Wed, 2006/02/22 - 09:36 by insighty

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

Investment

Comments

Visitor (not verified)

Tue, 2009/05/26 - 05:22

Assalaumagalaikum!

Dear brother, as I see you trade on Forex. I do too. I would like to set contact with musis brother in Forx trading for mutual cooperation. Let's contact to share expertie and knowledge!
If you are interested please write to:
maxatkur@mail.ru or maxatkur83@yahoo.com
skype: magripa59

Best regards,
Maxat

shaik (not verified)

Mon, 2010/01/25 - 04:15

Assalamu alaikum,

i would like to know if forex trading is allowed in Islam or not.
kindly mail me the relevant details for my clarification.

Thanks & Regards

Shaik.

Sufianpr (not verified)

Wed, 2010/09/29 - 18:11

Please e-mail me and explain to me how Spot Forex can be halal? Thank u email me at sheikhmahmudsufian@gmail.com

mohd sharief (not verified)

Fri, 2010/11/12 - 10:10

please email the fatwa regarding forex trading halaal alogwith genuine evidences
jazakallah and comments of taqiosmani

Samikhan (not verified)

Sat, 2012/06/16 - 07:25

plz send your email

Ajaz.attar (not verified)

Fri, 2008/07/04 - 06:45

assalam alaikum ,
DEAR BROTHER
i would like to know whether investing in maxim capitals
is halaal, are they offering real profit or interest? on our investment ,please reply as i am confused in this regard ,and i am really looking forward in investing in maxim capitals,please reply

thanks & regards
Ajaz.attar

Visitor (not verified)

Mon, 2008/09/01 - 07:30

I anyone has any information regarding this (i.e. legitimate fatwas) as well as opening a halal trading account please email me.

Jazakallah Khair

Feroz Ashraf

Noor Azman (not verified)

Thu, 2008/09/11 - 00:40

Salam to all muslim friends,

Most ulama making statement with believe that 'traders' really 'trade' in forex currency market. To make matter worst forex is traded without exchange.
I wish to highlight to all muslim 'traders' out there about bucket shop. Bucket shop being around for almost 100 years. Most ulama does not aware about bucket shop. Bucket shop nowadays are called 'market maker'. Your position are not executed and never the leave the hard disk of your broker PC. Your position is not entering the forex market and what do we call that ?? That is not a trade; that is GAMBLING.
Forex is 'institutional'. To learn more about forex broker and structure go to this link
http://www.forexfactory.com/showthread.php?t=7484
The article is very long but try to read the thread thoroughly and you would know small amount of money never make it's way into forex market. So leverage and free swap is just another hoax.

Visitor (not verified)

Thu, 2009/12/17 - 19:11

First, pls take note that Rasulullah had reminded us when a trade occurs btwn 2 men, the buyer must pay in full to the seller without any hedging whatsoever. The buyer may buy it on credit terms, but not on hedging terms. This is to avoid unjust trading.Let me give u an example. You see, a man cant simply buy an item thats worth USD100 with only having to pay USD1 for it. It would be unjust to the seller. By that, can u see that u are leveraging your USD1 by 1:100?
Some ppl would say, leverage is just like a loan. Broker gives us an interest free loan to do trading. As tempting as it may sound, PLEASE TAKE NOTE THAT LEVERAGE IS NOT A LOAN. A BROKER SIMPLY LEVERAGE YOUR MONEY WITHOUT THEMSELVES HAVING ANY MONEY AT ALL TO BACK UP YOUR MONEY.
WHAT MAKES YOU THINK, WHEN YOU PUT USD10 INTO YOUR BROKER’S ACCOUNT, THEY WOULD LEND YOU ANOTHER USD9,990 INTEREST FREE SO THAT YOU COULD BUY THE USD10,000 CONTRACT? I KNOW THAT IS THE MINIMUM CONTRACT AVAILABLE FOR 0.1 LOT.

If a trade is unjust to any party involved in a trading, Islam will reject it bcoz Islam is all about justice. Having said that, in order to make a forex trading Halal, you must have a swap-free(overnight charge) condition and YOU MUST NOT USE LEVERAGE AT ALL to avoid the unjust trading.
Sometimes my brothers sisters, you do not need a scholar to clarify on everything. You do not have to have ask clarification on justice from Scholars of University of Medina. We could judge by ourselves wether its wrong or not.
WE CAN ONLY USE 1:1 LEVERAGE TRADING CONDITION. AND TAKE NOTE THAT LEVERAGE IS NOT A LOAN. The broker would simply leverage your money without them having any money at all to back it up. THIS IS NOT PERMISSIBLE IN ISLAM. When you have this 2 trading conditions, your account will be halal and any money you profit from it will be halal InshaAllah.

