About Forex
Submitted by insighty on Wed, 2006/02/22 - 09:36
Dear brothers and sisters,
assalamo alaykom wa rahmato allah,
I am so interested in forex exchange but unsure how to play it safe from islamic perpective. Could anyone summarize in practical terms how would I know if I am trading forex without violating Islamic law? and anyone knows any site or material that explains forex in simple terms,e.g: for people who never have done or studied business before.
jazakom allaho khayran.
fee aman allah,
Ghassan
»
Still confuse - I am looking closing comments from any Mufti
Forex is Halal or Haram is very confusing. People who know the Forex market will endorsed you that Forex Trading is not gambling. Its base on proper knowledge and analysis. Personally i do not find anything illegal in it. There are two type of trader in the market. First who trade Forex with proper technical and fundamental analysis and Second who do gambling and making trade without any knowledge. Gambler always in loss. Traders always in profit because they trade on proper money management.
People said only hand to hand transaction is allowed in Islam for Forex. Hand to hand means under your jurisdiction. When you trade in Forex and close the trade so that your profit or loss come in your account within seconds. And your forex account is belongs to you its your jurisdiction. Which you can withdraw any time.
People said currency can be traded only in same meeting or place. Brother thing big. Internet is place where Trader(you), Broker and Bank all sit together for 5 days a week. There representative is a software system but its belongs to them.
People said Margin Trading is not allowed. I want to correct you that Margin trading is not allowed if its involved Riba. Many Muslim Forex broker offering account which do not involved Riba. Leverage is offered by Broker by there own wish and without any condition. Where broker keep their money safe and where limit of our money end they close the trade automatically but they give margin call first.
My wish is that Muslim Scholars and Mufti's must review their thoughts and re think about it after researching what is Forex all about and then give their honest review. These days Internet is most powerful platform for business.Kindly take Forex in the matter of IJTIHAD.
I also request all Islamic Forex Broker to open a Shariah department and also approved their Islamic Forex System with any Reliable Mufti's and Muslim Scholars. It will easy for Muslims to join them without wasting years to researching them it is legal or not.
I think the better way is to do Istikara. Take guidance from Allah. Because different Muslim scholars from different community will have their own thoughts. Some says its Legal and some says its illegal. Its better to seek guidance from Allah through Istakarah. Its better do Istikarah by your own
Thank You
can you send me fatwa about
can you send me fatwa about two side halal and haram
Sharia Compliant trading online through a broker
Assalamualaikum- Warahmatullahi- Wabarakatu
I have been trading in CFD equities on a Sharia Compliant platform. I am NO Mufti or Aalim. But from my constant research of over a year I have found that the main difference between truely Sharia Compliant Plarforms and other so callled Sharia Compliant platforms is a few of the main facts.
1- No Riba or interest. However a disclosed percentage fee maybe charged from the onset of the agreement.( this means no swaps or overnight gains or losses )
2- The plaform should be a market agent and not a market maker. For example most platforms today offer products as market makers i.e the market on the platform is actually controlled by the maker of the platform.( hence you are actually not even buying anything that even reflects the true value of an underlying asset). Whereas the market agent agent has to by contractual agreement of the relavent exchange provide almost 100% true reflection of the market, as the market agent takes the same position as you take on the market and will suffere the same losses(therefore acing exactly as a broker does). excluding commissions/service charge.The market agent however, costs a heliva lot more than the market marker.
3- The platform should be guided by a Sharia advisory board consisting of qualified Ulamaa and who specialise in Islmaic financial matters.Both locally and internationally. ( Local Ulamaa are of a special requirement as they are able to shed light on issues that are surrounding the specific place, example banking norms).
I have included such an address as a homepage of the platform I use,and I am aware of currency trading that they provide. May Allah except and guide us all. Fee-Amanillah
Wslm
Common sense
Ladies/gents Aoa
The biggest point is being missed here. Riba prohibition is obvious. However most fx brokers (even the biggest names) do not allow you to take delivery of the cash you trade. So I'm effect you are trading a notional value of FX. In other words with most brokers you are not trading an actual underlying product rather the brokers books. So any broker saying 'Islamic account' you need to ask I you actually own the currency. If you don't then you should be able to take delivery. It's like index trading... What exactly are you buying? Dont fool yourselves guys. All these brokers provide you a derivative of the product and not the product itself.
With all these questions your hearts know the true answer. Tune in to the content of your hearts and the answer is obvious. However, this is not to say that your local currency exchange is haram. They are buying/selling the physical. This raises another question. Even if riba is not present and you have indeed only paid the spread is currency itself a commodity or a means to buy a commodity? Can you really trade and profit from the 'means'?
