About Forex

salaam

i have found Halaal islamic forex at www.tadawulfx.com see the info below

ISLAMIC TRADING CONDITIONS

It is generally accepted that foreign exchange trading is permissible under Islamic law. Tadawul FX offers Islamic Trading conditions that are specifically tailored to clients with Muslim beliefs and that abide by Sharia law.

Islamic trading accounts are given freely to Muslim clients through quick and simple online live account opening via our secure application form. Clients can choose one of the three types of trading accounts offered by TADAWUL FX: MINI, Standard or Premium and enjoy the same first-class trading conditions as non Muslim clients in full adherence with their religious beliefs. Traders can further optimize the account by selecting the leverage and volume of their preference.

Tadawul FX offers Islamic forex trading accounts that are SWAP free and clients do not get charged interest for holding overnight positions. TDFX does not charge clients any additional fees or commission, nor widens the spreads at any time as a means to compensate for offering interest free accounts. Instead Tadawul FX maintains that all clients trade under fair and ethical trading conditions.

The Islamic Accounts offered have been created to be compliant to Islamic religion, specifically Sharia Law. To make it easy to understand with a simple example, the Sharia Law that is taken into account for Islamic Accounts is to give or receive and not to expect anything in return. This is why TDFX provides Islamic Accounts with no additional charge, hidden cost and most importantly no interest fees (SWAP Free).

slamic Forex Accounts – Islamic Forex Trading with TDFX

Islamic forex accounts are a specific category of forex trading accounts also known as interest free or swap free forex accounts.

Islamic forex trading accounts permit clients of Islamic religion to trade on interest free accounts (SWAP free or Roll Over fee) with no extra charge or penalty for the ability to trade in adherence with Islamic religious principles. Clients can open and close positions at any time within the Tadawul FX Metatrader 4 system without being constrained to holding them for a defined period.

Some common Islamic forex trading account conditions include:

No Riba Policy:
Clients benefiting from the Tadawul FX No Riba policy may hold positions for an undetermined time at the original opening price until they are closed and no charges will occur. Tadawul FX may revoke the ‘No Riba’ policy in case of abuse with a 48 hour notice by email.

Musharaka or commonly called joint venture:
This refers to a partnership or joint venture for a specific business with a profit motive, whereby the distribution of profits will be apportioned according to an agreed ratio. In the event of losses, both parties will share the losses on the basis of the agreed ratio.

Hibah (Gift or Donation): The term ‘hibah’ refers to gifts awarded voluntarily in return for a loan given. Tadawul FX will select different organizations in order to enable investors to donate a percentage of their profits to them.

At Tadawul FX, we offer clients the possibility to choose Islamic Forex Trading conditions for any of our Forex account types including Mini, Standard or Premium accounts, regardless of base currency or leverage offered. Islamic trading accounts may also be used for Managed forex accounts, as the only determining factor is the religion of the client that the trading account belongs to. TDFX enables its clients to trade with no swap charges and with no other additional charges, spread or hidden fees, ‘simply fair and ethical trading conditions for all’.

The Islamic Accounts offered by Tadawul FX are not the same as the Islamic Accounts generally offered by other Forex companies. They differ based on the fact that TDFX offers SWAP free accounts with no other additional charges, whereas most other companies transfer this fee by widening the spread on Islamic Accounts. In order to abide by Islamic religious beliefs, one must not pay interest but if that interest charge is transferred to a different type of fee, it is basically still a charge to cover the interest. This is also referred to as a SWAP fee in disguise. Tadawul FX does not do this, again demonstrating that TDFX offers fair and ethical trading conditions.

they also offer 1;1 leverages on the islamic account

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.

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.

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|*

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

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

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.

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

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

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?.

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

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

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.

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.