Amana Capital Broker Review

• Amana Financial Services UK Ltd, licensed by the Financial Conduct Authority (FCA), (License Number 605070)
• Amana Financial Services Dubai Ltd, licensed by the Dubai Financial Services Authority (DFSA) (Registration Number F003269)
• Amana Capital Ltd, licensed by the Cyprus Securities and Exchange Commission (CySec) (License Number 155/11)
• Amana Capital SAL is authorised and regulated by the Lebanese Capital Markets Authority (CMA), License Number 26.
• AFS Global is regulated and authorised by LFSA – Malaysia, Registration Number MB/18/0025.
• ACG International is regulated and authorized by the Financial Services Commission – Mauritius (FSC) – Registration number C118023192.

Australians will be trading under the subsidiary, ACG International, regulated and authorised by the Financial Services Commission Mauritius (FSC).  The FSC’s rules are not as strict as those of the FCA or CySEC, but it does allow Amana Capital to provide its clients with higher leverage.  

In accordance with FSC regulation, Amana Capital holds all client funds in segregated accounts and provides negative balance protection, which means that clients can never lose more than is in their trading accounts.  Amana Capital’s clients with accounts under the FSC licence will also benefit from 1,000,000 USD protection insurance should the Company be liquidated. 

Amana Capital has not won any recent awards, but based on its broad regulatory oversight, we deem it a reliable and secure broker.

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Trading Fees

Amana Capital’s trading fees are higher than other similar brokers.

Unlike other brokers that offer a range of CFD trading accounts with higher minimum deposits linked to tighter spreads, Amana Capital offers a single live commission-free account available on two different platforms (click here for more on Amana Capital’s trading platforms).

Amana Capital also offers an Active Trader Programme, an Elite Account, and a Share Account.  However, for the purposes of this review, we will focus on the trading conditions of the CFD accounts (click here for more on Amana Capital’s trading accounts).  

Amana Capital’s accounts were assessed to compare the costs to those of other forex brokers.  The costs were evaluated based on the trading fees on one lot (100 000 USD) on the EUR/USD, including the spreads and commission.  

When making this calculation, we used one lot of EUR/USD as a benchmark as it is the most commonly traded currency pair and it usually has the tightest spread.

Trading Cost Formula: Spread x Trade Size + Commission = Cost in Secondary Currency (USD):

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As you can see from the table above, Amana Capital offers one commission-free account with trading costs included in its variable spreads.  This means that the spread will fluctuate and get wider or tighter depending on trading volume and market volatility.  Overall, at 14 USD per lot traded, Amana Capital’s trading costs are higher than the industry average.  The trading costs on the EUR/USD at other good brokers tend to be around 9 USD per lot traded.   

However, Amana Capital also offers two high deposit accounts that are suitable for more experienced traders – the Amana Active Account and the Elite Account.  The Amana Active Account requires a minimum deposit of 25,000 USD and spreads tighten to 0.1 pips on the EUR/USD in exchange for a commission of 3 USD per lot traded, which is highly competitive.  Trading costs improve further on the Elite Account, but this requires a minimum deposit of 250,000 USD.  

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Broker

Trading Conditions

Base Currencies

EURUSD (Standard)

Commission

Trading Cost (Standard)

EURUSD (Best)

GBPUSD (Best)

USDJPY (Best)

Amana Capital

4.5/ 5

USD, GBP, EUR

1.40 pips

USD 0

USD 14

1.30 pips

1.80 pips

2.10 pips

IC Markets

4/ 5

AUD, USD, EUR, GBP, CAD, SGD, NZD, JPY, CHF, HKD

0.10 pips

USD 7

USD 8

0.02 pips

0.23 pips

0.14 pips

markets.com

5/ 5

USD, AUD, CHF, CZK, DKK, EUR, GBP, NOK, PLN, SEK, ZAR

0.70 pips

USD 0

USD 7

0.60 pips

1.20 pips

0.70 pips

Swap Fees

Another important cost to consider is the swap rate charged on positions held overnight.   Interest is paid (or received) for each night a position is held. When trading a currency, you are borrowing one currency to purchase another. The swap interest fee is calculated based on the difference between the two interest rates of the traded currencies.

The swap fee is credited or debited once for each day of the week, at midnight server time, when a position is rolled over, with the exception of Wednesday for spot Forex, WTI, & Brent oil, when it is credited or debited 3 times.

The following calculation can be used:

Swap = (Number of lots x Pip value x Swap rate x number of nights) / 10

By way of example:

A client was 2 lots short position on the EUR/USD and held the position for one night:

• 1 lot = 100,000 euros
• Pip value = $10
• Number of lots = 2 lots
• Swap rate= -8.5 Long & +7 Short
• Holding period = 1 night

Swap = (Number of lots x Pip value x Swap rate x number of nights) / 10

Swap = (2 x 10 USD x 7 x 1)/10 = 14 USD

Clients will be charged 14 USD for holding a short position of EUR/USD overnight.  

