Money is not useful in and of itself, rather, it is a means to facilitate value-producing activities. 2.I have a 1:1 leveraged account i.e. The prophet peace be upon him said that if the currencies are different trade as you wish so long as the transaction happens hand-to-hand [the change of possession must happen at the same time in order to avoid loans disguised as trades]. Instead, the economy of the entire island is now in crisis because 1/10th of its population lost money when the exchange rate changed. Not even a small percentage of shares are accepted through these trades that aren’t categorized under Halal. When you trade binary options or CFDs products you are exposed to a high risk of loss. It is clear that halal online trading will depend partly on your actions and partly on the broker you opt for. Online forex trading involves several processes which are called into question by the Islamic ruling on usury. The user believes that trading involves actual transfer of ownership of a physical asset, and since this does not occur in forex trading, it is not actually trading. Moreover, the companies dealing in providing tourism services, hotels, and pornographic materials are categorized under Haram! After starting a business, the entrepreneur can lose their money in ways that were previously not a possibility before starting the business. The hand to hand exchange is the perfect solution, which perfectly depicts that Prophet Mohammad had the idea in their mind regarding the trading, which is quite natural in trading. Blessing be upon you بارك الله فيك! Gambling or maisir is said to constitute a form of immoral inducement that offers wishful hopes to participants on the basis of chance, without considering the possibility of sustaining a loss. After reading many misleading articles online I was lucky to find - not only written by pious muslims, but also much information about FX and Cryptocurrency trading. Let me illustrate why this is with an example: Now, what happens with Forex trading? when asset ownership changes hands. These are usually interest-free. Any form of interest-bearing investment is regarded as usury (riba) and is prohibited, as it is deemed to be an avenue that allows the lender to exploit the borrower. Learn how your comment data is processed. Shukran for the good contents. 5-In some cases the agent is selling something that he does not possess, and selling what one does not possess is forbidden in sharee’ah. We do not give investment advice. But what is the basis of the argument? The second type of risk creating activities are: An example of this type of activity is gambling. So what is the of forex trading today with regards to the injunction of Islam about financial investments? I know what I’ve said may be hard to hear for someone who has already committed time, money and effort in the way of developing Forex trading knowledge and skills (to the extent that acquiring such skills is even possible). I have registered with 3 different brokers provided by HalalTradingBrokers so I could check their platform and service. People who are involved in businesses other than the mentioned-above could be categorized under Halal and can have shares in the same companies as per the Islamic culture. Even when we use leverage from the broker aren’t we paying the broker the pay for the work done by him which is getting a stock from the stock market? One hundred people on the Island would be poorer because of this change in exchange rates which should have had a rather limited practical impact on their economy.