Is Forex Trading is Halal in Islam?

Masroor Alam

Forex Trading and Islam

 what Islam says on online forex trading

Is Forex Trading Allowed In Islam?

The major question arises that forex trading is allowed in Islamic law. While Islamic law allowed the exchange of currency in certain conditions. The major question arises that what are these conditions under which forex trading allowed according to Islamic law. now we will see the issues one by one that what the prophet Mohammad told us regarding this.

What our prophet says you can take only those things that you can give. like gold for gold, silver for silver, wheat for wheat, the date for date, etc. in this aspect, I think forex is not halal.

Is there such a thing as halal Forex trading? Is Forex Halal or Haram?

Forex Trading - Halal or Haram Fatwa

Usury is of course prohibited in Islam. That means any kind of deal or contract in which there is the involvement of interest (riba) is not allowed according to Islamic law. For a long period of time, retail forex brokers emulate the market practice of paying to the trader the interest differential between the two components of any currency pair whose position remains open overnight. 

Ultimately most of the forex brokers responded to market forces rather than becoming "Islamic Forex Brokers" and advising "Muslim Forex Accounts" Where Standard Interest Payments are not used. Now the question arises that how they did and how they maintained the profitability of their Operations. 

They did so by charging increased commissions in spot forex trades. And it became the characteristics of all Islamic Forex Brokers. Debatably it is just a camouflaged interest component according to this view, Forex trading is problematic in Islamic law.

The interesting problem eliminates any possibility of trading forex forward, involvement of interest element is always in these transactions.

However, “regular” spot Forex trading advising by Forex brokers, with no overnight interest payments, could clear the problem of interest (riba).

What Islam Says on Online Forex Trading

Having reduced to one of the issues of trading spot forex  


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