The reason we trade fx is because we expect a quicker return than working for a boss, or to serve as an ambition never to work for a boss. If you are being rewarded in high profits then fear why Allah swt is allotting this money to you now when your hearts know the truth.
May I suggest that we make sincere duah for guidance. Allah swt is almighty and fair and knows best
Ws
Common sense
Ladies/gents Aoa
The biggest point is being missed here. Riba prohibition is obvious. However most fx brokers (even the biggest names) do not allow you to take delivery of the cash you trade. So I'm effect you are trading a notional value of FX. In other words with most brokers you are not trading an actual underlying product rather the brokers books. So any broker saying 'Islamic account' you need to ask I you actually own the currency. If you don't then you should be able to take delivery. It's like index trading... What exactly are you buying? Dont fool yourselves guys. All these brokers provide you a derivative of the product and not the product itself.
With all these questions your hearts know the true answer. Tune in to the content of your hearts and the answer is obvious. However, this is not to say that your local currency exchange is haram. They are buying/selling the physical. This raises another question. Even if riba is not present and you have indeed only paid the spread is currency itself a commodity or a means to buy a commodity? Can you really trade and profit from the 'means'?
The reason we trade fx is because we expect a quicker return than working for a boss, or to serve as an ambition never to work for a boss. If you are being rewarded in high profits then fear why Allah swt is allotting this money to you now when your hearts know the truth.
May I suggest that we make sincere duah for guidance. Allah swt is almighty and fair and knows best
Ws
God The All-Knowing
having done some research based on our capacity (time and knowledge), Dont forget to do istikharah, hoping fully, that God will guide us, in every single step we do. God will clearly avoid us from haram things, InsyaAllah.
I dont Think Forex is Haram..
Salam, Hi all..,
just want to share some opinion. I am from Malaysia and according to the ulema and islamic hukm experts in Malaysia it is decided that FOREX IS HALAL..However there are some conditions that could turn that to illegal or haram. Among of them are :
1. Leverage - more than 1:1 is not allowed.
2. trading without knowledge - like gambling.
3. hedging concept (sell and buy at the same time).
4. Gold and silver trading in the platform are haraam. Only the currency can be allowed....and etc.
Think guys..if forex is haraam,
-how about the millions of muslim money changer (most of them are indian muslim in Malaysia but not sure in other country) make a honest living and as their main source of income.
-how about the stock trading that we have been doing it since for more than 30 years (if im not mistaken maybe longer than that) as the forex is not as much different from that.
-how about buying things or stuff online (we pay the money for the things and wait it to reach our home several days later)????
-how about the concept of paper money (whole worlds used it) where its values are nothing but it used in all countries where the values are based on the gold stock that kept in their country per kapita. (Only USA the only country in the world that print their money as they like and their dollar are not based on the gold and the world cant say anything about it).
Thanks. Anyone who want to discuss it further please go ahead. Salam.
Can you send the fatwa which says forex is halal?
Brother, as-salaam alikum W/w,
Is it possible for you to send that fatwa to me so that I can understand more,
jazakallah
Imdad
100% fully Shariah compliant forex trading platform
Assalamu alaikum warahmatullahi wabarakatuh,
To all those interested in trading forex according to the shariah priciple.
Please surf this website: https://secure.blmefx.com/
In order to comply with the islamic spot forex trading principle,there should not be any:-
1.Swap/Roll over interest charge.
2.Leverage.(Trades are settled in full to ensure Sharia'a compliance)
3.Most of the so-called islamic forex platforms do not comply on the leverage issue.
Hope that helps.
Assalamu alaikum warahmatullahi wabarakatuh
need investor in forex
I have lot of experience in forex but i have proble in investment. my partner ditched me very badly. so any one who can invest with e a handson return will be there for him. Give 200000 Usd account. once after that you will give million of investment when you get regular return
regards,
Sanjeev
Islamic Forex Broker
You can find islamic broker which offer interest free islamic forex account for here http://www.islamic.riverforex.com
IT IS NOT CLEAR
FOREX TRADING IS HALLAL OR HARAM
DEAR BROTHER AND SISTERS, TO BE VERY HONEST WITH YOU EVEN AFTER LOTS OF FATWA AND COMMENTS IT IS STILL NOT CRYESTAL CLEAR THAT WEATHER FOREX TRADING IS HARAM OR HALAL.
IN MY OPENION AS LONG AS YOU ARE NOT PAYING ANY INYEREST ON TRADES IT IS HALAL, IF INTEREST INVOLVED IN ANY TRADE,THE INCOME OF THAT TRADE WILL BE HARAM.
