Is Forex trading forbidden in Islam?
Can Muslims trade Forex and CFDs?
While the answer is complex, the one answer we have concluded here is: Yes, Forex trading is Halal and CFD trading is halal if you have made a real business out of it. At the same time, we can tell you that Forex trading is Haram, yes Forex can be 100% haram if you are driven by greed and gambling sensation for a quick catch.
Trading Forex is Halal if you treat trading as a business where you calculate your risk of investment with proper risk/reward expectations. Do not treat trading as Gambling, do not trade with Swap accounts, and make sure that you do not violate any Islamic Religious laws. We have done our research and will do our best to help you answer that question today.
Is Investing in Forex Halal?
Let’s make it clear we’re not a religious people, neither we’re Islamic scholars. So, to find our answers to these questions We had to do proper research. Thus, We took this opportunity to learn from Islamic Scholars, get their opinion by asking them ” Is Investing in Forex trading Halal in Islam?”
The question of whether Forex trading is permissible under Islamic law is a difficult question to answer conclusively. While Islamic authorities certainly agree that Forex trading under certain conditions is halal (i.e., permissible according to Islamic law), there is some controversy as to exactly what conditions.
Sharia laws prohibit the acceptance of specific interest or fees for money lending (known as riba or usury), whether the payment is fixed or floating.
Forex trading in Islam must have an immediate effect so that it can be a natural part of trading that is permitted by Islamic law. Therefore, Muslims must conduct their forex trading based on fundamental and technical analysis.
However, all Muslim forex trading accounts must uphold Islamic laws. Usury, involving the payment of interest, should be avoided and should not be considered gambling.
When we talk about whether forex trading is halal or haram, it is very important to consider that forex trading is an activity that must be done very consciously and in the best possible way. In reference to forex in Islam, each trader must always comply with the rules that his religion raises.
Therefore, the doubt for those who wish to be forex traders and belong to the Islam religion must be resolved when we consider that the forex is either haram or halal depending on how it is done and under what entity we do it.