Speedtrader.com Review

Based on checking the website, SpeedTrader.com presents itself as a brokerage service tailored for active day traders, emphasizing fast executions, low-cost trading, and powerful platforms.

However, it’s crucial to understand that involvement in stock trading, especially day trading, often involves elements of riba interest-based transactions, excessive speculation gharar, and gambling-like characteristics, which are impermissible in Islamic finance.

While the website highlights features like extensive short lists and competitive commissions, these very aspects can often be intertwined with practices that do not align with ethical Islamic principles.

Therefore, from an Islamic perspective, engaging with platforms centered on such speculative financial activities is generally discouraged due to their inherent risks and potential for involvement in forbidden financial structures.

Here’s an overall review summary:

Service Offered: Online brokerage for active day traders stocks, ETFs, options.
Key Selling Points: Fast executions, low commissions, powerful trading platforms, integrated short lists.
Islamic Ethical Standing: Generally not recommended due to potential involvement in riba, excessive speculation gharar, and gambling-like elements inherent in day trading and short selling.
Target Audience: Experienced, high-volume day traders seeking speed and advanced tools.
Website Transparency: Provides pricing details and platform information.
Missing Information: Lacks clear disclosures on the shariah compliance of their underlying financial instruments or clearing processes, which is a significant concern for Muslim users.

For those seeking to engage in financial growth while adhering to Islamic principles, exploring truly ethical and Shariah-compliant alternatives is paramount.

These alternatives focus on real asset-backed investments, ethical business ventures, and avoiding interest, excessive uncertainty, and prohibited industries.

Here are some best alternatives for ethical financial engagement:

Wahed Invest
- Key Features: Automated halal investment platform, diversified portfolios across various asset classes, Zakat calculation.
- Average Price: Management fees typically range from 0.49% to 0.99% annually, depending on the portfolio size.
- Pros: Fully Shariah-compliant, diversified portfolios, user-friendly, accessible for various investment levels.
- Cons: Limited control over individual stock selection, fees apply even during market downturns.
Amanah Mutual Funds
- Key Features: Actively managed mutual funds adhering strictly to Islamic principles, invests in Shariah-compliant equities and sukuk.
- Average Price: Expense ratios vary by fund, typically between 0.50% and 1.00%.
- Pros: Professional management, long track record, transparent Shariah compliance, diversification.
- Cons: Higher expense ratios compared to passive investing, market fluctuations can impact returns.
Self-directed investing in Shariah-compliant stocks through ethical brokers
- Key Features: Allows investors to research and select individual stocks of companies that meet Shariah screening criteria e.g., low debt, no involvement in prohibited industries like alcohol, gambling, arms.
- Average Price: Commission fees per trade vary by broker, often ranging from $0 to a few dollars per trade.
- Pros: Full control over investment choices, potential for higher returns, direct alignment with ethical principles.
- Cons: Requires significant research and due diligence, higher risk if not diversified properly.
Halal Real Estate Investment Trusts REITs
- Key Features: Invests in income-generating real estate in a Shariah-compliant manner, offering dividends and potential capital appreciation.
- Average Price: Purchase price per share plus standard brokerage commissions.
- Pros: Access to real estate market without direct property ownership, potential for stable income, generally less volatile than direct stock trading.
- Cons: Liquidity can be lower than stocks, sensitive to real estate market downturns.
Gold and Silver Bullion Physical
- Key Features: Direct ownership of physical gold and silver, often considered a safe haven asset and a hedge against inflation.
- Average Price: Spot price of gold/silver plus a premium from dealers.
- Pros: Tangible asset, historically retains value, Shariah-compliant as long as purchased with immediate possession.
- Cons: Storage costs, insurance needs, not an income-generating asset, price volatility.
Crowdfunding for ethical businesses e.g., Islamic crowdfunding platforms
- Key Features: Investing directly in small and medium-sized enterprises SMEs that operate on ethical and Shariah-compliant principles, often through profit-sharing models.
- Average Price: Varies significantly by project. investments can range from small amounts to substantial capital.
- Pros: Supports real businesses, potential for high returns, direct impact on the economy, aligns with community development.
- Cons: Higher risk due to nature of startups/SMEs, less liquidity, requires thorough due diligence on each project.
Halal ETFs Exchange Traded Funds
- Key Features: Funds that track a Shariah-compliant index, offering diversification across various Shariah-screened companies.
- Average Price: Market price per share plus standard brokerage commissions. Expense ratios typically range from 0.50% to 0.75%.
- Pros: Diversification, lower expense ratios compared to actively managed mutual funds, easy to trade.
- Cons: Passive management means less adaptability to market changes, still subject to overall market volatility.