THE OTHERWAY THAT IF YOU ARE COMPELL TO KEEP THE TRADE OR HOLD THE POSITION OVERNIGHT WHERE INTEREST WILL INVOVE, KEEP THE TRACK OF THAT TRADE INTEREST YOU PAID OR CHARGED , FOR THAT PURTICULAR TRADE AND TAKE OUT THAT MONEY FROM WITHDRAWL AND GIVE SADAQA.
halal haram
i think halal after certain fatwas taken by mudalil mufties
The only haram thing in forex
The only haram thing in forex is the swap fee ( or Riba or Interest fee). For that reason many brokers introducing Islamic accounts nowadays which offers complete swap free trades. There are no other things exist in forex so that it could be haram.
Some people saying Leverage is Haram. They doesn't completely understood what the leverage is. The leverage is broker lend you some money (riba free off course) to increase your profit. But you cannot lose the leverage. Like if I have 1000 US$, I can borrow 9000 US$ without any riba from the broker to order a 10000$ lot. But if that order goes against myself I cannot lose whole 10000$. The broker will automatically close that order as soon the loss reaches 1000$ (which was my own money). So here broker had nothing to lose.
Some people saying Forex is gambling. For them please open a demo account and try to profit by trading without any analysis. Its not guessing game. It needs a couple of analysis (Fundamental, Technical, Sentimental etc) before opening a trade. And off course like every other business, forex business also have risk. That's why proper money management, discipline and all other psychological things out there.
As far As I know. if one of
As far As I know.
if one of three things involved in trade then it is Haram.
1. fix time and fix profit/loss. e.g like banks they said they will give u profit/loss after certain time.
2. exchange of a product. means cannot buy a luxury car by giving him 2 ordinary cars. I think so your currency must be different at the time of trading.
3. non existence of a product in a physical form. e.g there is a fake document of any property and some one bought it then it is also haram for him to sell it or fraud with other one. means to sell your product it is your duty that it physically exists.
Allah Knows well.
if I am wrong then correct me.
Islamic Forex is HALAL according to my point of view
According to the International Shari’ah Research of Islamic Finance the Forex is prohibited in islam due to following reasons
a. Riba;
b. Bai 'al-Dayn bil Dayn (Sale of Debt with Debt); Leverage use in Forex
c. Gharar (Uncertainty); and
d. Qimar (Gambling).
But according to Islamic point one can eliminate these 4 thing easily
1. Riba ( Any kind of Riba is Haram in Islam therefore different brokers now introduce Islamic forex accounts which are intrest freee accounts or swap free accounts where there is no charge of intrest on the money that you have credited in Forex account)
2. Bai 'al-Dayn bil Dayn (Sale of Debt with Debt); ( Sale of Debt on Debt is haram when you take loan from broker and he charges you some extra amount on principal after the one day passed but if you have returned the loan on the same day there is no intrest is charged on that loan.
3. Gharar (Uncertainty); Islam allows the Risk Management in any thing.
4. Qimar (Gambling). In gambling you earn money on the cost of other person means that one person makes profit on the loss of other person which is not excatly happen in the case of Forex
I may be wrong because I m not scholar of Islam but being a Muslim I have to find about forex, Please verify me if I am incorrect.
Regards,
Usman Raza
What about the gharar in forex
Salam alaykum brothers and sisters,
In according with the difference interpretations I understood that it could be lawful the forex. But I have another question: what about the gharar and the uncertain elements regarding this kind of "trading"?
And another: what about speculation (Maysir)? The basic of the forex is the selling in two different time a currency to get a profit. I wait your comments about this matter.
Wassalam
Ahmad
Forex is HALAL
There is no reasoning in islam Laws are there to be followed.
Suppose u are in a market with One Lac traders imagine your self if they were trading by watching each others prices(and could follow them minute by minute) how often would u trade Your stuff the ratio comes out to be 100:1 per minute. Thats the leverage given by forex markets normally on any deal.
Banking system is based on Riba Donot be fooled by islamic banks there is no such thing as each bank uses RIBA. In Forex there is Riba but u dont have to follow it to the next day u can sell ur stock on the same day and not be concerned with how much You will be Charged in Riba.The loan taken during negative trends in stock market only will be charged Riba if u roll over it to the next day.
People say Forex Market is easy place to earn lots of money and they havent even got the glimpse of it. Try reading on candle stick system(only one aspect of market!) in forex and see how much brain work is required. Im a Software engineer i need to work twice as much in researching what trends will be associated in the next 24 hours then researching on any thesis.
Ask ur self these questions.
Is Computer haram?
Is internet haram ?
Is earning one million dollars in one day Haram? (only if u have 2 million dollars!)
Is maths (probability)(try reading ways probability is used in business) haram?.
Now ask urself these Questions.
Is giving ur oil wells on lease to non muslims for 90 years HARAM?
Is taking non muslims money as loan Haram ?
Is opening Duty free ports Haram?