Visitor (not verified)

Fri, 2010/04/09 - 05:21

Believe it or not almost every dealings in financial market in this current world are working using leverage method, even to purchase a non-riba (islamic) house mortgage is using a "leverage" mechanism that is similar to shareholder ownership that is easily comprehend in an equity (stock) of a company.. think of stock markets.

This leveraging actually is used by many Central banks in many countries, I know US is one of them. Google up 'Fractional Reserve Banking', or http://en.wikipedia.org/wiki/Fractional-reserve_banking
This methodology is used widespread across the globe in a lot of countries.

Besides, have you think about the facts that many countries, including muslim majority populated countries, that requires funds injection from IMF or World Bank. To me, they actually needed leverage through capital help from them. IMF & World Bank definitely a riba-based finance institutions. However, Would a country that requires their help will make all its citizens inheriting sins by association, simply because their government needs capital help from riba-based international financial institutions.

Frankly, in my observation, about all these fiqh regarding not a clear-cut financial dealings needs to be revive or reexaminie by fuqaha who actually with working substantial knowledge + experience (specialist) in financial matter. There are issues in majority of fiqh rulings.

I heard from a professor of Islamic Law in california in his research, that back in the glory days of Islamic civiliaztion some of the scholars were experts in commercial business dealings thus creativity in Islamic jurisprudence were in prosperity. Therefore, you can get different rulings from Madhabs think of Imam Shafi'i or Imam Hanbali.

As good Muslims we must extra cautious with playing as a person who feel he/she can define what is halal & haram dealings, when it's ultimately only Allah who can define and makes effect of what is lawful and unlawful properly. Otherwise, we might fall into Satan's treachery, or human's fallible nature, into transforming what Allah has made lawful into unlawful. I remembered a case where Allah questioned the Prophet (saw) why would the prophet made unlawful what God has made lawful.

In my research I've find that many conclusions by so-called Islamic scholars does not provide solid reasons or logics, that leads me to assume that they do not really knows the working-reality of business succesfuly yet they dare to call it halal or haram, (not levels in between). I am a student of capital markets, and I've asked a couple islamic finance experts about desktop trading forex / commodity and both of them would label it as Haram yet their reasoning are weak. At the very least their reasons were not based in the Qur'an, or sometimes they would super-impose their personal opinion onto a hadeeth of the Prophet (s.a.w).

For example, I am pretty sure that there are many Muslims across the globe would think & feel eerie to think that being extremely rich and righetous Muslim is a good match. As if, in order to be muslims we've to live in a broke/poor state of finance. This sort of reasoning totally exclude the facts that the Sahabah such as Khadija, Uthman, Abu Bakr, or people such as Imam Shafi'i were wealthy people who more likely than not would go to Paradise, due to their deeds with their abundance of wealth.

However, I've found this article who I think that the author knows the reality of the business and pro-progression in Islamic jurisprudence, instead of pro-preserving Islamic jurisprudence heritage and to defend it in "half-blind" manner. As a matter of fact I think when one is not sure they would incline to label as haram.
http://www.kantakji.com/fiqh/Files/Markets/Fiqhi%20Issues%20in%20Commodity%20Futures%20by%20Mohammad%20Hashim%20Kamali.doc

If there are companies who tries to make capital markets accessible for common people, not the ultra rich class only (extremely wealthy people or financial institutions), why not cherish them. I mean, why would they help to make it exclusive for the big boys only, as if they're inherently a slave to the human-made system. If they're not Islamic politically correct, why do not people who likes to label this or that haram easily are helping them to make it Islamicaly correct instead.

Selling (futures market) and Short-Selling (equities market) are actually needed in the markets in order to keep supply & demand mechanism to function properly. The action of some lawmaker in US for making short-selling banned for few weeks in 2008/2009 were basically to protect their interests in helping financial companies at the time, so that their plan to try to fix the banking/financing systems back up and running.

Anyone who thinks that one can buy a thing (car, house, camel, jewelry, stock, currency, etc.) and thinks/believes the price will always go up is delusional because in reality that's just not the world works. Even during the lifetime of the Prophet, supply & demand has its role in public trades. Nevertheless, many common people are victim of bubble, such the Housing Bubble in US and Dubai in recent years.