Find detailed reviews on Trustpilot, Reddit, and BBB.org, for software products you can also check Producthunt.

IMPORTANT: We have not personally tested this company’s services. This review is based solely on information provided by the company on their website. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.

Table of Contents

SpeedTrader.com Review & First Look

SpeedTrader.com positions itself as a specialized brokerage firm catering specifically to the demanding needs of active day traders. A first look at their homepage immediately highlights their core value propositions: speedy executions, low-cost trades, powerful platforms, and extensive short lists. The site emphasizes its over 25 years of experience, aiming to instill confidence in potential users. They prominently feature a “FREE 100K DEMO ACCOUNT” as an entry point, suggesting a hands-on approach for traders to test their services.

From an ethical standpoint, particularly concerning Islamic finance, the very nature of “active day trading” and “short lists” raises significant red flags.

While the website promises sophisticated tools, the rapid-fire buying and selling inherent in day trading often blurs the line between legitimate investment and excessive speculation gharar, which is prohibited in Islam.

Furthermore, “short lists” imply short-selling, a practice where one sells borrowed assets with the expectation of buying them back at a lower price.

This involves selling something one doesn’t own, which is problematic in Islamic jurisprudence.

The emphasis on “fast executions” and high-volume trading further suggests an environment where quick gains are prioritized over real economic value creation, moving closer to activities resembling gambling rather than genuine, asset-backed investment.

Target Audience and Value Proposition

SpeedTrader explicitly targets “active day traders.” This demographic typically seeks:

High-speed trade execution: Milliseconds matter in day trading.
Low commission rates: High volume means commissions add up quickly.
Advanced analytical tools: Level-2 quotes, sophisticated charting, hotkeys for rapid order entry.
Access to various markets and instruments: Including difficult-to-locate shares for shorting.

The site clearly outlines these benefits, stating “The Broker of Choice for Active Day Traders for Over 25 Years.” They boast “9 Extensive Short Lists,” “9 Fast Executions,” “9 Low-Cost Trading,” and “9 Powerful Platforms.” This value proposition is strong for its intended secular audience, but it’s essential to scrutinize the underlying practices from an Islamic perspective.

Initial Ethical Concerns

Upon reviewing the core offerings of SpeedTrader.com, several ethical concerns for Muslim users immediately come to light:

Day Trading & Gharar Excessive Uncertainty: Day trading involves extreme short-term speculation. The goal is to profit from minuscule price movements, often driven by technical analysis rather than fundamental value. This high degree of uncertainty and reliance on speculative movements can fall under gharar, which is prohibited in Islamic finance as it resembles gambling.
Short Selling: The prominence of “Extensive Short Lists” indicates that short selling is a significant feature. Islamic scholars generally view short selling as impermissible because it involves selling something you don’t own, which contradicts the principle of possession before sale. The process of borrowing shares and paying interest-like fees on those borrowed shares can also involve riba.
Leverage and Margin Trading: While not explicitly detailed on the homepage, active day trading platforms often involve significant leverage. Using borrowed money margin for trading incurs riba interest on the borrowed amount, making such transactions haram. Without clear Shariah-compliant alternatives for margin accounts, this is a major red flag.
Lack of Shariah Compliance Disclosure: The website makes no mention of Shariah compliance, halal investing options, or adherence to Islamic finance principles. This is standard for secular brokers but indicates a lack of consideration for Muslim investors, necessitating caution.