Donot be fooled by fatwas given by the same countries running on RIBA.
open a mini account and try doubling your stocks and see for ur self if u can become rich in a month?.
Is forex haram
salam to all please i am trying to find out if forex is haram 2 please people do not put in your say without propier knowlidge u can lead alot of people astray what i want to know is allaha says We have made trade halal and riba haram
so does that make forex hallal or haram from what i can tell asking forex there is no riba involvied u are using your own money
Daytrading -Shortselling
Salaam all ,
i am also involved with day trading and fairly new to the concept.However one question reg One method in Futures trading where you get option of the selling 1st (aka shorting).Now this is also based on analysis ,Market news and many other factors and one can reach a conclusion that market will likely fall .My question how can you sell something which dont have ?Is this considered Halal?
Thanks.
ITSURQ@GMAIL.COM
dear brother I too have been
dear brother
I too have been struggling with this problem for the past year
I traded with a "shariah compliant"system out of dubai
I lost over 90 000 usd in 6 months
It was a daily anxiety and obsession with the idea that I could make it all back just as easily as I lost it.
Finally, I lost enough to cause me to re-think the legality of it all.
Having now researched various opinions I have come to the conclusion (call it sour grapes if you must:) that forex trading as offered by the online traders is HARAAM The reasons for my opinion are:
1.No real money changes hands.
2.The leveraging of 100 000 dollars for your 1000 dollars means that you are selling something you don't actually own
3. The "fee" charged on overnight positions amounts to you paying interest without calling it that
4.The gambling "rush" that you get while watching your position
5. please refer to the best article I have found on the matter http://www.islam-qa.com/en/ref/106094/forex
The only halaal way to trade forex is to physically
exchange the money at a bank.
I hope to take my losses as hidaayah from my Lord and never to go back to that sickness.
...and Allah knows best
forex is haraam
assalamualaikum dear brother
i agree with u what u said about forex. actually when i doing some research about ONLINE FOREX. In the truth, it involved betting mechanism which means, when all the player or traders used their money to get the profit,
if i say 100 trader enter the market. 70 trader will hit the buy button and 30 trader hit the sell button, if graph or chart rise, the 70 trader will gain the profit and other 30 will losses. the profit gains for 70 trader actually comes from the losses of the other 30 trader that hit the sell button. Price of the currency determined from the number of bid or sell, the greater % in ratio bid over sell, the greater profit u get or the greater losses you feel.
Beside in the above,ONLINE FOREX is illegal in Islam because of is not occur in spot transaction (Give and accept in the same time) eg, u hit buy button, means u 'give' but u not accept in the same time because u will wait until you got the maximum profit.
For conclusion, forex that permissible in islam is the physical forex because it needs to travel in overseas, but for making profit, this will give the bad impact to the currency such as currency depreciation, increase inflation rate, so we should beware of the dajjal conspiracy that destroyed us with money that mix with riba' (suppression to the other people)
FOREX
Selamun aleykum brother,
I red your posting here, and I see that your honesty overcomes other writings. I also have opened an account in forex ( but my real business is recycling). Please write me to my mail address so we can switch some e-mails on the same issue
naser.a.arifi@gmail.com
Dear All, Please dont comment
Dear All,
Please dont comment with the information you are not sure,about its reality means from Hadith or Sunnah or from Ullema's comments
Thanks alot
Forex
You are right it is highly punishable offense to go against GOD laws,The sin is the crime against GOD,and you know bigger the authority bigger the punishment/reward.As long as forex trading concern it has been reviewing now a days by various Islamic schoolers across the world,and i hope there will solution of Islamic forex trading,just like Islamic banking.
May Allah lead us on right path.
Forex
Everything lies in your heart. The answer is there. You don't need to google or ask around and do research after research. Well this is my opinion anyway.
Is Forex halal or haram?
Ask your heart.
I remember in one of the hadith that was told to me, Our Prophet SAW said that goes something like this: "if you are doing something and if your heart tells you its wrong, then it is wrong. If your heart tells you it is right then it is right"
This is in fact a simple process in wanting to know if something that we are about to do is right or wrong. If there is even a 0.00001% doubt about something that you want to do, then leave it. Simple.
I've asked myself..is Forex halal or haram? My head says halal and i've given myself so many reasons why it is halal but part of my heart say theres something wrong with it. So do I go with it? NO.
Some people try hard to make it halal because they want it to be halal so they give 1001 reasons to say why it is halal and not haram. But that is not the right way.
Remember...shaytaan is always trying hard to make us do the wrong things. Quick $$, without breaking a sweat...seems like a dream..that is how evil entice us. May Allah leads us to the right path.
Allah knows best.
Superb
Hi There,
Your thoughts are superb.
I don't know who u r? but whatever you said is the same which is running in my mind since i thought to open the forex account. My mind says open it, it is Halaal but my heart says it is Haram. And so i started doing the research on it. Still confused but now i decided to listen to my heart.
