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 - www.onlinedoctranslator.com 



                      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  



trade. 



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  



plan. 



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  



example. 



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  



time. 




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  

market. 



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  



transaction. 



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  



economics. 



 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  



transactions.