ingot.io Pricing

The “Zero Zero Zero” Claim Explained

Ingot.io’s marketing emphasizes a seemingly cost-free trading experience, aiming to attract users looking to minimize explicit transaction fees.

• Zero Commission: This means the broker does not charge a fixed fee per trade (e.g., $5 per lot). This is a common practice among market maker CFD brokers.
• Zero Deposit Fees: The platform itself does not levy a charge for depositing funds into your trading account. However, third-party payment providers (e.g., banks, credit card companies, e-wallets) might impose their own transaction fees.
• Zero Withdrawal Fees: Similarly, ingot.io states no charges for withdrawing funds. Again, external banking or payment system fees might still apply from the user’s end.

How Ingot.io Actually Makes Money (The Real “Pricing Model”)

If there are “zero” explicit fees, how does ingot.io operate as a profitable business? The revenue is primarily generated through less obvious, but economically significant, mechanisms.

• Spreads: This is the most common and significant source of income for “zero commission” brokers. The spread is the difference between the bid (sell) price and the ask (buy) price of a financial instrument.
  • Example: If EUR/USD has a bid price of 1.08000 and an ask price of 1.08005, the spread is 0.5 pips. Every time a trader opens and closes a position, they effectively “pay” this spread to the broker. Over many trades, especially with large volumes, these small differences accumulate into substantial revenue for the broker.
  • Variable Spreads: Spreads can be fixed or variable. Variable spreads widen during periods of high volatility or illiquidity, increasing the cost of trading for the user.
• Swap Fees / Overnight Financing Charges (Riba Component): This is a critical point from an Islamic perspective. If you hold a CFD or Forex position open overnight, you will either be charged or paid a “swap” or “rollover” fee.
  • Interest-Based: These fees are based on the interest rate differential between the two currencies in a pair for Forex, or the cost of financing the underlying asset for CFDs. For example, if you buy a currency with a higher interest rate and sell one with a lower interest rate, you might receive a positive swap, and vice-versa.
  • Clear Riba: Regardless of whether it’s a payment or a charge, these swap fees are fundamentally interest-based and therefore constitute Riba, making this aspect of trading impermissible in Islam. This is a non-negotiable ethical barrier.
• Loss Aggregation (Market Maker Model): Many CFD/Forex brokers operate as “market makers,” meaning they take the opposite side of their clients’ trades. When a retail client places a buy order, the broker effectively “sells” to them (and vice-versa).
  • Broker Profits from Client Losses: In this model, if the client loses money on a trade (which happens 78% of the time, according to ingot.io itself), that loss becomes the broker’s profit. This creates an inherent conflict of interest. While not a direct “fee,” it’s how the broker benefits from the retail trading dynamic.

The “Zero Zero Zero” Is Misleading for Islamic Adherence

For Muslims, the “Zero Zero Zero” claim is particularly misleading because it masks the most significant ethical cost: the presence of Riba through swap fees and the underlying leverage financing.

Even if there are no explicit commissions, engaging in transactions that involve interest is prohibited. How to Get Started with ingot.io

• Hidden Ethical Cost: The real “pricing” from an Islamic viewpoint includes the spiritual cost of participating in a forbidden activity.
• Comparison to Islamic Finance: In Islamic finance, profits are typically derived from real economic activity, asset ownership, or profit-sharing agreements, explicitly avoiding interest. The pricing model of ingot.io, despite its “zero” claims, does not align with these principles.

In conclusion, while ingot.io markets itself with an appealing “Zero Zero Zero” pricing model, users must understand that the platform generates significant revenue through spreads, interest-based swap fees, and often from the aggregated losses of its retail clientele.

For Muslims, the inclusion of Riba through swap fees and leverage makes this pricing model, and the entire trading activity, fundamentally impermissible, regardless of the absence of explicit commissions. The true cost is far greater than just monetary.