Given these fundamental issues, a Muslim individual seeking to adhere to Islamic financial principles should view SpeedTrader.com with extreme caution and consider it not permissible for their investment activities. Adanacar.com Review

SpeedTrader.com Features and Ethical Considerations

SpeedTrader.com prides itself on offering a robust suite of features designed to empower active day traders.

While these features may be technically advanced and appealing to the general trading populace, their application often involves practices that are problematic from an Islamic finance standpoint.

Understanding these features and their ethical implications is crucial for Muslim individuals.

Powerful Trading Platforms

SpeedTrader offers access to three primary platforms:

SpeedTrader PRO Desktop Software: Described as having “Advanced Charting, Real-time Level 2 Quotes, Direct Market Access, and More.” Level 2 quotes provide depth of market data, showing bid and ask prices from various market participants, which is crucial for high-frequency trading. Direct Market Access DMA allows traders to place orders directly into the exchange’s order book, bypassing intermediaries, which is essential for speed.
ActiveWeb Web-Based Platform: Features “Candlestick Charting, Real-Time Level 1 Quotes, Streaming News, and More.” This offers flexibility for traders who prefer browser-based access.
iSPEEDTRADER Mobile Platform: Provides “Candlestick Charting, Real-Time Level 2 Quotes, Market Viewer, and More.” This ensures traders can manage positions on the go.

While the technology itself isn’t inherently problematic, the purpose for which these platforms are used i.e., day trading, short selling, leveraged trading is where the ethical issues arise.

The rapid execution capabilities are primarily beneficial for speculative activities rather than long-term, asset-backed investments.

Integrated Locates and Short Lists

SpeedTrader highlights that it “offers access to SIX third-party locate services so you have access to the best short lists.” This is a significant feature for professional traders looking to short stocks.

“Locates” refer to the process of finding shares available to borrow for short selling. Brokers use various services to ensure they can secure these shares for their clients.
“Short Lists” are essentially lists of stocks that are difficult to borrow, or where there’s high demand for shorting, making them potentially lucrative for short sellers if their price drops.

Ethical Concern: Short selling involves selling something you do not own. In Islam, a fundamental principle is that one must possess an asset before selling it. This concept, known as qabd, ensures that trades are backed by real assets and reduces excessive speculation. When you short sell, you borrow shares, sell them, and then buy them back later to return to the lender. This transaction structure is widely considered impermissible by most Islamic scholars due to the lack of ownership at the time of sale and the interest-like fees associated with borrowing shares. The very existence of such a prominent feature on SpeedTrader.com reinforces its non-compliance with Islamic financial ethics.

Speedy Executions and Direct Market Access DMA

The platform boasts “access to over 25 routing options” for “Speedy Executions.” Direct Market Access DMA routes orders directly to exchanges.

Ethical Concern: While speed in transactions isn’t inherently problematic, in the context of day trading, it enables extremely high-frequency, speculative activity. The emphasis shifts from investing in productive assets to profiting from fleeting price differentials. This aligns with the concept of gharar excessive uncertainty and maysir gambling, as the outcome is highly uncertain and dependent on predicting short-term market movements rather than genuine value.

Low-Cost Trades and Commission Structures

SpeedTrader offers competitive commission rates, with options for both per-share and per-trade plans: Techreview.shop Review

Stocks and ETFs Per Trade as low as $2.49 /trade*
Stocks and ETFs Per Share as low as $0.0009 /share*
Options Per Contract as low as $0.25 /contract*

Ethical Concern: While low costs are generally good, they become problematic when applied to impermissible activities. Low commissions on short selling or options trading which often involve elements of gharar and are frequently used for speculation rather than genuine asset ownership don’t make the underlying activity permissible. The focus on maximizing trades through low costs often leads to over-trading, which further entrenhes speculative behavior.