Thanks,
Maqsood
All Actions have to be based upon shari'i evidence
salam all
The fundamental issue is that not what the heart tells a person, not how much benefit i will get from any form of transaction but is it Halal or Haram. As muslims we have to find out from those qualified to give the hukm if it is halal or haram for a Muslim to trade in such ways. If it is then go ahead, if it is not then fear Allah(swt) and keep far away.
I have to disagree with Serio about following your heart, head etc. If my heart says pork is halal as it has been washed with dettol will not make pork halal. For every action we need to find the islamic evidence and n ot follow our whims as whims will take a person to a very hot place (hell).
Anyway, May Allah swt enable us to follow the shariah rather than benefit and whim.
salam
Fahad
Forex seems illegal in Islam
I have been wondering why forex shall be permitted in Islam, agree to some extent with this version:
http://myblog.hazariba.com/Islamic+Legality+of+FOREX+business
Forex Halal or Haram
It is my pleasure to submit the following article written by the former Prime Minister of Malaysia on 21 Sep 2010 with regards to the subject. He has written this piece in his blog which ca be found at : http://chedet.co.cc/chedetblog/2010/09/four-trillion-dollars.html#more
FOUR TRILLION DOLLARS
By Dr. Mahathir Mohamad on September 21, 2010 1:50 PM
1. How much is 4 trillion dollars? Star Business picking a report from foreign source says it is the value of Germany's total output for one year.
2. I try to imagine the figure 4 trillion and wrote it down. It is 4,000,000,000,000. It is a lot, a great lot of money. But it is just the amount of dollars traded by the currency traders in just one day.
3. Yes, the currency traders are still at it, worldwide financial crisis notwithstanding.
4. Four trillion dollars worth of business in Germany in one year creates millions of jobs; spawns businesses big, medium and small; move millions of vehicles and trains, support a rich and highly developed Germany and the people of the country and much more.
5. But what does 4 trillion dollars in currency trade do? Apart from enriching a few players, nothing. No jobs are created, no businesses, big, medium or small spin off; no enhancement of international trade, no movements of goods or people, no sailing of ships or flights of aircraft, nothing.
6. 4 trillion a day and there are 365 days a year giving a total of 1,460 trillion or 1,460,000,000,000,000 in a year. So much money. But can we estimate how many of the earth's 6.5 billion people benefit?
7. But currency trading can also do damage to millions and millions of people, destroy whole countries, bankrupt businesses and banks and cause recessions. We know because it happened to us in 1997-98. We know because currency trading is one of the causes of the current crisis.
8. What kind of system is this that permits and protects a few people at the expense of millions of helpless people, their countries, their businesses, their societies and their well-being. Is this what capitalism and free trade is all about?
9. I saw Mike Moore's latest film, "Capitalism - A Love Story", and was appalled by the crudeness of people playing with money.
10. People free from financial problems are persuaded by banks to mortgage their fully paid up homes so that they can have money to invest and make more money. The investments fail and there was no money to redeem the mortgaged home. The banks took posession of the homes and the previous owners were forced to move out. But they had no money left and could not even rent a house, Thus a house-owner is rendered homeless.
11. This did not happen to one person. It happened to millions, The banks now own millions of houses. But nobody has enough money to buy them, nor can they borrow money to buy. Simply put the banks cannot get back the money they had lent and the banks fail. That is part of the story of the subprime loan failure which triggered the current crisis.
12. It is now nearly three years since the current crisis began. Every now and again the experts will claim that the crisis has bottomed out. But then news came that the crisis is still on.
13. Now there is talk of a double-dip, of the recession going on to another recession. This is very likely simply because nothing is being done to stop the activities which led to the crisis. As we can see currency trading is still going on, if anything, on a larger scale. Much of the bailout money, billions of dollars worth, has produced nothing worthwhile. The bankers and their people have used a goodly sum of the bailout money for hefty bonuses, the hedge funds are still active and so is presumably the "leveraging" and many of the gambling that lead to the crisis are still in place.
14. The leaders and their financial advisers in the great capitalist countries have learnt nothing. They continue to support the gambling and the manipulation. They are still influenced by their uncontrolled greed.
15. The worldwide recession will not end until Wall Street ceases to control whatever Government the United States and the United Kingdom may have.
