- Is Forex Trading Gambling In Islam History
- Is Forex Trading Gambling In Islam Symbols
- Is Forex Trading Gambling In Islam In America
- Is Forex Trading Gambling In Islam World
Therefore, gambling is the first Haram element of Forex trading. Most Forex traders do not see themselves as gambling when they are trading. Many of these people are business people or industry professionals outside of trading and have high power job roles. When it comes to trading however, the actions that most traders take are far away from being professional and lean more on the side of a gambling.
Halal Trading
Is Forex Halal or Haram? We Have Done The Research For You
Is Forex Halal or Haram?
It’s difficult to answer but you do not need to worry, we have done the research and would be happy to make available our results. We are a group of religious people, just like you, and we have done deep research to make sure that not we nor any Muslim trader fails to follow the laws of the saint Muhammad, our beloved prophet.
Talking about the Forex, Islamic authorities agree that there is no doubt that the exchange of currency (in some conditions) is permitted in Islamic laws. If you are also confused about Forex trading in particular, we will help resolving the differences between what is right and what is wrong, what is Haram trading which is strictly forbidden, and what is considered Halal trading – which is welcome and allowed..
To summarize it all for you, and present an immediate bottom line: everything in which you are not gambling and you know your end goals is Haram. Everything related to gambling and trying to forecast results on a “wish” basis – is Haram and forbidden by Islamic laws. You can say that there is a thin line between gambling and trading but we will clear the clouds for you to understand the differences. If you are putting your money without doing any research or knowledge, wishing a great results for you which is not connected to real value and only rely on luck – it is called gambling and it is Haram and forbidden.
If you are analyze the market, calculate trades, examine the entire process and treat it as a job rather than a gambling game, it’s Halal for you. If you understand what exactly you are doing and when and how to invest money into the Forex market, this platform is Halal according to Islamic laws.
To be more clear about how Forex is Halal, here are a few points that will help you decide whatever you are doing is Halal or Haram. Check out these sacred principles of Islam:
- In Islam, gambling is strictly prohibited. But, it’s not wrong if you are treating Forex trading as a job. It’s not counted as Haram because you are sincerely pursuing your work and for providing food and shelter for yourself and family.
- Taking any kind of shortcut that will bring you unjustifiable profits without doing any work is Haram in Islam. But In Forex trading, you become a member of the organization by owning a part of it – should it be a stock, a currency or a company share.
- Riba is strictly prohibited in Islam. Riba is an unjustified profit or interest in borrowing or lending money as a condition imposed by the lender or voluntarily by the borrower. Riba is considered as a Haram and strictly prohibited in Islam. Holding a stock’s position overnight by paying charges comes under Haram and it’s known as swapping. That is the reason why we help you with opening a swap-free account. We connect you with the best Halal traders all around the world that will assure you that you are covered from all mistakes.
Is Day Trading Haram or Halal?
With more than one-fourth of the world’s population is Muslim, an obvious question arises in mind – should a day trading be considered as Halal or Haram? Our Islamic religion governs various precious principles to decide whether a thing is Halal or Haram.
According to pious Islamic rules, when you are buying shares or trading in Forex (foreign exchange of currencies), you are owning a piece of business or a coin. If you are just receiving a portion of undefined and high interest from some source that you can’t justify, that comes under Haram.
But when it comes to day trading, it’s easy to look at this process by adhering to our Islamic principles. When you open a Forex account or buy stocks from a company, no you are an official member of that organization.
And, when you are a member of an organization, you are sincerely following your job and this is allowed in Islamic principles. To make this understand more quickly, consider the following example:
Everything is Haram if you are doing something that you don’t know if it’s gambling or not. For example, if you are investing your money into something to get a good commission without any end goal or do work, that is Haram.
Forex trading comes under the pious principles of Islam that thousands of super-religious Muslims including us are doing. We have helped hundreds of traders by connecting them with Halal brokers across the world.
But with us, we connect you with the best Halal brokers around the world that will help you with Forex trading. If you are trading with a Halal Forex broker, they will help you create an Islamic Forex trading account that is truely permitted in Islam.
We Will Help You Open a Halal Trading Account:
At Halal trading brokers, we connect you with the best Halal brokers across the world. We are on a continuous search for the best Islamic Halal Forex brokers who strictly follow the Islamic rules.