Now, in my opinion, if a victim of bubble could easily stated haram this or halal that because they has qualified knowledge or self-claimed knowledgeable... they better get reality check their faith in Islam two or three more times. It seems like it's a case of prejudice, or biased opinions because of negative past experience.
I mean, they're not Allah (swt) the true owner of all meanings in every single thing in Qur'an, nor do these people were the Prophet (s.a.w) where almost all reasons that makes articles of sharia is derived from.

Aliu Lawal (not verified)

Sat, 2008/09/27 - 16:34

Assalam alaekum,

Please forward the submission of the University of Medina on FOREX trading to me. I am planning to go live and I before I do that, I would like to know its implication from islamic view point.

Therefore, I would appreciate it if the submission of the University of Medina is forwarded to me. My email is:tolokesusi@yahoo.co.uk.

Thank you.

Ramadhan Kareem and id-moubarak

Ma'salama

A.B. Lawal
Lagos, Nigeria

Abdul azeez .O ... (not verified)

Wed, 2009/03/04 - 14:35

I'm Postgraduate Student at the Kulliyyah of Law International Islamic University, Malaysia. I need to read and digest the reply for my research purpose.
Ma Salaam.

Visitor (not verified)

Fri, 2008/10/17 - 17:54

If you have a copy of the FATWA from the university of Medina, Could you pease send it to me at mis019@gmail.com

From kazakhstan (not verified)

Thu, 2008/11/06 - 06:31

Assalam Oalikum to All !!!))

I just find the new muslim friend around the World

I also interested in Islamic Finance and develop the Halal industry in Kazakhstan

Barak Allahu Fihkya

Shahrin (not verified)

Thu, 2010/07/08 - 01:41

Assalamualaikum W.B.T,
My name is Shahrin from Malaysia. I would to build networking to halal industry around the world. Did you indentified the needs of your local people in Kazastan.
Because here, myself can provide or supply any halal products(malaysian halal food,etc). If you sound got demand, please do not hesitate to email me at shahrin_khairuddin@yahoo.com.my

Thank you. Wasaalamm.

Abdulgafar (not verified)

Wed, 2008/11/26 - 06:50

Salam alayk. Pls i want to fully clarify whether forex trading is halal in islam or not. I once traded real with 150 dollars and lost all but 2 dollars. thanks.

Visitor (not verified)

Fri, 2010/09/03 - 05:28

Assalamu Alaikkum Brothers and Sisters

plz asked these question about management Ethics

Q;one

the conventional approach defines Ethics as a set of moral principles that differentiate right from wrong mainly concern itself with customer, employees,the industry,business socaity and the government while islam concerns itself with moralty issues. How do you compromise the two view?
(your answer should not be less than 1050 words Email: cabdirashiidnewname@hotmail.com

Q:two

in the islamic Ethical system good intention followed by good actions are considered as acts of worship halal intentions cannot make haram action halal.
dicuss and cantrast this with the conequential theories.

Qthree

Good Business is good ethics"and"Good ethics is good business Discuss these two statement

Walid K (not verified)

Tue, 2008/12/16 - 09:11


hi,
can you please email me the detail of fatwa research or the University Of Medina Article/Fatwa on currency exchange/trading about forex trading. i am doing forex trading and want to make sure it is within islamic limits.

My email address is: walid_kassar@hotmail.com

Best Regards, 

 

Kashaf (not verified)

Thu, 2008/12/18 - 11:36

ASA

Can someone please email me the forex fatwa from university of madina to my email address, kash_crawley@hotmail.com

thanks

 

kash

Spammer (not verified)

Tue, 2009/02/03 - 07:31

STOP posting you email address on public domain unless you like going through those spam mails.

NexCons

Thu, 2009/03/05 - 10:49

Dear Brother & Sisters,

Aslam-o-alaikum,

This is a very old (and let me say a dead) topic now. Enough has already been said on it. Forex is allowed in Islam provided you do some safety measures. Fortunately, every forex broker is now offering Islamic Forex trading so this is no issue anymore.

Basically before jumping to conclusion; It's a matter of consideration that how well informed we are about forex?

For example, I have over 13 years of experience in forex. I think (rightly or wrongly) that I can answer all the questions in favour of Forex in Islam. However, I don't want to because I am not the authority.

Therefore, please check the URL for your expert analysis:

http://vlib.unitarklj1.edu.my/htm/islamforex.htm

With due respect, I have more points to say in favour of forex in Islam but anyway..

