I heard that it is haram, but there is some said it is halal
who said it is haram didn't mention why.. and who said it is halal said it is just a trading
but I want to know what ( olama'a ) had said about it.. not any one else
for those who don't know what FOREX is, it is: short for foreign exchange. When one speaks of a forex profit or loss, he is talking about the increased or decreased value of an investment caused solely by currency movements.
I am just like you and I decided to investigate. Here is my investigation and it still ongoing. I hope it will help:
I also have been doing research and found that Forex is not permissible in Islam. But most of the Fatwas date 2 to 6 years ago. Things have changed lately as Forex brokers have been offering Islamic accounts that are supposed to be Riba-Free. These accounts are also called No-Riba accounts.
I would like to hear some Ulamas giving insight on these No-Riba accounts.
So far I haven't found anything, therefore I won't trade Forex until I see a clear green light from a trustworthy source.
Please note that a Forex broker that offers Islamic accounts CANNOT tell you that Forex is HALAL as there is a conflict of interest here. He is just trying to sell a product. Only a trustful, highly educated source in Islamic Jurisprudence can speak on this matter.
On the other hand, if Forex trading was Haram then why is that the six GCC countries poured $45 Billions in Forex trading in March 2009. See link here:
Quote/ Trading in the greenback, Saudi nationals invested $22.5 billion (Dh82.8 billion) or 50 per cent of the total volume traded last month, followed by UAE investors who contributed $13.5 billion (Dh49.7 billion) or 30 per cent of the volumes traded in March. /End Quote
Shaykh `Abdul-`Azeez Bin Baz was asked the following question:
-------------------------------------------------
The ruling on buying and selling Currencies
Question:
Is it permissible for the Muslim to buy dollars or other currencies at a cheap price and then, after the price goes up sell them?
Answer:
There is no harm in that if he buys the dollars or any other currency and keeps it with him. Then he sells them after that when the price goes up. There is no harm in that. However, he must buy them hand to hand (by paying up front) and not on credit to be paid later. He buys the dollars with Saudi riyals or Iraqi dinars (for example) hand to hand. Currency must be paid for up front just like buying gold with silver, hand to hand. And Allah is the One Who is sought for help.
Shaykh `Abdul-`Azeez Bin Baz
Fatawa Islamiyah Darussalam Vol:4 page no.415
http://fatwaislam.com/fis/index.cfm?scn=fd&ID=1039
-----------------------------------------------------------
Yes you can buy a currency and later sell it for a profit. No problem with that as Shaykh Bin Baz explained. The big question our Shuyukh need to answer if if MARGIN TRADING IS HALAL. This is where Satan's venom is hidden.
I will try to explain where this RIBA is hidden:
When you trade on MARGIN, your Forex broker allows you to borrow 99% of the money. (Your deposit is $1,000 and you get $99,000 to buy a 100k lot). They won't charge you commissions or interest for that borrowing. They went even farther to the point if you hold your position overnight your rollover is ZERO. They also promise that they won't pay you interest for that too. As a Forex trader, you are not involved in Riba, hence the No-Riba accounts. But here is the bad news: When you borrow that $99,000, your broker gets it from a financial institution, most likely a bank, AND HE HAS TO PAY INTEREST ON ALL LOANS YOU ARE MAKING.Although you are not involved in Riba, Riba is made on your behalf.
The evidence of this is from Thomas Papantoniou, Account Manager of Tadawul FX. Here is what he said :
Quote/ The second downfall caused by Islamic Accounts is that some clients take advantage of the benefit of having no SWAPs to pay. They can do this by opening positions and leaving them open for very long periods of time, for which at some point their position will go into profit. This is unfair on the Forex Company as they are the ones that are left to PAY THE SWAPs CHARGED BY THE BANKS THEY WORK WITH. /End Quote
You can read the entire Thomas Papantoniou article here: http://ezinearticles.com/?Islamic-Fo...nts&id=1587284
As you can see, Thomas Papantoniou from Tadawul FX clearly points that any Muslim holding his/her position overnight will cause TadawulFX to pay interest (RIBA) to the banks they work with.
And this is what is refraining me from trading Forex. I just refuse to be the source of someone else (in this case, my broker) to commit Riba on my behalf.
My investigation is still ongoing. I want to know why our brothers in the GCC, especially in Saudi Arabia are allowed to trade Forex. If this hidden Riba exists in their trading, then THEY ARE ALL UNDER WATER. Else, we all want to enjoy the same rights.
great topic, so the forex sth. not to be trade, involving Riba? answer in one word, online forex trading is Haram or Halal? thanks. if it is haram i will not trade the regular online forex trading, will quit my account with them......
Thanks.
i have question that the online forex trading is haram or halal, answer in one word.? is there any Satan hidding with very tricky type in the forex trading? thanks.
I know that it is haaram because of many things: Interest,ones loss will be ones gain.
The first reason you can all surely understand but the second reason is that the Prophet said something like this once "A brother will not attain paradise if he does not want the same for his brother" if needed I can insh'Allah look it up though the moral is the same. That is why FOREX is haaram. I have seen some Islamic ones..
If you buy another currency because you need that another currency, that is halal.
But I think this thread is about Forex trading like people do in dealing room.
Yanal is right, ones loss will be ones gain. This forex trading is a game of win or lose, with money. This is very close to gambling. And is gambling halal ?. We know the answer.
I think it is important to differntiate FOREX trading with commercial banking practices. As per well-established laws, any interest gained from holding these currencies is haram.
Yanal is right, ones loss will be ones gain. This forex trading is a game of win or lose, with money. This is very close to gambling. And is gambling halal ?. We know the answer.
That is not true, both the seller and buyer have the potential to make profits. As like any commodity (such as gold/silver/oil), you risk the chance of losing money when the currency value drops (which is linked to some serious economics)
I think it is important to differntiate FOREX trading with commercial banking practices. As per well-established laws, any interest gained from holding these currencies is haram.
That is not true, both the seller and buyer have the potential to make profits. As like any commodity (such as gold/silver/oil), you risk the chance of losing money when the currency value drops (which is linked to some serious economics)
I got an information from my friend who work in Forex trading company (not bank). He said that is like gambling. And I heard when we get gain another one loss.
But I must confesse, I don't know enough about Forex trading. Sometime I wonder, how can we buy a bilion dollar with only few hundred thousands Pound ?. And how can they loss hundreds milions dollar in few days if their money is just few milions ?.
I think I must learn further. Thanks for your information, brother.
I have a question too...what is forex? Im baffled (answers would be very appericatted)
I think FOREX is just modern jargon for foreign exchange , or buying and selling currencies .
Sometimes one needs to buy a foreign currency to use whilst visiting a foreign country , which would be a simple transaction for ones personal needs.
But big time operators in hedge funds and dealing rooms try to make big money playing the market ; which is fancy way of saying one is gambling for high stakes.
There is another , called FOUREX , which is a canned or bottled beverage available in Northern Australia
Greetings and peace be with you barrio79; I think you have it right.
But big time operators in hedge funds and dealing rooms try to make big money playing the market ; which is fancy way of saying one is gambling for high stakes.
An honest days toil for an honest days wage is best, millions of people work in a country to give a country a value. Forex is gambling and hoping to win money from the toil of other peoples hard work.
In the spirit of praying for justice for all people
Eric
You will never look into the eyes of anyone who does not matter to God.
25:36 And the true servants of the Most Merciful are those who walk the earth with humility and when the ignorant address them, they respond with words of peace.
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