Forex Ruling: Is currency trading halal or haram?

Forex Ruling: Is currency trading halal or haram?

?Trading halal or haram

Translated from Arabic to English - 

                      Forex Ruling: Is currency trading halal or haram? 

                      Do you want to invest but want to make sure that you do not fall into any sin? And do  

                      not violate the law of God in that? 

                       You may have questions like: What is the rule of forex? What is  

                     the ruling on currency trading? 

                     Is currency trading halal or haram? What  

                      is the ruling on dealing in forex? 

                     And so on...because of the usurious benefits known as the swap)Often considered a swap It is forbidden,  

                     and that is why trading in Islam is considered forbidden. The reason is that it offers you some brokers like  

                     your global brokerIslamic trading account, to trade according to Amana Trade Islamic Sharia and the  

                     enjoyment of an Islamic forex trading account for Muslim traders. This article discusses what is the rule of  

                     forex and is forex trading halal or forbidden in Islam and how you can trade with the best Islamic trading  

                     company in a legitimate way in the market without falling into the problems of whether it is haram or halal. 

                      What is the ruling forex in Islam? Or rule currency trading? 

                     The fact that a quarter of the world is Muslim and with the development of online trading, the issue of the currency  

                     market in Islam has become more and more a question. 

                     This section will examine several points of view in order to answer the question: Is currency  

                     trading halal or haram? We will explain this in forex and stocks in particular, and try to provide  

                     answers about how trading in the financial market remains halal and knowing what can be  

                     traded according to Islamic law, in forex, stocks, futures, commodities and currencies, so is  

                     trading halal or haram? 

                     This is the question that often arises among Muslim investors eager to invest in the  

                     financial markets, in fact, Islam allows the search for improvement of a person's financial  

                      position and trade has always been a feature of the Arabs since ancient times, but doubts  

                      remain about the stock market in Islam . 

                       So let's discuss it 

                      It was narrated on the authority of Ibn al-Samit in a prophetic hadith: “Gold  

                     for gold, silver for silver, wheat for wheat, barley for barley, dates for dates,  

                     and salt for salt, like for like, equal for equal, hand to hand.1587) 

By definition, forex trading can be considered halal and does not contradict the basics of  

Islamic finance. 

Currency trading is getting easier and attracting more and more traders every day. At first glance,  

this looks like a halal investment opportunity because you are simply buying and selling currencies.  

However, some items need to be checked to see if this is in line with the principles of Islamic halal  


If you buy EURUSD and later sell EURUSD, it will be a halal transaction, but in reality  

there are still many problems, and the Islamic trading account is trying to solve  

them. Now let's look at these principles in more detail and how an Islamic Forex  

account can solve them. . 

Forex ruling on usurious interest 

In fact, besides the ban on paying or receiving interest from trading transactions, things get  

worse as a standard when an investor keeps his trades open after the trading session is closed,  

the broker charges a feeIt is the interest rate on his yet open positions, Swap midnight. 

This interest rate is related to the broker that gives you an indirect loan through leverage.  

And like any loan, it's only natural that 

The reward of interest is to the creditor who in this case is the mediator. For this reason, the traditional trading account is  

considered forbidden since its use involves the payment of usurious interests, but the Islamic forex trading account is  

considered prohibited because it does not include the payment of interest fees. 

 (Swap ) 

In fact, in Islam, it is permissible to borrow money from someone for the purpose of investing to make a profit, and then  

repay the loan without paying interest to the creditor.. 

To cover the costs, the broker charges fixed fees and commissions for the variable interest removal  

service, but this method is universally approved in the Islamic community to facilitate trading. An Islamic  

trading account without swap will help you overcome one of the obstacles, which is “usury”. 

Spot currency trading 

After the element of usury has been eliminated, now comes the next question, which is about the  

exchange itself. Trading is allowed in Islam as long as it is done "hand by hand" 

In the past, most transactions were done face to face, but with the development of e-commerce, what  

constitutes the principle of "hand in hand"? 

In the context of trading, the agreement between the broker and the trader can be considered as an agreement between two  

different parties, and therefore it is halal. 

Additionally, transactions must be completed instantly, which is usually the case in forex  

trading, where orders are executed in seconds or less. 

This eliminates for example from the framework of halal binary options trading, where the exchange of the commodity  

is deferred, which is forbidden 

Forex Rule: Is trading a form of gambling? 