Non-trading Fees

Amana Capital’s non-trading fees are higher than other similar brokers.

Amana Capital does not charge account or inactivity fees, however, it charges relatively high deposit and withdrawal fees.  

For example, using Neteller a fee of 3.9% + 0.29 USD is charged for making deposits, and for withdrawing funds, a fee of 2%, capped at 30 USD is charged (click here for more on Amana Capital’s deposits and withdrawals).  

Opening an Account at Amana Capital

The account opening process at Amana Capital is user-friendly, fully digital and accounts are ready for trading immediately.

All Australian residents are eligible to open an account at Amana Capital but have to meet the minimum deposit requirement of 50 USD.  

Creating an account is straightforward, the process is fully digital, and accounts are usually ready immediately. Amana Capital offers individual, joint,  and corporate accounts, but we will focus on opening an individual account:

1. New traders will have to click on the “Open Real Account” button at the bottom of the page where they will be directed to fill in their personal details, including name, surname, telephone number, and country of residence.    
2. Next, traders will have to choose their preferred platform, base currency, nationality, and employment type. 
3. Once this step is complete, clients are required to fill out a questionnaire that helps Amana Capital assess the trader’s investment knowledge, experience, and expertise to deem the suitability and relevance of the services on offer. While most brokers don’t include this step in the account-opening process, it is a responsible move in an industry that is often accused of an irresponsible approach to consumer protection.  
4. Amana Capital requires at least two documents to accept you as an individual client:
   1. Proof of Identification – Amana Capital accepts all government-issued identification documents such as Passport, national ID card, driving license, or other government-issued ID. 
   2. Proof of Address – Proof of residence/address document must be issued in the name of the Amana Capital’s account holder within the last 6 months and must contain a trader’s full name, current residential address, issue date, and issuing authority. 

After the application is approved, traders can login and fund their accounts. 

Overall, Amana Capital’s account-opening process is fully digital and hassle-free and accounts are generally ready for trading once all documentation has been approved.  

Amana Capital offers a single trading account, which is suitable for beginner traders, but it also offers an Active Trader Programme and Elite Account for more experienced traders.  

A market maker, Amana Capital offers trading on multiple assets, including Forex, energies, cryptocurrencies, indices, commodities, metals, and shares. Amana offers a single live commission-free account for Forex and CFD trading.  However, with higher minimum deposits, traders get access to the Active Trader Programme or can choose to become professional traders.  Amana Capital also offers a Shares Account, which will not be the focus of this review.  

Amana Capital offers support for the MT4 and MT5 trading platforms, in addition to Zulutrade, and allows all trading strategies, including hedging, scalping, and copy trading.  Amana Capital also offers Islamic swap-free accounts.

Amana Capital’s Classic Account has a minimum deposit requirement of 50 USD, making it accessible to beginner traders.  

We define beginner traders as inexperienced traders who have never traded before or have been trading for less than a year. Beginners often do not want to risk trading large sums of money, and will generally not be able to trade full-time during the workweek. 

In general, experienced traders tend to prefer accounts with higher minimum deposits and tighter spreads.  Amana Capital’s Active Trader Programme would be more suitable for experienced traders, with a minimum deposit requirement of 25,000 USD and a minimum trading volume of 100 million USD per calendar month.  Spreads tighten to 0.1 pips on the EUR/USD in exchange for a commission of USD 0 USD per lot, which is more in line with the trading costs experienced traders may be looking for.  Experienced traders may also be interested in the Amana Elite Account with even lower spreads and flexible commissions in exchange for a minimum deposit of 250,000 USD.  

Traders should note that although Amana Capital states that its accounts are market execution accounts with no requotes, Amana Capital acts as the principal and not an agent on the client’s behalf.  This means that Amana Capital is the sole counterparty to the client’s trades and execution of orders is done in the Company’s name.  Therefore, Amana Capital is also the sole Execution Venue for the client’s orders, which is why the spreads on Amana Capital’s Classic Account are not as favourable as those of other brokers.    

Leverage

Amana Capital uses a dynamic Forex leverage model, which automatically reflects on clients’ trading positions. As the volume for each trading instrument of a client increases, the maximum leverage offered decreases accordingly, as per the table below:

Amana Classic

The commission-free Amana Classic Account has a minimum deposit requirement of 50 USD.  Spreads start at 1.40 pips pips on the EUR/USD, which is wider than other market makers.  Stop Out levels are at 20%, and accounts are denominated in USD, EUR, or GBP.  No commissions are charged on Forex or Cash CFDs, but 10 USD/lot is charged on Futures trading and 0.02 USD/share on share CFDs.