Allah Hafiz

Visitor (not verified)

Tue, 2009/05/12 - 09:08

Salaamu alaikum All!!

I have being looking at forex trading recently and have the same conclusion that FOREX should be Halal under certain circumstances. What those are? I am still researching.

IF ANYONE can direct me to an islamic trading facility for forex - i would be very much appreciated and my dua's are with you. A good article on the forex practises from a sharia point of view would be very good also.

-----

I do feel however that we need to approach this topic somewhat in the same way that we appraoch Halal meat. (what did I say????) Yes, absolutely. How far do we go to check? Do we need to know the mother of the cow we eat? Or the farmer and determine him for honesty? Expose the intestinal tract and examine it's contents to understand what the animal was eating? Was it vegetation only? The answer is NO. What we do have to invlove ourselves with is finding out FOR OURSELVES by speaking to those we trust in knowledge matters.

Allaah subhaana wa ta'ala is taking care of our risq. If he is in protection of it, i need not worry. Who better to protect it that the lord of the world's?

If we knew that the probability of loosing our money once invested was 50% - would we do it? NO! Of course not. This would be too much of an investment gamble.

Similarly, if it is a 50/50 chance of something being HARAM should we do it? NO! But how many of us GAMBLE our eeman away? But, we would NEVER gamble our money with such odds on an investment. Point in case.

If it is POSSIBLE that the current FOREX methods involves interest for example then by that token it is POSSIBLE that we are delcaring WAR on ALLAAH and his MESSENGER. Am i being unreasonable? Who is confident of there chances?

Let us MAKE SURE and be REWARDED with good insha ALlaah. AFter all, it's not what happens in this life that counts but the OUTCOME of the next.

Visitor (not verified)

Wed, 2009/05/20 - 16:14

Hi,

I am new to FOREX trading. I am due to take a course in a few weeks and was wondering if you had any tips that could help me minimise any losses and be more successful.

I intend to trade FOREX to generate a second income and would appreciate as much information as possible for a total beginner.

I also appreciate you must have more important engagements but would really appreciate some advice.

By advice I mean general advice on FOREX trading not the halalness or haramness of it.

I look forward to hearing from you.

rashed (not verified)

Mon, 2010/09/13 - 15:21

Always keep it simple ,
Understanding chart is an art not science ,
Check sacha tarcovsky s articles at ezine article

Bets of luck

Visitor (not verified)

Tue, 2009/05/26 - 05:20

Assalaumagalaikum Allah Hafiz!

Dear brother, as I see you trade on Forex. I do too. I would like to set contact with musis brother in Forx trading for mutual cooperation. Let's contact to share expertie and knowledge!
If you are interested please write to:
maxatkur@mail.ru or maxatkur83@yahoo.com
skype: magripa59

Best regards,
Maxat

Mati Ur Rehman (not verified)

Sat, 2009/03/07 - 04:00

Asalam u Alikum
Dear Brothers,
i am practising DEMO from 2 years..now i am going to open a live acount to trade forex.
but i am confuse dat forex trading is halal or haram.
i asked from many peopls and molana,s about this matter..but nobody can give me satisfy answer..if anybody have any attentic article about forex trading is haram or halal plz send me on this ID
probability143@yahoo.com
i shall be very thankful to u people
Thx And regards

Visitor (not verified)

Wed, 2009/03/25 - 07:29

Salam,

Can anybody email me reserach on Islamic FX and the medina article please.

Jk

Ws

Azim

Usman Haider (not verified)

Wed, 2009/04/08 - 22:13

Aslam-u-Alykum, I need a solution of a problem. I wanna know about Forex trade ( or currency trade). I seen some forum on internet which say that Forex trading is haram.
As you know, according to my knowledge, business of share is allowed in Islam as it is based on profit and loss. So, the same thing is happening with forex trade which is based on profit and loss, and also its rates goes up and down depending on selling in international exchange market. So, we cannot compare it as some website say it a gambling trade and is called harm.
I will be very thankful if anybody answer me in right direction.

Rashad Hussain (not verified)

Tue, 2009/04/28 - 18:33

I would highly appreciate it if someone can send me these articles / madina fatwa and halal certificates to me, I am very keen but cannot find this anywhere

Jazakallah Kher

Rashad

Jek (not verified)

Fri, 2009/05/15 - 04:49

Assalamualaikum..
Can anyone please email me the detail of fatwa research or the University Of Medina Article/Fatwa on currency exchange/trading about forex trading. i am doing forex trading and want to make sure it is within islamic limits.