In Islam, games of chance and gambling are prohibited, but can forex trading be considered a game of gambling  

and an opportunity to win forbidden? 

Trading consists of buying and selling financial instruments, with the aim of making money at the same time, by  

raising or lowering the price of a currency or other financial asset. 

The trading process does not depend on chance or luck, but on the possibility of rising  

or falling prices, which the trader must predict based on analysis, strategy and trading  


Trading is not a game of chance, but an investment based on market analysis, and it is not haram. 

Forex ruling on sharing risks and benefits in Islamic trading 

One of the biggest concerns is the risk-sharing component. An element regulated by principles such as  

(sale and redemption agreement), deferred sale (credit sale), forward sale (deferred payment sale),  

murabaha and musawamah. 

When you invest, you are putting yourself in the value of an asset. If these assets become more  

valuable, you get profits. 

On the other hand, if the asset loses its value, you will lose. As a result, you are sharing the  

benefits and risks in doing this investment business. From this point of view, commerce and  

Islam are completely compatible. 

What is the ruling on trading in forex? Is trading forbidden? 

The forex market is a foreign labor trading market, it works five days a week 24 hours a day, and scholars  

differed in several matters such as hand-to-hand handling in the council and the use of financial leverage  

that is an additional commission, as well as the commission of swap deals in which the intermediary  

company takes a commission from its clients Keeping the deal open after the end of the day (or as it is  

known by the way).(Swap 

And back to the question: Is currency trading halal or haram? Let us discuss and address some principles  

about the rule of forex in Islamic Sharia and its action so that its trading is permissible. We review some  

fatwas of scholars and jurisprudence  and explain the views and the consequences of the trader by creating  

a so-called Islamic account that is free of interest on financial leverage or on overnight deals and thus  

avoiding suspicion The usurious interest that falls on regular accounts. 

Halal trading terms: 

1- There are no overnight fees, or what is known as the swap, which is calculated on each24  

hours, the deal is open. 

2- Not to trade forbidden shares, such as shares of alcoholic beverage companies, for  


3- The company's profit from the spread or the difference between the buying and selling price. 

4- Not recording any (variable) commissions or interests when dealing with the “margin” system, or the so- 

called margin, and the company gives you money; In order to be able to open deals, but do not take any  

commissions, nor any advance interest. 

5- Not to take a commission on the use of financial leverage. 

6- All transactions are made through the website; To facilitate the handling process, profits  

and losses are updated in real time in less than a second, and the ability to withdraw funds at  

any time the client wants. 

7- The company does not obligate the client to open deals, as this is completely free for the client at any  


Some fatwas regarding forex and currency trading: 

Is forex haram or halal? The scholars differed regarding the  

issuance of a fatwa on the trading of the foreign exchange  


The trader should be familiar with buying and selling operations, as well as the rules of buying and selling, so as not  

to fall into the legal prohibitions. 

- That the delivery and receiving be hand in hand, and this does not happen in forex trading in the traditional sense, but is  

replaced by the Islamic trading account in the company or the bank account, and this is permitted by the scholars of  

Islamic jurisprudence. 

- That the sale or purchase be done immediately, without usurious commissions. 

Not to gamble with capital, which costs the investor losses. 

Let us see some of the most important fatwas of scholars regarding circulation: 

2- Fatwa of His Eminence Sheikh Abdul Aziz Al Sheikh (General Mufti of the Kingdom of Saudi Arabia) This is a fatwa of His  

Eminence Sheikh / Abdul Aziz Al Sheikh, and His Eminence has permitted intercourse through modern means, rather he has  

permitted the occurrence of intercourse with mere (acceptance) yes, praise be to God. 

3- The fatwa of the Al-Azhar Iftaa House: 

The Islamic Research Academy at Al-Azhar Al-Sharif has permitted the forward selling of currencies on stock  

exchanges, as well as the banking picture that takes place in contemporary operations among global financial  

institutions immediately by electronic means. 

This contradicted the view of other jurists, who considered this science “not permissible”; Because there is no  

exchange for the two alternatives when contracting. 

In response to a query about the ruling on some forms of banking transactions that take place in the global stock  

exchange, the Islamic Research Academy said: “Dealing with the international exchange rates announced on the  

electronic screens for the current contract at the future price, so that the exchange takes place on the specified date  

agreed upon between the two parties is permissible given that there is no evidence prevent it." 