Amana Active

The Amana Active account requires a minimum account balance of 25,000 USD and a minimum volume of 100 million USD per calendar month, but spreads are much tighter (down to 0.1 pips on the EUR/USD).  A commission of USD 0 USD/lot traded is charged on Forex and 5 USD/lot on future CFDs. Traders have access to a personal account manager, API Trading, trading signals and technical studies, and a free VPS service.  

Amana Elite

The Elite account is Amana Capital’s professional account. With a minimum deposit requirement of 250,000 USD, traders can access the tightest spreads and can negotiate their commissions.  Traders also have access to a personal account manager, personal coaching sessions, and elite trading tools. 

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Swap Free Accounts: 

Amana offers Swap-Free accounts for traders who choose not to receive or pay daily swaps in adherence to Islamic religious principles. When trading a Swap Free Account, currency pairs held overnight will not be ‘paid or charged’ a daily swap fee. Swap-Free terms are not applicable on the following: 

• FX pairs containing CZK, HKD, NOK, PLN, SEK, SGD, TRY, ZAR, RUB. 
• Cash CFDs: U30USD, NASUD, 100GP, E50EUR, D30EUR, F40EUR, SPXUSD. 
• Spot Energies: WTIUSD, BRENTUSD. 

Fees may be applied on a Swap Free trade in case trading positions are held open for more than 10 (ten) days, unless waived by Amana. Such fees can be applied from the time the position was opened and at the sole discretion of Amana Capital.  Please contact customer support for more details.  

Demo Account

Amana Capital offers a demo account that allows you to trade instruments without risking real money.  It comes loaded with virtual funds and is available for 30 days on the MT4 and MT5 trading platforms.   

Amana Capital offers a wide range of payment methods, but it charges high fees for deposits and withdrawals. 

In line with Anti-Money Laundering policies, Amana Capital does not accept payments from third parties and only accepts funds received directly from the named trading account holder. Accounts can be funded via Credit Card, Bank transfers & e-wallets.  Amana Capital charges a fee for handling deposits dependent on the payment method, and commissions can be as high as 1.5% for withdrawals. Withdrawals take around 3 – 4 days to be processed, which is longer than the industry average.  See below for a list of funding methods, charges, and processing times:

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Overall, Amana Capital has a good range of funding methods, but withdrawal and deposit fees are higher than other similar brokers.  Of particular note are the deposit fees charged for depositing and withdrawing via Neteller and Skrill. 

Base Currencies

Amana Capital offers a limited number of base (trading account) currencies compared to other similar brokers.

Trading accounts can only be denominated in three base currencies – EUR, USD, and GBP, which is limited compared to other brokers.  Most other brokers denominated accounts in at least five to ten currencies.  Additionally, Amana Capital does not offer AUD trading accounts, which is a disadvantage for Australians who will likely have bank accounts denominated in AUD, and who will have to pay currency conversion fees on deposits and withdrawals.

For traders that trade in large volumes (more than 10 lots a month), it is better to open an account denominated in USD at a digital currency bank, especially for trading on assets such as the EUR/USD. This is because when trading a USD quoted currency pair with an AUD account, there will be a small conversion fee for every trade made.

Overall, Amana Capital offers fewer trading account currencies than most other large international brokers and doesn’t offer accounts denominated in AUD. 

Amana Capital’s trading platform support is average compared to other similar brokers.  

Amana supports the MetaTrader Suite of platforms.  In addition to the desktop applications, Amana Capital also offers MT4 and MT5 WebTrader, which are the browser-based version of the platforms, along with mobile and tablet versions of both iterations.  Multiterminal is also available if you are managing numerous accounts simultaneously.  

While MT4 and MT5 are both excellent trading platforms, many other CFD brokers also offer their own web-based platforms, which tend to be easier to use for beginner traders. On the other hand, the benefit of Amana Capital offering third-party platforms such as MT4 and MT5 is that traders can take their own customised version of the platform with them should they choose to migrate to another broker.  Additionally, there are thousands of plugins and tools available for the MetaTrader platforms.   

Metatrader 4

While not the most beginner-friendly software, MT4 has been the industry-standard platform for trading Forex and CFDs since 2005. Its intuitive interface and user-friendly environment provide essential tools and resources for successful online trading.    Features of the MT4 include:

• A built-in library of more than 50 indicators and tools to streamline the analysis process.
• An impressive array of analytical tools, available in nine timeframes for each financial instrument.
• Live price streaming on live accounts and demo accounts 128-bits encryption for secure trading
• Algorithmic trading, which allows any trading strategy to be formalised and implemented as an Expert Advisor. 
• Customisable alerts
• Access to MetaTrader market and MQL4 community