If you are new to Forex and looking for an Islamic Trading Account, we have got you covered. We are a super-religious group of people that helps Muslims not to fail in the pious Islamic principles while trading in Forex.
You can anytime use the contact form and get in touch with us. We will connect you with a professional Halal Forex trader in the entire world. So, you don’t have to worry about if the broker is Halal or Haram. We will only find the professional Halal broker for your Forex trading.
If you are thinking about why you should invest your money in Forex, we can explain. As the entire world is moving towards more digital trends, the investment platforms are also changing. In this digital era, Forex is among the most profitable and legitimate way of diversifying your portfolio without failing in Islamic rules.
If you invest your money into a company that deals with alcohol, tourism, night clubs or riba-based bank bonds and shares, these all things are Haram If you ever put your money into any one of these things, you will fail to follow Islamic rules.
But when we look at Forex trading, it’s completely a different thing and not related to any above commodity. When you are investing in Forex, you are putting your money into a company as a partner.
We Work Only Only With Professional Halal Trading Brokers
Is Forex Trading Gambling In Islam History
From above, we have understood that Forex is a Halal and not Haram. It’s like doing business and earning money from it by working for that. If you are seeking the best Halal traders, we are here to help.
We review different brokers all around the world to provide you quality trading services. We are also a group of super-religious trading people who wants to help Muslims to trade in Forex with best Halal brokers. If you go online and search for Halal Forex traders, you will get overwhelmed by the results.
Many brokers claim to be a Halal but who knows if they are following Islamic rules or not. We make this process simplified for you. We are a team of professional traders that review traders online and only contact you with actual professional Halal brokers. It’s better not to search for Halal brokers if you are not sure if they are halal or falls under Haram.
We have done deep research on ourselves and follow strict Islamic rules to make sure to cover you from any kind of scam. We review every broker with all Halal rules to make sure they are on the right side and not doing anything wrong.
From the above understandings, it’s clear that the Forex trading falls under Halal and it’s permitted by Islamic laws. You don’t have to think twice about Forex, we have got you covered by connecting you with professionals.
You just need to get in touch with us and we will find you the best professional Halal broker company all around the world. Be a part of our fastest-growing Halal forex community and grow together with us. In case, if you feel any doubt in mind, just fill the contact form.
The issue of whether online forex trading is halal or haram according to Islam is a very controversial one. Controversial, because there does not seem to be a uniformity of opinion among many scholars on the issue. But what is the basis of the argument?
The argument usually centres around whether forex trading constitutes a form of investment whose returns can be classified as usury. However, there is a lot more that is involved and this article will attempt to shed some light on the matter whether forex trading is halal or haram. It is pertinent to note that the writer is not a Muslim and views expressed here have come from the writer’s interpretation of relevant texts and resources consulted on the matter.
What Does Islam Allow in Terms of Financial Investments?
The following is a broad view of what kind of financial investments are permitted by Islamic principles.
Generally speaking, Islam makes no distinction between spiritual and secular activities and believes that all conduct in the secular world must be guided by spiritual principles. The principles that Islam proposes for investments is that they have to be socially responsible. Based on this premise, what does Islam have to say about financial investments?
- Any form of interest-bearing investment is regarded as usury (riba) and is prohibited, as it is deemed to be an avenue that allows the lender to exploit the borrower.
- Investment in stocks of companies is allowed, but investments in companies involved in the production, processing, handling, sales or distribution of pork, tobacco, weapons and alcohol are considered to be haram and therefore are forbidden.
- Contracts that carry excessive and uncertain risk (gharar) to the extent that the legitimacy of risk or the levels of uncertainty cannot be quantified are prohibited. This is why short-selling and trading in certain derivative contracts are forbidden.
The issues involved when deciding whether forex trading is halal or haram
Online forex trading involves several processes which are called into question by the Islamic ruling on usury. For instance, a particular strategy in forex trading which was used in the high-interest rate regimes of the years immediately preceding the 2008 global financial crisis was the carry trade. The carry trade is a form of interest rate profiting strategy where the trader buys a currency with higher interest and sells a currency with low interest against it, providing a basis for profiting from the differential. Building on this, there is also the issue of overnight swap and the rollover fees associated with this. Again, the trader is paid interest for holding a long position on the higher-yielding currency. Swaps are categorized as “riba”, in the same way, that interest on loans is categorized as such. Swaps are therefore prohibited in Islam and that is why forex brokers provide swap-free accounts and term these as “Islamic accounts”.