SpeedTrader.com Pros & Cons Focusing on Cons from an Islamic Perspective

When evaluating SpeedTrader.com from an Islamic ethical framework, the “pros” typically touted for active traders largely become “cons” due to their association with impermissible financial practices.

It’s crucial to understand why features that are attractive to conventional traders pose significant ethical dilemmas for Muslim individuals.

Cons from an Islamic Perspective

Promotes Riba Interest through Margin and Borrowing: While not explicitly detailed on the homepage, virtually all day trading platforms offer margin accounts, which allow traders to borrow money to increase their trading power. The interest charged on these borrowed funds is pure riba, which is explicitly forbidden in Islam. Furthermore, the mechanics of short selling often involve fees akin to interest for borrowing shares, adding another layer of riba.
Involves Gharar Excessive Uncertainty/Speculation: Day trading, by its very nature, relies heavily on predicting extremely short-term price movements. This involves a high degree of uncertainty and speculation, often resembling gambling maysir. Islamic finance emphasizes transactions based on clear, known outcomes and real economic activity, not speculative bets on fleeting price changes. The rapid buying and selling, often driven by technical indicators rather than fundamental company value, deviates significantly from permissible investment.
Facilitates Short Selling Selling What You Don’t Own: SpeedTrader’s emphasis on “extensive short lists” highlights its support for short selling. In Islamic jurisprudence, a core principle is that one must possess an item before selling it. Short selling involves selling borrowed shares, which violates this principle of possession.
Focus on Speculative Instruments Options: The platform explicitly offers options trading. Options contracts are derivatives that often involve high levels of speculation and do not represent ownership of real assets. Their primary use in day trading is for highly leveraged, speculative bets on price direction, which is generally considered haram due to gharar and maysir.
Lack of Shariah Compliance: The website makes no mention of Shariah-compliant products, screening processes, or adherence to Islamic finance principles. This absence is a significant red flag, indicating that the platform does not cater to or even consider the ethical requirements of Muslim investors.
Encourages Excessive Trading: The low commission structure, designed to attract high-volume traders, can implicitly encourage over-trading. This leads to prioritizing transaction frequency over sound, fundamental investment principles, pushing individuals further into speculative practices.
Potential for Financial Harm: While not directly an Islamic prohibition, the high-risk nature of day trading often leads to significant financial losses. Statistics from regulatory bodies e.g., FINRA consistently show that a vast majority of day traders lose money. This aligns with the general Islamic caution against engaging in financially ruinous activities. A study by the Securities and Exchange Commission SEC in 1999, which is still widely cited, found that 70% to 80% of individual day traders lose money. More recent analysis by sites like Investopedia and financial news outlets corroborate this high failure rate, often citing figures upwards of 90% in some contexts.

SpeedTrader.com Pricing

SpeedTrader.com clearly outlines its pricing and commission structures, which are designed to be competitive for active traders.

They offer flexible pricing models, allowing users to choose between per-share or per-trade pricing for stocks and ETFs, and a per-contract rate for options.

Commission Structures

Stocks and ETFs Per Trade: As low as $2.49 /trade*. This model is generally preferred by traders making fewer, larger-volume trades, or those who find a flat fee more predictable.
Stocks and ETFs Per Share: As low as $0.0009 /share*. This model benefits traders who execute many small-volume trades, as the per-share cost decreases significantly with higher volume.
Options Per Contract: As low as $0.25 /contract*. Options trading generally involves fees per contract, and SpeedTrader aims for a low rate here to attract options traders.

Additional Fees and Considerations

While the homepage highlights the low base commissions, active trading platforms typically have other associated fees. These might include:

Platform Fees: Some advanced platforms might have monthly fees if trading volume thresholds are not met.
Market Data Fees: Real-time Level 2 quotes and other premium data often incur additional monthly charges from exchanges, which are passed on to the trader.
Regulatory Fees: Small fees imposed by regulatory bodies e.g., SEC fees, TAF.
Account Maintenance Fees: Less common for active traders, but some brokers may have inactivity fees or minimum balance fees.
Margin Interest Rates: If a trader uses a margin account borrows money from the broker, they will be charged interest on the borrowed amount. This is a significant concern for Muslim users due to the prohibition of riba.