My email address is: myemel4 (a) gmail.com

Salam
jek

Adam Khalifa (not verified)

Wed, 2009/05/27 - 11:37

Salams,

I have done some investigation in to this. There are only two sound islamic forex providers I could find.

1. TADAWUL FX
2. ACM > but you will need to ask them to arrange an islamic account, based in dubai.

It takes care of all the issue(s) of leverage, riba etc.

WS
Adam

Visitor (not verified)

Fri, 2009/08/07 - 11:06

salaam

Let me get this right in basic terms, what do so called halal platforms such as AVAfx,TADAWUL and ACM offer that is different to a non halal platform.

Is it simply the interest charged on positions that have been left open after trading hours?

And what about the leverage, is it because essentially its a loan.

thanks for your time

Umar

Riyas Nizar (not verified)

Fri, 2009/07/03 - 12:21

Assalamu Alaikum Brothers,
I too need clarification about the fatwa's on forex trading. Please do send me details on this to riyasnizar@gmail.com.

Jazakallah,
Riyas

Aftab Ahmad (not verified)

Mon, 2009/07/27 - 02:52

Hi Sister/Brothers,
Can someone send me a fatwa from any Mutaqi person regarding FX is Halal or Haram so i after that i could start fx trading with various firm accross the world. My email id is as below:

aftab_ahmad99@hotmail.com

Ahmad Firdaus (not verified)

Thu, 2009/07/30 - 10:25

Assalamualaikum,

I am Firdaus from Malaysia. I am very keen to know how the Forex status in Islam. Does is haram? Please let me know.

Proud To be Muslim!
Firdaus

arefier@hotmail.com

Visitor (not verified)

Fri, 2010/11/05 - 17:05

forex is not haram. do some research. people who fail in forex is labeling forex as haram. god gave us brains to think. islam is appropriate to in generation.

Syaz (not verified)

Sun, 2009/08/02 - 07:50

Forex totally Halal except if there is swap on the broker.

do email/chat for any help at syaz268@hotmail.com

Syaz (not verified)

Tue, 2009/08/04 - 06:39

Forex totally halal only with margin and leverage of 1:1
and broker with no swap or interest at all.

Any help with forex just add or email
forex-advisor@live.com

Mohsin (not verified)

Wed, 2009/08/05 - 16:35

Hi,

We are offering Islamic Forex Accounts and Socially responsible investment opportunities.

Visit us at www.fxtrading.com
or contact me directly at mohsin@fxtrading.com

Muhammad Rizwan (not verified)

Thu, 2009/09/24 - 07:07

Assalam o alykum

Please can you send me the fatwa of forex trading were it states if its halal or haram.
my email is mrizwan007uk@yahoo.com

TraderJohn (not verified)

Thu, 2009/10/15 - 12:44

Salam,

I m conducting a research about traders including islamic traders regarding their trading behavior, choice of brokerage etc.

It is a very short survey of about 20 question. It will take less than 5 min of your prescious time. Your help would me much appreciated!

Here is the link (please copy paste it)
http://FreeOnlineSurveys.com/rendersurvey.asp?sid=ryviidwr2zffk9h654255

thanks in advance

john

Visitor (not verified)

Fri, 2009/11/20 - 01:51

Assalamualaikum wrb.
Please take a look at the following website. I have tried my best to answer you.. But out of concern, if there is still any concerns regarding the Forex and its market, then kindly list it out at the forum with your subject head, Attn: Bhai.
Thank you.

http://monzer.kahf.com/fatawa/2006/FATAWA_2006_MONEY_EXCHANGE_AND_SARF.pdf

Visitor (not verified)

Fri, 2009/11/20 - 02:10

http://www.islamonline.net/discussione/thread.jspa?threadID=22804&tstart=0

Visitor (not verified)

Sat, 2009/12/19 - 12:36

Salam to all,
besides leverage and interset received and/or charged by the broker, there are other dimensions and aspects to consider. E.g. short-selling, the very concept of speculation, banks and central banks being primary market drivers and participants, etc.

here is a short piece that may highlight some of the above aspects. (from: http://www.albalagh.net/qa/Forex_currency_trading.shtml)

Forex Currency Trading

By Mufti Muhammad Taqi Usmani
Posted: 11 Zul Qa'Dah 1424, 22 November 2007

--------------------------------------------------------------------------------
Q.) Is Forex Currency Trading halal? I have attached a document detailing the aspects of the business.