Halal or Haram; don't forget the outcomes
Some of the people that currently using forex or something related to that field will said it was halal. They gain a lot of money. Remember that money can make us blind. Increasing of the money will increase the level of blindness, except for those who really did study and make a pros & cons about this money trade without got influenced by that big money.
and one of them that well aware of this thing is Dr. Mahathir from Malaysia. People may say that Dr. Mahathir can give his opinion about money trade is bad because he already has a lot of money. of course he is. Dr. Mahathir is a big-person with a big-mind. it's truth that currency trade give bad influence to the economy, to the world and to us, excluding for the player, but don't really think you will never got influence. Dr. Mahathir really thinking about the outcomes.
for those who just start want to know or use this forex, they stuck between halal & haram. you are still safe man, do study about the outcomes. don't stuck your mind between just halal & haram. There are still a lot of other way to seek for a big money. Use your mind wisely, free your heart.
"Today's comfort may lead to the future's misery"
Request for University of Medina article
Assalamu Alaikkum Brothers and Sisters,
Does anyone have the University of Medina article?
If yes, would you mind sending it to me?
I really would like to clarify as much as I can about the limits on Forex Trading in Islam.
Thanks in advance
Not sure if most people has seen this one but there is also another article that is quite useful.
"Islamic Forex Trading" by Dr. Mohammed Obaidullah (Can be Googled).
I found it sound in its reasoning and explanation.
Salam
Fatwa by The Islamic Fiqh Council of the Muslim World League
Assalamu alaikum,
Is Forex halal or Haram?
I am also interested in Forex, but i had to think objectively to understand wether it is halal or haram!
I have searched on several websites including the link posted by Mahmoud Alrejleh, which was in Arabic. I brought you the same article but this time in English and from the Original website 'Islam Question and Answer'.
Here are the brief findings of the conference of the Islamic Fiqh Council of the Muslim World League in Makkah, 2006:
The Committee believes that this transaction is not permissible according to sharee’ah for the following reasons:
Firstly: It involves obvious riba, which is represented by the addition to the amount of the loan which is called “paying fees for delaying the deal”. This is a kind of haraam riba. Allaah says (interpretation of the meaning):
Secondly: The agent stipulates that the customer must deal through him, which leads to combining both giving a loan for something in return and paying commission, which is akin to combining giving a loan and selling at the same time, which is forbidden in sharee’ah because the Messenger (peace and blessings of Allaah be upon him) said: “It is not permissible to give a loan and sell at the same time…” The hadeeth was narrated by Abu Dawood (3/384) and al-Tirmidhi (3/526), who said it is a hasan saheeh hadeeth. In this case he has benefited from his loan, and the fuqaha’ are unanimously agreed that every loan that brings a benefit is haraam riba.
Thirdly: Dealings that are done in this manner in the global markets usually involve many contracts that are haraam according to sharee’ah, such as:
1- Dealing in bonds, which comes under the heading of riba which is haraam. This was stated in a resolution of the Islamic Fiqh Council in Jeddah, no. 60, in its sixth session.
2- Dealing indiscriminately in company shares. The fourth statement of the Islamic Fiqh Council of the Muslim World League in its fourteenth session in 1415 AH stated that it is haraam to deal in the shares of companies whose main purposes are haraam, or some of their dealings involve riba.
3- Selling currencies is usually done without the hand to hand exchange which makes them permissible according to sharee’ah.
4- Dealing in options and futures. A resolution of the Islamic Fiqh Council in Jeddah no. (63), in its sixth session, stated that options are not permissible according to sharee’ah, because the object of dealing in these contracts is not money or services or a financial obligation which it is permissible to exchange. The same applies to futures and trading in indexes.
5- In some cases the agent is selling something that he does not possess, and selling what one does not possess is forbidden in sharee’ah.
Fourthly: This transaction involves economic harm to the parties involved, especially the customer (investor), and to the economy of the society in general, because it is based on borrowing to excess and taking risks. Such matters usually involve cheating, misleading people, rumours, hoarding, artificial inflation of prices and rapid and strong fluctuation of prices, with the aim of getting rich quickly and acquiring the savings of others in unlawful ways. Hence it comes under the heading of consuming people’s wealth unlawfully, in addition to diverting wealth in society from real, fruitful economic activity to this type of risk that has no economic advantage, and it may lead to severe economic turmoil that will cause great loss and harm in society.
However, I highly recommend that you read the whole article from:
http://islamqa.com/en/ref/106094/العملات
Best regards,
Supreme|*
Forex haram or hala
Salam brother,
I'm a professional invester and investment banker and muslim. Forex has nothing to do with haram and halal. First I read your article and was a bit confused today many people especially our brothers and sisters have no knowledge and rely on other. Forex is not haram on the basis that you buy a currency and sell it on a higher value then before. Many companies don't lend you money even when you buy units during the trades and spreads are just a cost of how much it cost you to enter the trader. However you have first to inform yourself about the business. And it is the BIGGEST MONEY FLLOWING SYSTEM with more than 1.8 trillion going through london everyday. I have done my masters and mba in this subject and we lack people who have influence and learn what is what. I highly recommend you inform yourself about forex companies I'm a trader myself and know my field just very good. It is not a GAMBLE if you know what you do because you calculate every move and please first learn and post you have irritated many brothers and sisters.