There is also the issue of speculation. There are those who have distinguished speculation from investing and have likened speculation to gambling, which is expressly prohibited in Islam. Gambling or maisir is said to constitute a form of immoral inducement that offers wishful hopes to participants on the basis of chance, without considering the possibility of sustaining a loss.
Another issue that comes up is the issue of leverage and margin. Leverage is basically a loan used to enhance the size of trade positions in the financial markets. The issue is not the loan per se, as Islamic financial institutions are known to provide loans and credit facilities to clients. However, the problem seems to stem from the purpose for which the loan is being applied for. Islamic financial institutions are generally careful as to the use of the word “loan”. So are the forex brokers. Rather, the words “credit facility” may be more apt in describing what the Islamic banks and financial institutions provide. These are usually interest-free. In the same vein, the leverage provided by the forex brokers is interest-free. You do not get to pay charges on leverage.
Islam Has Rules On Investment, But Application Appears Subjective
So what is the of forex trading today with regards to the injunction of Islam about financial investments? The truth is that there are Muslims on both sides of the divide. Some will trade forex and others will not, and an exploration of the reasons has more to do with the subjective nature of the individual concerned.
Is Forex Trading Gambling In Islam Symbols
Here’s a perspective of a user on a popular online forum. This user no longer trades forex for the following reasons:
- No physical ownership of any currencies being traded, therefore forex trading does not fit the typical concept of “trading”. The user believes that trading involves actual transfer of ownership of a physical asset, and since this does not occur in forex trading, it is not actually trading. He quotes Sunan a Nasa’i 4611 which says “it is not permissible to lend on the condition of a sale, or to have two conditions in one transaction, or to sell what you do not have“.
- This user believes that forex trading is gambling. The analogy he deploys in his description is that in gambling, you own no physical asset and you are basically taking a chance on an event you cannot control. He cites forex trading in similar terms as taking a chance on the direction of a currency not owned, with an outcome you cannot fully control. To him, forex trading is a form of gambling.
- This user also faults the use of leverage. As stated earlier, what makes a “loan” halal or haram lies in the usage. Surely, a loan used for an activity that the user is convinced is haram, will automatically be haram as well.
However, another user who is from Indonesia, the largest Muslim country by population, has countered these claims. This user trades forex and sees nothing wrong with it from an Islamic perspective. These are his reasons:
- He believes that the conditions for financial investments as stated in Sharia law applied to the olden days and did not factor in the modern-day peculiarities of the 21st Note the subjectivity of this point.
- He believes that the only issues with forex trading that could make it haram are trading without analysis (which would constitute gambling), and trading with swaps (which is riba). To solve this problem, our Indonesian user says that he would prefer traders not trade without analysis, and that they should do so from a swap-free account.
- He also says that Indonesia recognizes swap-free investments as halal and therefore he is breaking no Sharia laws doing so.
This user may have a point: in many countries in Africa, Bureau de Change businesses are dominated by Muslims. But one could argue that they are exchanging the actual currencies and since the buying and selling prices are fixed, they are not taking a chance on any outcomes. They know what they expect to get when their exchange transactions are over.
Please note that before a country can pass laws on Sharia-based investing, it must pass through a multi-stage approval process which involves consulting of Islamic religious experts. Many brokers that offer swap-free accounts must have a Sharia-compliant investment approval board which approves and periodically audits the investment vehicles offered to their Muslim clients.
Is Forex Trading Gambling In Islam In America
Conclusion on whether Forex Trading is Halal or Haram According to Islam
Is Forex Trading Gambling In Islam World
Is forex trading halal or haram according to Islam? It is not for us to decide here. The job of this article is to provide a few insights as to the matters that arise from this discussion. There will always be Islamic faithfuls who trade forex, else you would not have forex brokers offering swap-free forex trading on their platforms.
If you believe forex trading is haram, you may decide not to trade it. After all, trading is really not for everyone. But if you believe forex trading is halal, please trade only on swap-free accounts, stay away from the carry trade and also ensure you do proper analysis before entering the market.