Ethical Implications of Pricing

From an Islamic perspective, the pricing structure itself isn’t the primary ethical issue. rather, it’s what these low prices facilitate.

Enabling Haram Transactions: Low commissions on instruments like options or activities like short selling make these impermissible transactions more accessible and seemingly “cost-effective.” This doesn’t, however, change their underlying impermissibility.
Incentivizing Over-Trading: The competitive per-share and per-trade models are designed to incentivize high-volume trading. This encourages speculative behavior rather than diligent, long-term, asset-backed investment, pushing traders further into gharar and maysir.
Riba-Based Financing Margin: The most critical pricing aspect related to Islamic finance is margin interest. Any interest charged on borrowed funds for trading purposes falls directly under riba interest, which is strictly prohibited. Even if the platform offers low commission, if its core functionality relies on margin accounts for effective day trading, it remains problematic.

In essence, while SpeedTrader’s pricing is aggressive for its target market, for a Muslim investor, the cost structure is secondary to the fundamental impermissibility of the activities it facilitates. Even “free” or low-cost access to haram activities remains haram.

How to Cancel SpeedTrader.com Subscription / Account

Given that SpeedTrader.com is generally not recommended for Muslim users due to its facilitation of impermissible financial activities, the process of canceling an account or subscription becomes highly relevant for anyone who might have inadvertently opened one, or for those who decide to align their financial practices with Islamic principles.

While the website doesn’t explicitly detail a step-by-step cancellation process on its homepage, brokerage firms typically follow a standard procedure. Younirei.com Review

General Steps to Cancel a Brokerage Account

Withdraw Funds: The first and most crucial step is to withdraw all funds from your SpeedTrader account. This usually involves initiating an Automated Clearing House ACH transfer to a linked bank account, or requesting a wire transfer or check. Ensure all positions are closed before initiating withdrawals. Be aware of any minimum withdrawal amounts or fees.
Close All Open Positions: Before closing your account, you must sell any stocks, ETFs, or options you hold. Ensure no outstanding orders or pending trades remain.
Contact Customer Service: Brokerage accounts generally cannot be closed simply by clicking a button online. You will need to contact SpeedTrader’s customer service directly. The website provides contact information:
- Phone: 1 845 531-2487
- Email:
It’s advisable to call them during business hours for the quickest resolution.
Request Account Closure Form: Many brokers require a signed account closure form to be submitted. Ask customer service if such a form is necessary and how to obtain it e.g., via email, mail, or download from their secure portal.
Confirm Closure: After submitting the request and form if required, follow up with customer service to confirm that your account has been officially closed. Request a written confirmation for your records. This is particularly important for tax purposes and to ensure no lingering liabilities.
Address Potential Fees: Be prepared for potential account closure fees, transfer fees, or any outstanding balances that might need to be settled. Review the terms and conditions or ask customer service about these.

Important Considerations for Muslim Users

For a Muslim who has engaged with SpeedTrader.com, closing the account is a step towards rectifying past financial dealings that may not have been compliant with Shariah. This act, known as tawba repentance, involves:

Cessation: Immediately stopping the impermissible activity.
Regret: Feeling remorse for having engaged in it.
Resolution: Firmly resolving not to return to it.
Rectification if applicable: If any unlawful gains were made, they should be purified by donating them to charity. This is a complex area, and one should consult with a knowledgeable Islamic scholar on how to purify any gains derived from haram activities like riba or gambling. The general principle is that such gains should not be consumed but rather disposed of in charitable ways without seeking reward for oneself.

Canceling an account that facilitates haram activities is a necessary step towards aligning one’s financial life with Islamic principles.

