furthermore, the highly speculative nature and the lack of actual currency exchange or ownership of the underlying asset contribute to Gharar (excessive uncertainty) and Maysir (gambling).

Does Advancedmarkets.com offer segregated client funds?

Yes, Advancedmarkets.com explicitly states that it offers “segregated client fund solutions,” meaning client money is held in separate bank accounts from the company’s operational funds to enhance security in case of insolvency.

Who is the target audience for Advancedmarkets.com?

The target audience includes institutional and professional clients such as brokers, hedge funds, family offices, and proprietary trading desks, not individual retail traders. Advancedmarkets.com Pricing: Understanding the Cost Structure

What is Direct Market Access (DMA) as offered by Advancedmarkets.com?

DMA means that client orders are routed directly to the liquidity providers (e.g., interbank market) without intermediation by a dealing desk.

Advancedmarkets.com claims “100% DMA routes” to ensure optimal pricing and faster execution.

Does Advancedmarkets.com provide investment advice?

No, the website clearly states in its disclaimer that any opinions, news, research, analysis, prices, or other information provided on the website is general market commentary and “does not constitute investment advice.”

What are the main ethical concerns with Advancedmarkets.com from an Islamic perspective?

The main ethical concerns are: 1) Riba (interest) through overnight financing, 2) Gharar (excessive uncertainty) due to speculation on non-owned assets, and 3) Maysir (gambling) due to the highly speculative, zero-sum nature of leveraged trading.

Are there any countries where Advancedmarkets.com services are restricted?

Yes, the services are not intended for residents of many countries, including Afghanistan, Iran, Iraq, Lebanon, Libya, Palestine (West Bank), Russian Federation, Syria, Turkey, Venezuela, Yemen, and others, likely due to international sanctions or local financial regulations. How Advancedmarkets.com Handles Regulation and Safety of Funds

What are the best Halal alternatives to Advancedmarkets.com for investing?

Better Halal alternatives include Shariah-compliant investment platforms like Wahed Invest for diversified portfolios, Amanah Ventures for ethical venture capital, Shariah screening tools like Zoya App, and Halal banking services like Al Rayan Bank (UK).

Does Advancedmarkets.com offer individual client accounts?

The primary focus is on “Professional or Eligible Counterparty” institutional clients.

While there’s a link for “Apply instead as an individual client,” the main emphasis and services described are for institutional entities.

What technology does Advancedmarkets.com use for trading?

The website mentions “best-in-class trading software and infrastructure,” and “renowned global network using innovative technology built for stability, connectivity and security.” Specific platform names are not listed on the homepage, but it implies robust systems for institutional needs.

How does Advancedmarkets.com ensure execution transparency?

They state that their “RTS report demonstrates our commitment to ensuring our clients always have complete information and know who they are trading with.” RTS (Regulatory Technical Standards) reports are a part of MiFID II regulations, providing detailed data on execution quality. Advancedmarkets.com Trading Solutions: An In-Depth Look

What kind of liquidity does Advancedmarkets.com provide?

They provide “configurable multi-bank liquidity solutions,” sourced from “tier 1, prime broker relationships at UBS and Standard Chartered, among many reputable LPs,” ensuring deep interbank liquidity for their institutional clients.

What is the typical pricing structure for Advancedmarkets.com?

Specific pricing is not publicly disclosed as it’s typically bespoke for institutional clients.

However, it would likely involve competitive spreads, commissions per trade, and, critically, overnight financing fees (swaps) for leveraged positions, which are a form of Riba.

Has Advancedmarkets.com acquired any other entities or migrated clients?

Yes, the website announces the migration of all Advanced Markets (Bermuda) Ltd.

profiles to Daman Markets, regulated by the UAE Securities and Commodities Authority (SCA). Understanding Advancedmarkets.com’s Business Model and Target Audience

Why is speculation generally discouraged in Islamic finance?

Speculation (Gharar and Maysir) is discouraged in Islamic finance because it often involves excessive uncertainty, detachment from real economic activity, and can lead to unjust enrichment or significant losses without tangible value creation, resembling gambling.

What makes an investment Shariah-compliant?

A Shariah-compliant investment avoids Riba (interest), Gharar (excessive uncertainty/speculation), Maysir (gambling), and investments in prohibited sectors (e.g., alcohol, tobacco, conventional banking, pornography). It typically involves real asset-backed transactions, risk-sharing, and ethical business practices.

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