15/05/ · With Islamic trading, Forex Trades should take effect immediately, and it is seen as a natural part of commerce allowed by Islamic law. Muslims must trade with chart-based analysis or fundamental analysis. This will make Forex trading permissible by Shariah law. The regular chart-based analysis can be seen as speculation, and it is not blogger.comted Reading Time: 10 mins 01/06/ · What Islam says about online forex trading: a fresh look with more industry perspective. I have been meaning to explore further the retail foreign exchange (or forex) market following my initial thoughts on the topic here and here. In brief, my view still remains the same Estimated Reading Time: 10 mins 10 rows · List of top muslim friendly forex brokers with islamic sharia-compliant swap free account in , Estimated Reading Time: 4 mins
Islamic Forex Trading & Sharia Law | Islamic Broker List | Swap-Free
Retail conventional Forex trading, where individuals are merely speculating on currency pairs, is non-Shariah Compliant. What is more important to determine is whether or not there is actual trading and conversion of currencies in Islamic FX products. After reviewing dozens of materials and speaking to a number forex shariah Forex brokers, we conclude that retail forex practiced by private investors and speculators is a form of non-deliverable trading agreements, where delivery of the currencies never takes place.
In speculative trading nobody actually wants to do the currency exchange, so at the end of each day, to avoid the exchange two days hence, they offset their open position, and then re-opening to start the new trading day. The carry is the difference between what you pay on the loan and what you receive on the deposit, forex shariah.
When you close out your trade you reverse the process, forex shariah. Some brokers handle carry separately, while some incorporate forex shariah into the position rollover. Thus, in retail forex, there is no actual trading of any currency. The entire industry is speculative. There is gross Gharar uncertainty in forex trading. How the trade will close is totally unknown. The outcome of the open position where money has been staked is subject to Gharar. This Gharar is in the interim of a transaction and a component of the actual trade.
This is different to purchasing shares, as one actually purchases a known subject matter. The transaction of purchasing shares is therefore free of Gharar, forex shariah.
Uncertainty in shares is therefore post-contract, whilst in FX trading it is peri-contract and during the trade. The transaction does forex shariah involve any valid Shariah compliant commodity. One is taking a position on the movement of a currency pair, forex shariah. This is a Qimar gambling transaction as one is staking his wealth against his broker. The one who speculated correctly makes a profit at the expense of the other, forex shariah.
In futures transactions, because neither counter-value, forex shariah, is present at the time of contract, it is a mere exchange of promises. Futures trading, where both counter-values are deferred, is exchange of one debt for another, i.
The deferral of both counter-currencies results in a deferred transaction. Deliverable Forex, which is open to companies and big firms, is different. In deliverable FX, there is actual trading of currencies. Deliverable FX is discussed in our research paper on FX. Our paper on Retail FX trading will be published soon which looks at Forex and the different products in detail. Mufti Faraz Adam, Shariah Advisor Amanah Advisors. The views and opinions expressed in this answer belong only to the author and do not in any way represent or reflect the views forex shariah any institutions to which he may be affiliated.
Arguments and ideas propounded in this answer are based on the juristic interpretations and reasoning of the forex shariah. Given that contemporary issues and interpretations of contemporary issues are subjective in nature, another Mufti may reach different conclusions to the one expressed by the author, forex shariah. On the event of any juristic shortcomings, forex shariah, the author will retract any or all of the conclusions expressed within this answer.
The author bears no responsibility towards any party that acts or does not act on this answer and is exempted from any and all forms of loss or damage, forex shariah. This answer may not be used as evidence in any court of law without prior written consent from the author, forex shariah.
Consideration is only given and is restricted to the specific links provided, the author does not endorse nor approve of any other content the website may contain. Is Retail Forex Trading Shariah Compliant? May 21, Mufti Faraz Adam In the Name of Allah, the Most Gracious, the Most Merciful.
The Answer: Retail conventional Forex trading, where individuals are merely speculating on currency pairs, is non-Shariah Compliant. The Fiqh jurisprudence of the answer : After reviewing dozens of materials and speaking to a number of Forex brokers, we forex shariah that retail forex practiced by private investors and speculators is a form of forex shariah trading agreements, where delivery of the currencies never takes place.
There are multiple products offered by conventional brokers in non-deliverable FX such as: Contracts for Differences CFDs FX futures Spread betting FX options Spot FX All of the above forex shariah non-compliant with Shariah due to the following reasons: Gharar Invalid commodity in Shariah Qimar Deferred counter-values There is gross Gharar uncertainty in forex trading, forex shariah.
Tags: betting CFDs compliant Currencies Forex FX shariah Spot spread.
FOREX and Currency Trading - Ask Shaykh YQ #64
, time: 16:50Is Forex Trading Haram or Halal in Islam ? - Forex Education
12/04/ · Islamic Forex Trading. Many misconceptions and ambiguities surround the topic of Islamic forex trading and the Shariah laws governing Islamic finance. To be Sharia-compliant or Halal, Muslims must earn their money in a productive way, essentially meaning by providing goods, services or investing in assets 15/05/ · With Islamic trading, Forex Trades should take effect immediately, and it is seen as a natural part of commerce allowed by Islamic law. Muslims must trade with chart-based analysis or fundamental analysis. This will make Forex trading permissible by Shariah law. The regular chart-based analysis can be seen as speculation, and it is not blogger.comted Reading Time: 10 mins 04/06/ · Shariah Assessment – Forex. The ruling of Foreign Currency Exchange (bai ‘al-sarf) is from major corpus of ahadith, example as mentioned by Prophet Muhammad S.A.W: “Gold for gold, kind for kind; silver for silver, kind for kind Whoever increases or seeks an increase, then he dealt with Riba. Sell gold for silver as you wish, hand to Estimated Reading Time: 9 mins
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