How to Cancel SpeedTrader.com Free Trial / Demo Account

SpeedTrader.com offers a “FREE 100K DEMO ACCOUNT” as a way for prospective users to experience their platforms without financial risk. Eddielimo.com Review

This is a common practice in the brokerage industry, allowing individuals to practice trading strategies with virtual money.

For a Muslim user, even a demo account should be approached with caution, as it normalizes engagement with a system designed for impermissible activities.

Understanding the Demo Account

Virtual Funds: The demo account comes with $100,000 in virtual money, meaning no real capital is at risk.
Real-time Simulation: It allows access to SpeedTrader’s platforms SpeedTrader PRO, ActiveWeb, iSPEEDTRADER Mobile and simulates real-time market conditions.
Purpose: The primary purpose is for users to “practice trading,” “test strategies,” and “learn the platform.”

Canceling a Free Trial / Demo Account

Typically, free trials or demo accounts for online services often expire automatically or can be easily closed without direct customer service intervention, as no real financial commitment is involved.

Automatic Expiration: Many demo accounts have a limited duration e.g., 30 days. If you simply stop using it, it will likely expire on its own without requiring any action from your end.
Platform-Specific Closure:
- Check the Demo Account Interface: Log into your demo account. Look for settings, profile management, or an account section. There might be an option to “Close Account,” “Delete Account,” or “Deactivate.”
- Look for a “Contact Us” or “Help” Section: If no direct closure option is visible, the help section might provide instructions specific to demo accounts.
Email Customer Support if needed: If you wish to ensure the demo account is removed from their system immediately, you can send an email to SpeedTrader’s support requesting the closure or deletion of your demo account. Clearly state that it is a demo account and provide any relevant login details e.g., username.

Ethical Perspective for Muslim Users

While a demo account doesn’t involve real money, engaging with a simulated environment designed for haram activities like interest-based trading, short selling, or excessive speculation can still be problematic:

Normalization of Haram: It can normalize practices that are otherwise forbidden, making real-money engagement seem less daunting.
Time Waste: Spending time learning and practicing a skill that is ultimately impermissible when applied to real funds could be considered a waste of valuable time that could be used for beneficial activities.
Psychological Enticement: The “free” aspect is a psychological lure to introduce individuals to the platform and its functionalities, potentially enticing them to transition to a real, haram-based account.

Therefore, for a Muslim user, it is advisable to cancel or simply cease using any such demo accounts as soon as possible and avoid engaging with them in the first place, dedicating time to learn and practice truly Shariah-compliant financial strategies instead.

SpeedTrader.com vs. Competitors Islamic Finance Perspective

When comparing SpeedTrader.com to its competitors, it’s essential to define the playing field.

SpeedTrader positions itself as a niche broker for active day traders.

Its competitors in the conventional financial world would be other direct market access DMA brokers or those offering advanced tools for high-frequency trading.

However, from an Islamic finance perspective, comparing SpeedTrader to any conventional broker is akin to comparing two different types of forbidden items – neither is suitable.

Instead, the comparison should highlight the fundamental difference between platforms that facilitate conventional, interest-based, and speculative trading versus those that adhere to Islamic principles. Yuropay.com Review

SpeedTrader.com Conventional, Speculative Focus

Target Market: Professional and active day traders.
Key Features: Fast execution, direct market access, extensive short lists, advanced charting, Level 2 data, hotkeys.
Commission Structure: Low per-share/per-trade commissions for stocks and ETFs, competitive options per contract.
Islamic Compliance: Zero compliance. Actively facilitates activities such as:
- Riba Interest: Through margin accounts and fees on borrowed shares for short selling.
- Gharar Excessive Uncertainty/Speculation: Inherent in day trading, options trading, and prediction-based strategies.
- Selling What You Don’t Own: Core to short selling, which is prominently featured.
- Involvement in Impermissible Industries: Does not screen for Shariah-compliant underlying assets.