--------------------------------------------------------------------------------

A.) I went throught the papers sent by you. I am of the opinion that these transactions are not compliant with Shariah. The very condition that you cannot take delivery of the purchased currency makes it impermissible. Morever, there are other elements according to my knowledge that makes this trade unlawful in Shariah, such as, forward sales, short sales etc. This is in addition to the fact that the currencies are originally a medium of exchange and should only be exchanged for personal use in different countries. To make them a tradable commodity only for earning a profit is also against the basic philosophy of Islamic economics. I would therefore not advise you to indulge in this trade.

Mahmud (not verified)

Thu, 2011/09/29 - 09:11

Assalamu Alaikum Brother,

Zazaak Allah Khair. Exactly what I wanted to know:

"To make them a tradable commodity only for earning a profit is also against the basic philosophy of Islamic economics."

I have always been keen to invest in Forex market, however I had a doubt about the fact that the spread between two currencies which we call profit is permissible. Your answer gave me a clear idea about it. Gold for gold, silver for silver and they must be of equal amount, this is what our beloved Prophet (PBUH) had taught us.

Now how about the international commodity market? I am sure there we trade gold or wheat for money. Let assume there is no involvement of any loan or delay fee; just pure transaction buy and sell, however even though I do not possess them in my premises or I have never seen them in real... will that be permissible?

Visitor (not verified)

Sat, 2009/12/26 - 07:00

1st.World Islam know that Forex instrument , can be halal and can be haram.

Because of this instrument can be Halal, without Margin and leverage. Islam world should have provides the Halal Forex Instrument. And some broker intend to do that.

Muslim world should HAVE HALAL FOREX for each muslim country and after We have the Halal Forex, then we can talk about Halal and Haram in FOREX .

Why?.

Allah gave us something in two group of everything Halal and Haram.
eg. Such as Nikah and Zina.

But Allah always fair to people when Allah provide or create it first then Hukm will come after .

NOW our Muslim country or Caliph should provided it first , Halal Forex, then we can talk about HALAL HARAM.

If u talk about syubhat. Your money at your pocket always different time to time because, the measurement come from where it refers to.and u are the user. because of i can get the profit by my Knowledge, I will do that.

its Fitrah. Oil, Gold and the rest. My country money will no value, If it not refer to reference based money such as dollar.because the money always change every minutes.

Visitor (not verified)

Sun, 2009/12/27 - 20:13

Leverage

Think about actual leverage.Correct if I am wrong!

Some people tell that Leverage is borrowing money from IB. It is?

From my view. IB did not lend trader's money. Reason why?

1. Who want to lend money to you for loosing money? especially new comer and beginner. Is the broker simply lend you eg USD900 and they lost money without getting back from you?

From my view, One thing happen to my country is . Last time, when people wants to buy share 1 lot equivalent to USD 1000. But because of not many people can by the the shared with the exact cost, so our government reduce the share to smaller lot, then the lot changed,
1 lot share are equal to Usd 200. then more people can buy the Share.

From my view It happen to leverage. When people don't have enough money to buy the currency. The financial create a system to reduce for people to by the currency at lower rate.

That's why you can buy and sell currency in small changed.

How it works is ?

Why people can buy at cost USD 10. You still used your actual money the USD 10 not USD 100 by borrowing from broker from they said, That is system, The system let you buy more lot using they call it Micro account or mini account, which you cannot buy within your volume money.if change rate are bigger.So the system create with Usd 10 you can buy the lot.

2. Used of Margin

When people do Forex Business. They must take profit in term and condition. because they provide the facilities. So one of the term condition, To manage the Software and system, To pay electricity bill and worker. Then,They must charge trader for service and take profit in terms that we agreed. You used their system and you must pay for it.

Eg.When you use Software, For the process take part because buy using the software they charges you eg.2 pips. If you agree, you can use it, If not don't use, Are they Cheating you? So that is the term

If you say Haram because it related to Riba,then you can't be a tourist or going to Mekah to do hajj? why because Bank always charges the interest when you make money changer, because your country money not valid at Mekah.So you used Rial for the changed. Then you need to changed back. How long you use is? not 1 day , then the money you used more then a day, may be few day, then is it different if you say Forex can do change for a day only to make it Halal. Then how about the money you keep more a day when you at Mekah?

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