Wa Salam
Said
Dear Brother AsSalam o
Dear Brother AsSalam o alaikum
Regarding Forex trading can you please answer following questions
1. There are number of Plateforms (softwares) available for trading, each plateform has difference in individual currancy pair, for example EURUSD i noticed that @ same time two different platforms showing different values (index/exchange rate) Now where can i find the exact index
2 When i open a transaction does it actually happens ??? i mean i buy one currency and sell other one, but what happens in the backside of exchange, is this just a game of numbers or does it really happens in the market (what ever the platform i am using is)
3 My broker gives me margin of suppose 100000 USD, does my broker have enough money to transact for me in the market, at the mean time suppose there are 1000 traders, can my broker give loan to all of these traders or the same i had asked in question #02 is this just a game of numbers through platform
4 Why the system is charging SPREAD and why all pairs have different spread and moreover different platforms are offering different spread
please give me the answer and save my time
Thanks a lot
Re: Said Comment
It is quite evident brother, that as an investment banker your opinions on forex trading are on sided. You may have an MBA and Masters in Investment Banking, however,please do not forget that your educational attainemnt are not correlated with the Sharia law. These fatwas etc are best left upto islamic scholars who know what they are talking about.
hi
Hi dear i am so pleased by knowing you are highly learned brothers and i pray to GOD he gives make learned to every Muslims,OK you are master and MBA of this subject,as you have proper well trained brain i suggest you to study Islamic finance/banking/laws regarding business through valid sources.Because Islamic is all time great religion because Islam is made by GOD almighty who knows every thing what happened ,is happening and will happen.There must be way of Islamic forex trading,our schoolers have been studying on this subject and i hope there will some solution about which every Islamic schooler will agreed on.
There is good discussion on Islam and forex trading by Dr. Mohammad Obaidullah you can find as follows
http://www.philadelphia.edu.jo/courses/Markets/Files/Markets/a%20(47).pdf
Hi Said, regarding the
Hi Said, regarding the comment; Forex Trade haram or halal? I totally agree from your point of that it is a buy and sell situation just like goods and commodities. However the bit I am thinking about is why they call it spread bet!??? Is this just a street terminology for it. Awaiting your feedback. Samad
About Forex
Assalamu alaykum my brother!
I am very interested whether FOREX haram ot halal. Of course, I red what you posted here about FOREX, but the problem is that I couldn't understand the very meaning of "3- Selling currencies is usually done without the hand to hand exchange which makes them permissible according to sharee’ah."
Does it mean FOREX is Ok, and it is not forbidden in Islam?
I am sorry bro., I am not good in English, so sometimes I have problems of understanding ...
Please respond me !
Assalamu alaykum .
Because of $$ are we making halal what is clearly haram?
Dear brothers in Islam
let us not be blinded by the promise of riches via forex until we clearly make halal what is haram. Allah allowed trade...but what is forex? Is it of economic significance or very much like gambling, it is our quick way to riches? Forex exchanged for travel and cross border trade is permissable but surely not for speculative purposes! We take pleasure from winning in forex trades and beating the market. We feel good. Of what economic good is this action or feeling? Did Allah the Al Mighty want us all to just sit around and bet agst one another to see who is the better trader? I urge you to leave and not dabble in forex trading.
Think not just follow you heart
Wan, if I go to the Saudi Arabia, do I change Malaysian Ringgit to Saudi Riyal? That is foreign exchange. If I am from China and I go to India, do I change my Yuan to Rupee? That is foreign exchange. But why and what are the fundamentals that makes the values of currencies fluctuate? That you have to study yourself.
yes!! i agree with you, forex
yes!! i agree with you, forex is exchange or buy/selling money, not gambling.. we did make some effort to achieve rich.. we are the one who decide to profit or loss(nobody want to loss) , what i wanna say is, profit or loss, it is depend on your skill and strategy.. may allah bless our effort..
Halal or Haram? Let our knowledge decide.
Subhanallah,
Dear Wan, deciding whether halal or haram is really hard~ and we cannot say that all "bad looking" things are haraam just like that. It is by knowledge and more and more research. And in fact, that's what our muslim community are lacking of - it is curiosity.
I'm neutral on this issue, but not necessarily encourage Forex to all. But from what i know (from my lack of knowledge) that Islam encourages us to grab opportunity as long it is not violating the syariah. I also had took a sneak peek on the tadawulFX site and they claimed it is free of Riba. That's good.