Conventional Competitors Also Not Recommended for Muslims

Other brokers that cater to active traders, such as Interactive Brokers, TD Ameritrade now Charles Schwab, or TradeStation, offer similar feature sets:

Interactive Brokers: Known for its wide range of international markets, low commissions, and advanced platforms. Offers margin and derivatives.
TradeStation: Popular for its advanced charting, automated trading capabilities, and comprehensive tools for active traders. Also heavily involved in options and futures.
Charles Schwab previously TD Ameritrade: Offers powerful platforms like thinkorswim, catering to active traders with advanced analysis and diverse product offerings.

Similarities in Ethical Concerns: All these conventional platforms share the same fundamental ethical issues from an Islamic perspective: they facilitate interest-based transactions margin, encourage speculation derivatives, day trading, and do not screen for Shariah-compliant underlying assets or business practices. Therefore, none of them serve as ethical alternatives for Muslim investors.

Ethical Alternatives The Only Viable Comparison

The true “competitors” or, more accurately, alternatives for a Muslim investor are platforms and methods that are Shariah-compliant. These operate on entirely different ethical foundations.

Feature / Platform Type	SpeedTrader.com Conventional	Ethical/Shariah-Compliant Alternatives e.g., Wahed Invest, Amana Funds, Ethical Self-Directed
Primary Goal	Rapid, speculative gains from short-term price movements	Long-term wealth creation through real economic activity and asset ownership
Core Activities	Day trading, short selling, options, leveraged trading	Investing in Shariah-compliant equities, Sukuk Islamic bonds, ethical real estate, gold/silver
Interest Riba	Facilitates via margin, short selling fees	Strictly avoids and purifies
Speculation Gharar	High inherent in day trading, derivatives	Minimizes, focuses on tangible assets and known outcomes
Ownership Principle	Violated short selling	Adhered to possess before sale
Shariah Compliance	None	Core principle and screening process
Risk Profile	Extremely high due to leverage and speculation	Moderate to low dependent on asset class and diversification, but ethically managed
Product Focus	Financial instruments for rapid trading	Real assets and ethical business ventures
Example Alternatives	N/A as it’s not permissible	Wahed Invest, Amana Mutual Funds, self-directed Shariah-compliant brokerage accounts e.g., Zoya for screening

In conclusion, for a Muslim seeking to align their financial activities with their faith, SpeedTrader.com and similar conventional trading platforms are not viable options. The focus should entirely shift to finding and utilizing Shariah-compliant services that prioritize ethical investment, real asset ownership, and the avoidance of riba and excessive gharar.

FAQ

What is SpeedTrader.com?

SpeedTrader.com is an online brokerage firm that provides trading services, particularly catering to active day traders, offering platforms and tools for fast executions, low-cost trading, and access to various financial instruments like stocks, ETFs, and options.

Is SpeedTrader.com suitable for long-term investments?

Based on its promotional material emphasizing “active day traders,” “fast executions,” and “powerful platforms” designed for rapid trading, SpeedTrader.com appears primarily tailored for short-term, high-frequency trading rather than traditional long-term buy-and-hold investing.

Does SpeedTrader.com offer a demo account?

Yes, SpeedTrader.com explicitly advertises a “FREE 100K DEMO ACCOUNT” on its homepage, allowing prospective users to practice trading strategies with virtual money and experience their platforms.

What kind of trading platforms does SpeedTrader.com provide?

SpeedTrader.com offers three main trading platforms: SpeedTrader PRO Desktop Software advanced features, ActiveWeb Web-Based Platform browser access, and iSPEEDTRADER Mobile Platform for trading on mobile devices.

What are the commission rates on SpeedTrader.com?

SpeedTrader.com offers competitive commission rates, including Stocks and ETFs Per Trade as low as $2.49 /trade*, Stocks and ETFs Per Share as low as $0.0009 /share*, and Options Per Contract as low as $0.25 /contract*.

Does SpeedTrader.com support short selling?

Yes, SpeedTrader.com highlights its support for short selling by stating it offers “access to SIX third-party locate services so you have access to the best short lists,” indicating a strong feature for traders looking to engage in short-selling activities. Femmepalette.com Review

Is SpeedTrader.com Shariah-compliant?