In a statement of the rulings, these transactions were approved by the Council in its last session and prepared by  

the Jurisprudence  Research Committee of the Council, that “it is permissible by Shariah to sell one currency for  

another currency of different value and nationality, such as selling the US dollar for the European Euro, and it is  

permissible for major financial institutions to deal in banking among themselves by modern means. With a capital  

resulting from banking operations issued to it and to it.” The Council also confirmed in its response, a copy of  

which was obtained by Islam Online, that “there is no legal impediment to receiving the wage agreed upon  

between the two parties in return for expertise in banking operations, with the agreement of jurists, That's the pay  

for the work." 

The complex also authorized the banking picture “that takes place in contemporary banking operations between  

international financial institutions immediately across continents by electronic means and in huge amounts that  

cannot be carried, and accordingly the arrest is made with bank restrictions … debiting and adding … so that this  

contemporary form of arrest is a list in place of hand-to-hand delivery. And now through your references to this  

article and what was mentioned in the article on the ruling of forex in Islamic law, is forex haram or halal.. the  

matter is up to you, and we only mentioned what was mentioned about our virtuous sheikhs and what has been  

reached from the rulings of Islamic law in the rulings of forex and Online forex trading and financial markets  


Ruling on trading currencies on an Islamic trading account? 

The Islamic Currency Trading Account is a Halal trading account offered to the Shariah-compliant clients  

who wish to invest in the name of the Currency Trading Account while following the principles of Islamic  


 Islamic trading accounts are also known as Islamic forex accounts that are free  

of interest. 

What is the difference between Islamic forex accounts and traditional trading accounts? There are a  

number of differences between an Islamic trading account and a regular trading account. The Islamic  

Sharia, which prohibits the accumulation of interest, means that traders who have Islamic trading accounts  

do not receive or pay any usurious interests. In addition, transactions on the Islamic trading account must  

be made without delay, so that currencies must be converted from one currency to another immediately,  

with transaction costs also being paid at the same time. 

Although halal investing in forex trading is not a recent financial innovation, there  

are still a few brokers who offer their scholars the opportunity to halal trading. 

Summary of the ruling on currency trading and the principles of Islamic forex  

trading The stock market in Islam has four basic principles: 

Prohibition of paying and receiving any form of interest (usury). 

- Instant exchanges as part of trading operations. 

Banning games of chance and gambling. 

Sharing of risks and profits. 

These four principles are not always compatible with Western banking and trading traditions, and in compliance with  

the principles of Islamic finance, specific trading accounts have been created, generally referred to as 

In the name of "Islamic Trading Accounts". 

These accounts are offered to clients who wish to do halal Islamic forex trading without having to  

separate their investment activity from their religious principles. 

In general, these accounts are quite similar to traditional trading accounts, where only  

some specific items have been adapted to fulfill the above four basic principles of Halal  

stock market. 

Open an Islamic forex trading account 

It is clear that halal Islamic forex trading online will depend partly on your tools of  

choice and partly on the broker you choose. Whatever your type of online  

investment, be it stocks or currencies,Brought to you by Trade Amana  Halal Islamic  

trading account. 

Open an Islamic trading account to start halal trading quickly. 

Before committing to an Islamic currency trading company and opening a real account with it, it is important  

that you gather as many details as possible about them, by conducting thorough research, this helps reduce  

the chances of losing money from your trades. 

Learn everything you need to know about the company and its trading conditions, and always make sureCFD  

Those specific features that you are looking for from your choice provide you with the best Islamic Currency  

and CFD trading company for it. 

Say yes to the best 

Are you ready to start trading with the best licensed Islamic currency trading company? And open an  

account to start your success in trading today. 

Who we are ... Amana Company for Financial Consultation and Trading is a financial broker established  

since 2016 and subject to the laws and regulations in force in Palestine. Amana Trading Company was  

established with the efforts made by specialists, analysts and business partners who took the slogan that  

Amana Company is your gateway to investment. Amana provides the best services and financial tools by  

providing the most suitable conditions for trading in terms of place and time, 24/5 through the technical  

support and customer service staff that we have trained and developed to provide global professional  

services to our clients. 

Amana Trading is a financial broker specialized in providing brokerage services in the global markets  

for currencies, commodities and stock indices. 

Amanah operates from the meaning of the word Amanah, which symbolizes integrity, honesty and  

integrity. The concept of this word is directly reflected in the work spirit, practices and commercial