However, whatever it is; in anything we decide - be rational. Do not let our poor judgement (+lack of knowledge) ruin our chances. Who knows - that thing is Halal and yet because we do not know that thing thoroughly- we make it Haraam. That's is also not good~
So, the best way is return to al-quran and as-Sunnah. They are the primary source of knowledge in Islam.
FOREX in Islam
Salam to all,
After spending enough time to understand FOREX and all the transactions involved in it, I’ve started looking for the right question to be asked about LEGALITY of FOREX in Islam.
I’ve seen too many questions phrased in wrong way to get the desired answer. The act is wrong in Islam. If we are looking for the right answer we should ask the right question and we’re not suppose to hide any piece of information.
Alhamdule’Allah, I found the right answer on my question about FOREX. Unfortunately, the answer is in Arabic and I’m not sure if everyone on this list would be able to read Arabic. Anyway, I listed the link below to read the answer for yourself. Even though, I’ll summarize the answer in few words:
FOREX in Islam is HARAM. No matter what we do, the system is built on (REBBA). For anyone who’s interested to talk about it, you can email me at malrejleh@msn.com.
http://arab.dailyforex.com/Forex_Fatwa/2009/04/_750_dailyforex-news_حكم_المتاجرة_في_العملات_بنظام_الفوركس_مع_دفع_رسوم_على_التبييت___فوركس_فتوى_العملات.aspx
Please share this with everyone you know.
Jazakum Allah Khair.
Forex Halal or haram
Salam' Aleykoum,
Thanks for you to share this, I do not understand or read Arabic, anyw way, you say the system is build on Riba, but check this out, if I put 100000 Euros, real money, I buy 100000 Euros of dollars, that I take profit, the broker take only the spread, plus with a STP broker you buy and sell actions are made straight on the inter-banker market so where is the interest riba,
Thanks for your answer,
Salam',
My Friend,It is not really
My Friend,It is not really Riba that makes it forbidden in Islam. The point is that you are buying and selling something that is not existing physically at all.
You take benefit of leverage and then buy the currencies of Hundred thousand Dollars at a cost of few hundred dollars, and then you sell this currency at higher values so where is the physical existence of this currency.
Forex is Just like a market where Price of Currencies is used only for buying and selling purpose, else there is no existance of currency.
Forex claims Flow of Currencies of Trillion Dollars, Do you believe Money of this value really exists in the Forex market???\
This is why Islam forbids trade of this kind...In Islam You can't trade any thing unless it exists physically... please try to understand...This is in benefit of social economy.
Who thinks there is no physical money involved in forex?
Assalam Alaekum Warahmathullah Wabarakaath,
Who said there is no physical money involved in the transaction? If a person who have the basic knowledge in forex will know that everyday at 2000hrs gmt the funds (real money) is deposited to the brokers bank at the rates of the transaction. If we talk about things physically doesn't exist then we shouldn't be using the internet for our trades, shopping etc... When you issue a cheque to a person where does the physical money exists? You are giving just a piece of paper writing an amount and sometimes a post dated cheque just hoping that when the date comes you'll be able to deposit that amount to your bank account. There are so many programs in internet where you get plenty of money for selling services and goods which you dont have but just referring the person who own the good. Like Google Ad sense, Amazon.com and there are many other online shops who provide you your own website with all the products available at there store so when you market your own website and customers buy the product from your website the product is not shipped by you as you dont have the product but the online store who provide your own online shop will ship the product. Is there any way that you can say it is haram? This is 21st century. If we look at the incidents by incidents during our beloved Prophet (SAW) we won't get a clear answer for these kinds of things. We have to study the whole process and understand the whole picture to say it halaal or haraam. If not the person who says haraam is also doing a sin.
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Assalamualaikum, I am self
Assalamualaikum,
I am self trader wannabe and really interested in FOREX. I've been invested in UPL company before. (company do trading for you)I do know it's not an Islamic account and use SPOTFX. Blinded by Money, i decided to try. I buy 3 lots in standard account. Others before me have gain profit and make money. But to my horror... Just after I Invest, trading went wrong. Until today my account in margin call position, I never even get to do a single withdrawal. The customer service in my area that incharged suddenly dissapear. Thats the first time.
2nd time is the same company but others group handle it. I've give it another shot. 1 lot. like before, tale told twice. People before me get profits n even their modal back. soon after i invest, the trading keep on loss... my account from 3000usd down to usd1800. and again not yet gain any profit.
Thats when i take the risk and trade on my own using the company platform. I manage to make profit and put it back to usd2800. But still as beginner i make wrong action. now my account in margin position and about to be close.
I've lost total RM40K investing in this company. I'know its not islamic @ halal and yet i ignored it. Allah protect me from making living out of wrong path. Now i learned my lesson. Twice!! so, i'm looking for a guide to learn as a self trader in islamic forex. Hope there's others that can give a hand.
alisa...
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