No, SpeedTrader.com does not appear to be Shariah-compliant.

Its core offerings, such as facilitating day trading, short selling, options trading, and likely margin accounts which involve interest/riba, are generally considered impermissible in Islamic finance due to elements of riba, gharar excessive uncertainty, and selling what one does not own.

Can I open an account with SpeedTrader.com if I want to invest ethically in Islam?

No, it is not recommended to open an account with SpeedTrader.com for ethical Islamic investing.

The platform’s primary functionalities and promoted services involve transactions and practices that contradict fundamental Islamic financial principles.

What are the ethical concerns with day trading from an Islamic perspective?

Day trading involves excessive speculation gharar and often resembles gambling maysir due to its reliance on predicting short-term market movements rather than investing in real economic value.

It also frequently involves interest-based leverage riba and selling what one doesn’t own short selling, all of which are forbidden in Islam.

Why is short selling problematic in Islamic finance?

Short selling is problematic in Islamic finance because it involves selling an asset that one does not own borrowed shares, which violates the principle of possession before sale.

Additionally, the fees or interest associated with borrowing shares can be considered riba.

Are options contracts permissible in Islam for trading?

Generally, options contracts are considered impermissible in Islam by the majority of scholars because they often involve high levels of speculation gharar and do not represent the ownership of a tangible asset, making them akin to gambling maysir.

How can I withdraw funds from my SpeedTrader.com account?

To withdraw funds, you would typically need to log into your account, navigate to the cashiering or funding section, and initiate a transfer to a linked bank account via ACH, or request a wire transfer or check. Ensure all positions are closed first. Silkyservers.com Review

How do I close my SpeedTrader.com account?

To close your SpeedTrader.com account, you should first withdraw all funds and close all open positions.

Then, contact their customer service via phone 1-845-531-2487 or email to request account closure and inquire about any required forms or procedures.

Does SpeedTrader.com charge inactivity fees?

The homepage text does not explicitly mention inactivity fees.

However, brokerage firms often have various fees beyond commissions, so it’s advisable to review their full fee schedule or contact customer service for detailed information on all potential charges, including inactivity or account maintenance fees.

What are the alternatives to SpeedTrader.com for a Muslim investor?

For a Muslim investor, ethical alternatives include Shariah-compliant investment platforms like Wahed Invest, Amana Mutual Funds, self-directed investing in screened Shariah-compliant stocks through ethical brokers, physical gold and silver bullion, and ethical crowdfunding platforms.

How do I cancel a SpeedTrader.com free demo account?

SpeedTrader.com demo accounts typically expire automatically after a certain period.

You can also try logging into the demo platform and looking for an option to “Close Account” or “Deactivate” in the settings, or you can email their customer support to request its removal.

Is SpeedTrader.com regulated?

While the homepage doesn’t explicitly state their regulatory bodies, reputable brokerage firms in the United States are typically regulated by organizations like the Securities and Exchange Commission SEC and the Financial Industry Regulatory Authority FINRA. Users should verify their regulatory status on official databases.

Does SpeedTrader.com provide Level 2 quotes?

Yes, SpeedTrader.com states that its SpeedTrader PRO Desktop Software and iSPEEDTRADER Mobile Platform both offer “Real-time Level 2 Quotes,” which provide depth of market data crucial for active traders.

Can I trade on my mobile device with SpeedTrader.com?

Yes, SpeedTrader.com offers the “iSPEEDTRADER Mobile Platform,” which provides access to trading tools and features like Candlestick Charting, Real-Time Level 2 Quotes, and a Market Viewer for trading on mobile devices. Airlaw.pro Review

What is the average success rate for day traders?

Statistics from regulatory bodies and financial analyses consistently show that a vast majority of individual day traders lose money. Figures often cited range from 70% to over 90% of day traders incurring losses, making it a highly risky endeavor regardless of the platform used.