Since most bank accounts, Mutual Funds, and other financial instrumentsoperate under non-Islamic Financial systems, they have some income frominterest despite the invetor (or the fund managers) being keen on notto get any interest.The reason for interest creeping all over the place is that financialinstitutions will give interest on cash balances, often mandated bylocal law.

The internet has, and will continue to, revolutionize many aspects of oursociety, business and life. One area that the internet has excelled in is financial information and services.Think about it for a while:

• Information on stocks, quotes, corporate news, mutual funds, graphs, and more are now freely available, and in amazingly high quality on thousands of web sites!! Muslims can (and do) make use of the above information, but it is not customized to the needs of, nor targeted to, Muslims.
• Tens of brokers have opened shop on the web to a global audience (E*Trade, Datek, ...etc.), and many Muslims use them to buy and sell stocks. However, many give interest on cash balances.
• Hundreds of institutions have internet banking (many of them offer their products for worldwide customers such as Security First Network Bank, NetBank, ...etc.), and many Muslims use them. However the question of interest and alternative modes of financing is not addressed.
• Hundreds of lenders offer house loans (mortgage) to the public, including Muslims, but none offer products and services that cater for their needs.

I guess I could give more examples for other areas, such as insurance,business financing, venture capital, leasing, and more, but you getthe general picture.Now, it is time for credible Muslim financiers to get their act togetherand offer equivalent products and services to the 1.2 billion Muslimsworldwide using the internet as the global distribution channel.

In today's internet enabled market, there is no reason to go for the so calledBig Name "Full Service Brokers". These have been labelled as "Full Price Brokers" and justifiably so, since they tout their "research" and "advice" and make those services justify the high fees and commissions they charge per trade.

These big names include Paine Webber, Merrill Lynch, Charles Schwab, Prudential, Salomon Smith Barney and many more.

Commercial Insurance has been deemed unacceptable under IslamicSharia law by many scholars. This includes property insurance (house,car), life insurance, and health insurance.However, many scholars have allowed car and home insurance wheneverthere is no Islamically accepted alternative available, and more sowhen the local law requires one to be insured.Here are some Fatwas on the ruling on Insurance under Islamic Law:

• Islam Online Fatwa 1

Question:: I am currently working for a bank and have been told many conflicting stories about this act being allowed or prohibited in Islam and am really confused over the issue as this job is also the my main source of income?Answer: Answered by Sheikh Yusuf Talal DeLorenzoThe same question was asked of Shaykh Muhammad al Ghazali, may Allah bless his soul, in my presence over twenty years ago. The answer he gave was the answer given by his teacher, Shaykh Hasan al Banna, to someone who had asked the same question.

Question::I have a question regarding buying stocks for couple of months and then sell it. Is that considered to be day trading and prohibited or (not)!Thanks.Answer: Answered by Sheikh Yusuf Talal DeLorenzoIn answer to your question, it may be necessary to first explain the stance on day-trading I believe to be the one most consistent with the teachings of the Shariah.To begin with, equity investing offers Muslims the opportunity to profit, not by lending at a guaranteed rate of return, but by sharing in ownership, and thus commiting to share in the risks associated with ownership.